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Ben Bernanke FTMFW Quote Of The Day

Tyler Durden's picture


And the winner is...


That's right. He just said that. And with that, a Lewis Black moment is coming on...

He also said some other stuff.


As a reminder, shadow inventory is now at a record high. But Cramer just called the housing bottom. For the 7th time. For the masochists among our readers, his complete comments can be found here.


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Fri, 02/10/2012 - 13:36 | 2146482 economics1996
economics1996's picture

No shit, 6 million foreclosures to go.

Fri, 02/10/2012 - 13:41 | 2146516 TruthInSunshine
TruthInSunshine's picture

I'd argue that the 6 million estimate is highly subject to volatility based on a now increasingly velocity of delinquencies.

At any rate, it's great news (/sarcasm/) that The Bernank has finally amended his 2005 opinion (you can watch the interviews with Steve Slieezman & Maria Bartiromo - Hilarious Bartiromo interview begins at 0:45 in below; it's mind blowing, both that a person can be so obtuse and that such an obtuse person could be the Chairman of the Non-Federal Reserve-less Non-Bank):

Bernanke's EPIC Calls, Including on Housing, Circa 2005 through 2007
Fri, 02/10/2012 - 13:43 | 2146535 Innocent Bystander
Innocent Bystander's picture

or maybe that’s the best contrarian indicator we have.. A Housing Bottom at last?

naa.. who am I kidding?


Fri, 02/10/2012 - 13:46 | 2146554 redpill
redpill's picture

Gosh dear Fed, now what could have possibly gotten housing so out of balance hmmmmmmm?

Fri, 02/10/2012 - 13:52 | 2146598 Temporalist
Temporalist's picture

I've been saying for years that the Fed pushed all it's chips into RE and he is just fucking coming to grips with it? 


Oh and incidentally the Fed is not political in the least, totally separate from politics, is not influenced by politics at all, needs to be independent from politics, and that is why it's private and secretive.

Fri, 02/10/2012 - 13:56 | 2146624 LowProfile
LowProfile's picture

I say: Holy crap.  He fucking actually fucking SAID THAT?!

Is it possible he actually believed all that QE bullshit he spewed when this shit started, and that he actually thought he could fix it by printing "the right amount"?!

I find it really hard to imagine he's a true beliver, but I'm starting to wonder..!

Fri, 02/10/2012 - 13:59 | 2146647 Badabing
Badabing's picture

Wasn’t it 2007 when Benny and the feds sang a tune that sounded like real estate prices will never go down?

Fri, 02/10/2012 - 14:08 | 2146697 AldousHuxley
AldousHuxley's picture

BERNANKE: HOUSING MAY NO LONGER BE VIEWED AS SECURE INVESTMENT..... we must bailout all irresponsible banks and "homeowners" with money we don't have and MAKE HOUSING A SECURE "INVESTMENT" AGAIN so that banks can put you back into 30 year bondage and create home asset "wealth" out of thing air.


mortgage is typically the largest debt for working class, banks sell debt, bernanke is a bankster.

Fri, 02/10/2012 - 14:16 | 2146742 Manthong
Manthong's picture

Short McMansions, Long Yurts

Fri, 02/10/2012 - 14:29 | 2146794 DaveyJones
DaveyJones's picture

yurts and yogurt, that's my philosophy marty

Fri, 02/10/2012 - 18:08 | 2147785 Pinto Currency
Pinto Currency's picture


There are 18 million homes vacant in the US:


THe Bernank is like a pilot crawling out from the wreckage and saying to the survivors that the condition of the plane he crashed is an impediment to take-off.

Hmmm., now about your pilot's licence Bernanke....


Fri, 02/10/2012 - 23:23 | 2148579 engineertheeconomy
engineertheeconomy's picture

Usuary / loan interest is not payable. It can never be paid, not $100 trillion, not $1. No amount of interest can be paid if it does not exist in the physical universe. It's like if the Sun borrows the Moon from the Earth, and the Earth expects 2 moons to be repaid. Where in the fuck are you going to get an extra moon Bernanke, you going to pull it out of your ass? Love it how he's playing stupid. Extremely well engineered evil.

Fri, 02/10/2012 - 17:15 | 2147629 Frummox
Frummox's picture

Solar powered Yurts off the grid, with gardens.

Fri, 02/10/2012 - 15:39 | 2147183 Urban Redneck
Urban Redneck's picture

At least he has the excuse of a moral obligation to his shareholders namely Buffet, Diamon, and their slightly less TBTF brethren.  It's not like the job of Chairman & CEO of the Federal Reserve is a "public service" gig like Secretary of the Treasury (is supposed to be)...

Fri, 02/10/2012 - 16:09 | 2147288 cranky-old-geezer
cranky-old-geezer's picture we must bailout all irresponsible banks and "homeowners"

No, just banks.  Homeowners can go fuck themselves.

Bernokio cares only about maintaining the value of mortgage paper held by banks.  Everything he has done has helped banks, not homeowners.

Fed bought boatloads of MBS to maintain the value of MBS, which helps banks and other investors like hedge funds,not homeowners.

Timmy is backstopping Fannie & Freddie paper, which helps banks and other investors like hedge funds, not homeowners.

Ben is keeping the secondary paper market inflated while the primary market sees home prices falling. 

There has been no bailout for homeowners.  Nothing has been done to reduce mortgage principal.  There's been some help on the interest side with refi's at lower interest and things like that.

So homeowners sink further underwater as mortgage balances stay the same while home values drop.

If someone defaults, the bank gets bailed out AND they get the house.

The homeowner is S.O.L.

Obama's "settlement" changes nothing ...except making it easier for banks to foreclose.

Ok, so they toss the (former) homeowner a $2k bone as they're moving out.  Wow, big help.

Fri, 02/10/2012 - 19:06 | 2147952 eatthebanksters
eatthebanksters's picture

What else can banks orignate, package and sell in such huge dollar amounts? And what product other than securitized mortgage debt can they write trillions upon trillions of derivatives contracts all the while paying themselves fat fees?  Without having any emprical evidence other than having been in real estate 31 years and knowing the size of the market, I would guess there is not a single product that creates more fees than mortgage back securities and all their derivative offshoots.  So, with the big banks technically insolvent because of their toxic assets which have not yet been marked to market, and their cash flow at the verge of being severely pinched as a result of the shrinking MBS market, The Bernank will come in on his white horse and socialize the banks huge losses buy purchasing toxic debt and laying the burden squarely at the feet of the taxpayer.  The banks will then be able to survive. on their shrinking cash flow to go an cook up some other financial nightmare. Taleb said something interesting recently; he said that the problem with socializing private debt is that the parties that were bailed out will go back and take on more new risky debt and in the end you will have much more debt than before the bailout.  Obummer and the EU pols are leading us to the biggest implosion in the history of the world.  Kyle Bass said it best when he stated that while it would be very painful, we can manage a voluntary restructuring, and, that an involuntary restructuring would be a so many words.  Guns, Ammo and canned food baby...the end may take 20 years to come, but with the leaders we have, you can be sure it's coming...  

Fri, 02/10/2012 - 14:08 | 2146698 TruthInSunshine
TruthInSunshine's picture

I'd argue The Bernank knows what he's doing, but is a psychopath.

Before people accuse me of 'tin foil' or other such things, it's only because few people truly understand what psychopathy is that they can't recognize The Bernank (and a majority of people in his position) as such. They're not easy-to-identify-Hollywood-style villains.

ZH homework for the weekend that explains how such a large market can be so easily manipulatd (non ZH members can study this, too, for extra credit):


"I Am Fishead"

Fri, 02/10/2012 - 14:34 | 2146829 Transformer
Transformer's picture

I would disagree with your saying the Bernank is a psychopath, although my certainty would be low.  He just doesn't seem smooth enough, or glib enough, to fit the bill.  I think he is genuine, a college professor with a theory that he has spent a lifetime developing.  His problem is that the theory doesn't seem to work.  I think he was picked for the job because of his beliefs and his stated remedies back in that famous speech in 2002 or whenever it was.  Next up is a devaluation.  He seems to be a meek, non dominating type of guy, who probably follows directions well.

Of course, no one has done the Hare test with him. 

Fri, 02/10/2012 - 15:00 | 2146958 Oracle of Kypseli
Oracle of Kypseli's picture

He is just starting to shift blame to congress knowing that it will be over soon.

Fri, 02/10/2012 - 15:04 | 2146973 NotApplicable
NotApplicable's picture

Hell, Benron would be lucky to pass a Turing test.

Fri, 02/10/2012 - 15:07 | 2146991 Ripped Chunk
Ripped Chunk's picture

Bingo! They put an acedemic in there with no real world experience to "take the fall".


Fri, 02/10/2012 - 16:06 | 2147312 macholatte
macholatte's picture

an acedemic in there with no real world experience


That IS the criteria to get the job. Has there ever been anyone in the upper reaches of the FED with any "real world experience"? Perhaps they exist in a different world.


Beware of the man who works hard to learn something, learns it, and finds himself no wiser than before.
Kurt Vonnegut


Fri, 02/10/2012 - 16:30 | 2147438 macholatte
Fri, 02/10/2012 - 20:23 | 2148176 AldousHuxley
AldousHuxley's picture

federal reserve = central bank

even communist north korea has a central bank.


it offers banks and governments way to control the nation's economy and citizen's wealth on a global market.

Supposed to stablize the economy to prevent depressions  and hyperinflations, but today it is being misused by politicians to cover up banker's own mistaks.

Fri, 02/10/2012 - 15:11 | 2147001 TruthInSunshine
TruthInSunshine's picture

A nervous, bumbling Bernank (allegedly brilliant but just not socially polished)- That's what Bernank wants you to think.

I'm only half-joking.

Wouldn't the projection of total confidence hurt, more than help, the ability of The Bernank to come off as a sympathetic figure (it's a stretch, but bare with me), and thus retain his job, if clips of him beaming arrogantly and confidently explaining things to the puppets in the Senate, in the midst of the meltdown of the American Economy, were frequently aired on State TV...errr...networks and cable news programs?

Fri, 02/10/2012 - 16:37 | 2147471 delacroix
delacroix's picture

who is his handler?

Fri, 02/10/2012 - 20:25 | 2148180 AldousHuxley
AldousHuxley's picture



he gets to reappoint bernanke.


thus fed is compromised to subsidize the US Treasury.



who is Obama's handler? His biggest donors....bankers.

Sat, 02/11/2012 - 00:43 | 2148725 UP Forester
UP Forester's picture

Gee, looking at the Administrations of every President since the 30's, any guesses how many appointees and undersecretaries have been members of the CFR?

Fri, 02/10/2012 - 14:39 | 2146843 MarcusLCrassus
MarcusLCrassus's picture

"I'd argue The Bernank knows what he's doing, but is a psychopath."


That type of person is called a "sociopath".  They know what they do is wrong, yet they do it anyway.  

Fri, 02/10/2012 - 15:03 | 2146967 NotApplicable
NotApplicable's picture

My guess is that all "wrongs" are rationalized away, seen as being the cost of supporting the "greater good." To them, there is nothing wrong about sacrificing the "useless idiots" if it makes life better for the survivors.

All it takes is that first step, dehumanization of the "lesser" people. Once that's accomplished, there's no limit to its application.

Remember, they're doing "God's Work." Literally.

Fri, 02/10/2012 - 16:24 | 2147411 TruthInSunshine
TruthInSunshine's picture

Is the rationalization ex post facto truly done in a conscious way, though?

Freud, in between doing some coke or morphine, would argue that a cigar can be a cigar, but can argued to be more by someone who is disingenous.

Fri, 02/10/2012 - 16:11 | 2147338 Likstane
Likstane's picture

How can you watch a video from a man with an ear-ring about narcissistic psychopaths? 10 seconds was all I could do. 

Fri, 02/10/2012 - 17:25 | 2147657 TruthInSunshine
TruthInSunshine's picture

So you're saying he's the problem?

Fri, 02/10/2012 - 18:38 | 2147883 Jena
Jena's picture

"I Am Fishead" is so well worth the time, TIS, thanks.  I'll ask my husband to see it this weekend.  I know he'd appreciate it, too.

Fri, 02/10/2012 - 22:17 | 2148464 TruthInSunshine
TruthInSunshine's picture

No prob, Jena.

Fri, 02/10/2012 - 14:35 | 2146830 AL_SWEARENGEN

And didn't Bill Gross just place a big bet that the fed would be buying lots more MBS?

Fri, 02/10/2012 - 14:40 | 2146847 spondoolix
spondoolix's picture

Al:  remember the chinese guy in your series?  All I can remember is "Swedgin cock sucka"

Fri, 02/10/2012 - 14:56 | 2146929 chunga
chunga's picture

The government is projecting that homeownership will fall from about 60% to about 40% -- that alone is a staggering number: a 20% drop, and I'm guessing that their estimates are (as usual) too low.

But we know about 1/3rd of people don't have mortgages so when we multiply 2/3rds (the number of people with mortgages) by 1/5th (the number of people they say will lose their homes) we get 2/5ths ...40%.  Then there's some amount of people who have pre-bubble mortgages; it's probably safe to say about half the people with mortgages have defaulted or will default on them.

The banks have repeatedly called their financial junk "products." They've used the term again and again; they were "innovating" with new financial "products."

You had the balls to file the original MERS claim .. how about taking it a step further with a product liability claim?  The banks products failed about half the time: a staggering rate.  Imagine any other product that failed half the time, leading to massive damages. Lawyers would be lined up for blocks suing on theories of product liability but I haven't seen a single suit that goes after them saying "the banks created a defective product then blamed the people it injured."

It'd be as if a car company released and financed a car that blew up half the time .. then said that all the people whose cars blew up -- half of them -- used it incorrectly and should be forced to pay for the financing.  Then the lawyers for those people fell into the minutia of UCC law on the financing arrangements rather than arguing "wait .. there's no way half the cars this company builds blow up; the car itself is obviously the problem."

I’ve made some other crazy analogies like the exploding ford pinto, medical products (no check-up, no-illness required “pick-a-med” RX complete with financing – entire medical industry loses, forges, transfers nearly ALL RX pads when patients drop dead). Then there’s the tobacco settlement…lol.

Fucking Charlie Foxtrot already...

Fri, 02/10/2012 - 14:12 | 2146718 Flakmeister
Flakmeister's picture

That was not a bad Lewis Black impersonation...

Fri, 02/10/2012 - 14:13 | 2146723 Liquid Courage
Liquid Courage's picture

I suspect he actually did believe in the beginning that the initial 700 billion hit - huge by all previous standards - would do the trick under the "get-a-bigger-hammer" theory. I think he was shocked ... shocked shitless that it didn't work and has been scrambling and improvising, with his faith in the Doctrine of the Lord Keynes crumbling ever since. Poor Ben. How does someone of his intelligence fail to see such obvious bullshit? Groupthink. Intellectual corruption.

Fri, 02/10/2012 - 14:39 | 2146842 unnamed enemy
unnamed enemy's picture

the guy is just doing his job, following orders. he is just a puppet, not the pupet master.


Fri, 02/10/2012 - 14:53 | 2146916 aheady
aheady's picture

Seriously. How many YEARS do we have to go on pointing that out. Christ.

Fri, 02/10/2012 - 15:06 | 2146984 NotApplicable
NotApplicable's picture

How many ya got?

Fri, 02/10/2012 - 15:36 | 2147165 aheady
aheady's picture

They're dwindling down lol

Fri, 02/10/2012 - 16:02 | 2147264 aheady
aheady's picture


Fri, 02/10/2012 - 23:30 | 2148600 engineertheeconomy
engineertheeconomy's picture

Bernanke = scam artist/puppet/damned good actor/fall guy

Fri, 02/10/2012 - 23:30 | 2148601 engineertheeconomy
engineertheeconomy's picture

Bernanke = scam artist/puppet/damned good actor/fall guy

Fri, 02/10/2012 - 14:13 | 2146725 Taterboy
Taterboy's picture

Next thing you know he'll be wearing a Ron Paul button and hawking gold on late night TV. 

Fri, 02/10/2012 - 14:31 | 2146808 tekhneek
tekhneek's picture

Right? Ben... aren't investments supposed to at least maintain their value?

Shit man... you're a worse liar than... Ben... Berna... ah yeah fuck.

Fri, 02/10/2012 - 13:57 | 2146632 TheFourthStooge-ing
TheFourthStooge-ing's picture

BERNANKE: Tree leaves to replace FRNs as US currency.


Fri, 02/10/2012 - 14:01 | 2146661 Uncle Remus
Uncle Remus's picture

At least tree leaves do actually grow on trees.

Fri, 02/10/2012 - 14:15 | 2146737 Sokhmate
Sokhmate's picture

Newsflash: Genetic breakthrough: FRNs to grow on genetically modified spaghetti trees.

Fri, 02/10/2012 - 14:33 | 2146825 dracos_ghost
dracos_ghost's picture

So RE is not a secure investment but those mortgages backing them are secure and secured godnammit.


Fri, 02/10/2012 - 13:47 | 2146562 DeadFred
DeadFred's picture

If you read the snippets of his other comments it looks like PIMCO is going to make money on their MBS positioning. Sure sounds like he's setting the stage for a new asset purchase program.

Fri, 02/10/2012 - 13:51 | 2146594 Troll Magnet
Troll Magnet's picture

that was my takeaway, too.  just laying the groundwork for more QE.

Fri, 02/10/2012 - 13:55 | 2146617 Vagabond
Vagabond's picture

So if I want to buy a (modest) home am I better off buying now and "building equity" or renting for another year or two and waiting for prices to drop further?  If the Fed steps in and starts buying that means prices won't be allowed to fall, but mortgage rates will get cheaper?  Will housing prices begin to move up if the Fed is buying?

Fri, 02/10/2012 - 13:59 | 2146649 DeadFred
DeadFred's picture

Price will likely still fall but the banks will get to offload their positions is my take. Ben doesn't care about housing, he cares about the banks and possibly Obama's re-election.

Fri, 02/10/2012 - 14:08 | 2146699 IAmNotMark
IAmNotMark's picture

I sold in 2005.  Been renting since then.  Closing on a house next month.

I'm not sure if housing will be up/down/or sideways in a year, but my costs for buying will be less than my costs for renting.  Time to switch.

Fri, 02/10/2012 - 14:31 | 2146809 Id fight Gandhi
Id fight Gandhi's picture

Actually you'll likely be fine. If you bought what you needed, not mcmansioning.

That's price discovery right there when mortgage costs much less than renting.

Fri, 02/10/2012 - 17:05 | 2147583 MachoMan
MachoMan's picture

That's fucking crazy...  I can't think of one single time in my local RE market that it hasn't been cheaper to own than rent...  I mean, we don't have the build up (at all) that other places had...  and our average home price is somewhere in the ~3-4x average family income range...  but still... 

and the divide is only getting worse...  meaning, rents are going up big time here...  it won't be long before they're 2x the cost to own...  although, there is a VERY hard ceiling to the monthly amount this market can support...  anything over $1300/mo. is asking for trouble from a landlord perspective...  (if you can afford those payments, then you buy, not rent).

Fri, 02/10/2012 - 14:32 | 2146811 TruthInSunshine
TruthInSunshine's picture

Make sure to get an agreement from the tax assessor that they'll keep taxes and other 'fees' from rising more than (insert whatever % you're comfortable with here) for the next (insert whatever number you're comfortable with here) years. On 2nd thought, don't bother, because they'll never so commit.

I'm not saying that you're assessment and timing are wrong, but just mentioning a possibly overlooked cost in your analysis.

Fri, 02/10/2012 - 17:01 | 2147569 MachoMan
MachoMan's picture

Just take them to task if they ever increase your assessed value...  it's about all you can do...  if your local citizens decide to tax you more, there isn't dick you can do other than be politically active.

Sat, 02/11/2012 - 00:55 | 2148734 DaveyJones
DaveyJones's picture

percentage increase is one thing but was thinking of setting up a side practice for that other specific purpose. Go into Superior Court challenging tax assessed values. What you think? 

Sat, 02/11/2012 - 02:10 | 2148798 MachoMan
MachoMan's picture

Doesn't seem to have much value to me...  any tom dick or harry can do it...  I'd only open a specific practice for things that are exclusive to the practice of law...

Fri, 02/10/2012 - 14:32 | 2146822 tekhneek
tekhneek's picture

Yeah I'm in the market. My rent continues to go up every year and I can buy a house for about 30% less in monthly payments.

I don't know what the hell to do right now though. Ben just fucked me, again.

Fri, 02/10/2012 - 16:25 | 2147416 economics1996
economics1996's picture

Buy the house you want to live in.

Fri, 02/10/2012 - 20:41 | 2148223 AldousHuxley
AldousHuxley's picture

how much for the white house on pennsylvania ave.?

Sat, 02/11/2012 - 00:58 | 2148736 DaveyJones
DaveyJones's picture

Even if real estate goes down, a yard that can produce safe cheap food will, without a doubt, continue to be an appreciating value.

Fri, 02/10/2012 - 15:14 | 2147030 markalpha
markalpha's picture


I am using the same strategy. To bad i live in LA where prices are still stubornly high. Renting here still saves my family around 1000.00 per month. The average house is still above 500,000 in our neighborhood. I am trying to convince my wife that we need to hold back on purchasing for at least 2 more years.

Fri, 02/10/2012 - 14:38 | 2146840 X86BSD
X86BSD's picture

I bought in 2009. I dont claim to be the smartest. And I knew at the time I would not be smart enough to find the bottom and buy then. Plus that was the last year of the First time home buyers credit. So I jumped. But I jumped as smart as I could. I bought a small 830 sqft 2 BR 1bath home for 64,000. Fixed 30 year @ 5.25%. My mortgage payment is 524.00/mo. I wanted a home, but I wanted something that was small, CHEAP to heat and cool and cheap to upkeep. I also was thinking of my retirement. As I get older I wont want to climb up and down stairs so the home is one story no basement. Decent size yard front and back to grow lots of fruit and veggies, and good neighbors! Is it the ritz carlton? no. But it was realistic and I have been making improvements such as new modern windows and doors for effeciency and am about to rip out all the drywall and rewire to modern code, reinsulate, and re drywall. All of which I can do myself if I take my time and go slow and plan things out. The mortgage is low enough that even if the wife and I wind up working at mcdonalds we can afford it. I never wanted the home to be in jeapordy because one of us lost a job or we were making minimum wage. So for me I think I did good, I planned realistically, and will be ok. Now the rest of these sheep that bought 250,000 homes or even 100,000 homes while they have a career as a hair dresser or auto mechanic well they are fucked and should be. We should not be rewarding idiocy. There is blame from the bankers AND the buyers. No one put a gun to their head to sign off on insanely unrealistic homes at insanely unrealistic prices and rates. I'd just let it all burn. Bankers get fucked and not bailed out, and the homeowners cant cancel out their mortgages. You break it you buy it bitches! 

Fri, 02/10/2012 - 15:26 | 2147096 Ayr Rand
Ayr Rand's picture

If all Americans were as careful as you, we would have no economic problems. 

A problem that has received little coverage: people who pull several $100Ks out of their homes on refinancing and then walked away. They now have lots of cash. The bank writes down the loss, and the taxpayer pays for it whether by direct bailout or ZIRP. It would be useful for the government to track these people down and prosecute. Or if not, let us all start doing this. 

Fri, 02/10/2012 - 17:01 | 2147572 X86BSD
X86BSD's picture

They wont prosecute though. Just like they wont prosecute the millions here illegaly. It would clog the courts to a stand still. They have no intention of upholding contracts and we all know it. We have gotten so far away from free market capitolism and contract law that people today don't even know what the fuck that is! Its sad and makes me think of all the blood shed during the war of independence and what they all would think now. What we allowed the country to become. Its very depressing. I just hope the big RESET comes soon so we can start over and this time put a little more clarity in the Constitution and some serious bite. 

Fri, 02/10/2012 - 17:49 | 2147735 Marco
Marco's picture

Why should they be prosecuted? They had a contract for a no recourse collateralized loan and decided to give up on the collateral rather than repay the loan ... it's legal ... hell by Objectivist standards it's even moral!

To do otherwise out of respect for tax payers would be nothing less than altruism.

Fri, 02/10/2012 - 15:55 | 2147251 Jendrzejczyk
Jendrzejczyk's picture

X86, usually no need to tear out all the drywall just to rewire. Kitchen wiring gets pretty intense, so maybe tear it all out there. A few well placed holes/channels and some fishing from the attic down may be all you need....and some patching skills.

Re-insulating can also be done with a little ingenuity.

Fri, 02/10/2012 - 17:06 | 2147589 X86BSD
X86BSD's picture

Well I thought about it, but its a home built in the 50's so I am sure the wiring is in need of replacing and the dry wall in there now is not that great. Its got several places where there are physical deformities in the corners of the ceiling etc. It could probably be cut and patched in places but I really want to put in some really good green insulation. I want to minimize my heating/cooling bills. Plus alot of the circuits are wired wrong. Reversed, not grounded, amature hour. I want to insulate the water pipes which granted I can do from the crawlspace. Also I have this need to know I can do it. Self satisfaction I guess. That I redid it all myself. Maybe its an ego thing. *shrug*


Fri, 02/10/2012 - 19:45 | 2148088 Jendrzejczyk
Jendrzejczyk's picture

If you need wiring advice when you get in to it, I'm always hanging around ZH. Don't hesitate to ask. Love the can do attitude.

Sat, 02/11/2012 - 05:59 | 2148879 Mitzibitzi
Mitzibitzi's picture

Not sure if you can do it where you are, but since you plan to strip the drywall anyway...

My mate just replaced the drywall on the exterior side of his living room / lounge. It already had a 2" slab of foam insulation but he added a sheet of reflective mylar on the inside, then boarded over it with fresh drywall. Night and day difference in temperature, now. Steve reckons he's turned the thermostat valve on the radiator in there down 3 or 4 degrees (celsius) because it stays warm so much better.

Might be worth looking if there's an equivalent where you are, as your aim is to lower heat / AC bills as far as possible.

Fri, 02/10/2012 - 16:46 | 2147510 delacroix
delacroix's picture

if you have room, for an addition, or plan to enclose your patio, I would stub out hot and cold water, and run an extra wire or 2 to the breaker box, while the drywall is down.

Fri, 02/10/2012 - 17:08 | 2147597 X86BSD
X86BSD's picture

The addon on the back of the house we want to do eventually would have access to the plumbing in the kitchen and plumbing from the tub in the bathroom so we shouldnt have a very big plumbing delima there. And absolutely it will get its own circuit.



Fri, 02/10/2012 - 17:39 | 2147707 Marco
Marco's picture

Buying in a full recourse state is a gamble at the moment. If TPTB go for a deflationary collapse you will be fucked.

In a non recourse state you're hedged with little downside ... inflationary collapse = free house, deflationary collapse = walk away.

Fri, 02/10/2012 - 13:56 | 2146629 resurger
resurger's picture



Fri, 02/10/2012 - 14:06 | 2146690 bigdumbnugly
bigdumbnugly's picture

i'm going to need to dig a basement underneath my basement soon.

the kids will be flying back like the swallows of capistrano.

Sat, 02/11/2012 - 01:06 | 2148743 DaveyJones
DaveyJones's picture

it's not the extra meals that hurt, it's those Kardashian reruns

Sat, 02/11/2012 - 06:11 | 2148882 Mitzibitzi
Mitzibitzi's picture

I'm in the process of reorganising my indoor workshop / kids recreation room so it can be turned into a downstairs bedroom at short notice. There are already 7 / 8 (depending on whether my daughter's BF is around on a given day) in our house, but I have a sneaking suspicion we might be adding the wife's parents at some point. They had to sell their house a couple of years back, due to the mortgage cost crippling them now they're semi-retired, and my feeling is that the rent on the bungalow they're in is going to rapidly get just as expensive. Went up 12% between 2010 and 2011 and looks like it'll be about the same again when they renew the contract in April.

On the plus side, I get on with Zoe's mum pretty well, she's a good cook, good gardener and likes babysitting the kids. Her dad, not so much... but I'll put up with him.

Fri, 02/10/2012 - 14:14 | 2146734 Citxmech
Citxmech's picture

QE will fix everything.


Fri, 02/10/2012 - 14:06 | 2146668 A Lunatic
A Lunatic's picture

Or maybe........just maybe it's safe to say now that the banks have settled for a measly 25 billion and are officially off the hook for the Hellish reality that is about to unfold.

Fri, 02/10/2012 - 14:18 | 2146754 YC2
YC2's picture

You have to admit the shadow inventory chart does seem to be rolling over, and its the margins that determine prices.  However, if i remember correctly 2012-2013 are ugly years for rate resets, so as much as it would be fun to fade BB, we may still see a spike and Id rather wait till then and then reconsider.

Fri, 02/10/2012 - 15:16 | 2147040 NotApplicable
NotApplicable's picture

I haven't seen any definitive data on the subject, but I've read how many of the Alt-Arms do not even make it to the reset date anymore before blowing up (lose job, can't sell, no buyers, underwater...).

So, perhaps the reset peak has been pulled forward (and/or minimized) as well?

Fri, 02/10/2012 - 18:51 | 2147935 viahj
viahj's picture



with a manipulated LIBOR of 1.073 or a 1yr CMT of 0.130 ?

Fri, 02/10/2012 - 19:21 | 2148011 eatthebanksters
eatthebanksters's picture

The problem is that banks are sitting on REO inventory and leaking it out to the market so they don't upset the supply/demand curve more than it already is.  As banks cash flows shrink and they come under more financial pressure, they will need to put more inventory on the market.  More supply = lower prices = more underwater homes = continuation of the downward spiral on housing. If we were truly at a bottom in the market (like that fuckball Cramer says) then why would Bernanke make 'THE' statement today? If were were truly at a bottom why would he be thinking QE and buying toxic assets?  The reason he said all this is because he knows how bad it really is!  When the Chairsatan of the Federal Reserve say anything but good news we're fucked!  And this was far from good news!

Fri, 02/10/2012 - 20:49 | 2148244 AldousHuxley
AldousHuxley's picture

Bernanke extended ZIRP until 2014.


that should tell you something.


After Greece EU debacle....China and Brazil will want to deleverage to keep inflation in check.

We got the whole world in real estate mess not just in US.

Fri, 02/10/2012 - 13:53 | 2146603 resurger
resurger's picture

"we need to continue to develop and implement policies that will help the housing sector get back on its feet"

"No single solution will be sufficient"

Negative Interest Rate would be one of those solutions.





Fri, 02/10/2012 - 14:33 | 2146823 SteveNYC
SteveNYC's picture

Obvious Ben-attempt to foreshadow a huge QE to snap up junk MBS. Could the man, seriously, be more obvious?

Fri, 02/10/2012 - 22:57 | 2148510 chindit13
chindit13's picture

Though I've seen all these little snippets of absurdity before, putting together Ben's Greatest Hits is simply astonishing.  This should be required DAILY viewing for every single Congressperson who voted to re-confirm Bernanke, esepcially those who "want it in the record to publicly thank" him for what he has done.  Also, every candidate opposing an incumbent who voted for Bernanke should demand this tape open every single debate.

As for CNBC, they should run this during Sweeps Week instead of that incessant "Business of Porn" show.  Yes, people might confuse CNBC for the Comedy Network, but then again, most already do.

Additionally, Tom Stolper, you're a mere poser.  Come back and show off your record (on FX calls) when you've got something to compare with this, in both number and significance.

Finally, the fact that TIS received at least one junk is prima facie evidence that either Steve Liesman or Mrs. Ben Bernanke has a Zerohedge account (and I'm not certain Mrs. Bernanke would red-arrow you).

Sat, 02/11/2012 - 01:09 | 2148746 DaveyJones
DaveyJones's picture

"Business of porn?"  I thought their business was porn

Fri, 02/10/2012 - 13:50 | 2146581 JPM Hater001
JPM Hater001's picture

Look at what Mortgage Insurance Companies have been doing...

'nough said.

Fri, 02/10/2012 - 14:08 | 2146702 Benjamin Glutton
Benjamin Glutton's picture

not secured?....hmmmm


now Mr. Bernanke has a clouded title,imo.

Fri, 02/10/2012 - 14:12 | 2146719 DaveyJones
DaveyJones's picture

I feel the same way about everything outside the house

Fri, 02/10/2012 - 14:33 | 2146821 Ruffcut
Ruffcut's picture

Actually he spent a minute and looked at all shitty deal MBS the fed bought and came to a conclusion.

NO SHIT SHERLOCK. I'm completely FED up with his spew.

Fri, 02/10/2012 - 13:36 | 2146484 RaymondKHessel
RaymondKHessel's picture

Gold is!

Fri, 02/10/2012 - 13:39 | 2146508 cossack55
cossack55's picture

Correct. Gold is underwater. Go long mini-subs and robot submersibles.

Fri, 02/10/2012 - 13:44 | 2146540 HamyWanger
HamyWanger's picture

Gold is certainly a good investment... to give to the Styx watchman if you believe in Greek mythology.

But if you're a Christian, like your fellow Americans, I'm afraid this shiny rock won't help you much in life. 

Fri, 02/10/2012 - 13:47 | 2146558 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

to give to the Styx watchman

Is that Tommy Shaw or Dennis DeYoung -- or the dude guarding the door to backstage?

Fri, 02/10/2012 - 13:48 | 2146574 LawsofPhysics
LawsofPhysics's picture

Strange, I seem to have no problem turning it into the fiat du jour, no matter what country I am in.

Fri, 02/10/2012 - 13:53 | 2146606 HamyWanger
HamyWanger's picture

Until the day you can't. 

Fri, 02/10/2012 - 13:57 | 2146631 LowProfile
LowProfile's picture

...In which country?

Fri, 02/10/2012 - 14:00 | 2146656 LawsofPhysics
LawsofPhysics's picture

Right, now precisely how has that worked again during the last, say 2000, years?

Fri, 02/10/2012 - 14:16 | 2146740 Smiddywesson
Smiddywesson's picture

Don't be ridiculous.  That's never happened in the history of the human race.  However, those paper notes of yours always go to zero.  There's never been a fiat note that stood the test of time. 

I think you short gold and silver and clean up on your grasp of history.

Fri, 02/10/2012 - 15:22 | 2147070 NotApplicable
NotApplicable's picture

Ridiculous? Hamy's just gettin' his game on! (Let's play along, shall we?)

I think what Hamy meant is that there won't be any fiat available that anyone would want to trade for, unless your looking for some cheap ass-wipes.


Fri, 02/10/2012 - 13:58 | 2146643 DogSlime
DogSlime's picture

Whereas rectangular pieces of paper with "I promise" written on them will be OK?

Fri, 02/10/2012 - 14:06 | 2146691 ParkAveFlasher
ParkAveFlasher's picture

+1 snarky high-brow Styx reference that belies intentionally ironic cage-poking.  Who needs RT?

Fri, 02/10/2012 - 14:08 | 2146696 donsluck
donsluck's picture

So...once again religion rears it's head on this FINANCIAL blog with the insinuation that I am the only non-Christian in this country.

Fri, 02/10/2012 - 14:17 | 2146738 HamyWanger
HamyWanger's picture

America is a Christian country, youngster, and this ain't gonna change anytime soon. If you're not happy with our national religion, get a ticket to Sweden or France and join up there with your heathen, faggot, atheist and satanist buddies.

Fri, 02/10/2012 - 14:26 | 2146781 Jim in MN
Jim in MN's picture

Man you are down on Lutherans (the official state religion of Sweden until 2000).  


BTW Roger Williams, the Puritan founder of Providence RI, had this TRULY American message to say to you back in 1644:


“It is the will and command of God that, since the coming of his Sonne the Lord Jesus, a permission of the most Paganish, Jewish, Turkish, or Antichristian consciences and worships, bee granted to all men in all Nations and Countries.”

Read more:
Fri, 02/10/2012 - 14:27 | 2146785 RSDallas
RSDallas's picture

You don't speak like a christian Hamy.  

Fri, 02/10/2012 - 14:37 | 2146836 DaveyJones
DaveyJones's picture

 If satan is a fag, why is he reproducing so quickly?

Fri, 02/10/2012 - 14:46 | 2146893 X86BSD
X86BSD's picture

As the Government of the United States of America is not, in any sense, founded on the Christian religion,—as it has in itself no character of enmity against the laws, religion, or tranquility, of Mussulmen,—and as the said States never entered into any war or act of hostility against any Mahometan nation, it is declared by the parties that no pretext arising from religious opinions shall ever produce an interruption of the harmony existing between the two countries. --Treaty of Tripoli 1796



Fri, 02/10/2012 - 23:44 | 2148632 engineertheeconomy
engineertheeconomy's picture

The United States Government is just a gigantic ponzi scheme. Their only motive is to get all of the land away from the people so that they can kill them off. Seriously, did you not expect population control to come about eventually?

Fri, 02/10/2012 - 14:39 | 2146844 john39
john39's picture

don't sweat it, most self proclaimed christians aren't christian either.

Fri, 02/10/2012 - 18:53 | 2147941 TheFourthStooge-ing
TheFourthStooge-ing's picture

john39 observed:

don't sweat it, most self proclaimed christians aren't christian either.

Amen to that, bro.



Fri, 02/10/2012 - 14:17 | 2146749 Strike Back
Strike Back's picture

Gold and silver were money in the Bible.

Fri, 02/10/2012 - 14:35 | 2146831 Milton William ...
Milton William Cooper's picture

Hamy just beat his fellow classmates in rock paper scissor and is taking it literally


I can't wait for this to play out because I will be able to watch you knuckle dragging idiots starve to death

Sat, 02/11/2012 - 13:17 | 2149279 DionysusDevotee
DionysusDevotee's picture

Ham fisted trolling.  You need to work on the subtlety angle.

Fri, 02/10/2012 - 13:37 | 2146499 Conman
Conman's picture

what he meant to say is, "BUY AAPL"

Fri, 02/10/2012 - 13:40 | 2146512 Dr. Engali
Dr. Engali's picture

When that stock takes a shit it is going to be a big one.

Fri, 02/10/2012 - 13:53 | 2146604 lolmao500
lolmao500's picture

Especially since it's 20% of NASDAQ.

But eh, trust the system, after all, it was made by the trustworthy Maddoff.

Fri, 02/10/2012 - 14:02 | 2146667 TheFourthStooge-ing
TheFourthStooge-ing's picture

lolmao500 said:

But eh, trust the system, after all, it was made by the trustworthy Maddoff.

Compared to his non-incarcerated former peers, Bernie Madoff looks like a convenience store clerk that got caught swiping a few cents from the "Take-A-Penny" dish.


Fri, 02/10/2012 - 23:46 | 2148636 engineertheeconomy
engineertheeconomy's picture

If you play "Apple" backwards it sounds like "evil ponzi scheme"

Fri, 02/10/2012 - 13:54 | 2146610 DogSlime
DogSlime's picture

When that stock takes a shit it is going to be a big one.

That's OK.  They'll feed it to the taxpayer - we've been force-fed shit since 2008 and no-one's put up too much of a fight so far (we were fed shit prior to 2008, of course, but they pump it in under pressure since the TBTF fuck-up).

Fri, 02/10/2012 - 13:55 | 2146616 Troll Magnet
Troll Magnet's picture

with ipad 3 on deck as well as a host of other products that sheeple just can't live without, i feel like it will be awhile before AAPL tanks.  and you have to tip your hat off to AAPL.  they know how to sell their products worldwide.

Fri, 02/10/2012 - 13:58 | 2146641 Dr. Engali
Dr. Engali's picture

Microsoft ran like this too. But it eventually took a shit and was cut in half. now it's dead money.

Fri, 02/10/2012 - 14:48 | 2146901 X86BSD
X86BSD's picture

Microsoft never relied on innovation. Simply monopoly size and no competition to sit and milk the cash cow. Don't compare MS and APPL it makes you look silly.


Fri, 02/10/2012 - 14:59 | 2146951 Dr. Engali
Dr. Engali's picture

Excuse me? Microsoft was the stock that everybody had to own because in it's day they where (arguably I'll grant you) the innovators.. Then once everybody owned it the stock went to shit. Eventually iphone and ipads will become commodities just like windows and when that happens you'll see how quickly this stock dumps. As Apple corners the market they will eventually loose their coolness factor, they will loose their ability to innovate because they will become so big that the beuarcracy will kill fresh ideas. A little tip.... Nothing lasts forever, and never ever fall in love with a stock.

Fri, 02/10/2012 - 15:28 | 2147112 Troll Magnet
Troll Magnet's picture

don't know about AAPL but APPLE products will continue selling at a pretty high clip worldwide for awhile especially when you consider that their line of products isn't widely available in china yet.  as for your microsoft comparison, bill gates never innovated anything.  OTOH, apple continues to make stuff that captivates people and i don't see them letting up anytime soon.  i'm not bullish on AAPL and i certainly don't own any of their stocks but they have ways to go especially when you consider that only a fraction of people worldwide are owners and users of their products.  that's just my personal opinion.  i personally love some of their trinkets and would be pretty lost without them.

Fri, 02/10/2012 - 15:47 | 2147230 Dr. Engali
Dr. Engali's picture

I'm not arguing that Microsoft wat a great innovator. Those of use who look at thing objectively know  wher his ideas came from. That is why I stipulated that they were arguably innovators. Having said that the market saw them as great innovators, and they were able to corner the market...for a while. Apple will follow the same suit.

Fri, 02/10/2012 - 14:04 | 2146679 resurger
resurger's picture

I just can not trust a one click mouse , AAPL will be soon on my short selling list



Fri, 02/10/2012 - 14:10 | 2146709 slaughterer
slaughterer's picture

AAPL is already on my short list, it just .... is .... too .... afraid .... to .... clear .... 500.

Fri, 02/10/2012 - 15:58 | 2147278 GernB
GernB's picture

Um, just decided to look it up. That looks pretty darn parabolic to me. It's in a bubble it will pop. I'd bet within the wwek, because time will have to reverse for the climb to get any steeper.

Fri, 02/10/2012 - 14:12 | 2146720 RichardENixon
RichardENixon's picture

This is anecdotal evidence I know, but the one store at the mall near my office that is always packed is the Apple store, and people seem to be coming out with bags stuffed with crap.

Fri, 02/10/2012 - 15:26 | 2147091 TruthInSunshine
TruthInSunshine's picture

Apple products are the new Prozac.

It's the equivalent of bread+circus.

If one is near a public wifi spot, they can surf the web and watch video of the Stig taking a Veyron round the track from the comfort of their cardboard box on a blustery, winter night.

Fri, 02/10/2012 - 15:42 | 2147205 Crumbles
Crumbles's picture

And for this crap they exchanged worthless fiat paper. Cool deal - cannot play music with FRN's.

Sat, 02/11/2012 - 01:41 | 2148779 Mike North
Mike North's picture

They only have one product. Available in two sizes. It does sell well, I have both and no intention to upgrade for many years.

Fri, 02/10/2012 - 13:59 | 2146645 resurger
resurger's picture

i read an article today on WSJ that it's going to 1,000 by 2015 Doc?

go buy, before it's too late


Fri, 02/10/2012 - 14:02 | 2146671 Dr. Engali
Dr. Engali's picture

I won't get in front of it because I'm not stupid. All I know is once everybody owns the only stock that works in the market, there is going to be some real pain at some point.

Fri, 02/10/2012 - 14:09 | 2146700 A Lunatic
A Lunatic's picture

25 billion worth of $2k checks will buy a lot of Apple products.

Fri, 02/10/2012 - 14:19 | 2146757 earleflorida
earleflorida's picture

if china has some geo-political problems in the near future [just sayin?] every u.s. multinational will be in for a bloodbath - 

if, and only if, all these MN's have put all their eggs in one [china]  basket,... that being communist china


Fri, 02/10/2012 - 13:39 | 2146503 pkea
pkea's picture

Is he being facetious and anouncing a housing bottom? or he is dumping MBS ?

Fri, 02/10/2012 - 13:49 | 2146578 LawsofPhysics
LawsofPhysics's picture

I suspect this is the prelude to the next MBS bailout.

Fri, 02/10/2012 - 13:38 | 2146504 Dr. Engali
Dr. Engali's picture

No shit? Amazing forsight this man has. And people claim that the fed is behind the curve. .....What a dipshit.

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