VAFFFFFFAPPROCURA!! tutti con babbo Englaro nostro

BREAKINGS NEWS DI MERDA

Una Procura olezzante, istituzione-cardine della Repubblica appoggiata sul comò:

COMO’ = Costituzione Oligarchica dei Mentacatti ad Oltranza siano essi di destra, centro o sinistra, purché:

SOLI = Solo Oppressori  delle Libertà Inalienabili (art. 1: “In culo al popolo, con l’ombrello di Altan”),

ha, questa Procura Procuratrice e sollevatrice di un gran merdaio di INCHIESTE A-PRIORI false, False Piste grevi di ingiustizia, inumanità e sprezzo della Vita:

a) “PER DOVERE DI UFFICO” dice  il simil-Procuratore (probabilmente un Alieno), DAVANTI A TANTE DENUNCE che se le sarà mandate lui con la mano sinistra (ingiustizia di merda = prova no.1; un Giudice Umano avrebbe subito e solo INDAGATO I DENUNCIANTI: per  buon senso, principi giuridici supremi, leggi vigenti e giurisprudenza)

b) “DOVUTO” (SIC) PROCEDERE CONTRO BABBO ENGLARO PER  …. OMICIDIO DELLA FIGLIA: presunto o già accertato, Sua Fetenzia il giudice Marziano,  nemico a-priori della Vita su questa Terra?

APPELLO ACCORATO.

IMMAGINATE UNA COMMEDIA DEL PREMIO

NOBEL DARIO FO: per attaccare la Cittadella della

INGIUSTIZIA

la si bombarda (a fionde, leve o cannoni) DI MERDA: cederà.

Sommergiamoli di tonnellate di merda e rifiuti, reali e virtuali, ripuliamo la Campania tutta e già che ci siamo la Laguna di Venessia (a xe na latrina, ciò) – sommergiamo di scoasse sia terrone che venexxiane, questo Gentile Signor Procuratore dell’Illegalità di Sua Maestà. Facciamoci arrestare tutti per aver sepolto di MERDA il Palazzo d’Ingiustizia di questo Giudichicchio da Processo di Kafla, che si permette, sto fetentone, di disturbare  Babbo Englaro ed il suo cordoglio.

QUESTI GIUDICI NON HANNO RELIGIONE !!!!

TUUTI CON  BABBO ENGLARO, LO ABBRACCIAMO,  indipendentemente da qualsiasi teoria sulla vita:

PRO VITA VERA, PRO ENGLARO NOW (pure chi prima non era d’accordo, please).

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dal cafone lucano all’avv. di South Chicago

I  DECIDED TO CELEBRATE CHARLES DARWIN DAY – WHICH OF COURSE IS  TODAY – NOT RITUALLY AT ALL: MILITANTLY. CHARLES HAS BEEN THE GREATEST SCIENTIST  OF ALL TIMES; THIS IS A FACT, AND THAT’S ALL, FOLKS.

Here’s a letter to Michella Obama. monte-chiaro_bio_090211 >>> MORE ON THE LETTER ISSUE:

A SUGGESTED INTERPRETATION OF THE CHIAROMONTE-LIBERALS-OBAMA GENEALOGY.

to  MICHELLE OBAMA <info@barackobama.com>
date    12 February 2009 04:57
subject    Re: Your call to service (2009/1/12)

Dear Michelle,
I might have found something important, a hidden Italian contribution (in the 1940s, when so many Europeans had to escape to NY) to the birth, growth and emergence of a liberal culture, that is now fully deploying, for the first time ever, in your beloved husband as a President; that we feel as Our President in Italy as well, as everywhere in this cosmopolitan world (and this is another first time in History, I must say). I am about to post this idea, and this is an excerpt from the English Abstract of my post. It will appear on all 3 my blogs which are named below, with my signature. When my hypothesis will be a bit more robust, I might send an op-ed to the NYT on the subject, eventually.

ENGLISH ABSTRACT
the Secret Magister of the Novecento
the hidden roots in Lucania (Italy) of Obama’s way of thinking


NICOLA “NICK” CHIAROMONTE (1903 – 1972). Born in Rapolla, Lucania, Italia. He died in Rome.
A unique figure of a coherent,  self made and – hiddenly, behind the scenes – highly influential anti-totalitarian intellectual, with many curiosities in philosophy, a pioneering critique of Historicism and a great passion for theatre (where he believed Brecht was by far overvalued).
A pioneer of lib-socialism (although he early split in 1935, in Paris from the Rosselli brothers GL, Justice and Liberty group, for not paying lipservice to Italian nationalism and Risorgimento),  in the company of Arendt, Camus, Orwell and Weil. He fought in Spain with André Malraux’s aviation team: a real legend.
When in New York (Summer 1941-47), he played a  widely recognised Magister role in the liberal, anti-stalinist intelligentsia of the Partisan Review and Macdonald’s Politics, although he had to fight hard against a well alive marxism, yet. He was the best friend of Mary McCarthy (…).

A Maestro of the Novecento, he  found  his own Maestri in Andrea Caffi, Gaetano Salvemini and someone younger than him: Simone Weil. While he despised Gramsci as a cattivo maestro of generations.
We argue here that the hybridation of seminal European and American New Lefts, that happened in New York under his Invisible Direction in the 1940s, was a decisive, necessary and irreversible step toward the (path dependent) emergence of contemporary Liberalism in the East Coast, that has now expressed its most mature figure in President Obama.
The man with the energy and innovation, as  not only to stop the Reagan-Clinton decadence, but to establish a Liberal cultural and political “hegemony” (NOT in the awful, collectivist and retro Gramsci sense!), without antecedents in US history. It is impossible to understand where all this comes from, unless you dig deep, and also in the legacy of a man who literally came from the Nothing:  il “cafone lucano”. Point is: of the  two Nothings (Emanuele Severino), he was just coming from the Future (on a Time Machine). Thanks, Nick!
It is time to make Justice triumph. Time is ripe for the world, from Mumbai to LA to  know whom we have also to reward for the ongoing change.

The truth about such a despised and forgotten man, whose imagination, fed by Simone’s fertile one, created an Impossible Thought Experiment  – a libertarian socialism freed by Marxism – that we can now translate into a Real Experiment.

I follow every day the political battle in the US, and I am deeply engaged in doing the same in Italy. We can’t  believe yet all this is true, and all our destinies changed 180° in less than one year!
Thank you from the deep of my heart.
enzo fabio

uno sciopero contro lo sciopero della Ragione

oggi si sciopera e si va in piazza con CGIL e CUB:

per salvare l’Italia, per i nostri figli e nipoti

1229083417996_00deb6f0

EPIFANI: “IL CONTRIBUTO AGGUNTIVO DEL GOVERNO E’ STATO PARI A ZERO”

1 SETTTIMANA PRIMA DELLO SCIOPERO, CALPESTATI I DIRITTI COSTITUZIONALI ALLA ALENIA DI NOLA –  l’azienda fascista  non fa entrare il sindacalista che doveva parlare all’assemblea; una inammissibile violazione dei diritti universali.

An English speaking post in socialistbiopedia, on today’s strike:

Italy in general strike against M Tremonti’s kafkian procyclical plan

Nostra esclusiva (certo non la troverete su nessun altro media o social media): i vigili colgono sul fatto alcuni dipendenti Fininvest che gettavano secchiate d’acqua in Tevere a Ponte Milvio, per togliere la prima pagina alla CGIL. Allo stesso scopo, uno di loro si imprigiona ai lucchetti di Mocci, pronto anche ad immolarsi per il suo datore di lavoro, all’arrivo dell’onda delle 3 am di sabato. Il Papa esprime viva preoccupazione per il generalizzarsi del fondamentalismo suicida persino a 2 passi dalla Santa Sede.

ahogigggiellecubbbe

BREAKING NEWS

COMUNICATO CGIL

Sciopero generale

Cgil, un milione e mezzo in piazza

Duecentomila solo a Bologna. Panini: “Risultato di grande rilievo”

Un milione e mezzo di persone. In tanti sono scesi in piazza oggi (12 dicembre) per lo sciopero generale della Cgil. Una giornata di mobilitazione per chiedere ‘Più lavoro, più salario, più pensioni, più diritti’ e per contrastare le scelte inadeguate messe in campo dal governo per affrontare la crisi economica. Il risultato, comunica l’ufficio stampa di Corso Italia, è stato raggiunto sommando il dato di partecipazione di tutte le 108 piazze del paese in cui si sono svolte le manifestazioni.

L’epicentro della protesta è stato Bologna dove, all’imponente manifestazione regionale, ad ascoltare il comizio del segretario generale della Cgil, Guglielmo Epifani, in Piazza Maggiore erano in 200 mila, mentre a Milano con la segretaria confederale Morena Piccinini erano in 80 mila. A Venezia, la segretaria confederale della Cgil, Susanna Camusso, ha parlato davanti a 50 mila persone

foto Eikon. La Repubblica, ed. Bologna

6gelmini-bruneta-mascareta

Ci informa Fiorenzo Fasoli. A MESTRE (manif. regionale) sotto una pioggia impietosa, ininterrotta  (governo ladro per davvero) FORSE 50.ooo. I 2 cortei sono cosi nutriti che non riescono   procedere ed alla fine devono sciogliersi per andare al raduno. Piazza Ferretto  piena piena, chi ne conosce la capienza può valutare. Sfila, per lealtà organizzativa,  solo la base CGIL e CUB, ma in alcuni settori scioperano molti altri. La Camusso (possibile erede di Epifani alla guida nazionale) nel suo discorso attacca duramente il governo MA NON Confindustria (ciò potrebbe confermare l’ipotesi che sviluppiamo in questo post). Ovviamente, pieno spirito unitario tra sindacati (frattura sanabile?).

1) IL PAKI HA FINALMENTE, dopo l’ultimo viaggio di Gondoleeza ed  il blitz -arresto del Chief Commander  militare,  ARRESTATO la notte del 10 dicembre anche SAEED, IL  FONDATORE E PADRE-PADRONE  della banda LeT, la creatura anti-indiana dell’ISI (s. segreti paki) che ha pianificato e compiuto l’assalto a Mumbai (noi  l’abbiamo detto  ad assalto ancora in corso, CON NOMI, COGNOMI E SAPEVAMO PURE GLI INDIRIZZI, ma a molti fa comodo tergiversare).

ft (click Saeed’s picture for the link) concludes:

Some diplomats judge Pakistan to have badly mishandled its response. Islamabad first denied that Pakistanis were involved in the Mumbai attacks and then tried to avoid responsibility by blaming non-state actors. One diplomat said tensions would escalate rapidly if Pakistan only made “revolving door arrests”, whereby terror suspects were briefly and lightly held.

COMMENTO. E’  un timido passo avanti che al momento riduce la Prob di un conflitto nucleare India-Paki (come scommettitori su intrade.com proponiamo questo future), anche se la situazione paki-afghana resta del tutto fuori controllo: come spiega  il corrispondente atimes.com Saleem  Shahzad (un tipo leggendario alla Sheherazad, che va per le montagne ad intervistare e … FOTOGRAFARE capi talebani), e’ nata per fusione calda una  nuova generazione di New Talebans. In breve: da quando tutti i guerriglieri infiltrati dall’ISI  nel Kashmir indiano hanno ricevuto uno stop, tornate a casa (per le pressioni US sul gen. Musharraf),  questi si sono ricongunti ai Qaedisti nel NW “tribale”, cosi l’ISI ha ceduto ad al Qaeda l’egemonia dei movimenti a suo tempo da lei creati, sia gli Old Talebans che i Jihadisti infiltrati in Kashmir. Questi  s’irradiano nelle vicinanze e nel mondo, e non c’e’  niente da scherzare.

L’INDIA E’ VICINA.

Le distinzioni degli analisti tra Jihadisti e Qaedisti (lette, sentite 100 volte dopo Mumbai 11\26) da alcuni anni non valgono più in  Paki-Afghan-istan: visto che si spacciano per analisti, si leggano l’ultima pagina di ottobre di Le Monde diplomatique – by  Syed Saleem Shahzad.


DETROIT E ANCORA PIU’ VICINO: il modello per il vehicles bail, che Europa e Giappone dovevano imitare sino a ieri,  e’ morto nela cuna (culla). Ora George W Bush ossia Paulsson valuta se stornare  fondi dai $0.7 tr della finanza – cui si era sempre opposto.

2) THE US SENATE HAS JUST REJECTED THE DETROIT BAIL.

-5.5% Tokyo close (drowned by car titles).

The final bargaining between Senate GOP and TUS was about wage reductions, and failed.

Now, GM AND CHRYSLER WILL GO BANKRUPT  in 2 weeks time. Unluckily for everybody, namely workers and their families, the only feasible  road – AN ASSISTED,  CONTRACTED AND PREPARED CH.11, i.e. BANKRUPTCY – has  not been undertaken.We supported the latter  since from the very start, see

https://enzofabioarcangeli.wordpress.com/2008/11/17/

Namely because we knew  very well the strong opposition of the US public opinion against the bail: the social media and the comments to posts gave no doubt. If the priority is redistribution, why concentrate Mean Street bails on Detroit? Of course, making the tiny unionised US working class precarious is no solution, except for social hawks – and the wage issues centrality tells what is at stake: using the GIRA (Global Industrial Reserve Army) and the subcrime recession in order to enslave the Western workers.

THIS IS AN IMPORTANT TURNING MOMENT FOR  GLOBAL STAGDEFLATION POLICIES (and without adequate policies it will be catastrophic): Obama’s New Deal is challenged before it sees the light. The risk is that the Tsunami takes off, and Obama will B cornered to work just for the MT and LT: sustain the mass psychology during a long depression, and continue galvanising young energies for  the America Renaissance … in the 2010s. A Europe without Germany has  no chance  to take the lead in Roubini’s innovative  -radical, and Left Keynesian strong redistributive policies: the only ones that matter when a stagdeflation storm is on.

Our modest opinion is that the Dream Team has made a big mistake: the supposedly radical Robert Reich (in the economic adviser team) had also suggested a reguated Ch.11 one month ago: why not pursue it? Now the time is running short …

3) corsera

DOMANI LA MANIFESTAZIONE NAZIONALE

La Cgil sospende lo sciopero dei treni
Mezzi in funzione a Roma e Venezia

17:25 CRONACHE Lo sciopero generale indetto dalla Cgil subisce alcune deroghe a causa della pesante situazione legata al maltempo. Treni regolari in tutta Italia, settore aereo già esentato

4) l’unità e vari altri giornali – pdf da lavoce.info. TITO BOERI spiega. L’ufficio Bilancio della Camera ha rifatto i conti AL DECRETO  ANTICRISI di 3monti ed e’ risultato UN PIANO PROCRISI, PROCICLICO: infatti alza le tasse più del Delta spesa, con un avanzo netto di  € 390 milioni.

Ora, con le nozioni di macro che s’insegnano alle elementari (se le maestre sono laureate in Scienze della Formazione), si capisce che 3monti sta facendo deragliare IL TRENO DEL PAESE. Prima della fine del 2009 potremmo trovarci con: deflazione, disoccupazione e persino (nel caso peggiore, anni ’30) recessione a 2 cifre;  quasi nessun ammmortizzatore sociale. Partiranno i barconi in senso contrario, VERSO LA LIBIA.

Ecco perche’ non possiamo non dirci sciperanti con CGIL e CUB (sindacati unitari di base), per dirla con B. Croce

ENZITORIALE no.2 – cliccare per il volantino .pdf

enzito2_1_1

UN APPELLO ALLA RESPONSABILITA’ DI TUTTI.

L’ITALIA HA BISOGNO ORA (GENNAIO SAREBBE MOLTO TARDI)

a) DI UNA POLITCA DI STIMOLO FISCALE AI CONSUMI: 5 MILIARDI SONO NULLA, PER AVER EFFETTI PROPORZIONALI ALLA CRISI OCCORRE SALIRE OLTRE 100. CHE LO STIMOLO FISCALE AI CONSUMI SIA OGGI L’UNICO ACCELERATORE DA PREMERE, LO SANNO GLI ASINI MA TREMONTI NO. VEDERE FRANCESCO GIAVAZZI NEI SUOI ULTIMI 2 EDITORIALI CORSERA

b) DI UNA IMMEDIATA COPERTURA CIG TOTALE A TUTTI I PRECARI, NESSUNO ESCLUSO, PRIMO PASSO VERSO UN SALARIO SOCIALE MINIMO: PER NOI E’ GUSTIZIA SOCIALE MINIMA ED UNITA’ DI CLASSE; MA GIAVAZZI CI RICORDA CHE QUESTI SAREBBERO SOLDI SPESI TUTTI; NO RISPARMI, EFFETTO MACRO GARANTITO

c) LA MARCEGAGLIA HA CAPITO LA GRAVITA’ DELLA SITUAZIONE, coi bollettini di guerra dalle aziende e la prospettiva dietro l’angolo  – se non si invertono i meccanismi moltiplicativi\accelerativi – di una deflazione galoppante ed una recessione (STAG-DEFLAZIONE) entrambe a 2 cifre nel 2009:

d) UNA INDUSTRIA ITALIANA ABBANDONATA DA TREMONTI, SOSTENUTA SOLO DA BERLINO E BRUXELLES SAREBBE COME LA JUVE PASSATA D’UFFICIO IN SERIE B. PER QUESTO  da  settimane Confindustria  HA  APERTO UNA LINEA DI DIALOGO CON LA CGIL, con appelli precisi a “tornare al tavolo” per dar manforte contro  il deflazionista irresponsabile Tremonti.

Rispondiamo con Verdi: RITORNA VINCITOR!

Uno sciopero forte, con manifestazioni massicce sono l’ultima partita, quella decisiva per tenere  l’Italia in serie A, in cui ci si gioca tutto.

Se domani riprende la melina, sarà serie B per 10 anni.

Sempre sperando che dal  vento di  Obama, con il lavoro di tutti si  riesca a rallentare SUBITO, poi infine ad arrestare e  rovescare la valanga-Tsunami STAG – DEFLAZIONE (rge-monitor), sennò  QUI RITORNA LA FAME. E, COME PREDISSE ROUBINI A DAVOS, un’Italia vaso di coccio potrebbe anche. alla fine,  scivolare fuori dall’€. Come retrocedere ai campetti di parrocchia.

Per finire, osserviamo non sia ancora finito del tutto (spera di tornare?) IL SOLITO FASCISMO ai cancelli delle fabbriche, che ha continuato per decenni e decenni, ININTERROTTAMENTE ad essere imposto col ricatto, mentre là fuori la società evolveva (IL CLASSICO IN TEMA SONO I DIARI DALLA FABBRICA DI SIMONE WEIL, ma basta parlare all’osteria con un operaio non più giovane, per apprendere la BIOPOLITICA DI FABBRICA), e sequestra i diritti di cittadinanza quando uno timbra il cartellino. VERGOGNA!  ALLA GOGNA I VERTICI DELL’ALENIA  DI NOLA.

Napoli, 5 dicembre

“E’ inaccettabile e provocatorio l’atteggiamento dei vertici dell’Alenia di Nola che hanno impedito al Segretario generale della Fiom Cgil di Napoli di effettuare l’assemblea promossa dalla Cgil in preparazione dello sciopero generale del 12 dicembre”.
E’ quanto sottolinea, in una nota, il Segretario generale della Cdlm di Napoli Giuseppe Errico.
“L’assemblea – precisa Errico – doveva essere supportata da una serie di slides per illustrare meglio i motivi  della mobilitazione. Il loro contenuto era stato preventivamente  comunicato all’azienda. Nonostante cio’ e’  stato impedito al Segretario della Fiom di entrare in fabbrica e svolgere l’assemblea. Il confronto con i lavoratori – conclude Errico – si e’ comunque svolto all’esterno della fabbrica”

NASTRO ROSSO SUL WEB,

nelle blogosfere italiane.

Festeggiamo la nascita oggi di un nuovo sito degli economisti italiani di sinistra, già da noi linkato nel blogroll della colonna di destra: www.economiaepolitica.it e’ un progetto politico-culturale ambizioso, coordinato da Realfonzo e tenuto a battesimo sia da Ferrero che Bersani (2  ministri  del pasato governo), con alcune  ipotesi di fondo interessanti – no.1 cambiare target sul DEBITO PUBBLICO (noi non siamo proprio d’accordo ma occorre discutere, e persino un keynesiano di centro come Paul Samuelson dice, su il sole 24 ore del 5 novembre, che con la crisi epica che ci casca addosso, si gettano a mare le ortodossie e regole del cacchio, si bada a portar fuori la gente dal Titanic). Utile la presentazione che ne fa “il riformista”, chiarendone lo scenario di THINK TANK per ricucire varie anime sparse della sinistra, per capire gli errori e ripartire:

nasce economiaepolitica.it

Sillogismo di oggi

1. I socialisti italiani sono ladri

2. ottaviano del turco non è turco: è italiano, e socialista

3 …

FBI Operation Malicious Mortgage: Subcrime goes to jail!

There are two distinct breaking GOOD news on today’s media, about Subcrime and US Justice:

1. FBI “Malitious Mortgage” has arrested 70 brokers yesterday, for frauds in subcrime\subprime. SHOCK at Wall Street. This adds up to 1400 ongoing FBI cases under that operation; since March ’08: 406 people under  inquiry in 144 cases, 283 people arrested and 173 already condemned.

2. Former Bear Stearns hedge funds managers Ralph Cioffi and Matthew Tannin, are federal guests from yesterday morning, due to be arraigned in a Brooklyn court.

Morale: the US institutions surprise us again, as they did already in the Enron scandal years ago (ASHAME ON BERLUSCONI’s ITALY, where at the same time budget lying was de-penalised, and still is).

Shall we revise our evaluation, taking also Obama and the alive Primaries into account?

Are the US, one of the liberal Biopolitical régimes with the highest level of democracy?

For sure, putting subcriminals in jail, the people that broke so many LIVES, makes democracy alive.

Details:

1. Since March 2008, the FBI is dealing with 3 types of subcrime frauds, in “Malitious Mortgage”, in coop. with the SEC and Justice Dept. They  already discovered frauds adding to more than $1 billion.

http://www.ft.com/cms/s/0/182b2ede-3e42-11dd-b16d-0000779fd2ac.html

Financial Times oL (yesterday June 19, 22:09): FBI eyes big business in mortgage fraud probe

By Stephanie Kirchgaessner in Washington and Hal Weitzman in Chicago

(The FT missed to put in on paper this morning, while the news took the 1st page of Italian newspapers)

Federal investigators are homing in on 19 “large corporations” – including investment banks, credit rating agencies, accounting firms and hedge funds – as part of a broad probe into mortgage fraud.

Robert Mueller, director of the Federal Bureau of Investigation, did not identify the companies on Thursday, but said the majority of the large corporate cases involved accounting fraud, insider trading and failures to disclose – with criminal intent – the proper evaluation of securitised loans and derivatives

Marco Onado, at radio 24 broadcast “Focus Economia”, tells that PREDATORY LENDING is now considered, since the victimes of subcrimes and foreclosures were literally forced and stolen; the US justice has adandoned a previous attitude of considering such practices just as private affairs beween “consenting adults”.

2. paper FT today, p. 15 (frot page of Companies and Markets)

Former Bear fund duo charged

By Joanna Chung in NY

Two former Bear Stearns hedge fund managers were yesterday indicted on federal charges that they intentionally misled investors about the financial condition of the investment vehicles that collapsed last year.

WSJ

Bear Fund Managers Indicted

Two former Bear Stearns hedge-fund managers were arrested and charged with securities, wire and mail fraud, among other counts.

It’s about High-Grade Structured Credit, and Enhanced Leverage funds: investors lost $1.6 billion, while the two executives were saying in their private emails the crack was forthcoming, and Mr Cioffi secretly retired his money, $2 million, from one fund before the crisis. ENJOY THIS PAGE FROM THE PROSECUTION doc (Tannin: “believe it or not, I’ve been able to convince people to add more money”).

I hope my grab picture is ALMOST readable: otherwise go to the official document http://www.docstoc.com/docs/801755/Bear-Stearns-Indictment

 

 

A run on Lehman Brothers might come at any time

In the dawn of the subcrime meltdown, Dick Fuld said

“Do we have some stuff on the books that would be tough to get rid of? Yes,” he said, referring to commercial and residential mortgage assets. “Am I worried about it? No. If you have some repricing of these things will we lose some money? Yes. Is it going to kill us? Of course not.”

Lehman has taken $17 billion in write-downs since last year: not so many as Citi (41 bn) or UBS (38), but on much smaller shoulders. Under Bear Stearns death by ritual sacrifice  pressure, it sold $130 billion of assets during the second quarter, but that doesn’t mean at all it won’t have more write-downs in progress. Wrong, rotten subcrime assets still in their hands are est. another $65 billion. They made 2/3 of the road, but at the end there is a sale.

In June,  a tug-of-war has exploded between David Einhorn (leading short sellers) and the beautiful, celebrated Lehman CFO  Eric Callan. She lost, since she was wrong; or, she was wrong since she lost (in financial herding, you know, prophecies are self-fulling beyond a critical mass; as testified the Bear Stearns boss to the Senate, on April 3). She was right, in her last CFO words:

Ms Callan admitted that the issue of the firm’s long-term business model had been vexing top management.

Yet she added that Lehman had concluded it would be able to boost returns with lower leverage by charging more for other services, particularly in markets where few banks are able to provide credit to companies. (FT, June 9)

In a few weeks or months, LEH will be sold to the best buyer: after a Korean deal did not take off at the moment, believed to be possibly Barclays (not immediately, since the UK group is now raising $4 billion new stock).

Fuld and 14 years of Lehman sharesJune 16 update.

Lehman chief accepts blame for $2.8bn loss

By Ben White in New York

June 14.

Breaking Views intervenes, with its usual independence, on the WSJ.

Up in the Heir at Lehman

In a Crisis of Confidence, Investment Bank Must Have A Plan for Life After Fuld

What is Lehman Brothers Holdings Inc.’s plan for life after Richard Fuld? (…) confidence in the company’s ability to remain an independent concern is shrinking fast. And the demotions Thursday of Lehman’s president and chief financial officer merely highlighted its apparent lack of a succession plan. (…)  Lehman’s share price decline is now worse than those of UBS AG, Wachovia Corp., Merrill and Citigroup Inc. — all of which showed their bosses the door.

June 13

LEH shares up today 13.7%, to $25.8 (it was $37 at end of May).

MORAL HAZARD AT WORK IN BOND & CREDIT MARKETS

Fed unofficially warns, but Fed critics already foresaw this bias

HEARD ON THE STREET, by David Reilly and Peter Eavis
from The Wall Street Journal.

The good news about Lehman Brothers is that it’s no Bear Stearns. The firm won’t disappear overnight. The bad news is that its survival will still be pretty painful for shareholders. (…)

So Lehman may have some breathing room, perhaps even enough to allow Chief Executive Richard Fuld to continue fighting against a sale of the firm. But, with the credit crunch continuing to bite, it is tough to see how Lehman can earn its way out of its current predicament.

dealbreaker.com

Government Officials Worry About Bond Market’s Muted Reaction To Lehman News

Investors bid up Lehman Brothers’ bonds yesterday after news broke that the company was replacing two top executives. The price of protection on Lehman bonds also declined. This reaction–which starkly contrasts to the decline in Lehman’s share price yesterday–has government officials concerned.

Government officials who spoke to DealBreaker on the condition of anonymity said they are worried that the market is convinced the Federal Reserve won’t let a major US securities firm collapse. This is a cause for alarm because it indicates that investors are not taking into account full range of risks faced by investment banks, which could in turn remove an important market check on risky behavior. Although Lehman and its rivals have been pushing down debt levels recently, cheap debt that is unlinked to institutional risk could encourage a new round of re-levering, one official warned.

“What we saw yesterday was moral hazard in action,” the official said.

The price of credit default swaps for Lehman is now half of what it was in March, the Wall Street Journal pointed out this morning. That can be looked at as a dramatic demonstration of the value of having the Federal Reserve’s implicit guarantee of Lehman’s credit worthiness. In recent weeks, officials from the Federal Reserve have publicly remarked on the dangers created by this guarantee. On Wednesday, Treasury department undersecretary Robert Steel went out of his way to stress that the window was not a permanent guarantee for securities firms.

Are Lehman Investors Confident In Fuld Or In A Sale?

When Lehman announced it was firing chief financial officer Erin Callan and president Joseph Gregory yesterday, there was a lot of speculation about whether investors in its recent $6 billion sale of common stock and preferred shares might try to pull out. Couldn’t these top level changes trigger some sort of material adverse change that would let investors back away?

Several big investors have now indicated that they are staying on a Lehman. BlackRock, former American International Group CEO Hank’ Greenberg and New Jersey’s pension fund have all indicated, either publicly or privately, that they are sticking with their investment commitments despite the fact that the share price has fallen well below the levels at which they agreed to buy. Blackrock has gone on record with comments supporting Lehman’s “leadership,” which these days basically means chief executive Dick Fuld.

But are these investors really backing Fuld and his newly announced team?

Our comment: Good question. Neither of the 2. They bet on a sale of LB to a big buyer: JP Morgan again, not likely, rather: 1) Bank of America (alhough Karl Lewis might prefer to eat Merrill Lynch); 2) a big overseas bank like Barclays (rumours)  or HSBC  (the FT suggested 1 month ago): this would be OK for a bank like Lehman, still too reliant on domestic fixed-income revenues, even after wide efforts lead by Fuld to diversify in late years. Becoming the US financial arm of a big European, or Asiatic universal bank.

Betting on a sale backed-up by the Fed, otherwise there would be no buyer, or the price would soon be close to zero: perhaps a little less cheap and dramatic than Bear’s bailout (during the Presidentials, it’ll be a POLITICAL FIGHT). Problems aggravating MORAL HAZARD  into a potential FINANCIAL SCANDAL (that might explode when something will leak out).

SOMEONE in the FED  and\or the US GOVT. is apparently protecting and guaranteeing SUBCRIME VULTURES.

Ask the Lehman new investors:

Cummings illustration

How can they guess  NOT TO LOSE A LOT OF MONEY in the deal?

Who told them the Fed is gonna backing up a Lehman sale?

Would they throw away a few billion USD, without an INSIDER INFO about a Fed bailout?

This is the REAL mistery! Of course: in the LR Lehman didn’t perform differently from rivals, but it is just precipitating now (see the graphic above – June 14 post update – from the WSJ).

 

FT

Man in the News: Dick Fuld

By Ben White

Lehman is a dead bank walking, say its critics who argue the reason it has not yet suffered the same fate as Bear Stearns is the emergency facility that allows it to borrow from the US Federal Reserve. “Lehman is propped up now by the US taxpayer and nothing else,” said one financial services industry chief executive. “When the Fed window goes away, so does Lehman.”

Mr Fuld .. may come under private pressure from regulators, eager to take away the temporary borrowing facility, to get Lehman’s house in order and pursue a sale to a larger institution as soon as he can, either to a big US bank or a foreign buyer. The problem is it goes against every fibre of his being, especially as he would be selling from a point of weakness.

 

June 12

DRAMATIC SHAKE IN LEHMAN GOVERNANCE, TWO  MORE SACRIFICIAL LAMBS AT THE ALTAR: NO WAY.

THE MARKET KEEPS BETTING FOR A BANK RUN, ACQUISITION OR BAIL OUT. IN 10 CRISIS DAYS, SHARES FELL FROM $36 TO 22.70 (today’s closure). 1 year ago the highest value, before subcrime, was $82.05.  Now Lehman’s capitalization is below  $13 billion, a tiny fraction of rivals’. Goldman Sachs Group has a value of about $65.8 billion, Morgan Stanley of $43.4 billion and Merrill Lynch of $36.2 billion.

FORBES

Can Lehman Last?
Liz Moyer06.12.08, 12:30 PM ET

Maybe it just buys time. Foreign banks, particularly Barclays (nyse: BCS– news – people ) in the United Kingdom, have been rumored to be interested in buying a chunk or all of Lehman.

FT

Lehman short-sellers consider ending run

By Aline van Duyn, Michael Mackenzie and Anuj Gangahar in New York

Published: June 12 2008 22:16 | Last updated: June 12 2008 22:16

Investors with short positions in Lehman Brothers shares, who have profited from the sharp decline in the Wall Street companies’ share price, are considering ending the bet that share prices will drop further.

This week’s revelation by Lehman of a $2.8bn quarterly loss gave further clout to the views of short-sellers such as David Einhorn, founder of Greenlight Capital, who has made the case since last July that the assets on Lehman Brothers’ balance sheet are vastly overvalued.

“We, like others in the market, have been following the tug-of-war between David Einhorn and Lehman over the past few weeks,” said Steven Gross, principal at Penso Capital Markets, a hedge fund. “It now looks the shorts have been right and we have seen a capitulation by Lehman this week.” (…) 

“We now know the playbook after March 17, and a forced sale of the bank could occur. If there is a buy-out, credit spreads and volatility could collapse. The risk reward of shorting Lehman is much less clear at this stage,” Mr Gross said.

LEX

The shake-up indicates the level of pressure Mr Fuld is under to restore credibility. However, coming after so many defiant messages against Lehman’s naysayers, it sends a mixed message. On the one hand, heads have rolled, so something is being done. On the other, sudden moves like this raise the question: is there worse news that we do not know?

That uncertainty is Lehman’s central problem. Having raised new money and with the Federal Reserve’s credit facility to hand, a Bear-like meltdown looks unlikely. However, there are still too many unanswered questions regarding the estimated $65bn of troublesome assets still sitting on Lehman’s books, such as the marks taken on various property investments.

WSJ:

Callan, Gregory Out at Lehman

By JED HOROWITZ
June 12, 2008 6:18 p.m.

NEW YORK — Lehman Brothers Holdings Inc., hustling to rebuild confidence about its financial credibility, replaced its president and its chief financial officer Thursday.

Chief Executive Richard Fuld, 62 years old, the longest-serving head of a big investment bank, named 48-year-old Herbert “Bart” McDade to replace longtime colleague Joseph Gregory as president and chief operating officer.

He also removed Chief Financial Officer Erin Callan, 42, who he named to the post just seven months ago, replacing her with Ian Lowitt, a low-profile administrative and finance executive. (..)

In spite of her assertions about its capital strength, Lehman raised $12 billion of new capital between February and the end of May, and this week issued a stunning denouement by saying it is raising $6 billion of new equity and will likely report a second-quarter loss of about $2.8 billion — the first loss since it went public in 1994.

Ms. Callan blamed the loss on hedges that went awry on Lehman’s real-estate portfolios and additional write-downs in the value of its real estate, loan and securities holdings.

Lehman’s shares fell 26.4% from Monday through Wednesday in the wake of the plan to dilute stock holders by about 30%. Thursday’s shakeup appears to have done little to reassure investors. Lehman shares fell as much as 7% after the announcement, and have careered back and forth since, recently trading down 1% to $23.66. (…)

Mr. Fuld, a tenacious executive who has been heralded for his ability to overcome firm-threatening crises and keep a loyal coterie of lieutenants around him for decades, may have made sacrificial lambs of Ms. Callan and Mr. Gregory, some observers said. (…)

Lehman also on Thursday said it has closed its $6 billion new stock offering, which includes $4 billion of common shares that analysts say dilute current shareholders by about 30%, and $2 billion of mandatorily convertible preferred stocks. Insurance executive Maurice Greenberg, the former CEO of American International Group, has publicly said that he invested in the offering because of his confidence in the company’s leadership.

 

June 9

LEHMAN ABOUT TO ANNOUNCE A 08Q2 $2.8b LOSS, AND RAISING $6b TO POSTPONE A RUN

Sources: AP, WSJ.

One week ago the Lehman crisis started, since its expected $0.3 bn loss in 08Q2 were about to come much bigger: they are now est. $2.8 bn! As a consequence of its unsustainble exposure to the subcrime financial meltdown (asset write-downs and hedges used to offset losses in real estate and other securities). Lehman shares are down again at March crisis level: they fell under $30 in premarket trading today ($82 one year ago).

Lehman is actually trying hard to raise $6 bn in ordinary shares (a sum equal to all the fresh capital raised in one year to now, mostly in the last quarter). The WSJ and FT name South K. sources (public Korea development bank, and a commercial bank: likely Kookmink Bank, Korea First Bank or  Woori financial group; plus less strategic capital from Korean Pension Service and Korean Investment Corp, the government-controlled fund that invested in Merrill Lynch), and today the WSJ is referring to:

“the New Jersey Division of Investment, which manages the state’s $80 billion of pension funds and recently invested in Merrill Lynch & Co., and from C.V. Starr, the investment vehicle of Maurice R. “Hank” Greenberg, former chairman and chief executive officer of American International Group Inc. A significant foreign investment remained a possibility.”

As quoted above, American Internationa Group also joined the investors league.

Original June 3 POST.

A LEHMAN CRISIS IMPLODES,

FOR HIGH 08Q2 LOSSES

As we had analysed in depth in mid-March (Bear Steans bail out, END OF FREE MARKETS days), on Fitch original data and a precious help by rge-monitor (always the best site on macroeconomics and finance), Lehman Brothers is the weak point, the first one to be under attack, among the 4 left purely financial US banks.

Therefore we read with no surprise this: its shares are now falling every day, from Monday June the 2nd.

WSJ

Lehman Is Seeking Overseas Capital

As Its Stock Declines, Wall Street Firm Expands Search for Cash, May Tap Korea
By SUSANNE CRAIG
June 4, 2008; Page C1

Lehman Brothers Holdings Inc., facing a sharp decline in its stock that will make it more difficult to raise fresh capital, may look to a foreign land for a strategic partner.

Still, the stock has fallen 18% in the past three sessions.

It was unclear how much stock Lehman Brothers bought back, but with shares trading at roughly 22% below its book value at the end of the first quarter, the buying could be seen as a vote of confidence by management.

WSJ, HEARD ON THE STREET

Decision Time for Lehman

Balance-Sheet Woes
Most Likely to Force
Big Strategic Shift
By PETER EAVIS and DAVID REILLY
June 4, 2008; Page C18

It is time to sort out the Lehman problem.

With its stock falling two days in a row, investors see Lehman Brothers Holdings Inc. as the latest firm weighing on financial stocks.

The problems in Lehman’s balance sheet could force the firm to issue a large amount of equity — or to sell part, or all, of itself to a larger financial firm. (…)

Lehman’s first option is to raise a large amount of capital. The Wall Street Journal reported Tuesday that Lehman was weighing whether to issue as much as $4 billion in new stock. But Tuesday’s drop in Lehman’s share price — the stock was down about 15% at one point during the day — makes it harder to sell new stock. (…)

There is another important reason why Lehman may need new capital: It likely needs extra cash to forestall another downgrade by ratings agencies.

(…)  Lehman’s other option is to sell a stake to another firm or to sell out completely. The problem here is that the credit crisis has left few prospective buyers.

WSJ, PAGE ONE

Losses Push Lehman
To Weigh Raising New Capital

By SUSANNE CRAIG
June 3, 2008; Page A1
June 3, 2008 — 7:04 a.m. EDT
      

Banks and Wall Street
Aren’t Out of the Woods

By JOSEPH SCHUMAN
THE WALL STREET JOURNAL ONLINE

It was a sobering day for anyone optimistic enough to think the shake-out for Wall Street and big banks was over, and today isn’t starting out any better.

The Wall Street Journal is reporting that Lehman Brothers, the smallest independent Wall Street firm still around after the Bear Stearns collapse, will soon report its first quarterly loss since the firm went public and is looking at ways to raise perhaps $3 billion to $4 billion in new capital to strengthen its balance sheet. Lehman was the subject of apparently unfounded credibility doubts right after Bear Stearns was bailed out and essentially sold, and Lehman executives continue to say the firm’s in good shape to handle the credit-market uncertainty. It has also already raised $6 billion in the past year, and has access to the Federal Reserve’s new borrowing facilities for investment banks, as the Journal notes. “Nonetheless, some investors remain concerned that relative to its size,Lehman is holding more securities tied to both residential and commercial real estate than any other big Wall Street broker,” the Journal says, citing Bernstein Research.

Shangise No Paradise? Boy, let’s move to Hanoi!

WE REPORT FROM chinachallenges.blogs.com, May the 5th: 

China’s New Labor Law Creates Growing Concern

At CSR China, Kevin Jones and Stan Abrams write:

We all saw this coming. Since last year, there have been countless articles and commentaries about China’s new employment law, so by now employers should have already implemented new labor regimes without further incident and employees should be quite satisfied. Right?

Not quite. Implementation has been slow, litigation has picked up markedly this year, and China’s new Employment Contract Law continues to pose huge problems for employers. The new law has the potential to become a compliance nightmare, with labor costs widely anticipated to increase by 20% for manufacturers, squeezing profit margins further at a time when costs for other economic inputs are rising and preferential tax treatment is being rolled back. According to a study recently released by the American Chamber of Commerce in Shanghai and Booz Allen Hamilton, 20% is also the percentage of foreign invested companies that are planning to move at least some of their operations elsewhere.

To read more:

http://www.chinacsr.com/2008/05/05/2308-year-of-the-rat-brings-a-plague-upon-employers-in-china/

DON’T BOYCOTT THE OLYMPICS. BOYCOTT THE US CoC.

That Chamber of Commerce is always the same, unrepented  PRO-SLAVERY Chamber of Corruption:

– lobbying with CIA for the sake of US based multinationals shortrun profit interests,

– oiling the GIRA  and New Slavery mechanisms,

– monitoring it by corrupting politicians,

– stopping for years and watering down ANY DECENT CHINESE LABOUR LAW, 

– working for an as far as possible prolonged Unbalanced Golden Age (Asian baby slaves, adult quasi-slaves filling Wal Mart shops with cheap products, for impoverished US middle class)

–  boycotting any attempt to a humanisation of the rough Chinese Capitalism.

Forget the Olympic Torch, make a demo AGAINST THE US CHAMBERS OF CORRUPTION (an ingredient of COMMERCE) IN SHANGAI AND ALL OVER CHINA!!! Fucking Imperialists, they still reason as BEFORE THE  1850s U.S. CIVIL WAR. Now they prefer slaves overseas, not at home in the Deep South

Grapes of Wrath



GRAPES OF WRATH no.1: rent the video (you better buy it, and read again Steinbeck’s book) and take a look at http://www.filmsite.org/grap.html
No.2 has many locations across and beyond America, e.g.:
a) subprime ones in …
b) tomatos picking by migrant people nearby Naples and in South Florida
c) rural migrants building up Shangai, Shenzen
 
From the new, static “ACCESS PAGE TO ALL THE SUBPRIME SCIENCE” (this is marketing), you enter a 20 pages pdf, a guide to essential knowledge, and carefully selected readings on the financial meltdown that threw US people (mainly black, but also latinos) out of home, and is about to produce  millions of unemployed and new slaves across labour markets.
 
Grapes of wrath no.2.

Ground 0 by Shadow Finance Rentiers: terrorists @work to dismantle civil society, solidarity networks & democracy

SLATE.COM

TODAY’S PAPERS

Regulation Size Racket

By Jesse Stanchak Posted Sunday, March 23, 2008, at 6:47 AM ET The New York Times leads with Congress and the White House debating whether or not to tighten regulation of the financial services market. The Washington Post leads with Bhutan preparing to conduct its first elections on Monday, despite resistance from some citizens who are wary of the tumult of electoral politics. The Los Angeles Times leads locally, with its top national story saying that Sen. John McCain is staking his White House bid on the war in Iraq. The NYT compares the debate surrounding the current financial crisis to the reaction following the Sept. 11 attacks. Just as the attacks highlighted problems with coordinating intelligence and law enforcement agencies, the paper says the current crisis points out the lack of coordination between financial regulators. The paper finds the White House and Congress sparring over how best to correct a flawed system of financial regulations that Wall Street has learned to exploit. The Bush administration favors streamlining regulations and possibly creating an umbrella agency to handle duties currently split between different regulatory bodies. Congressional Democrats, however, want to tighten the rules by applying banking regulations to investment firms. Both sides claim their solution will benefit the free market the most. The White House says that investment capital would wither if the industry were overly regulated. Democrats, however, say that unless the industry becomes better regulated, investor confidence will shrivel and take the market with it. (bold added)  More on the US political debate over shadow financial system regulation, in the quoted NYT paper: 

In Washington, a Split Over Regulation of Wall Street 

In Congress, Democrats are drafting bills that would create a powerful new regulator — or simply confer new powers on the Federal Reserve — to oversee practices across the entire array of commercial banks, Wall Street firms, hedge funds and nonbank financial companies. (…) At least four federal agencies — the Federal Reserve, the F.D.I.C., the Office of the Comptroller of the Currency and the Office of Thrift Supervision — have some jurisdiction over mortgage lending. (…)

Ms. Bair of the F.D.I.C. cautioned that industry and government turf battles would make it difficult to agree on a single regulator, especially a strong one. But she said the need for one was clear.

 

“We need to go in the direction of more regulatory consolidation,” Ms. Bair said. “It would make more sense to have some type of umbrella agency, if for no other reason than facilitating information.” 

Let us pursue the rentiers throwing families into the street

 

The bio-politics of sub-prime

Read carefully, through the link,  this piece

of Pulitzer-style classic journalism:

Washington Post

‘My House. My Dream. It Was All an Illusion.’

Latina’s Loss in Va. Epitomizes Mortgage Crisis

 

Read, sympathize with her, and  look at the pictures of subprime victim Glenda Hortiz, immigrant from Honduras into Virginia, the day she lost her house, last September: she was induced to sign papers in English she didn’t understand, and had to pay $3000/month (€1930), while gaining $4200 (€ 2700) together with her husband. The uncompassionate machinery of capital over-accumulation, and the credit oceans Tsunami fuelled the financial meltdown with her life and dreams as well, among many. But due to serious and compassionate journalism, she sorts out form anonimity.

    A useful comment; MorganaLeFay wrote:

    The person who brokered this ridiculous mortgage has no funds at stake here. They pocketed the $10,000 in “fees”, sold the loan off to a securities firm and moved onto the next sucker. Later, this loan will help to pull down our financial system. And we will pay for it either with a direct bail out or through crushing inflation.The loan broker has perpetrated a fraud on the securities traders and on us by alleging that this hopeless loan was somehow on par with an average mortgage.What is needed is a law that sets lending standards and allows the state to put people in jail for the sort of fraudulent lending described in the article – that is if the loan is not held to maturity by the entity that brokered the loan.

At Comments closure, another Attorney intervened with  a word of compassion toward Gloria,  who had to stay at home from work a full year, because of cronic depression, after this fact.

jking1 wrote:
I can’t believe how idiotic some of these comments are. The woman DID NOT speak English. I’m an attorney. I can’t tell you how many times people who are fluent only in English, did not take the time to read the fine print of the 20 page credit card agreement when they obtained a new credit card, or didn’t read every single sentence of the 40 page document they signed when they purchased their home. Oh, what a wonderful world we would have if everyone were honest, and everyone made conservative financial decisions. But that’s not the case. When someone is desperate, it’s very easy for them to be taken advantage of. That’s why there are laws which prohibit excessive charges for loans (usury), and that’s why in some states, you have 3 days to get out of a purchase agreement for a home or a car. The law recognizes the reality that people will sometimes do things that they later realize is not in their best interest. The idea that this woman was even approved for a $400K loan is outrageous, and part of the problem is the tax bill which she probably was never told about. I have great empathy for her. I had a conversation with a mortgage broker who told me that he was doing 20 loans a month, at $1500 a pop. That’s a lotta money, and it provides great incentives to talk desperate, uneducated people into doing something that they unquestionably will regret.

 

 

 

TODAY’S PAPERS
Houses Without Homes

By Morgan Smith Posted Saturday, March 22, 2008, at 5:14 AM ET

The Los Angeles Times, Wall Street Journal, and Washington Post all front stories about the worsening housing slump. The LAT leads with an article on record foreclosure rates, reporting that at the end of 2007, they were at “the highest level since the [Mortgage Bankers Assn.] began keeping records in the 1970s.” The states hit the hardest by foreclosures and delinquent mortgages were Calif., Fla., Nev., and Ariz., and in those regions the housing crisis may last longer than it will nationally. The weekend edition of the WSJ leads with a prediction that the stagnant condo market will deteriorate further. Even though there’s already an excess of unfilled units, developers will still complete more building projects because they “usually put up their own money for a project first, then spend borrowed funds,” so once a project’s moved through its initial phase, they have a “strong incentive to keep building to finish,” and hope the market will turn in the meantime. And with its contribution to coverage of the troubled economy, the WP off-leads locally with a profile of a Va. woman who lost her home when she defaulted on a subprime loan, pushed through for her by predatory lenders.
Slate is everyday’s best (below and at post start, we show the two main Slate’s links). Easter weekend WSJ:

PAGE ONE

Woes in Condo Market Build

As New Supply Floods Cities

By JENNIFER S. FORSYTH and JONATHAN KARP

March 22, 2008; Page A1

 

The condominium market is about to get worse as many cities brace for a flood of new supply this year — the result of construction started at the height of the housing boom.

 

More than 4,000 new units will be completed in both Atlanta and Phoenix by the end of the year. Developers in Miami and Fort Lauderdale, Fla., are readying nearly 10,000 total new units in a market already struggling with canyons of unsold condos. (…)

Prices of condos have been steady in some areas and fallen elsewhere. The median condo sales price in the Cape Coral-Fort Myers area of Florida fell 26% to $202,300 in the fourth quarter of 2007 from $273,400 a year earlier.

 

Prices dropped nearly 20% in Tucson, Ariz., and 12% in the Atlanta area during that time, according to National Association of Realtors data. Inside the newly minted Quantum on the Bay in Miami, prices for two-bedroom units have fallen from the high $700,000s to around $500,000.

One option for a developer is to convert the condos to apartments. However, these projects are usually financed with the presumption that sales of individual condos pay off more than rents from a comparably sized apartment building. Also, lenders typically expect developers to pay off condo construction loans with the millions of dollars they receive when closing on the sales. Such a quick payout isn’t possible if the developer is only receiving monthly rental payments.