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Dear Jim,
I’m left without words reading the original sales price for these properties and the amount they just sold for at auction. Isn’t it surprising how F-TV doesn’t discuss this?
CIGA Marc77
Another Conservatory Lot and a Ginn-Developed Hammock Beach Condo Sold at December Tax Deed Sale
Several properties scheduled to be sold were either redeemed or rescheduled, leaving only two Ginn developed properties on yesterday’s sale schedule.
By Toby Tobin
Palm Coast, FL – December 9, 2009 – For the second time in two months, property in Ginn-developed communities were sold at a Flagler County tax deed sale. A lot in The Conservatory and a Hammock Beach Club one-bedroom condo were sold at yesterday’s sale. In each case, there was more than one bidder; forcing the final selling price above the minimum opening bid.
The minimum opening bid is equal to the accumulated back taxes, interest, penalties, and administrative costs. The starting bid for the Conservatory lot was $17,039.53. One hundred dollars at a time, bidders arrived at the final price of $20,100 totally furnished. The lot at 403 Bourganville Drive overlooks a lake and the ninth hole of the Tom Watson-designed golf course. It sold in 2005 for $439,900.
Since a Conservatory lot sold at the October tax deed sale, several sellers (including banks) dropped their prices. A fairly active market has since developed for Conservatory lots, but selling prices are in the high teens and low twenties. These lots sold out quickly during a Ginn real estate sales launch where 337 lots were sold for prices ranging from $329,900 to $529,900. The launch generated approximately $142 million in sales revenue.
Dear Jim,
When I wasn’t watching we blew thru 12 trillion!
Dear Jim,
This lot is unbelievable! What do you think the downside would be if they said good riddance?
It is my take economics are awful in the UK and will only get worse (aka your Formula). What scares me is the rubbish happening in the UK usually comes to pass in all Anglo Saxon nations eventually if we let it! Forewarned is forearmed, keep up the great work!
"The president of Britain’s second largest bank has issued a veiled threat that the country’s elite financiers could join a mass exodus from the City of London if the Government pushes ahead with a bonus supertax today"
(This must be one paper they do not own yet!)
Best,
CIGA BT
Barclays boss warns of exodus of the bankers
Bob Diamond (who earns up to £40m a year) warns Government against supertax on bonuses
By James Moore, Deputy Business Editor
Wednesday, 9 December 2009
The president of Britain’s second largest bank has issued a veiled threat that the country’s elite financiers could join a mass exodus from the City of London if the Government pushes ahead with a bonus supertax today.
The Chancellor, Alistair Darling, is widely expected to use his pre-Budget report to introduce a one-off windfall tax on banking bonuses to help assuage public anger over six- and seven-figure pay-outs just months after the Government’s multibillion-pound bailout of the banks.
Dear Big Tatanka,
These are the guys who have destroyed the world.
They have taken Main Street hostage with their Casino mentality.
Good riddance to the scum.
Regards,
Jim
Jim Sinclair’s Commentary
The final pillar of Gold is a breakdown of the three generation long bull market in long bonds.
Charts are courtesy of CIGA Eric.
Click to enlarge
Jim Sinclair’s Commentary
Please read CIGA Richard B’s analysis along with the note I sent to you today on "PRETEND and EXTEND." There is really nothing more you need to know.
This is the fundamental case summed up. The technical side is simple.
As the dollar goes so goes gold in the inverse.
The dollar outside of the "Wild Ones" at the hedge funds has nowhere to go. Algorithms are purely mathematical and therefore without a fundamental brain.
The dollar is the most fundamental market among all markets out there.
Present and Future Downgrades of RMBS (Residential Mortgage-Backed Security – RMBS), CMBS (Commercial Mortgage backed Security) and ABS (Asset Backed Security)
Dear CIGAs
The following piece that appeared on the Research Recap web site dated December 8th, 2009, provides valuable information on the reality of banks’ financial performance this year. The article summarizes Fitch’s views that in 2010, CMBS, RMBS and CDOs will be susceptible to more negative ratings actions.
However, a very interesting part of Fitch’s comments is the comparison of these expected ratings downgrades to what occurred in 2009. Fitch state "downgrades will likely continue in the RMBS, CMBS and CDO sectors, though at a slower pace."
If the pace of downgrades is predicted to be slower (but still significant) in 2010, then the pace of downgrades in 2009 had to have been relatively high. Yet there were very few articles written in 2009 about downgrades of structured financials instruments and how that was affecting banks’ balance sheets.
Prior to this year, when the FASB’s suspension of fair value accounting requirements gave banks a license to write up the value of their toxic assets to levels completely disconnected from reality, negative ratings decisions were big news because they warned of coming bank losses. More often than not, this caused banks to have to announce losses much greater than would have been expected based on their continuing operations.
Often just days prior to its earnings release a bank would announce that it raised new capital, the amount of which invariably reflected the losses it would be announcing days later. In fact, banks’ announcements of raising new capital became a pretty dependable means of estimating the losses they were about to announce.
Downgrades of banks’ toxic assets failed to generate headlines this year because they no longer resulted in banks being forced to acknowledge losses. To the contrary, banks spent the year writing up the value of their toxic assets and claiming healthy profits as a result.
This is additional evidence that the suspension of fair value accounting requirements, which was put in place conveniently just days before banks were set to report their first quarter earnings, was nothing more than a sleight of hand designed to permit banks to disguise their worsening financial condition. Knowing that the assets the banks were writing up in value were actually being downgraded throughout 2009 let us look past the subterfuge and realize that these banks in fact experienced another year of heavy losses due to falling values of the toxic assets on their books.
Respectfully yours,
CIGA Richard B.
Fitch predicts another tough year for most US structured finance sectors
Though the U.S. economy is on a slow path to recovery, collateral performance will continue to be weak for all U.S. structured finance sectors next year, Fitch Ratings says in its 2010 outlook report.
"Despite modestly weakening collateral performance, ABS ratings are expected to remain largely stable. Elsewhere, downgrades will likely continue in the RMBS, CMBS and CDO sectors, though at a slower pace."
