What's Going On Here?

Developer sought for West Garfield vacant parcels

By Jeanette Almada | Special to the Tribune
December 2, 2007

A mixed-use developer is being sought for several vacant city-owned parcels in the West Garfield neighborhood.

City planners at the Chicago Department of Planning and Development on Nov. 19 issued a request for development proposals for any of several lots, most of which are on the 3900 block of West Jackson Boulevard and West Adams Street, and at 201 S. Pulaski Rd.

The city hopes to find a developer who will build residential projects on most of the lots, and a mixed-use project at 201 S. Pulaski. Developers who propose environmentally friendly and energy-efficient projects, and particularly proposals promising to build U.S. Green Building Council LEED-certified projects will receive favorable consideration in the application process, a Planning Department project manager told the Community Development Commission last month.

Ok, I find this really weird. If Chicago R.E. is fine and not under the pressure that other markets are under, then this should not be happening. Having a good idea about how the City works, I find it difficult to believe that NOBODY wants these lots! Things must be really bad if the politicians cannot hand out sweetheat deals to their buddies.

Chicago to Lose $3.9 Billion

CNBC Video


Many major markets will take hits in the tax income. Chicago being one of the biggest hit.

I wonder how Daley and Toddler feel about all of this? They cannot really admit to a housing problem, Especially one that hits their town, since we all know that Chicago is invulnerable to the housing bust. Yet, this might be where all of the taxing problems are coming from. CTA on the ropes. Will CPS be next??

USA Today...Doom & Gloom Today??

Housing woes have domino effect


Ofcourse Chicago is different and will be just fine! Just go to yochicago.com for all the proof you need. But the rest of the country is SCREWED!

If you haven't yet felt the impact of the nation's credit crisis, just wait. Chances are, you won't have to wait long.

So far, the turmoil may feel a bit remote for average people: Failed mortgage lenders. Gargantuan write-downs by banks. Foreclosures for people who couldn't really afford the mortgages they got.

What about the rest of us? Are we in danger? No one knows for sure, but quite likely, yes.

As the credit crisis seeps into farther-flung corners of the economy, more of us will find it harder — and costlier — to borrow money. The value of the funds in our retirement accounts could shrink. People with subpar credit will likely find it more difficult to qualify for auto and home-equity loans. Even consumers who make the cut may need higher credit scores and more documentation.

With loans harder to get, people will hesitate to buy cars, boats and other big-ticket items. The gravest fear? That weak consumer spending — along with surging energy prices, a long housing slump and sluggish job growth — will plunge the economy into a recession.

Jeez, could all of this happen because some jerk actually lent $400,000+ to buy a 900 sq ft shoebox ranch on the NW Side?? Nah, remember, "Chicago Is Different!"

Repeat after me:

"Chicago Is Different!"

"Chicago Is Different!"

"Chicago Is Different!"

"Chicago Is Different!"

"Chicago Is Different!"

Feel better yet?

AARRGGHH!!!!

Fed chief calls for help on housing

Bernanke urges Congress to act, sees growth slowing

By William Neikirk | Tribune senior correspondent

November 9, 2007

WASHINGTON - Federal Reserve Chairman Ben Bernanke offered no immediate relief Thursday to Americans buffeted by a housing-induced credit crunch, record oil prices, a falling dollar and financial market turmoil.

In testimony before the Joint Economic Committee of Congress, Bernanke warned of slowing economic growth and gave no reason for hope that the central bank would cut interest rates again when it meets in December, instead cautioning lawmakers about the potential inflationary consequences of oil prices nearing $100 a barrel.

Good lord, doesn't he know that his rate cuts are causing those "potential inflationary consequences??!!

But Bernanke said there has been discussion about raising limits on the size of the loans that Fannie Mae and Freddie Mac can buy from lenders from the current $417,000, which would allow primary lenders to make larger loans that Fannie Mae and Freddie Mac could lump together and sell as mortgage-backed securities.

The federal government could guarantee the increased loan limit, he said, adding that any such move should be temporary. Jumbo mortgages, those above $417,000, have become harder to get since the troubles over subprime loans.

People cannot afford such outrageous prices! That is why the bubble popped. Increasing the conforming standard will help nothing.

Stagflation fears

One congressman suggested the country could be returning to a 1970s-style "stagflation," when slow growth and high inflation hammered the U.S. economy. But Bernanke said any such outbreak of stagflation now would be mild compared with the 1970s and not to worry.

YA! Someone finally said it! Rising prices + flat wages = STAGFLATION.

"I don't see any significant change in the broad holdings of dollars around the world," he said.

The dollar's value is rooted in the strength of the U.S. economy, America's trade situation and open markets, Bernanke said.

Please don't remind us, Ben.............

Wow! What Do They Know That We Don't??

Sometimes a news story gets you spooked. Especially when it's alittle bit out of the blue.

Make sure your bank deposits covered by FDIC

By Eileen Ambrose
October 14, 2007

You can go for years not thinking about federal insurance on bank deposits—and then a bank failure reminds you of how important this protection can be.

That happened Sept. 28, when regulators took over NetBank Inc., an Internet savings and loan based in Georgia.

In a failure, customers whose deposits are fully covered by the Federal Deposit Insurance Corp. have ready access to their funds. But if deposits exceed the insurance coverage, you may have to wait years to get your hands on the uninsured money, and you might not receive it all back.

Which is why it's prudent, even in these days when bank failures aren't common, to make sure your accounts are fully insured.

...

Most of us have never been through a bank failure, but NetBank can give you an idea of what happens to consumers. It was the second FDIC-insured bank to fail this year.

OOOOOOOOOOOOOOOOk. Bank failures?? Bank runs?? This is in the Chicago Tribune. I thought the Chicago mass media did not think there was a housing bubble. If housing and the economy is just fine, why should I be worried about my bank account, like it's the Depression all over again??

Further reading:

Google.com: "Northern Rock"

Google.com: "NetBank, Inc."

Why Would Anyone Want to Live in the City?

The Mayor does not even know:




'It's too much for the average person'

CITY HALL | Daley's call for record property tax hike stuns aldermen

October 11, 2007
BY FRAN SPIELMAN City Hall Reporter/fspielman@suntimes.com
Chicagoans would be saddled with the largest property tax hike in the city's history -- and pay more for everything from liquor, parking, telephone service and city stickers, to bottled water, auto leases and DVD rentals -- under a $293 million tax wallop proposed by Mayor Daley on Wednesday.

With rising home prices, stagnant incomes, highest gas prices in the nation, one of the worst commute times in the nation, government corruption, the falling dollar, rising taxes, failing public schools, reduced police enforcement in the taxpayer's neighborhoods, why would anyone with a brain choose to live within the borders of Chicago? Because of the restaurants? The Bean? The bars?? C'mon.

Is San Diego the Future?

Condo Auction a Symptom of Ailing Housing Market

by Scott Horsley

All Things Considered, October 5, 2007 · Nervous homebuilders were eyeing San Diego last weekend to see just how soft the real estate market has gotten.

One of the nation's largest homebuilders, DR Horton, auctioned off more than three dozen condos that had previously gone unsold. The condos went for an average of 30 percent below the peak price previously advertised.

There are many Chicago are developer auctions. Most are still available if you want to catch a falling knife.