This morning’s RGJ reports that “Foreclosure-related activity in Washoe County fell to 10,984 filings overall in 2010, down by less than 1 percent from 11,023 in 2009, according to national foreclosure-tracking company RealtyTrac.”
It’s good to see the filings leveling off, but as the story points out foreclosure-related filings still remain abnormally high. Case in point: Washoe County saw more distressed filings in December 2010 than in all of 2006.
See the RGJ piece, Washoe foreclosure activity down slightly in 2010, for the story.
| 2010 | 10,984 |
| 2009 | 11,023 |
| 2008 | 6,790 |
| 2007 | 2,685 |
| 2006 | 593 |
Source: RealtyTrac Note: “foreclosure-related filings” include: notices of default; notices of sales; and trustee sales.
Sully
Actually it’s only down by the numbers. Robogate and the temporary suspension of foreclosures probably made the final numbers look better than they really are. Once the foreclosures start heating up again, any euphoria will cease.
bob_c
5500 or so homes sold in 2010 plus approx 1500 condos/other= 7000 properties,
but there were 11,000 foreclosure related filings
foreclosure related filings greater than total sales volume of all units by wide amount
where do all these units end up…..rentals? shadow? foreclosure filing withdrawn?
they sure aren’t on the market………someone explain this to me
Martin
bob c,
that’s the 15,000 foreclosures that have been commenced but not yet resolved over the past 4 years. MIA. Where are they?
Only Bank of America, Wells Fargo, and Goldman Sachs know for sure……
Grand Wazoo
Speaking of foreclosure filings, I thought this story was a real attention getter:
http://www.rgj.com/article/20110113/NEWS/110113047
If I read this correctly, the city either has to renegotiate the terms of the bonds for the train trench, simply default on the bonds, or declare bankruptcy. I believe the funding for the baseball park is in similar shape. Does anyone have a 30,000 foot view of the Reno’s finances, particularly with respect to its debt obligations, bonded or not?
This is not good, really not good, by a mile. It is one thing for a bunch of McMansions to be upside down, it is a whole other situation for a the city government to be upside down, which is the scent I am beginning to get a whiff of.
Mike M? What do you know?
bob_c
Despite Washoe County’s high credit rating (AA1/AA+) or Washoe Cty School
(AA2/AA)….the muni issues are trading alongside the bottom 25% of munis.
Not super distressed, but the yields indicate the market is not too high on Washoe.
Martin
The Vanguard Company, the largest mutual fund company in the world, had last year announced its intention to open up three muni bond funds (long, intermediate and short) within the next few weeks. Today Vanguard announced that it has cancelled the new funds, citing concerns with the muni bond market.
Just surf the major financial sites. There is a lot of talk about muni bond defaults.
And no, its not different in Reno. Reno is small potatos in the grand scheme, but its not different here.
And you all thought I was joking when I said Goldman knows where all the MIA foreclosures are? Guess who shows up as a swap counterparty and underwriter on the Reno train trench bonds??
bob_c
Japan circa 1987 w/ inflationary pressures. Few will believe this ‘recovery’
until there is clea, definitive (perhaps earth shaking) policy change for creating jobs.
Until then, only the corporations will benefit from the stimulus and QE. The corporations will not create jobs until the legislation forces them to.
skeptical
Wazoo,
Thanks for the link. My solution? Pretty simple, let the bondholders take a haircut. My impression from the article is that the city of Reno holds no liability to back up those bonds. So, Reno’s interest rates might rise? So what. Last thing we need is more debt at this point anyway.
In fact, throughout the entire financial meltdown, I think we would have been much better off if we just allowed capitalism to work. Short term pain would have been much better than this drip, drip of agony. No bailouts by any govt (muni, state, or federal). People that loaned their money to the Reno trench made a bad investment, period.
I’ve got a bunch of gold. I’ve made some money from it. Gold is down about 5% from its all-time highs. It could go down 20% or more. If it does, I expect no bailout from anybody. I am responsible for my investment decisions, and I don’t expect the city of Reno to do anything for me if gold goes back to $1100/oz.
We would be so much further along in this financial crisis if we allowed the market to work. If we allowed banks to fail. If we allowed bondholders and shareholders to take the pain. Instead, we socialized the losses and privatized the gains. Instead, we are looking square in the face at a Japan-style recession that may last a generation or more, as we pile up debt that my children and grandchildren will have to deal with.
Hopefully the City of Reno sticks to its guns and doesn’t support those bonds out of the general fund.
MikeZ
There’s lots of talk of municipal defaults but they’re extremely rare. Even New York City’s infamous “Ford to NYC: Drop Dead!” incident didn’t result in a default. In the end, it was investors and federal loans to the rescue … and those investors made out like bandits.
Tom Joad
The city will not “default” on the train trench bonds. A deal will be negotiated with the bondholders to recast, and reamortize the bond obligations.
These bonds are going to cost the City of Reno more than $500,000,000.00 by the time they are paid off, which will be beyond the lifetime of some (many) of the readers of this blog.
And the sins of the fathers shall be visited upon the sons unto the seventh generation.
bob_c
The muni market is selling off because a quick bailout is out of the question.
Thus, the entity will have to TRY to balance its budget, which means pension
plans will be the first thing attacked. Default on a few months interest payments will
force the unions to the bargaining table. The unions will want the bondholder to have some pain (because they are evil.) States can’t go bankrupt YET and force the union to the bargaining table, but legislation is in the work to alow state bankrupcy or alternate ways to get these pension entities to let go of their pie in the sky and let the entites remain solvent. The bondholder will be stuck in the cross fire of the politics and the
bond payments will eventually be backstopped by the Feds. The only real risk is the
issuer agreeing to haircut the bond to force these pension /unions to comply to reality.
If the pension/union managers weren’t so unscrupulous i’d say you have few worries. But………somehow they think their golden unrealistic pensions are a right and they will sink anyone they can in the process of facing reality.
In case of a bankrupcy,,,,,recovery rates on munis are about 70%
The real risk is the pension plans forcing a 5-10% haircut because they are losing
totally unrealistic, unsustainable pensioin/ health care argreements. The idiots that drafted those agreemenrts for the states.cities should be at a minimum fired.
bob_c
Aw, f**k it. let every government employee retire at 52 w/ full pay and medical
and let them double dip and have a second government job.
Government employees are superior to us private sector workers. They have SOOO
much pressure and are so accountable they deserve double or triple the retirement
of an average worker who has to answer to a boss.
MikeZ
Aw, f**k it. let every government employee retire at 52 w/ full pay and medical
and let them double dip and have a second government job.
Is that the actual pension plan for local or state workers?
bob_c
It varies.
20-30 years service and out. No age requirement.
Usually 90% of last few years pay (which are the highest years) and full medical/dental.
And no restriction on taking another job while collecting.
$3 trillion in under funded civil service pensions and health care!!!!!!!!!!!!
The only way to re-negotiate is to default or go bankrupt (even though the bond holder probably will be made whole). Strategic default to break this un payable
liability and set cities/states on the path to fiscal solvency.
Bonds tied to funding pensions are being hammered in the muni market.
The bonds may be the only way to break these unsustainable pension contracts.
bob_c
Nevada’s governer is trying to cut all pay—teachers , police , everyone 5% and
they are having a fit. The pensions/health care are the big deal. I know a few teachers
nearing retirement. Their minds have somehow convinced them they are worthy to
retire in their 50’s w/ little change in income. Its insane.
Sully
Reno officials are preparing to lay off 20 to 30 city employees in March to cut up to $3 million in expenses to balance its budget.
With the average employee costing about $100,000 in pay and benefits, a cut of $2 million to $3 million would equate to 20 to 30 employees.
Hmmm, and this area has a median income of 43K?
http://www.rgj.com/apps/pbcs.dll/article?AID=2011101190419
bob_c
Arguement from treacher i know:
i only make $70K/year (w/ summers off) and i would have made a lot more in
private sector, so i deserve a bigger retirement payout<<—high school math teacher
bob_c
Sully,
Its common knowledge that government jobs are relatively stress free (except police)and cushy. I have met few government employees that could survive in the private
sector. The muni bond crisis is welcomed by me as the only way to break this monopoly…….make their pay transparent (you will be shocked) and attack
their incestuous hiring practices. Notice how government employees look at you ‘whats the hurry?”. Hey, government employee—–i only reap what i produce
so I HAVE TO HUSSLE. and I also am held liable FOR ALL MY ACTIONS.
Sully
bob_c; did your teacher friend happen to say where in the private sector he/she could find a job paying better than that?
bob_c
Thats the lie he feeds himself.
Phillip
The median salary of a teacher with 20 years in the Washoe County School District is $52,000. After 20 years, a teacher can get 50% of his/her income, or $26,000 a year, in annual retirement benefits from the Nevada Public Employees Retirement System (PERS).
bob c and Sully, whatever you do, don’t let the facts get in the way of your rants.
Grand Wazoo
bob_c, what exactly did you do or do you currently do for a living?
You seemed to be relatively uninformed, resentful, jealous even, of the the people who work to provide services for the city, county, or state. Apparently you have never used any of these services wherever you’ve lived, and do not feel they benefit you. Of course, from your perspective it is all about “you” – that comes through at a million miles an hour.
I work with some of these people and most of them don’t make much money, comparatively speaking, with some of their peers in private industry. Others are probably over compensated, and the whole PERS retirement system is certainly unsustainable over the long term. That doesn’t make these people “bad people” – just because they work for a government enitity doesn’t make them any different than you – they just have a different employer.
I bet you’ll insist your social security and medicare benefits are soon to be all tuned up and ready to go – I wonder who does that?
Sully
Phillip, your comment is reasonable and retirement is in line with most private sector retirements. How does that have anything to do with Reno saying their average cost per employee is $100,000? bob_c was talking about teachers, I was repeating a comment regarding government employees. In case you’re not aware, taxpayers aren’t on the line for guaranteeing private sector retirement benefits.
LikeBigBottoms
Not to change topics, but this, most definitively, must be the bottom:
Bottoms Are Us
Nevada
2010 Foreclosures: 9.42% (Worst)
Unemployment: 14.3% (Worst)
Decrease in Building Permits 2006-2010: -84.39% (Worst)
In 2010, an incredible 9.42% of all housing units in Nevada were foreclosed upon. This is by far the highest foreclosure rate in the U.S., and is nearly twice that of the next-worst state. Nevada also has the highest unemployment rate in the United States, at 14.3%.The recession undermined profits in the gaming industry. Between 2006 and 2010, the state had an 84.3% decrease in building permit requests, the largest drop in the country. This has resulted in the loss of tens of thousands of construction jobs.
Back up the truck, Gladys, time to buy!
wannabe Mr. Kotter
Wazoo nails it. Kudos, too, go to Phillip. FWIW, I considered teaching for quite some time. I thought it would be a very rewarding profession. I also value teachers highly, as I have grade school kids.
Ultimately, though, I decided against it. I make about 250% of what I would have made as a teacher working for a large corporation.
bob_c
Grand Wazoo,
I’ve been dealing with unions my entire life. The RGJ numbers of average of 100K per
worker are completely accurate…..in more prosperous cities its nearer 150K per employee. The only path to solvency is to privatize. Its the union leaders that seem
inflexible and “entitled”. The longer the sham is propped up (unsustainable pay/benefit packages), the deeper the pain to get to a constructive sustainable solution. Must we have another crisis to make the necessary changes??? It seems like the union leadership wants that.
This isn’t just regional…….its nationwide and deepening rapidly. This could be what
throws us into depression. People must all pitch in and live with in their means. Tighten their belts and give to the system….rather than always wanting to take.
Wazoo, we are in a recession/depression…..this is a crisis……..everyone must reset
their expectations and demands or it will implode. Its not just going away.
bob_c
mr kotter
your demographic could be targeted for huge tax levies to fill these shortfalls.
the city of reno, county of washoe and state of nevada thanks you!!!!!!!! wonderful
solution, thank you for volunteering
bob_c
wazoo,
i anticpate a reduced social security benefit and possibly none
that system is underfunded also and need of overhaul (for 20 years its
needed overhaul)
private corporations should run our government…they dont run defecits for long
bob_c
wazoo,
i anticpate a reduced social security benefit and possibly none
that system is underfunded also and need of overhaul (for 20 years its
needed overhaul)
private corporations should run our government…they dont run defecits for long
billddrummer
It seems to me that we’re all doomed.
Grand Wazoo
So bob_c, you didn’t answer my question.
Are you retired? If not, what do you do? If you are retired, what kind of business were you in? You’ve been posting a load of strange rants and poorly thought out mathematical theories lately – I think we’d all like to know a bit more about your background.
You’re not banging Sharron Angle, are you? 🙂
Cornell
bob c is one of those guys who gets up in the morning and fills his coffee maker with clean, safe tap water, water that is clean and safe because of government regulation and enforcement. Then he swallows his medicine that his doctor prescribed for him, medicine which is safe because it was tested in rigorous trials conducted by government workers. The bob c gets in car and drives out to a restaurant for breakfast. He drives there on streets and highways constructed and maintained by the government. At the restaurant, he can be assured that the food he is served is safe and free of contaminants because of regulations imposed and enforced by the government. After breakfast, bob c drives to the post office to pick up his mail. That’s the post office that is run by the government. Then bob c decides to swing by Wal-Mart, where he purchases a new set of tires for his car. Tires that are safe because they are built to government mandated specifications. Maybe he also buys a tool to use on his home repair. A tool that is not a defectively designed or manufactured product because of court decisions. Court decisions rendered in courts staffed by clerks and bailfiffs and judges, all of whom are government employees. Then bob c drives home and as he turns down his street, he passes a police car patroling his safe neighborhood. A police car driven by a government worker. Then bob c gets online and comes to the RRB where he rants about how government is out of control, does nothing for him, how government workers are a fraud, and how the whole system is a “sham”.
Just who is the fraud?
skeptical
Bob_c wants the corporations to run everything.
Yeah, corporations. That’s the answer! Corporations like BP, Exxon, Goldman Sachs, Bank of America, and Countrywide.
Gee, what a wonderful world it would be….
It ain’t left vs. right. We need to get away from that. It’s corruption vs. honesty. It’s corporate oligarchies vs. hard working families. It’s lobbyists vs. the common man. We need to reframe this whole issue, and see how much we all agree. Bob_C, I know you are not a white collar executive in one of the bankster corporations, so why do you so rabidly defend them and spew their propraganda?
But, one thing we must acknowledge — education is the single most important determinant of success, and it has to be our top priority. Firing teachers and reducing their meager wages shows what a priority it really is.
Merlo
bob c is one of those tea party types who rants and rails against anything government, and then defies the feds to keep their hands off of his medicare………
much like newly elected Rep. Joe Hecht from LV who ran on an anti government-anti-healthcare reform platform, and then signed up for the government sponsored healthcare plan available to members of Congress on his first day in office.
they will never acknowledge the hypocrisy…….
bob_c
You guys weren’t even smart enough to realize that the average of the medians of a large sample will coorelate with total. Even the math teacher could confirm that theory. See ya
keep running red ink
Move to Reno?
Federal gov’t workers don’t have the pension plan that bob_c suggested that they did except maybe law enforcement or air traffic controllers. The rank and file fed gov’t worker gets 1% of their high 3 salary years times the number of years worked as their pension. So a fed gov’t worker that works for 25 years and his/her high 3 is $75k would get a pension of $18750 at age 62.
Sully
Well its a good thing this crisis hit when it did. otherwise all these normal pensions would now be morphed to the same level California is at. Police and fire chiefs getting 90 – 95% of high year salary. In most areas these guys are making 180 – 250K a year. So those pensions are pretty lucrative.
Granted, it only takes a few to make things look bad for the lot. California still doesn’t realize how deep a hole Gray Davis got the state into. Arnold tried to stop it and now it’s Moonbeams chance. Fitting, since he’s the one that got the public service unions in – in the first place.
Davis increased the size of state government by 25%, blew an 8 billion surplus and CA has never looked back! Maybe now, they’ll change things so that some of these non productive or unnecessary employees can be laid off – just like the private sector – when things get real bad. Hell, if they do that, then I have no problem with salary and benefits matching the private sector.
Move to Reno?
I’m certainly glad I don’t live in California (except of course if I were getting one of those insane pensions). How bad is the fiscal shape of Nevada and what is the long term solution for Nevada’s fiscal woes?
Walter
Very good comment Cornell. Of course bob c has no response to the obvious merit of your post. So he just ignores it.
tallguy
NV has the worst state finances in the nation.. Pretty bad structural budget deficit that state legislators have known about and done nothing about for decades now. Not enough places to spend the money when times are good, and can’t find enough places to cut when times are bad. Don’t expect anything different unless enough of our politicians sack up and design a more efficient revenue/expense model for the state. Anyone else think that is likely? You know, political courage? Intelligent responses to real and serious problems?
MikeZ
NV has the worst state finances in the nation.
Worst? According to what metrics?
CA, IL, MI and a few more, all seem much worse.
Grand Wazoo
MikeZ, one metric commonly used is the budget deficit in terms of percent of the total budget. Depending on who you believe, the budget deficit may be as much as 50% of the state’s budget for the bienium, or approximately a $3B deficit for an approximately $6B budget. There is a lot of noise in these figures, the new governor says it is less, others inside the state government say it might even be more. Regardless, if the deficit is anywhere close to 50% we are far and away the worst state financially in the nation.
I believe we also lead the nation in unemployment, at 14.x%.
So, pick one, either way we lose.
Steve Watts
Per capita, the Nevada budget deficit is much worse than California’s.
inclinejj
Despite Washoe County’s high credit rating (AA1/AA+) or Washoe Cty School
(AA2/AA)….the muni issues are trading alongside the bottom 25% of munis.
Not super distressed, but the yields indicate the market is not too high on Washoe
I believe the same companies and group of people who rated subprime loans AA+ are the same guys rating these muni bonds right now!!!
Maybe we can insure them all with a fat policy from AIG
A 1% decline in foreclosures is not a leveling off of any means.
Sully
This article details the spending and budget deficit, pensions and health care represent 42% of spending.
http://sunshinereview.org/index.php/Nevada_state_budget
bob_c
And the fire fighters union is suing (grievance) the city for $2.1 mil for 22 rank
and file jobs cut last year (almost 100k per)—rgj article yesterday
cities can’t hire and fire to balance to control their spending? not when unions are involved
Guy Johnson
I believe this is the RGJ article that bob_c references:
Reno City Council must cut $6-8 million
From the article: The Reno City Council may have to cut from $6 to 8 million before June 30 to balance its current budget because of declining revenues, a potential grievance with the firefighters’ union and overspending.
fencesitter
bob c never needs fire services either… or home owners insurance. Oh, he must have his own well (non-govt water supply) and a non-union employee to guard his home in case of fire 24-7. The number of structures to protect have not shrunk with the budgets.
bob_c
I am not complaining about the services….I am complaining about the unions
and the pay/benefit scales rewarded these jobs, many of which do not require a college
degree. Almost nothing out of pocket for medical/dental, great vaca and retirement
and fantastic pay scales. It seems the civil servant may be the only one’s able to afford
caulghin ranch….or IV. I have talked to many college graduates at 30/K year jobs
and told them they shoulda gone into the public sector. Their jaws drop when they dream of getting the pay package of a rank and file civil servant. These are highly educated, solid American citizens. My heart goes out to them that our society cannot
afford to pay them equally w/ civil servants. The world can’t afford everyone making 100k/ year. I see them struggle and scrape by.
My point is…..we as a society cannot afford these outlandish pay packages. And isn’t
it so fitting that the firefighters union sue the city in the midst of a budget crisis to
get back pay for 22–$100/K year jobs the city decided to cut to streamline finances.
Sink Reno further into debt??? This is typical union behavior. Does the firefighters union (or any union) care about who pays the bill?…….NO, NEVER. Just as long as
they get theirs. Unions across this country are tearing it apart. THEY ARE SUPPOSED TO BARGAIN IN GOOD FAITH. What a farce, And the corruption in the
management of these unions is another highly suspect topic all its own.
Then the fire fighters put the boot out soliciting donations….when they are one of
the highest paid and funded demographic in Washoe County. This could apply to
any union to varying degrees, but the fire fighters are in the news.
I think the IQ of the posters on this blog has sunk below 100 if you don’t understand
this is a nationwide crisis. And the solution could have started in 2008 with the UAW (united auto workers) employer GM not getting a huge bail out without major concessions or even get a bail out at all. So we bailed out the most overpaid and corrupt union in the country and set a PRECEDENT that all other unions don’t have to give an inch. The fed delayed paying the piper a few more years. WHAT A BLUNDER.
The gap between union and private jobs requing similar skills has grown so wide
that it isn’t sustainable….let alone fair or morale.
I dare anyone to publish the pay and fringe benefit scales of any public union. That
info is buried deep and muddled up, so we do not have easy access to it. Let alone
the problem we used to have with overtime abuse. THESE ARE LEAN AND MEAN TIMES AND THOSE THAT WONT PARTICIPATE IN CUTBACKS SHOULD BE REPLACED. I think you would be astounded by the amount of qualified and responsible people ready to take these jobs at a more reasonable compensation.
We can’t live without police, fire, teachers, administrators and government employees,
but IF these jobs are so difficult maybe a Masters, Phd or several years of extended years of training should be a prerequisite. Its a double standard.
I have access to the pay scales of several California unions. It is absurd!!!!!!!!!!!
CORNELL AND FENCE SITTER — your reponses make no sense.
Zen
I think the fed has already figured their way out of the government empolyee pay and retirement benefit problem. It will also solve the national debt. It’s really pretty simple and the plan is already underway. All they have to do is print enough new money for a period of time until there is so much of it, that inflation rises quickly and the old pay scale, retirement benefits, and debts don’t look so bad. It is a process which takes a while to work out. It is really only successful when private sector wages rise to try and match the inflation and then the tax base doubles or triples or… It looks to me like we are only in the beginning stages of this plan, but I think it is clearly underway. Unfortunately if you are nearing retirement age with fixed income or have substantial savings, it will eventually wipe that out. Sure you’ll still have the same amount of dollars at your disposal, but when a gallon of gas costs $12 and an average new car costs $120,000 it won’t help much. If however, you are still a working stiff, you can look forward to much larger paychecks in the future. You won’t be able to buy any more, in fact probably far less for some time to come, but the good news is eventually you’ll be a millionaire!