Category: Econolypse

Photo by Joe WilcoxMar 2, 20178:01 pm

How Did It Come to This?

Surely somewhere in the collapse of retailer American Apparel there is a metaphor appropriate for the policy platform put forth by Donald Trump. The President talks about bringing jobs back to the United States and renegotiating the North American Free Trade Agreement. Ironically, with AA, we see the demise of an iconic, hip “Made in the USA” brand, with its remaining assets being sold to Canadian-based Gildan. What’s up with that? Eh?

The Featured Image, and the pic following below the fold, tells a different story: Recent remembrance of another American Apparel, which allure popped pop culture’s cherry, for coolness and sex-appeal. On May 8, 2010, the retailer’s San Diego store held a rummage sale that drew long lines that wrapped around the block such that the end overlapped the beginning. I captured the moment with the Sigma DP2s. What a change in 7 years—and not just for the one clothier. Last year, local company Sports Chalet went out of business, around the same time as national chain Sports Authority. The Limited is shuttering all its stores, and Macy’s nearly 70. Should we blame China or, hehe, Amazon?

Responsibility by Joe WilcoxFeb 2, 20154:48 pm

Perpetual Prosperity Psychology and the Housing Bubble

Something about the housing bubble narrative bugs me: Conspiracy. Evil bankers conspired to bilk Americans by financing home loans to people who could never pay, to then repackage bad mortgages as good investment products. While I lauded Matt Taibbi news analyses in 2010 and 2013 for exposing financial institution malfeasance, the blame game always seemed to ignore one other party’s culpability: Borrowers.

New research paper “Changes in Buyer Composition and the Expansion of Credit During the Boom” is a fascinating post-bubble autopsy. Its conclusions, if they survive the test, rewrite the bubble narrative, which revision makes more sense to me.

Living by Joe WilcoxOct 16, 20147:27 pm

The Underemployment Crisis

When I worked as an analyst for Jupiter Research a decade ago, the editorial philosophy was “data-driven analysis”. But sometimes single stories—one or a few individuals—define a trend. That’s my renewed feeling today meeting Tim in the alley behind our apartment.

I measure San Diego’s economy, and in some respects that of America, by the people who dumpster dive our alley. We moved to the city seven years ago yesterday and were taken aback by the number of people who pull redeemable bottles and cans from recycle and trash bins. But the collectors’ character changed in 2009, following the financial crisis of late 2008. No longer did we see just clearly weather-worn homeless, but paler and better-dressed folks not long laid off from office jobs. Professionals.

Responsibility by Joe WilcoxAug 18, 201310:18 am

Conspiracy of Debt

We’re doing the worst thing people can do: lying to our young. Nobody, not even this president, who was swept to victory in large part by the raw enthusiasm of college kids, has the stones to tell the truth: that a lot of them will end up being pawns in a predatory con game designed to extract the equivalent of home-mortgage commitment from 17-year-olds dreaming of impossible careers as nautical archaeologists or orchestra conductors.

One former law student I contacted for this story had a nervous breakdown while struggling to pay off six-figure debt. It wasn’t until he tapped into one of the few growth industries open to young Americans that his outlook brightened. ‘I got my life back on track by working for a marijuana delivery service in Manhattan’, he says.
Matt Taibbi

Money by Joe WilcoxNov 17, 20107:45 pm

Banks Play the Foreclosure Blame Game

Big business plays the kind of blame game that makes four year-olds crying “He made me do it!” seemingly mature. So, I’m not surprised that yesterday before the US Senate Committee on Banking, House & Urban Affairs, Bank of America’s Barbara Desoer blamed investors for the financial institution’s inability to modify more mortgages. It’s not her fault!—she claims. She makes a strange distinction between investors and shareholders, in the process casting blame as misdirection from a much larger problem: Banks and other lenders mishandling mortgage/foreclosure paperwork.

Society by Joe WilcoxOct 30, 20106:35 pm

Foreclosure Fallout will Last 9 Years

The Wall Street Journal‘s number of the week is startling. “107: How many months it would take to sell banks’ current and shadow inventory of foreclosed homes.” If Journal reporter Mark Whitehouse is right, banks will need 9 years to clear their foreclosure inventory. But I wonder. Could it be longer?

Living by Joe WilcoxOct 17, 20107:49 pm

Should Barack Obama Bail Out Americans?

My answer is yes. Artificially created debt is cholesterol clogging the arteries of consumer spending. The economy that created the debt is gone. Only by surgically removing debt can Americans freely spend, thus pumping fresh blood to the heart of the U.S. economy. But, hey, I’m no economist, although in 2005 I rightly predicted the housing bubble’s collapse and much of the aftermath. Surely such insight is worth something.

News Media by Joe WilcoxApr 2, 20109:34 am

Robert Reich: No Jobs Recovery

University of California Professor Robert Reich isn’t glowing over March employment figures, and neither am I. Positive stories about the figures ignore fundamental information.

People by Joe WilcoxFeb 22, 20107:33 pm

What Worthless Means in Housing Dollars

Their home, meanwhile, which was originally valued at $585,000, had depreciated severely in three scant years. It was now essentially worthless at $270,000. Attorney Wajahat Ali This is the dramatic and sad kind of situation […]

Money by Joe WilcoxJan 7, 201012:38 pm

'Walk Away from Your Mortgage'

Morgan Stanley recently decided to stop making payments on five San Francisco office buildings. A Morgan Stanley fund purchased the buildings at the height of the boom, and their value has plunged. Nobody has said […]

Storytelling by Joe WilcoxNov 4, 20091:30 pm

Former Microsofties, Can I Tell Your Story?

One of my blogging goals is to shift the focus away from dry technology to people, whether they be innovators or consumers. Focus should be the people and the stories they tell. That’s what Oddly Together is really about. Today’s unexpected Microsoft layoffs—800 employees—is good opportunity to tell stories.

Money by Joe WilcoxSep 21, 200911:27 am

Recession and the Recovery Problem

I sit outside the auto repair shop waiting for the brake light switch on my aging Toyota Corolla to be fixed. I type on the Nokia N97 smartphonne, on which I also have been reading news. I had blogged that the N97 would get a second chance. The iPhone 3GS is on ice, so to speak. But my N97 experience is topic for another post.

My interest here is the news I was reading in the New York Times about an analyst report suggesting that the economy is starting to recover. It’s not. But first, the Times asserts: “A measure of supplier deliveries, rising stock prices, an increase in consumer expectations, a jump in building permits and the ‘interest rate spread’ bolstered the index in August.”