Monday, May 9, 2011

Are Drugs Really Illegal in America? A Bachelor's guide to strip clubs in Charm City:

Well, it depends on where you are. And the level of acceptance versus enforcement. I will get to the politics in just a moment.

I recently attended a bachelor party for a buddy from college. The destination of choice for these east coast kids: Baltimore, Maryland, AKA Charm City. Is there a better place for a bachelor than 'THE BLOCK' (http://en.wikipedia.org/wiki/The_Block_(Baltimore) ? They say this is the place where boys travel to become Men.  

Located a stone's throw from the inner harbor on East Baltimore Street directly beside the Baltimore City Police Station; the Block is a strip of all strips..lined with strip clubs.  Some, such as the Hustler Club are very nice, while others make you feel like you are getting ripped apart by a pack of pumas at night in the amazon jungle. On the block, this area is usually disguised as a basement entry strip club with a permeating smell of rank vagina.

Rule number 1: its always better to go to heaven than hell; so for your average strip club going male (once or twice a year), avoid the clubs leading down a long stairwell. If its free admission, there is a reason for it.

So we went upstairs to the Hustler Club and ordered a couple bottles of Absolut and watched in amazement as the employees climbed a three-story fire pole, only to drop themselves upside down by one leg and stop on a dime before ever hitting the floor. This my friends is quite a skill to acquire. And they somehow manage to perform this gracefully and fulfill their fiduciary duties as true professionals.  Two thumbs up and 5 out of 5 Stars.

After a few hours and a nice evening at Larry Flint's establishment, the group decided it would be a good idea to club hop. The first place, right next door, had the oldest and most worn out strippers you could imagine. These girls did not work regular hours or live day by day. They lived minute by minute, fix by fix, dollar by dollar. The pimps either stood near the door or located within shouting distance at the other clubs, just in case an unhappy customer tried to walk out on his tab (not that anything in here could or should cost very much). 



Luckily for me, I had grown the thickest beard possible in about 7 weeks, kept my head down attempting to avoid the stinch and getting eye fucked at the same time.  Part Mark Ruffalo (as I would say), part Unabomber, part guy from The Hangover (as my buddies would say).  The shadier you look, the better you fit in.  Black shirt, dark jeans, thick beard, grey newbies, black guess watch.

HBO's hit series The Wire portrays inner city Baltimore in a very chilling light. The show is a fictional tale based on experiences of a journalist and a former Baltimore city cop. The term 'eye fuck' is a very real term. For more information, watch the series or walk down East Baltimore Street and Gay Street at 2 o'clock in the morning.


After finishing out our rounds at heaven and hell, it was time to call it quits around 2am.  What better place to eat in the middle of a Red Light District than Subway, made fresh daily.  I ordered my club melt sub and proceeded to wait outside for the rest of the crew to finish ordering their late night snack.  I was half drunken, half sober after 14 hours of drinking, baseball, and strip clubs and watched the hoppers as they casually sold drugs on the corner in the middle of Gay street, between The Block and the police station.  Was this the real life Hamsterdam (http://en.wikipedia.org/wiki/Hamsterdam)?

After observing for a few more minutes, it was time for most of the establishments to close for the evening.  The people emptied onto the street.  One police officer was very eager to keep the crowds moving.  As I watched cars stop in front of the police station to buy drugs, the officer proceeded to spray pepper spray in the street to keep the foot traffic moving briskly.  Mission accomplished.  Tear gas grenades would have been slightly more efficient, but he still managed to got his point across.  After dealing with pepper spray in my eyes, three of us left to walk back to the hotel where the others joined shortly after. No arrests, no fights, no deaths, and one bachelor accounted for.  I would consider that a glowing success.

Rule #2:  No loitering. When the officer tells you to move at 2am, get the f*k out of there for obvious reasons.

The interesting question is, how on earth does this kid (probably no more than 16 years old) in a white t-shirt sell drugs on the corner in front of the police station?  I assume he was directing traffic to the corners where they could deliver and exchange payment, but it was blatantly obvious.  I just thought it was funny that I was the one getting pepper spray in my eyes.

From this experience, I pose a few questions:
What is the service fee for the turf in a high traffic, high volume corridor next to a police station?
Does Baltimore have De facto legalization?
Does the prevalence and high usage rates by residents influence the enforcement policies?
Can you measure the contribution of this black market to the local economy?
At what point does the government decide to collect tax revenues?

It is true the market exists.  Whether you support it or not, is not relevant.  The dollars that feed wars in Latin America could be used for filling budget gaps in cash strapped cities.  Depriving cartels of marijuana revenues have been conservatively estimated at 10 billion. This budget gap would force cartels to find other sources of revenue and deplete gangsters of their precious blood money egos.

If inner city and suburban youth cannot make money selling drugs, they will be forced to get an education to become successful.  Perhaps, they will then look up to the teenagers that are inspired to become pharmacists, engineers, financial professionals, and real business owners.

Wednesday, May 4, 2011

Conforming limit set to decrease October 1st

The maximum allowable loan eligible for sale to the GSEs is currently 730k. Beginning October 1st, this limit will decrease to 625k.

What does this mean for consumers?

Obtaining loans above 625 will be dependent upon institutions without the government insurance provided by Freddie Mac and Fannie Mae. This mean loans made by banks will either be retained on portfolio or sold into private label securities. In other words, higher down payments and higher interest rates are inevitable without the government guarantee.

Financing will become more difficult as banks will require larger down payments and higher interest rates. Financing for loan amounts between 625k and 730k will see the largest impact. These loans will pay jumbo rates similar to mortgages above 730k.

Higher interest rates in the future does not mean you should necessarily rush out and buy a home now or before the Oct 1st deadline. Sellers and agents will push for homes to be sold between 625 and 730k leading up to the deadline because financing will be tighter. The lower interest rate is essentially baked into the sales price of the home. In many cases, it may be in the buyer's best interest to wait for a price drop and take the higher interest rate. You can always refinance (if in positive equity). You cannot change the price you paid for the house. The higher interest rate means you will be paying down the principal at a slower rate. Interest rates will be reflected immediately after October 1, while it may take sellers a few months to adjust sales prices accordingly.

If supply and demand remained constant before and after October 1st, the monthly payment should not change. Do you want a higher interest rate and lower price? Or lower interest rate and higher price? Personally, I'll pay a higher rate for my mortgage if I get a better price on the house. The higher interest rates imply a smaller pool of buyers that can afford a home in the 625k to 730k range. Less people able to afford means less demand and less demand means prices need to adjust. This will have a larger effect in higher cost areas such as California.


For those calling for less government involvement in the mortgage market, this is one result.

Remember:
High land leverage ratio
Structures ALWAYS depreciate over time
Value is in location
If you can rent your property for the same price you pay the bank, it is probably a safe investment....

Sunday, May 1, 2011

Bin Laden Killed in Mansion outside Islamabad

CNN reports that Osama Bin Laden was killed in a mansion outside of the capital city of Islamabad.  To what extent was the ISI providing security for his family and operations? Is it a coincidence that his home was so close to the Pakistani Capital and Military Academy?

CIA and Black Ops played a significant role in locating and ultimately hunting down the most sought after man in the 21st Century.  What will the response be from the Pakistani government? Was the ISI operating on behalf of both CIA and Bin Laden? How will the people of Pakistan view the operation?  I would assume that the ISI is large enough to have competing groups or sectors that could undermine each other's objectives.  How do Pakistani citizens react to the US involvement?

The official statements from Pakistan and US indicate a mutual respect for each others' work and accomplishment, as any diplomatic relationship should operate in a PR setting of this magnitude.  Multiple US news sources portrayed the Pakistani response as incompetent, while Pakistan attempted to spin the US actions as a team effort.

How did US gather intelligence to lead to Bin Laden's mansion?  Conservative news outlets and military rumors suggest 'enhanced' interrogation techniques were used to gather information from detainees.  Allegedly, a third party (or country) did the heavy lifting, while the CIA asked the questions.

At what point does a government lose the ability to control security operations within its own country? When does the US step up to provide security? How is foreign aid distributed?  How many people have to die before NATO, US or Allies step up to the plate to defend freedoms that our citizens so frequently take for granted?  Under what circumstances should NATO remove dictators from power? It is estimated that Joseph Stalin's killed regime executed anywhere from 2 million to 62 million citizens.  

Tuesday, March 29, 2011

FDA and ANDRO

When I played baseball in high school in eastern Henrico County in 2000, weight lifting was the focus of the offseason.  Certainly, if you played football, you would essentially live in the weight room on a year round basis.  It was practically a mandatory practice where you were expected to be there at least 2 days per week, if not 3 or 4. Baseball and football players alike would take Creatine (http://en.wikipedia.org/wiki/Creatine) or Andro (http://en.wikipedia.org/wiki/Androstenedione) on a regular basis in order to 'bulk up' and build muscle mass.

Andro was later banned by the FDA in April of 2004 for significant health risks commonly associated with steroids.  Were the people who purchased Andro prior to April 2004 doing anything illegal? Were they taking steroids?  Mark McGwire was the spokesperson for this product that was perfectly legal at one point in time.  Now it is not.

Whether it is 'The Cream', 'The Clear', 'Andro', the changes that occur in the pharmacology industry will always occur at a faster rate than the U.S. Congress.   This is a fact.  When Andro is developed by a pharmaceutical researcher, we praise the free market.  After it is banned, we crucify perfectly good people for fighting for the jobs and trying to be the best they can be at their profession.  If high school kids can do it to gain an advantage, major league baseball players will certainly be doing it.  That does not make the substance good for you, but is not a criminal act.

At what point did weight training become commonplace? When do we recognize the changes in support are because we pay super human athletes to do super human things and lift super human weights to do those things that we like to see.  

Saturday, March 19, 2011

http://finance.yahoo.com/news/First-Person-Losing-Big-65-ac-2690070448.html?x=0
Kris, I'm sorry for your loss. However, there is opportunity and a positive outlook on life, depending on where you live. Even in real estate. 

My wife and I purchased a 340K fixer upper in Arlington VA in OCT 2008. At appraisal, 4400 square foot lot was valued at 270, and structure was valued at 90K. Our mortgage was 2300/month, with prin, 5.875% int, taxes, insr included. We have remodeled a kitchen, 2 bathrooms, stained hardwood floors, changed an electrical panel box, put down sod, painted etc. Altogether we probably have put an additional 35k into fixing it up. Accoring to zillow, we are estimated at 488K. Recently we refinanced at 4.375% 30 year fixed, dropping piti to a bit over 2000/month. I knew it was a good investment because rental prices in the area, high land leverage ratio, (tear me downs indicate land is undervalued), and we purchased well under the assessed value, all while the stock market was declining about 500 pts a day. We took a huge risk at an extremely opportune time and came out for the better. Counter-cyclical and counter-intuitive always creates the best opportunity. Hold your head up, you'll get 'em next time. livedevelopment.blogspot.com

My title is King of All Kings..

My name is Muammar Muhammad al-Gaddafi. I am badass. 
http://en.wikipedia.org/wiki/Muammar_Gaddafi


I am a close supporter of Ugandan President Idi Amin. In gratitude,  he even married my daughter while in Libya, but she then divorced him.

Sunday, March 13, 2011

What exactly is the NCAA?

The NCAA is the National Collegiate Athletic Association, created to profit and exploit the individual rights of young adults at colleges and universities in United States of America. The problem of the NCAA would be easily solved with the creation of a minor league system that pays athletes according to the services they provide.  The cartel collects monies, imposes punishment, and violates the privacy of the members whose services they exploit.

The 14-year 11-billion dollar contract is evidence of the money that is involved in college athletics:
http://www.ncaa.org/wps/portal/ncaahome?WCM_GLOBAL_CONTEXT=/ncaa/NCAA/NCAA+News/NCAA+News+Online/2010/Association-wide/NCAA+signs+new+14year+TV+deal+for+DI+mens+basketball_NCAANews_04_22_10

ABC, CBS, ESPN, BIG10 NETWORK, COMCAST, TIME WARNER (I cold go on) provide services by broadcasting college athletics on television. They collect advertising revenue from NIKE, REEBOK, PEPSI, BUDWEISER, MILLER LITE, PG, GEICO, COCA COLA, and other sponsors to market their products to the public.

Some athletes are compensated fairly by receiving the free education, while others are clearly not. Do people believe we truly have free markets?

What is your favorite cartel?
OPEC
BCS
NCAA
NFL
GULF
SINALOA
TIJUANA
EUROPEAN UNION
FEDERAL RESERVE
IMF
WORLD BANK