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Citing
reduced electrical demand American Electric
Power will keep 10 units off line most of the year.
American
Electric Power Inc., one of the nation's biggest power generators, says 10 of
its smaller, coal-fired generating units will remain off line for much of the
year because of lower demand for electricity.
The company said the units will be kept in "extended startup
status," during off-peak months beginning Tuesday. The plan will allow
the company to redeploy workers at several coal-fired units projected to run
less frequently over the next few years.
During peak months of July, August and January, these units will be available
as they have been in the past.
The recession has dampened demand for electricity, especially from industrial
customers. Electricity demand fell for the past two years, the first time
that has happened since 1949.
Price
Wars at Walmart
Inquiring minds note Wal-Mart cuts
prices to boost sales.
Wal-Mart
is counting on $1 ketchup bottles and sub-$4 cases of Coke to re-ignite sales
in America.
The sharp cuts at U.S. stores, which came ahead of the Memorial Day holiday
weekend, have already pushed rivals such as Target into price wars. And the
markdowns are expected to keep coming throughout the summer.
Wal-Mart is bearing the cost of some of the deep price cuts, not its suppliers,
according to Bill Pecoriello, an analyst who heads ConsumerEdge Research LLC,
based on discussions with industry officials.
According to Pecoriello, on a basket of five food items, from Coke to Lay's
potato chips, the total price was $11.23 at Wal-Mart, 24 percent less than it
was a year ago. It's also almost 14 percent lower than Kroger and almost 26
percent lower than Safeway, according to Pecoriello's estimates. The firm
gathers pricing data representing 15,000 stores across the country.
That doesn't include Wal-Mart's move to lower cans of name-brand Coke and
Pepsi further in the past few days, from the announced discounted price of $5
to as low as $3.77 in certain markets. The original price was $6.98 for a
24-pack.
Pecoriello noted in his report that Target was selling 12 packs of soda for
$2, roughly matching Wal-Mart's price, while Kroger was selling 12 packs for
$2.50, less than a year ago.
When
an item you like is on sale, buy 5-10 times as much of it as you normally
would, making a point to only buy items on huge sales. Otherwise, If you mind
the price of meat, most everything else will take care of itself.
Please get a freezer for storing meat. Sale prices on meat have not gone up
for a decade. Food is a tremendous bargain.
Foreclosure Life Raft
Sales at Walmart and Target are chicken feed compared to having a mortgage
and not paying it. Please consider Owners Stop Paying
Mortgage ... And Stop Fretting About It
For
Alex Pemberton and Susan Reboyras, foreclosure is becoming a way of life
— something they did not want but are in no hurry to get out of.
Foreclosure has allowed them to stabilize the family business. Go to Outback
occasionally for a steak. Take their gas-guzzling airboat out for the
weekend. Visit the Hard Rock Casino.
“Instead of the house dragging us down, it’s become a life
raft,” said Mr. Pemberton, who stopped paying the mortgage on their
house here last summer. “It’s really been a blessing.”
The average borrower in foreclosure has been delinquent for 438 days before
actually being evicted, up from 251 days in January 2008, according to LPS
Applied Analytics.
More than 650,000 households had not paid in 18 months, LPS calculated
earlier this year. With 19 percent of those homes, the lender had not even
begun to take action to repossess the property — double the rate of a
year earlier.
In some states, including California and Texas, lenders can pursue
foreclosures outside of the courts. With the lender in control, the pace can
be brisk. But in Florida, New York and 19 other states, judicial foreclosure
is the rule, which slows the process substantially.
In Pinellas and Pasco counties, which include St. Petersburg and the suburbs
to the north, there are 34,000 open foreclosure cases, said J. Thomas
McGrady, chief judge of the Pinellas-Pasco Circuit. Ten years ago, the
average was about 4,000. “The volume is killing us,” Judge McGrady
said.
Even without the burden of paying $938 a month for her decaying house, Mrs.
Pemberton is having a tough time. Most of her customers are senior citizens
who pay only $8 for a cut, and they are spacing out their visits.
“The longer I’m in foreclosure, the better,” she said.
In Florida, the average property spends 518 days in foreclosure, second only
to New York’s 561 days. Defense attorneys stress they can keep this
number high.
Both generations of Pembertons have hired a local lawyer, Mark P. Stopa. He
sends out letters — 1,700 in a recent week — to Floridians who
have had a foreclosure suit filed against them by a lender.
Even if you have “no defenses,” the form letter says, “you
may be able to keep living in your home for weeks, months or even years
without paying your mortgage.”
For borrowers like Jim Tsiogas, the benefits of not paying now outweigh any
worries about the future.
“I stopped paying in August 2008,” said Mr. Tsiogas, who is in
foreclosure on his house and two rental properties. “I told the lady at
the bank, ‘I can’t afford $2,500. I can only afford
$1,300.’”
One and a Half
Years of Not Paying Rent
The average length of time for the foreclosure process in Florida and New
York is over 18 months. For Mr. Tsiogas who stopped paying $2,500 a month,
that comes to $45,000 in found money.
That's quite a chunk of change to spend at Walmart or better yet to save up
for a few year's rent when you finally do lose your property.
Mish
GlobalEconomicAnalysis.blogspot.com
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Mish's Global Economic Trend Analysis
Thoughts
on the great inflation/deflation/stagflation debate as well as discussions on
gold, silver, currencies, interest rates, and policy decisions that affect
the global markets.
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