Bombs don't stop Edlen (Jack Bog's Blog)

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This page contains a single entry from the blog posted on January 4, 2011 10:45 PM. The previous post in this blog was Sam Adams Twitter block update. The next post in this blog is One if by E-file, two if by TurboTax.... Many more can be found on the main index page or by looking through the archives.

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Tuesday, January 4, 2011

Bombs don't stop Edlen

Just as he turns another one over to the bank, the moneyed line up to give him more to play with. Go "green"!

Posted at 10:45 PM | Permalink

Comments (9)

If you move up one level in the Crony Capitalist food chain they too will escape personal accountability, or otherwise not suffer any private capitalist risk. This sort of scam can be addressed with only slightly more than de minimus attention to obtaining valid appraisals at the outset, which then remain in the portfolio of material and significant documents that would just never go away. A federal prosecutor could charge lots of folks for a violation of 18 USC 1014 for overvaluing collateral. It would be like shooting fish in a barrel.

Yet, our policymakers favor the promotion of a publicly-sanctioned pyramid scheme (asset-price hyperinflation), through the creation of debt. There is no greater threat than a properly functioning real estate market -- unadulterated with funny money -- that represents a healthy equilibrium, where appraisals for purposes of collateral for a loan never exceed rental justified valuations with rents that have seasoned for a year or more.

A healthy market would offer the hope of only reasonable rates of return. It would be free of hype. All the hype, including the hype associated with the capital gains tax cut game, is just an indicator the level of corruption or the invitation to engage in corruption. When some policymaker says they want a healthy real estate market -- through artificial price boosting schemes and lots of debt -- what they really want is a sustainable market opportunity for crony capitalist corruption.

Deny the "lender" any cover for losses over and above genuine appraisals for the collateral.

Posted by pdxnag | January 5, 2011 1:33 AM

I'm always amazed at how well people like this fall upward. It's as if the only way to advance is to keep failing, and then steal credit for what little good comes from the failure.

Posted by Texas Triffid Ranch | January 5, 2011 5:59 AM

And how many banks have been closed by the FDIC because of garbage loans like this in just the past year? Maybe - just maybe - one of the major banks will finally tell this putz he's never going to see money from them again.

Posted by Dave A. | January 5, 2011 6:14 AM

Nothing succeeds like failure.

Sam's gonna need to funnel even more projects to G-E now.

Posted by Steve | January 5, 2011 6:23 AM

The construction loan is but one part of the picture. I would sometime like to see disclosed what this typically does to the condo association's upfront operations and reserve contributions that the developers are usually allowed to defer until a sale occurs - at least in Oregon.

Posted by John Rettig | January 5, 2011 7:52 AM

"I would sometime like to see disclosed what this typically does to the condo association's upfront operations"

The usual rule is that the builder/dev (whoever owns the condos before sold) needs to make reserve contributions for all of his unsold units from the day the first one closes.

I am sure there is nothing in reserves from G-E for this project - Unless they had to skim it from the Vestas money they got from CoP.

Posted by Steve | January 5, 2011 8:07 AM

When you walk away from your obligations as an individual you are a bankrupt and a poor credit risk, if you are a big shot developer it is a "business decision" and you move on to the next suckers (clients).

Posted by George | January 5, 2011 12:30 PM

Our company's 403(b) is with TIAA-CREF. Looks like I better move my money out of their real-estate fund soon . . .

Posted by Eric | January 5, 2011 1:17 PM

. . . since TIAA-CREF is among the investors giving Edlen more money to blow. (Sorry, that detail was provided in The O's article and not this one. Needed to clarify.)

Posted by Eric | January 5, 2011 1:21 PM

In Vino Veritas

Quinta das Amoras, Vinho Tinto 2009
Mauro Molino, Barbera d'Alba 2009
Garda Chiaretto Rose
Columbia Crest, Two Vines Vineyard 10 White
Chateau Ste. Michelle, Pinot Gris, Columbia Valley 2009
L'Hortus, Rose de Saignee 2010
Maculan, Pino & Toi 2008
McKinley Springs, Bombing Range Red 2008
Trader Joe's Pinot Gris 2009
Montes Alpha, Cabernet 2007
Gran Sasso, Sangiovese, Terre di Chieti 2009
Garda, Classico Chiaretto Rose
Beaulieu, Cabernet, Rutherford 1999
Picos del Montgo, Tempranillo 2008
Chateau de Montmirail, Vacqueyras 2008
La Granja 360, Syrah 2009
Montgras, Carmenere Reserva 2009
Lange, Pinot Gris 2009
Columbia Crest, Horse Heaven Hills Cabernet 2008
Kirkland, Pinot Grigio 2010
Trader Joe's Coastal Syrah 2009
Columbia Crest, Horse Heaven Hills Merlot 2008
Trader Joe's Coastal Chardonnay 2009
Vieux Papes Red
Domaine de l'Aujardiere, Chardonnay 2009
Santa Rita, Cabernet, Medalla Real 2007
Penfold's, Koonunga Hill Shiraz Cabernet 2008
Guild, Red, Lot #02 2008
Dievole, Dievolino Sangiovese 2008
Laforet, Burgogne Chardonnay 2009
Columbia Winery, Merlot 2007
Bonterra, Cabernet 2008
Elk Cove, Pinot Gris 2009
Maquis Lien 2006
Scott Paul, Pinot Noir, Le Paulee 2007
Cameron, Chardonnay
B.R. Cohn, Cabernet, Silver Label 2006
Graffigna, Cabernet 2005
Palo Alto, Reserve Red 2008
Menguante, Garnacha 2008
Lange, Pinot Gris 2009
Felsina Berardenga, Vin Santo 1997
Anne Amie, Pinot Gris 2009
McKinley Springs, Bombing Ramge Red 2007
Vieux Papes Red
Dionysius Chardonnay 2009
Haden Fig, Pinot Noir 2009
Vega Montan, Mencia 2008
Chateau la Vernede, Coteaux du Languedoc 2007
Mount Defiance, Hellfire (White) 2008
Root: 1, Cabernet 2008
Columbia Crest, Two Vines Pinot Grigio 2009
Columbia Crest, Two Vines, Vineyard 10 White, 2008
Columbia Crest, Two Vines, Vineyard 10 Rose, 2007
Abacela, Grenache Rose 2009
Avia Cabernet 2004
Lemelson Pinot Noir, Thea's Selection 2007
Chateau de la Roulerie, Rose d'Anjou 2009
Casal Garcia, Vinho Verde Rose
La Ferme Julien, Rose 2008
Cana's Feast, Bricco Red, 2006
Hogue, Genesis Merlot, 2008
Owen Roe, Sharecropper's Cabernet, 2008
Kim Crawford, Unoaked Chardonnay 2008
J. Scott, Pinot Noir 2008
Edmunds St. John, White, Heart of Gold 2008
Columbia Crest, Walter Clore Private Reserve 2006
Stevenot, Cabernet, Sierra Foothills, "Stanford" 2000
Portuga, Vinho Rose 2009
Taylor Fladgate, First Estate Reserve Porto
Franciscan, Cabernet, Napa 2006
Chaparral de Vega Sindoa, Garnacha 2008
Quinta da Aveleda, Vinho Verde 2008
St. Francis, Chardonnay Sonoma 2008
E. Guigal, Cotes du Rhone Blanc, 2007
Edmunds St. John, Bone-Jolly, Gamay Noir 2008
St. Innocent, Pinot Noir 2006
Jigsaw, Pinot Noir 2007
Chateau Ste. Michelle, Merlot, Indian Wells 2007
Charles Shaw, Chardonnay 2008
Edmunds St. John, Bone-Jolly, Gamay Rosé 2009
Cameron, Willamette Valley Chardonnay
Il Valore, Sangiovese, Giovane, Puglia 2008
Duck Pond, Chardonnay, Wahluke Slope 2007
Kim Crawford, Marlborough Pinot Noir 2008
Domaine du Pesquier, Cotes du Rhone 2005
Cantina Zaccagnini, Montepulciano d'Abruzzo 2006
Domaine Matrot, Chardonnay, Bourgogne 2007
David Hill, Oregon Sparkling Wine, Brut
Chandler Reach, Monte Regalo 2006
Elk Cove, Pinot Gris 2008
Kirkland, Columbia Valley Merlot 2008
D'Aragon, Old Vine Garnacha 2008
Columbia Crest, Walter Clore Private Reserve 2005
Pavin & Riley, Merlot 2006
David Hill, Estate Pinot Noir, Barrel Select 2006
Castle Rock, Paso Robles Cabernet 2006
Magnificent, Cabernet, Steak House 2008
Conundrum 2008
Beaulieu, Cabernet, Rutherford 1998
Saint Cosme, Cotes-du-Rhone 2007
La Granja, Tempranillo 360, 2008
Santa Rita, Mendalla Real Cabernet 2006
Columbia Crest, Grand Estates Merlot 2006
Andezon, Cotes-du-Rhone 2007
Collegiata, Montepulciano d'Abruzzo
Troon, Druid's Fluid 2008
La Granja, Tempranillo 2008
Monte Antico, Toscana 2006
Vieux Papes, Blanc de Blancs

The Occasional Book

Jack London - The House of Pride, and Other Tales of Hawaii
Jack Walker - The Extraordinary Rendition of Vincent Dellamaria
Colum McCann - Let the Great World Spin
Niccolò Machiavelli - The Prince
Harper Lee - To Kill a Mockingbird
Emma McLaughlin & Nicola Kraus - The Nanny Diaries
Brian Selznick - The Invention of Hugo Cabret
Sharon Creech - Walk Two Moons
Keith Richards - Life
F. Sionil Jose - Dusk
Natalie Babbitt - Tuck Everlasting
Justin Halpern - S#*t My Dad Says
Mark Herrmann - The Curmudgeon's Guide to Practicing Law
Barry Glassner - The Gospel of Food
Phil Stanford - The Peyton-Allan Files
Jesse Katz - The Opposite Field
Evelyn Waugh - Brideshead Revisited
J.K. Rowling - Harry Potter and the Sorcerer's Stone
David Sedaris - Holidays on Ice
Donald Miller - A Million Miles in a Thousand Years
Mitch Albom - Have a Little Faith
C.S. Lewis - The Magician's Nephew
F. Scott Fitzgerald - The Great Gatsby
William Shakespeare - A Midsummer Night's Dream
Ivan Doig - Bucking the Sun
Penda Diakité - I Lost My Tooth in Africa
Grace Lin - The Year of the Rat
Oscar Hijuelos - Mr. Ives' Christmas
Madeline L'Engle - A Wrinkle in Time
Steven Hart - The Last Three Miles
David Sedaris - Me Talk Pretty One Day
Karen Armstrong - The Spiral Staircase
Charles Larson - The Portland Murders
Adrian Wojnarowski - The Miracle of St. Anthony
William H. Colby - Long Goodbye
Steven D. Stark - Meet the Beatles
Phil Stanford - Portland Confidential
Rick Moody - Garden State
Jonathan Schwartz - All in Good Time
David Sedaris - Dress Your Family in Corduroy and Denim
Anthony Holden - Big Deal
Robert J. Spitzer - The Spirit of Leadership
James McManus - Positively Fifth Street
Jeff Noon - Vurt

Road Work

Miles run year to date: 54
At this date last year: 50
Total run in 2011: 113
In 2010: 125
In 2009: 67
In 2008: 28
In 2007: 113
In 2006: 100
In 2005: 149
In 2004: 204
In 2003: 269