SATURDAY, SEPTEMBER 18, 2010
Latest Real Estate Time Bomb: Title of Foreclosed Properties Clouded; Wells Fargo Dumping Risk on Hapless Buyers
Another ticking time bomb in the realm of real estate bad behavior is bound to go off sooner rather than later, and it is likely to impede normalization of values of residential property.
As readers no doubt know, there is a lot of actual and shadow residential real estate inventory in the US. The time from serious delinquency to foreclosure has lengthened considerably, due not just to crowded court dockets, but also bank/servicer disinclination to take possession (reasons include that investors take a dim view of bank real estate holdings; the bank is liable for expenses, most important real estate taxes, once it takes possession; more foreclosures would lead banks to have to write down clearly overvalued second mortgages, leading to losses and lowering bank capital levels).
Most analysts have argued that it would be preferable to accelerate the process of clearing the overhang of housing inventory, since prices need ultimately to return to price level in relationship to incomes and rent rates more in line with long standing historical norms. And the officialdom seems to accept this view, since Fannie and Freddie are pressuring servicers to move faster on foreclosures.
But what if this resolution process has new land mines planted in it? What if there are not widely understood impediement to foreclosed properties ending up with new owners? If there are good reasons buyers will have reason to be leery of buying houses out of foreclosure, we could have a lot of homes sitting vacant, a blight on neighborhoods and a source of even greater losses to banks and investors.
Yet it appears that the very same sort of corners-cutting that led financial firms to shovel money to weak borrowers could impede working through the inventory of seized residential real estate. An article discusses an analysis by AFX Title, a title search company, that shows problems with title on foreclosed properties to be widespread:
As the number of real estate foreclosures skyrockets, the odds are higher that a home you live in today, or at some point in the future may have had a foreclosure in its history. Even if the foreclosure has long since passed, a loophole in the way mortgages are recorded can create a serious title defect for future owners. Title analysis performed this month by AFX Title has detected this error to be common in random samples of properties it reviewed. “This could affect the property ownership of millions of homes nationwide” said David Pelligrinelli, of AFX Title. “The mortgage recording method which created this title flaw did not exist until recently. As title abstractors are just seeing this problem emerge now but a wave of title claims is coming over the next year or so.”….
The problem is created through a break in the chain of mortgage ownership. Until the 1980’s, most mortgages were loans between the homeowner and a bank, who lent the money directly. More recently, the mortgage financing system transformed into an international system of securitization, with mortgage lenders packaging their loans into securities, bought and sold by investors like stocks. These transactions even split individual mortgages into sections, where each loan could have parts owned by different investment banks.
The transfer of ownership in these mortgage backed securities (MBS) was done with contracts on the balance sheets of Wall Street investment banks, such as Morgan Stanley and Goldman Sachs. The company who originally appeared to make the loan was normally a retail lending company such as Countrywide or Lending Tree, who typically acted as a sales company, and sometimes remained contracted to service the loan.
In the event that the loan goes into foreclosure at a later date, the then-current owner of the loan files the foreclosure and sells the property to a new owner, often at auction. The land records would show a deed of transfer from the investment bank to the new owner. This creates a break in the chain of ownership of the mortgage rights. In many cases, the transfer of ownership of the mortgage loan has gone from the original lender, through several owners, and then to the foreclosing bank, none of which is recorded on the property title history. Technically, the foreclosing bank has no recorded title rights to foreclose in the first place…
There are reports that some title insurers are indicating that they will not insure for this title defect.
Yves here. Some readers may take this all to be unduly alarmist. But confirmation that this problem is real and potentially serious comes via a new “gotcha” practice by Wells Fargo on foreclosure sales. Wells is sufficiently concerned about the risks of selling properties out of foreclosure that it is springing an addendum on buyers, shortly before closing, which effectively shifts all risk for any title deficiency on to the buyer.
Now why is this a big deal? Go reread the boldfaced sentence above. If a bank like Wells does not have the right to foreclose, it cannot have clean title to the property. So the bank could conceivably be selling something it does not own.
Let’s say you buy a vase from a store. You open the box when you get home and find out the box is empty. You’d clearly be within your rights to get your money back.
With the Wells Fargo addendum, even if the bank has sold you the equivalent of an empty box, you have no recourse to Wells. Zero. Zip. Nada.
Let’s go back and give a bit of context. Wells is encouraging buyers in foreclosures to use its attorney and title insurers and reportedly offers to split fees. So the bank is taking steps to steer buyers not to get legal advice. This matters because the problems in this document would not be evident to a layperson. And it’s not even evident to lawyers not expert in real estate; I learned about this situation because a lawyer I know who does a fair bit of real estate work had been contacted by a friend of his, a lawyer looking to buy a house over foreclosure. Wells had presented the prospective buyer with this supposed “standard” addendum on the day of closing and said they would not negotiate it (you can read it in full at ScribD). The buyer was advised not to sign it.
On the surface, this document may not seem all that troubling. But what it does, in effect, is say “Warning, warning, you are buying a property out of foreclosure, there is risk here, and you can’t hold us responsible for anything we told you in the sale process.” (see paragraphs 1 and 2). Now the not-trivial problem with that is: how can you possibly evaluate the risk of buying a property out of foreclosure without asking the current owner? And if the current owner isn’t legally responsible for what they say, or more important, what they deny is a problem, they buyer cannot perform effective due diligence. This vitiates a principle that is well embodied in most areas of consumer and business law, that a seller is liable for the representations he makes about his wares.
Now specifically, the potential problem with the deal is the bank in many states will at best be giving the buyer a “quitclaim” deed (the addendum finesses this in paragraph 18, that the buyer only gets a “special/limited warranty deed. As the lawyer who took a dim view of this addendum put it, “This is like the ‘Special Olympics,’ not like ‘You are my special someone’.” That means the bank is merely transferring whatever it interest it has.
But per the AFX article above, the bank may own nothing. It may have foreclosed without having a clear enforceable right to the property (this is the basis of the burgeoning number of cases where borrowers are successfully challenging the bank/servicer’s right to foreclose, because it cannot prove it actually owns the note, which is the IOU between the borrower and the lender; if you don’t own the note, in 45 states, you have no right to enforce the lien on the property).
Now this little problem can be solved by title insurance, right? Well, guess what, some title insurers have exited the business, some others are starting to write policies with meaningful exceptions when they can’t go to the courthouse and find a clear chain of title. Oh, and Wells is trying to steer you towards their title insurer. What do you think the odds are that their title insurance policy doesn’t have exceptions?
So what is the risk? The lawyer explains:
The typical (unsophisticated) buyer thinks that because they have a lawyer at closing (no matter whose lawyer it is), a title policy, etc…….that they are all safe and sound. They struggle through one of these REO transactions for a month or two, finally get in the house, something bad goes wrong, and they find out that 1) the title policy won’t cover them and 2) the land isn’t unique (see the nasty provision in paragraph 27 on “specific performance”), so a refund is all you get – and you are out on your ear. Hopefully, with a refund – and that may be the best outcome. But if somebody comes in, and voids a foreclosure, your title policy doesn’t pay – Wells Fargo has clearly disclosed that this was a foreclosure, so you only got what they had (nothing), and you have no recourse, no insurance, and guess what, an unsecured loan for half a million bucks.
Given how many sales will be done out of REO, and the rising number of problems surfacing with making sure that mortgage securitizations took all the steps to become the real party of interest in a particular property, it is only a matter of time before we see some blowups of the sort the attorney was worried about, of a buyer shelling out hard dollars for a house, or taking a big mortgage, and winding up with nothing. And a few incidents like that getting the press they deserve will put a pall on REO sales.
Think the risk isn’t real? Then why has Wells bothered to insist that REO buyers sign a new type of addendum, when it has been selling REO for decades? This effort to shift all title risks on to the buyer is a tacit admission of problems. And look at the document itself. The buyer has to initial it in eight places as well as sign it. That’s a clear statement of Wells’ intent to shift the risk to the buyer.
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Topics: Banking industry, Legal, Real estate, Risk and risk management
Email This Post Posted by Yves Smith at 4:42 am
Life takes us in many strange directions and wonderful discoveries. It never turns out the way we thought it would.
Monday, September 20, 2010
My Prediction About The US Foreclosure Machine Locking Up Comes Closer To Reality-GMAC Mortgage Suspends Foreclosures In 23 States
Ally’s GMAC Mortgage Halts Home Foreclosures Across 23 States
Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Denise Pellegrini
Sept. 20 (Bloomberg) -- Ally Financial Inc.’s GMAC Mortgage unit told brokers and agents to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York.
GMAC Mortgage may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.
The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.
GMAC Mortgage ranked fourth among U.S. home-loan originators in the first six months of this year, with $26 billion of mortgages, according to industry newsletter Inside Mortgage Finance. Wells Fargo & Co. ranked first, with $160 billion, and Citigroup Inc. was fifth, with $25 billion.
GMAC was created in 1919 to provide financing for buyers of General Motors Co.’s vehicles. GMAC converted into a bank holding company in 2008 as it received more than $17 billion of government funds during the financial crisis. It rebranded itself Ally Financial last year, and continues to offer auto loans and mortgages.
Following is a table of the affected states.
Connecticut
Florida
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Vermont
Wisconsin
Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Denise Pellegrini
Sept. 20 (Bloomberg) -- Ally Financial Inc.’s GMAC Mortgage unit told brokers and agents to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York.
GMAC Mortgage may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.
The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.
GMAC Mortgage ranked fourth among U.S. home-loan originators in the first six months of this year, with $26 billion of mortgages, according to industry newsletter Inside Mortgage Finance. Wells Fargo & Co. ranked first, with $160 billion, and Citigroup Inc. was fifth, with $25 billion.
GMAC was created in 1919 to provide financing for buyers of General Motors Co.’s vehicles. GMAC converted into a bank holding company in 2008 as it received more than $17 billion of government funds during the financial crisis. It rebranded itself Ally Financial last year, and continues to offer auto loans and mortgages.
Following is a table of the affected states.
Connecticut
Florida
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Vermont
Wisconsin
Massive And Secret Funds Financing US Elections This Year
DITORIAL
The Secret Election
Published: September 18, 2010
For all the headlines about the Tea Party and blind voter anger, the most disturbing story of this year’s election is embodied in an odd combination of numbers and letters: 501(c)(4). That is the legal designation for the advocacy committees that are sucking in many millions of anonymous corporate dollars, making this the most secretive election cycle since the Watergate years.
Related
Times Topic: Campaign Finance
As Michael Luo reported in The Times last week, the battle for Congress is largely being financed by a small corps of wealthy individuals and corporations whose names may never be known to the public. And the full brunt of that spending — most of it going to Republican candidates — has yet to be felt in this campaign.
Corporations got the power to pour anonymous money into elections from Supreme Court and Federal Election Commission decisions in the last two years, culminating in the Citizens United opinion earlier this year. The effect is drastic: In 2004 and 2006, virtually all independent groups receiving electioneering donations revealed their donors. In 2008, less than half of the groups reported their donors, according to a study issued last week by the watchdog group Public Citizen. So far this year, only 32 percent of the groups have done so.
Most of the cash has gone to Republican operatives like Karl Rove who have set up tax-exempt 501(c)(4) organizations. In theory, these groups, with disingenuously innocuous names like American Crossroads and the American Action Network, are meant to promote social welfare. The value to the political operatives is that they are a funnel for anonymous campaign donations.
Mr. Rove’s group, American Crossroads, hopes to spend $50 million, and is already advertising against Democratic candidates in California, Pennsylvania, Nevada and other states. The American Action Network, led by Norm Coleman, the former Republican senator from Minnesota, is spending $25 million, and has been blasting the Democratic senators Patty Murray in Washington and Russell Feingold in Wisconsin.
The United States Chamber of Commerce, still boiling over its failure to stop health care reform, is spending $75 million to defeat the lawmakers who approved it. Their donors need not be revealed. (Labor unions are trying to do the same thing for Democrats, but cannot raise nearly as much money.)
The new secrecy era began with the 2007 Supreme Court decision in the Wisconsin Right to Life case, which tore away federal restrictions on corporate and union political spending in the weeks just before an election. The F.E.C. interpreted that decision to mean that unless an ad explicitly said “elect John Doe” (as if that matters), corporate donors did not have to be disclosed.
Then the Citizens United decision fully legalized such donations under the First Amendment. That new protection has led to the flourishing of the (c)(4) groups, which know they will not be investigated by a deadlocked F.E.C. or an Internal Revenue Service that has bigger issues to deal with.
The Citizens United decision, paradoxically, supported greater disclosure of donors, but Senate Republicans have filibustered a bill that would eliminate the secrecy shield. Just one vote is preventing passage. That act is coming back for another Senate vote. The two Republican senators from Maine, Susan Collins and Olympia Snowe, might want to read a recent poll by the Maine Citizens for Clean Elections, which showed that 80 percent of the state’s voters support public disclosure.
It is too late for a new law to have any effect on the dark swamp of this year’s elections, but there is still hope that Congress will allow the sun to shine on the elections of 2012 and beyond.
A version of this editorial appeared in print on September 19, 2010, on
The Secret Election
Published: September 18, 2010
For all the headlines about the Tea Party and blind voter anger, the most disturbing story of this year’s election is embodied in an odd combination of numbers and letters: 501(c)(4). That is the legal designation for the advocacy committees that are sucking in many millions of anonymous corporate dollars, making this the most secretive election cycle since the Watergate years.
Related
Times Topic: Campaign Finance
As Michael Luo reported in The Times last week, the battle for Congress is largely being financed by a small corps of wealthy individuals and corporations whose names may never be known to the public. And the full brunt of that spending — most of it going to Republican candidates — has yet to be felt in this campaign.
Corporations got the power to pour anonymous money into elections from Supreme Court and Federal Election Commission decisions in the last two years, culminating in the Citizens United opinion earlier this year. The effect is drastic: In 2004 and 2006, virtually all independent groups receiving electioneering donations revealed their donors. In 2008, less than half of the groups reported their donors, according to a study issued last week by the watchdog group Public Citizen. So far this year, only 32 percent of the groups have done so.
Most of the cash has gone to Republican operatives like Karl Rove who have set up tax-exempt 501(c)(4) organizations. In theory, these groups, with disingenuously innocuous names like American Crossroads and the American Action Network, are meant to promote social welfare. The value to the political operatives is that they are a funnel for anonymous campaign donations.
Mr. Rove’s group, American Crossroads, hopes to spend $50 million, and is already advertising against Democratic candidates in California, Pennsylvania, Nevada and other states. The American Action Network, led by Norm Coleman, the former Republican senator from Minnesota, is spending $25 million, and has been blasting the Democratic senators Patty Murray in Washington and Russell Feingold in Wisconsin.
The United States Chamber of Commerce, still boiling over its failure to stop health care reform, is spending $75 million to defeat the lawmakers who approved it. Their donors need not be revealed. (Labor unions are trying to do the same thing for Democrats, but cannot raise nearly as much money.)
The new secrecy era began with the 2007 Supreme Court decision in the Wisconsin Right to Life case, which tore away federal restrictions on corporate and union political spending in the weeks just before an election. The F.E.C. interpreted that decision to mean that unless an ad explicitly said “elect John Doe” (as if that matters), corporate donors did not have to be disclosed.
Then the Citizens United decision fully legalized such donations under the First Amendment. That new protection has led to the flourishing of the (c)(4) groups, which know they will not be investigated by a deadlocked F.E.C. or an Internal Revenue Service that has bigger issues to deal with.
The Citizens United decision, paradoxically, supported greater disclosure of donors, but Senate Republicans have filibustered a bill that would eliminate the secrecy shield. Just one vote is preventing passage. That act is coming back for another Senate vote. The two Republican senators from Maine, Susan Collins and Olympia Snowe, might want to read a recent poll by the Maine Citizens for Clean Elections, which showed that 80 percent of the state’s voters support public disclosure.
It is too late for a new law to have any effect on the dark swamp of this year’s elections, but there is still hope that Congress will allow the sun to shine on the elections of 2012 and beyond.
A version of this editorial appeared in print on September 19, 2010, on
Sunday, September 19, 2010
36 Hours in Rio De Janeiro
LATIN AMERICA ISSUE
36 Hours in Rio de Janeiro
André Vieira for The New York Times
The London-themed Baretto-Londra bar in the Hotel Fasano. More Photos »
By ARIC CHEN
Published: September 16, 2010
WITH the World Cup coming in 2014, followed by the Olympic Games two years later, Rio de Janeiro is thinking outside the beach. The historic port area is undergoing an extreme makeover, and museums by such vanguard architects as Santiago Calatrava and Diller Scofidio + Renfro are in the works. A long-anticipated bullet train to São Paulo seems to be finally happening, while the city is making strides (albeit fitful ones) tackling the problems of its notorious favelas. Indeed, there will always be sunshine, thongs and Carnaval, but these days, Rio has a whole lot more to strut about.
Rio de Janeiro Travel Guide
Where to Stay
Where to Eat
What to Do
Go to the Rio de Janeiro Travel Guide »
Multimedia
Slide Show
A Weekend in Rio de Janeiro
Map
Rio de Janeiro, Brazil
Friday
3 p.m.
1) CONCRETE CURVES
Long before the future arrived, Oscar Niemeyer was building it. Rio’s most famous architect (age 102 and counting) is best known for his work designing the capital of Brasília, but visitors need only go to São Conrado, about a 20-minute drive from the city center, to see Casa das Canoas (Estrada das Canoas 2.310, São Conrado; 55-21-3322-3581). Now home to the Niemeyer Foundation, this is the house the architect built for himself in 1953. Its curvaceous roof and jutting rock formations can be ogled only on Tuesdays through Fridays, from 1 to 5 p.m.
8 p.m.
2) SEAFOOD BY THE SEA
Continue the ogling over dinner at the Philippe Starck-designed Hotel Fasano (Avenida Vieira Souto 80; 55-21-3202-4000; fasano.com.br), right on Ipanema beach. Its seafood restaurant, Fasano Al Mare, serves dishes like crispy tuna with white beans, cream and red onions (78 reais, about $46 at 1.70 Brazilian reais to the dollar), while its breezy interior sheds a flattering light on the glamour pusses within. Afterward, head to the hotel’s London-themed bar, Baretto-Londra, for a nightcap.
11 p.m.
3) LAPA CRAWL
Have a second wind? This city parties late, so join the students, bohemians, yuppies and just-plain locals reveling in the streets of Lapa. This historic, charmingly shabby neighborhood in central Rio goes late into the night with plentiful street food — and cheap drinks. Duck into popular samba clubs like Rio Scenarium (Rua do Lavradio 20; 55-21-3147-9005; rioscenarium.com.br) and the intimate Carioca da Gema (Rua Mem de Sá 79; 55-21-2221-0043; barcariocadagema.com.br). Or just bar hop your way to tomorrow.
Saturday
10 a.m.
4) WATERFRONT BARGAINS
Time for some rummaging. Saturday mornings mean the flea market at Praça 15 de Novembro, along the waterfront in Rio’s historic heart of Centro. Browse the standard offerings of old china, vinyl records and secondhand clothing — but also the crafts, colonial-style knickknacks and other local curiosities you won’t find elsewhere. Don’t forget to haggle.
Noon
5) FROM THE HEIGHTS
Take the antique tram called the bonde uphill to the cobbled, winding streets of leafy Santa Teresa. Known for its crumbling mansions, some converted into museums and bed-and-breakfasts, this artsy, once-neglected enclave has come back to life. Consider the newish Hotel Santa Teresa (Rua Almirante Alexandrino 660; 55-21-3380-0200; santa-teresa-hotel.com), a former coffee plantation turned luxury retreat. Wander the artisanal shops and restaurants on the main drag of Rua Almirante Alexandrino. Have lunch there, or continue uphill to the thatched-roof pavilions of Aprazível (Rua Aprazível 62; 55-21-2508-9174; aprazivel.com.br) for the spectacular views and bacalhau do pai (71 reais), a cod pastry dish filling enough for two.
3 p.m.
6) ART CENTRO
History meets contemporary art in Centro. Just across from the flea market, the 18th-century Paço Imperial (Praça 15 de Novembro 48; 55-21-2215-2622; pacoimperial.com.br) mounts excellent exhibitions like the recent one on Gordon Matta-Clark. Not far away is the former bank headquarters that’s now the Centro Cultural Banco do Brasil (Rua Primeiro de Março 66; 55-21-3808-2020; bb.com.br/cultura), where you might find, say, a Rebecca Horn retrospective. The area is also home to a growing number of galleries. Don’t miss A Gentil Carioca (Rua Gonçalves Ledo 17; 55-21-2222-1651; agentilcarioca.com.br), an experimental space run by three artists including the Brazilian art star Ernesto Neto.
5:30 p.m.
7) A DIFFERENT VIEW
Forget those postcard-perfect views from Sugar Loaf and the Corcovado. This summer, as part of an effort to better integrate the favelas with the city, Rio unveiled a gleaming elevator tower that rises more than 20 stories to connect upscale Ipanema with the favela of Cantagalo above. At the corner of Rua Teixeira de Melo and Rua Barão da Torre, just off Praça General Osório, this progressive piece of architecture has an observation deck with views across Ipanema and Copacabana. Guards may stop you from taking a second set of elevators to the favela proper. But at least you’ve gotten as close as you’re likely to get on your own.
9:30 p.m.
8) GOURMET ALLEY
The peacocks of Rio flock to the Leblon area for dinner, specifically Rua Dias Ferreira. On a one-block stretch, you can choose from the always-busy Sushi Leblon (No. 256; 55-21-2512-7830; sushileblon.com), with its sometimes exotic sushi offerings (think quail egg and truffles, 11 to 22 reais), and Quadrucci (No. 233; 55-21-2512-4551; quadrucci.com.br), with its Italian takes like shrimp risotto with mango, mascarpone and arugula (47 reais). For other nouvelle concoctions, head for Zuka (No. 233b; 55-21-3205-7154; zuka.com.br) and try the white fish and pepper ceviche (27 reais) and rack of lamb with passion-fruit mashed potatoes (79 reais).
Midnight
9) SHABBY OR CHIC?
As Rio revamps its port, the docklands district of Gamboa is turning into a night-life hub that aims to compete with Lapa. (Still, the area can be a bit sketchy, so know where you’re going.) With a lively, down-to-earth crowd in a rustic 19th-century building, Trapiche Gamboa (Rua Sacadura Cabral 155; 55-21-2516-0868; trapichegamboa.com.br) is one of the city’s most popular samba spots. Or for a gay mega-party, cross the street to the Week (Rua Sacadura Cabral 154; 55-21-2253-1020; theweek.com.br), a São Paulo import for the muscle-boy and D.J.-groupie crowd. Alternatively, take a taxi to the Urca area and Zozô (Avenida Pasteur 520, Praia Vermelha; 55-21-2295-5659; zozorio.com.br). Dramatically situated by the beach, adjacent to the Sugar Loaf cable car station, this restaurant turns into a weekend after-dinner lounge and dance club where a posh crowd of 30-something Brazilians do what they do best: look good.
Sunday
11 a.m.
10) BRUNCH SET
Long night? Haul yourself over to Escola do Pão (Rua General Garzon 10; 55-21-2294-0027; escoladopao.com.br), run by a mother-and-daughter team that has turned this former home — once belonging to the Brazilian writer José Lins do Rego — into a French-style bistro, bakery, cooking school and labor of love. Settle into its cozy interior of cast-iron columns and tropical flourishes. Then start nibbling on the cavalcade of fresh fruit drinks, cheese gratins, finger sandwiches, light-as-air eggs and impeccable breads that make up its 62-real prix-fixe brunch.
12:30 p.m.
11) LAGOON TO GARDEN
Time for some air. Stroll along the lagoa (lagoon) — Escola do Pão sits right on its shore — or take the short walk to the Jardim Botânico (Rua Jardim Botânico 1008; 55-21-3874-1808; www.jbrj.gov.br; 5 reais). This impressive botanical garden, founded in 1808 by Dom João VI of Portugal, retains its imperial stateliness with rows of royal palms, ponds, monuments and orchid-filled greenhouses. Not a bad way to wind down.
IF YOU GO
Several airlines including TAM, United and Continental fly direct from Kennedy airport to Rio. A recent Web search showed round-trip tickets starting at around $1,057 for travel this month.
Opened in 2007, the 89-room Hotel Fasano (Avenida Vieira Souto 80; 55-21-3202-4000; fasano.com.br) is Philippe Starck’s splashy contribution to Ipanema’s waterfront, with hardwood floors and Brazilian modernist furniture. There’s a rooftop infinity pool and a new spa. Doubles start at 1,200 reais ($710 at 1.70 Brazilian reais to the dollar).
The Ipanema Plaza (Rua Farme de Amoedo 34; 55-21-3687-2000; ipanemaplaza.com.br) is a favorite of the fashion crowd and is close to the gay section of the beach. The 140 spacious rooms start at 435 reais.
Copacabana isn’t what it used to be. But for a good value, try the new 135-room Arena Copacabana (Avenida Atlantica 2064; 55-21- 3034-1501; arenahotel.com.br), which opened last year with spare yet comfortable modern rooms right on the beach. Standard rooms start at 330 reais.
A version of this article appeared in print on September 19, 2010, on
36 Hours in Rio de Janeiro
André Vieira for The New York Times
The London-themed Baretto-Londra bar in the Hotel Fasano. More Photos »
By ARIC CHEN
Published: September 16, 2010
WITH the World Cup coming in 2014, followed by the Olympic Games two years later, Rio de Janeiro is thinking outside the beach. The historic port area is undergoing an extreme makeover, and museums by such vanguard architects as Santiago Calatrava and Diller Scofidio + Renfro are in the works. A long-anticipated bullet train to São Paulo seems to be finally happening, while the city is making strides (albeit fitful ones) tackling the problems of its notorious favelas. Indeed, there will always be sunshine, thongs and Carnaval, but these days, Rio has a whole lot more to strut about.
Rio de Janeiro Travel Guide
Where to Stay
Where to Eat
What to Do
Go to the Rio de Janeiro Travel Guide »
Multimedia
Slide Show
A Weekend in Rio de Janeiro
Map
Rio de Janeiro, Brazil
Friday
3 p.m.
1) CONCRETE CURVES
Long before the future arrived, Oscar Niemeyer was building it. Rio’s most famous architect (age 102 and counting) is best known for his work designing the capital of Brasília, but visitors need only go to São Conrado, about a 20-minute drive from the city center, to see Casa das Canoas (Estrada das Canoas 2.310, São Conrado; 55-21-3322-3581). Now home to the Niemeyer Foundation, this is the house the architect built for himself in 1953. Its curvaceous roof and jutting rock formations can be ogled only on Tuesdays through Fridays, from 1 to 5 p.m.
8 p.m.
2) SEAFOOD BY THE SEA
Continue the ogling over dinner at the Philippe Starck-designed Hotel Fasano (Avenida Vieira Souto 80; 55-21-3202-4000; fasano.com.br), right on Ipanema beach. Its seafood restaurant, Fasano Al Mare, serves dishes like crispy tuna with white beans, cream and red onions (78 reais, about $46 at 1.70 Brazilian reais to the dollar), while its breezy interior sheds a flattering light on the glamour pusses within. Afterward, head to the hotel’s London-themed bar, Baretto-Londra, for a nightcap.
11 p.m.
3) LAPA CRAWL
Have a second wind? This city parties late, so join the students, bohemians, yuppies and just-plain locals reveling in the streets of Lapa. This historic, charmingly shabby neighborhood in central Rio goes late into the night with plentiful street food — and cheap drinks. Duck into popular samba clubs like Rio Scenarium (Rua do Lavradio 20; 55-21-3147-9005; rioscenarium.com.br) and the intimate Carioca da Gema (Rua Mem de Sá 79; 55-21-2221-0043; barcariocadagema.com.br). Or just bar hop your way to tomorrow.
Saturday
10 a.m.
4) WATERFRONT BARGAINS
Time for some rummaging. Saturday mornings mean the flea market at Praça 15 de Novembro, along the waterfront in Rio’s historic heart of Centro. Browse the standard offerings of old china, vinyl records and secondhand clothing — but also the crafts, colonial-style knickknacks and other local curiosities you won’t find elsewhere. Don’t forget to haggle.
Noon
5) FROM THE HEIGHTS
Take the antique tram called the bonde uphill to the cobbled, winding streets of leafy Santa Teresa. Known for its crumbling mansions, some converted into museums and bed-and-breakfasts, this artsy, once-neglected enclave has come back to life. Consider the newish Hotel Santa Teresa (Rua Almirante Alexandrino 660; 55-21-3380-0200; santa-teresa-hotel.com), a former coffee plantation turned luxury retreat. Wander the artisanal shops and restaurants on the main drag of Rua Almirante Alexandrino. Have lunch there, or continue uphill to the thatched-roof pavilions of Aprazível (Rua Aprazível 62; 55-21-2508-9174; aprazivel.com.br) for the spectacular views and bacalhau do pai (71 reais), a cod pastry dish filling enough for two.
3 p.m.
6) ART CENTRO
History meets contemporary art in Centro. Just across from the flea market, the 18th-century Paço Imperial (Praça 15 de Novembro 48; 55-21-2215-2622; pacoimperial.com.br) mounts excellent exhibitions like the recent one on Gordon Matta-Clark. Not far away is the former bank headquarters that’s now the Centro Cultural Banco do Brasil (Rua Primeiro de Março 66; 55-21-3808-2020; bb.com.br/cultura), where you might find, say, a Rebecca Horn retrospective. The area is also home to a growing number of galleries. Don’t miss A Gentil Carioca (Rua Gonçalves Ledo 17; 55-21-2222-1651; agentilcarioca.com.br), an experimental space run by three artists including the Brazilian art star Ernesto Neto.
5:30 p.m.
7) A DIFFERENT VIEW
Forget those postcard-perfect views from Sugar Loaf and the Corcovado. This summer, as part of an effort to better integrate the favelas with the city, Rio unveiled a gleaming elevator tower that rises more than 20 stories to connect upscale Ipanema with the favela of Cantagalo above. At the corner of Rua Teixeira de Melo and Rua Barão da Torre, just off Praça General Osório, this progressive piece of architecture has an observation deck with views across Ipanema and Copacabana. Guards may stop you from taking a second set of elevators to the favela proper. But at least you’ve gotten as close as you’re likely to get on your own.
9:30 p.m.
8) GOURMET ALLEY
The peacocks of Rio flock to the Leblon area for dinner, specifically Rua Dias Ferreira. On a one-block stretch, you can choose from the always-busy Sushi Leblon (No. 256; 55-21-2512-7830; sushileblon.com), with its sometimes exotic sushi offerings (think quail egg and truffles, 11 to 22 reais), and Quadrucci (No. 233; 55-21-2512-4551; quadrucci.com.br), with its Italian takes like shrimp risotto with mango, mascarpone and arugula (47 reais). For other nouvelle concoctions, head for Zuka (No. 233b; 55-21-3205-7154; zuka.com.br) and try the white fish and pepper ceviche (27 reais) and rack of lamb with passion-fruit mashed potatoes (79 reais).
Midnight
9) SHABBY OR CHIC?
As Rio revamps its port, the docklands district of Gamboa is turning into a night-life hub that aims to compete with Lapa. (Still, the area can be a bit sketchy, so know where you’re going.) With a lively, down-to-earth crowd in a rustic 19th-century building, Trapiche Gamboa (Rua Sacadura Cabral 155; 55-21-2516-0868; trapichegamboa.com.br) is one of the city’s most popular samba spots. Or for a gay mega-party, cross the street to the Week (Rua Sacadura Cabral 154; 55-21-2253-1020; theweek.com.br), a São Paulo import for the muscle-boy and D.J.-groupie crowd. Alternatively, take a taxi to the Urca area and Zozô (Avenida Pasteur 520, Praia Vermelha; 55-21-2295-5659; zozorio.com.br). Dramatically situated by the beach, adjacent to the Sugar Loaf cable car station, this restaurant turns into a weekend after-dinner lounge and dance club where a posh crowd of 30-something Brazilians do what they do best: look good.
Sunday
11 a.m.
10) BRUNCH SET
Long night? Haul yourself over to Escola do Pão (Rua General Garzon 10; 55-21-2294-0027; escoladopao.com.br), run by a mother-and-daughter team that has turned this former home — once belonging to the Brazilian writer José Lins do Rego — into a French-style bistro, bakery, cooking school and labor of love. Settle into its cozy interior of cast-iron columns and tropical flourishes. Then start nibbling on the cavalcade of fresh fruit drinks, cheese gratins, finger sandwiches, light-as-air eggs and impeccable breads that make up its 62-real prix-fixe brunch.
12:30 p.m.
11) LAGOON TO GARDEN
Time for some air. Stroll along the lagoa (lagoon) — Escola do Pão sits right on its shore — or take the short walk to the Jardim Botânico (Rua Jardim Botânico 1008; 55-21-3874-1808; www.jbrj.gov.br; 5 reais). This impressive botanical garden, founded in 1808 by Dom João VI of Portugal, retains its imperial stateliness with rows of royal palms, ponds, monuments and orchid-filled greenhouses. Not a bad way to wind down.
IF YOU GO
Several airlines including TAM, United and Continental fly direct from Kennedy airport to Rio. A recent Web search showed round-trip tickets starting at around $1,057 for travel this month.
Opened in 2007, the 89-room Hotel Fasano (Avenida Vieira Souto 80; 55-21-3202-4000; fasano.com.br) is Philippe Starck’s splashy contribution to Ipanema’s waterfront, with hardwood floors and Brazilian modernist furniture. There’s a rooftop infinity pool and a new spa. Doubles start at 1,200 reais ($710 at 1.70 Brazilian reais to the dollar).
The Ipanema Plaza (Rua Farme de Amoedo 34; 55-21-3687-2000; ipanemaplaza.com.br) is a favorite of the fashion crowd and is close to the gay section of the beach. The 140 spacious rooms start at 435 reais.
Copacabana isn’t what it used to be. But for a good value, try the new 135-room Arena Copacabana (Avenida Atlantica 2064; 55-21- 3034-1501; arenahotel.com.br), which opened last year with spare yet comfortable modern rooms right on the beach. Standard rooms start at 330 reais.
A version of this article appeared in print on September 19, 2010, on
While US Workers Suffer Over 22.5% Unemployment Large US Companies Are Sitting On A $1 Trillion Dollar Cash Hoard In Other Countries
The Trillion-Dollar Challenge
By ERIC J. SAVITZ | MORE ARTICLES BY AUTHOR
Fear of taxation prevents U.S. companies from bringing in some of the $1 trillion-plus held overseas that could help fuel an economic rebound.
Article
SOMETIMES LOST IN THE ONGOING hoo-hah over the vast sea of cash on tech-company balance sheets is the fact that a lot of it sits outside the country – for all large U.S. companies, the total is somewhere north of a $1 trillion. That by itself wouldn't be a big deal, if the money could easily be shifted back home. But for practical reasons, it can't. Under current rules, repatriated cash is subject to paying the difference between the low tax rates in foreign jurisdictions and the higher corporate levies here.
Earning all that cash overseas has plusses; for one thing, it reduces the effective tax rates for many U.S. companies. But it also leaves them holding a vast pool of money that can't easily be put to work in the States. That irritates the heck out of some people, none more so than Cisco Systems (ticker: CSCO) CEO John Chambers. The gentleman farmer of the tech set, Chambers, with his charming Southern drawl, has become a vocal campaigner about the need to change the rules — not too surprising, given the $30 billion his company has outside the U.S., about 75% of all that it has in the bank. Chambers makes a convincing case that the rules on cash repatriation should be changed. Making it attractive for U.S. companies to bring home their foreign cash, he contends, is an easy way to give the economy a boost without Uncle Sam kicking in a penny.
Chambers made his case during a presentation to financial analysts last week at Cisco HQ in San Jose. Actually, he tied the issue to what turned out to be the big news of the day: An hour into his talk, Chambers announced that Cisco intends to accede to the Street's wishes (see last week's Tech Trader and this week's Speaking of Dividends), and will start paying a dividend in its current fiscal year, which ends in July 2011. Chambers said that Cisco will offer a 1%-2% yield.
Chambers said Cisco expects to cover the payout with 25%-35% of the cash it generates in the U.S. He added that the board's decision on the exact payout will depend in part on developments in U.S. tax policy over the next few months – in particular, on whether Washington changes the repatriation rules.
In a lunch-time conversation with reporters at Tuesday's meeting, Chambers asserted that Cisco is piling up so much cash overseas that it is rapidly coming to a point where it will need to, well, do something with the dough. If the rules let it economically bring the money into the country with a relatively modest tax penalty – he'd like a low-single-digit percentage rate – Chambers said he'd repatriate the whole $30 billion, which could then be used to pay a bigger dividend, buy back more stock, make U.S. acquisitions and hire more staff in the U.S. (And note that the Cisco's cash generation continues to crank; there will be more where that pile came from.)
In his comments, Chambers made a thinly veiled threat: If Washington doesn't change the rules, Cisco will have to invest the cash elsewhere. In short, instead of hiring engineers in Santa Clara County and buying U.S.-based rivals, he'd more likely hire staff in Norway and Taiwan, and purchase companies based in Europe and Asia.
I usually leave the politicking in Barron's to my Washington colleague Tom Donlan, but I must say that Chambers makes a convincing case. For one thing, he vows that Cisco would boost hiring here by 10% if he could efficiently bring the cash home. While critics might see eased rules on repatriation as a tax dodge, corporations would be dodging a tax that wouldn't otherwise be paid. Under the current regulations, it simply makes no financial sense to build U.S. businesses, acquire American companies and hire U.S. employees with overseas cash. Chambers is right: changing the current rules is a total no-brainer.
Hot Quarter
Oracle sales grew nearly 50% in its August quarter, lifting the software giant's profits sharply. The Nasdaq Composite rose 3.3% on the week, finishing at 2,316.
You can reach Eric Savitz at eric.savitz@barrons.com, blogs.barrons.com/techtraderdaily or www.twitter.com/savitz
EMAILPRINTREPRINTS
By ERIC J. SAVITZ | MORE ARTICLES BY AUTHOR
Fear of taxation prevents U.S. companies from bringing in some of the $1 trillion-plus held overseas that could help fuel an economic rebound.
Article
SOMETIMES LOST IN THE ONGOING hoo-hah over the vast sea of cash on tech-company balance sheets is the fact that a lot of it sits outside the country – for all large U.S. companies, the total is somewhere north of a $1 trillion. That by itself wouldn't be a big deal, if the money could easily be shifted back home. But for practical reasons, it can't. Under current rules, repatriated cash is subject to paying the difference between the low tax rates in foreign jurisdictions and the higher corporate levies here.
Earning all that cash overseas has plusses; for one thing, it reduces the effective tax rates for many U.S. companies. But it also leaves them holding a vast pool of money that can't easily be put to work in the States. That irritates the heck out of some people, none more so than Cisco Systems (ticker: CSCO) CEO John Chambers. The gentleman farmer of the tech set, Chambers, with his charming Southern drawl, has become a vocal campaigner about the need to change the rules — not too surprising, given the $30 billion his company has outside the U.S., about 75% of all that it has in the bank. Chambers makes a convincing case that the rules on cash repatriation should be changed. Making it attractive for U.S. companies to bring home their foreign cash, he contends, is an easy way to give the economy a boost without Uncle Sam kicking in a penny.
Chambers made his case during a presentation to financial analysts last week at Cisco HQ in San Jose. Actually, he tied the issue to what turned out to be the big news of the day: An hour into his talk, Chambers announced that Cisco intends to accede to the Street's wishes (see last week's Tech Trader and this week's Speaking of Dividends), and will start paying a dividend in its current fiscal year, which ends in July 2011. Chambers said that Cisco will offer a 1%-2% yield.
Chambers said Cisco expects to cover the payout with 25%-35% of the cash it generates in the U.S. He added that the board's decision on the exact payout will depend in part on developments in U.S. tax policy over the next few months – in particular, on whether Washington changes the repatriation rules.
In a lunch-time conversation with reporters at Tuesday's meeting, Chambers asserted that Cisco is piling up so much cash overseas that it is rapidly coming to a point where it will need to, well, do something with the dough. If the rules let it economically bring the money into the country with a relatively modest tax penalty – he'd like a low-single-digit percentage rate – Chambers said he'd repatriate the whole $30 billion, which could then be used to pay a bigger dividend, buy back more stock, make U.S. acquisitions and hire more staff in the U.S. (And note that the Cisco's cash generation continues to crank; there will be more where that pile came from.)
In his comments, Chambers made a thinly veiled threat: If Washington doesn't change the rules, Cisco will have to invest the cash elsewhere. In short, instead of hiring engineers in Santa Clara County and buying U.S.-based rivals, he'd more likely hire staff in Norway and Taiwan, and purchase companies based in Europe and Asia.
I usually leave the politicking in Barron's to my Washington colleague Tom Donlan, but I must say that Chambers makes a convincing case. For one thing, he vows that Cisco would boost hiring here by 10% if he could efficiently bring the cash home. While critics might see eased rules on repatriation as a tax dodge, corporations would be dodging a tax that wouldn't otherwise be paid. Under the current regulations, it simply makes no financial sense to build U.S. businesses, acquire American companies and hire U.S. employees with overseas cash. Chambers is right: changing the current rules is a total no-brainer.
Hot Quarter
Oracle sales grew nearly 50% in its August quarter, lifting the software giant's profits sharply. The Nasdaq Composite rose 3.3% on the week, finishing at 2,316.
You can reach Eric Savitz at eric.savitz@barrons.com, blogs.barrons.com/techtraderdaily or www.twitter.com/savitz
EMAILPRINTREPRINTS
Saturday, September 18, 2010
Investing and Deinvesting In Zimbabwe
Investing and Deinvesting In Zimbabwe
When I first invested in Zimbabwe I was sure that Morgan Tsvangirai was going to win the presidency. I knew that Mugabe would not go quietly. I also knew that then President Thabo Mbeki of South Africa would be forced by world public opinion to act and push Mugabe into retirement if Morgan Tsvangirai won the election "fair and square." President Mbeki would not have sent the army crashing across the Zimbabwe border, as President Bush would have done. Rather he would have cut off the electricity and other support systems. Zimbabwe would have imploded quickly. Sadly Morgan Tsvangirai was deprived of the election victory that he had earned. A splinter faction in his own party gathered enough votes to deprive him of a clear election victory. A runoff election was called. Mugabe was able to marshal an army of thugs and intimidate voters into voting for the Zanu-PDF party.
My $18,000 to $20,000 US invested crashed to zero after this rigged election came about. For a poor man about to retire this was a huge loss. Fortunately other governments in the area forced Robert Mugabe to accept a power sharing government with Morgan Tsvangirai. The economy came alive and was full of hope for a while. My investment recovered from zero to $16,000 US at one point. I was full of hope.
My hopes were lost last month when I saw that elections had been called for 2011 and Morgan Tsvangirai's MDC party was going to split again. It was just a vicious circle with no hope. I sold off my hares at Imara SP Reid in Harare and ordered the money sent back to my pension account in Johannesburg. It appears that I recovered $12,971 US.
One of these days Robert Mugabe will die and South Africa will find itself in the same position as West Germany in 1989 when East Germany imploded. They will have to pick up the pieces in Zimbabwe at a huge cost to them.
Quand j'ai investi au Zimbabwe j'étais sûr que Morgan Tsvangirai allait remporter la présidence. Je savais que Mugabe ne serait pas aller tranquillement. Je savais aussi que, puis le président Thabo Mbeki d'Afrique du Sud seraient contraints par l'opinion publique mondiale à agir et pousser Mugabe à la retraite si Morgan Tsvangirai a remporté l'élection "juste et honnête." Le Président Mbeki n'aurait pas envoyé l'armée s'écraser à travers la frontière du Zimbabwe, comme le président Bush aurait fait. Au contraire, il aurait coupé l'électricité et autres systèmes de soutien. Zimbabwe aurait implosé rapidement. Malheureusement, Morgan Tsvangirai, a été privé de la victoire électorale qu'il avait gagné. Une faction dissidente de son propre parti réuni suffisamment de voix pour le priver d'une victoire électorale claire. Un second tour de scrutin a été appelée. Mugabe a été en mesure de mobiliser une armée de voyous et d'intimider les électeurs à voter pour le parti ZANU-PDF.
Mon $ 18,000 à $ 20,000 US investis s'est écrasé à zéro après cette élection truquée a vu le jour. Pour un pauvre homme à la retraite ce fut une perte énorme. Heureusement d'autres gouvernements dans le domaine forcé Robert Mugabe à accepter un pouvoir du gouvernement de partage avec Morgan Tsvangirai. L'économie a repris vie et a été plein d'espoir pour un certain temps. Mon investissement récupéré à partir de zéro à 16.000 $ US à un moment donné. J'étais plein d'espoir.
Mes espoirs ont été perdus le mois dernier quand j'ai vu que les élections avaient été appelés pour 2011 et le parti MDC Morgan Tsvangirai allait diviser à nouveau. C'était un cercle vicieux sans espoir. J'ai vendu mon lièvres à Imara SP Reid à Harare et a ordonné l'argent renvoyé à mon compte de retraite à Johannesburg. Il semble que j'ai récupéré 12.971 $ US.
Un de ces jours, Robert Mugabe va mourir et l'Afrique du Sud se trouvera dans la même situation que l'Allemagne de l'Ouest en 1989, lorsque l'Allemagne a implosé. Ils devront ramasser les morceaux au Zimbabwe, à un coût énorme pour eux.
Quando eu investidos no Zimbabué eu tinha certeza de que Morgan Tsvangirai ia ganhar a presidência. Eu sabia que Mugabe não iria tranquilamente. Eu também sabia que o então presidente Thabo Mbeki da África do Sul seria forçado pela opinião pública mundial para agir e pressionar Mugabe para a reforma se Morgan Tsvangirai venceu as eleições "justas e quadrado." Presidente Mbeki não teria enviado o exército bater em toda a fronteira com o Zimbabwe, como o presidente Bush teria feito. Ao contrário, ele teria cortado a eletricidade e outros sistemas de apoio. Zimbabwe teria implodido rapidamente. Infelizmente, Morgan Tsvangirai, foi privado da vitória nas eleições que ele tinha ganhado. Uma facção dissidente do seu próprio partido reuniu votos suficientes para privá-lo de uma vitória eleitoral clara. Um segundo turno foi chamado. Mugabe foi capaz de organizar um exército de assassinos e intimidar os eleitores a votar para o partido Zanu-PDF.
Meu $ 18.000 a $ 20.000 E.U. investido caiu para zero depois de este manipuladas eleição aconteceu. Para um pobre homem prestes a se aposentar esta foi uma enorme perda. Felizmente, outros governos na área forçado Robert Mugabe a aceitar um governo de partilha do poder com Morgan Tsvangirai. A economia se tornou viva e cheia de esperança por um tempo. Meu investimento recuperado de zero a 16 mil dólares americanos E.U. em um ponto. Eu estava cheio de esperança.
Minhas esperanças foram perdidas no mês passado quando eu vi que as eleições haviam sido chamados em 2011 e parte do MDC, Morgan Tsvangirai, estava indo para dividir novamente. Foi apenas um círculo vicioso sem nenhuma esperança. Eu vendi meu off lebres em Imara SP Reid, em Harare, e ordenou que o dinheiro enviado de volta à minha conta de pensão, em Joanesburgo. Parece que eu recuperei E.U. 12,971 dólares.
Um destes dias Robert Mugabe vai morrer e África do Sul encontra-se na mesma posição que a Alemanha Ocidental em 1989, quando a Alemanha Oriental implodiu. Eles terão que juntar os cacos no Zimbabué, a um custo enorme para eles.
Toe ek die eerste belê in Zimbabwe was ek seker dat Morgan Tsvangirai gaan die presidensie was om te wen. Ek het geweet dat Mugabe nie sou stil gaan. Ek het ook geweet dat as President Thabo Mbeki van Suid-Afrika sal deur die wêreld gedwing word om die openbare mening te tree en Mugabe in aftree stoot as Morgan Tsvangirai die verkiesing gewen het "'n eerlike en plein." President Mbeki sal nie die laer gestuur het oor die Zimbabwe gekraak grens, soos president Bush sou gebeur het. Eerder sou hy afgesny het die elektrisiteit af en ander steun stelsels. Zimbabwe het baie vinnig sou imploded. Ongelukkig is beroof Morgan Tsvangirai van die verkiesing oorwinning dat hy verdien. 'N splinter-faksie in sy eie party hom versamel genoeg stemme te ontneem van' n duidelike verkiesing oorwinning. 'N afloop verkiesing genoem. Mugabe was in staat om 'n leër van boosdoeners te beampte en intimideer kiesers in te stem vir die Zanu-PDF-party.
My $ 18,000 tot $ 20,000 US belê crashed tot nul na die verkiesing gekom het, getuig. Vir 'n arm man af te tree oor hierdie was' n groot verlies. Gelukkig ander regerings in die gebied gedwing om Robert Mugabe 'n magsdeling regering met Morgan Tsvangirai te aanvaar. Die ekonomie het in die lewe en is vol hoop vir 'n rukkie. My belegging verhaal van nul tot $ 16,000 US op 'n punt. Ek was vol van hoop.
My hoop is verlede maand verloor het toe ek sien dat verkiesings geroep het vir 2011 en Morgan Tsvangirai se MDC party was om weer te gaan verdeel. Dit was net 'n bose kringloop met geen hoop. Ek verkoop my af by Imara SP hase Reid in Harare en gelas om die geld terug gestuur na my pensioen rekening in Johannesburg. Dit blyk dat ek $ 12,971 US verhaal.
Een van hierdie dae Robert Mugabe sal sterf en Suid-Afrika sal vind homself in dieselfde posisie as Wes-Duitsland in 1989 toe Oos-Duitsland imploded. Hulle moet die stukke optel in Zimbabwe op 'n groot koste vir hulle.
當我第一次在津巴布韋的投資，我相信，摩根茨萬吉拉伊將要贏得總統寶座。我知道，穆加貝將不會坐以待斃。我也知道，當時的總統塔博姆貝基，南非將被迫由世界公眾輿論的行為，推到退休，如果穆加貝摩根茨萬吉拉伊贏得了選舉“公平，公正。”姆貝基總統也不會派軍隊越過津巴布韋的邊界崩潰，布什總統會做。相反，他會切斷電力和其他支持系統。津巴布韋將很快被引爆。可悲的是摩根茨萬吉拉伊被剝奪了選舉的勝利，他贏得的。一個分裂派在他自己的政黨聚集足夠的票數來剝奪他一個明確的選舉中獲勝。一個被稱為徑流選舉。穆加貝能夠元帥的軍隊暴徒和恐嚇選民將投票的津非PDF格式的一方。
我的18,000元至20,000元至零墜毀美國投資經此選舉舞弊來的。對於一個貧窮的人即將退休，這是一個巨大的損失。幸運的是在該地區其他國家的政府被迫接受羅伯特穆加貝分享權力的政府與摩根茨萬吉拉伊。經濟來活著，是充滿希望的一段時間。收回我的投資從零到16,000元美國在1點。我是充滿希望。
我的希望都失去了上個月，當我看到選舉已經要求2011年和摩根茨萬吉拉伊的民主變革運動黨將再次分裂。這僅僅是一個惡性循環，沒有希望。我賣掉了我的野兔在伊馬拉警司里德在哈拉雷，並下令錢送回我的退休金帳戶在約翰內斯堡舉行。看來，我收回12.971美元美元。
這些天的一個羅伯特穆加貝將死於和南非將發現自己在同樣的位置，這是由於德國在1989年時，東德破裂。他們將不得不收拾殘局的津巴布韋了巨大的成本給他們。
عندما كنت أول استثمار في زيمبابوي كنت واثقا من أن مورغان تسفانجيراي على وشك أن يفوز بالرئاسة. كنت اعرف ان موغابي لن تذهب بهدوء. كنت أعرف أيضا أنه بعد ذلك سيضطر الرئيس ثابو مبيكي رئيس جنوب أفريقيا لدى الرأي العام العالمي للعمل ودفع موغابي على التقاعد إذا مورغان تسفانجيراي فاز في الانتخابات "نزيهة ومربعا." والرئيس مبيكي لم يكن لديك ارسل الجيش الاسرائيلي عبر الحدود تسقط زيمبابوي ، والرئيس بوش قد فعلت. وبدلا من أن انقطعت الكهرباء ونظم الدعم الأخرى. كان انفجر زيمبابوي بسرعة. للأسف حرمت مورغان تسفانجيراي من فوزها في الانتخابات التي حصل. وتجمع الفصائل المنشقة في حزبه ما يكفي من الأصوات لحرمانه من الفوز في الانتخابات واضحة. ودعوا إلى انتخابات الاعادة. وكان موغابي قادرة على حشد جيشا من البلطجية وتخويف الناخبين الى التصويت لصالح حزب زانو ، قوات الدفاع الشعبي.
تحطمت بلدي 18،000 دولار إلى 20،000 دولار أمريكي استثمرت إلى الصفر بعد هذه الانتخابات مزورة وجاء عنه. عن رجل فقير كان على وشك التقاعد هذه خسارة كبيرة. لحسن الحظ الحكومات الأخرى في المنطقة اضطر روبرت موغابي لقبول تقاسم السلطة مع الحكومة مورجان تسفانجيراي. وجاء هذا الاقتصاد على قيد الحياة ، وكانت مليئة بالأمل لفترة من الوقت. تعافى الاستثمار بلدي من صفر إلى 16،000 دولار أمريكي في نقطة واحدة. وأنا مفعم بالأمل.
وتأمل بلادي فقدت الشهر الماضي عندما رأيت أنه قد دعا الى اجراء انتخابات في عام 2011 ، وحزب حركة التغيير الديمقراطي مورغان تسفانجيراي على وشك الدخول في تقسيم مرة أخرى. وكان مجرد حلقة مفرغة بلا أمل. بعت من الأرانب البرية وجودي في العمارة س ريد في هراري وأمر الأموال التي أرسلها إلى حساب معاش زوجي في جوهانسبرغ. ويبدو أن استرجعت الولايات المتحدة 12،971 $.
واحد من هذه الأيام روبرت موغابي ستموت ، وجنوب افريقيا وسوف تجد نفسها في نفس الموقف في ألمانيا الغربية عام 1989 عندما انفجر في ألمانيا الشرقية. وسيتعين عليهم ان نستدرك في زيمبابوي بتكلفة ضخمة لهم.
Posted by ohomen171 at 3:10 AM 0 comments
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When I first invested in Zimbabwe I was sure that Morgan Tsvangirai was going to win the presidency. I knew that Mugabe would not go quietly. I also knew that then President Thabo Mbeki of South Africa would be forced by world public opinion to act and push Mugabe into retirement if Morgan Tsvangirai won the election "fair and square." President Mbeki would not have sent the army crashing across the Zimbabwe border, as President Bush would have done. Rather he would have cut off the electricity and other support systems. Zimbabwe would have imploded quickly. Sadly Morgan Tsvangirai was deprived of the election victory that he had earned. A splinter faction in his own party gathered enough votes to deprive him of a clear election victory. A runoff election was called. Mugabe was able to marshal an army of thugs and intimidate voters into voting for the Zanu-PDF party.
My $18,000 to $20,000 US invested crashed to zero after this rigged election came about. For a poor man about to retire this was a huge loss. Fortunately other governments in the area forced Robert Mugabe to accept a power sharing government with Morgan Tsvangirai. The economy came alive and was full of hope for a while. My investment recovered from zero to $16,000 US at one point. I was full of hope.
My hopes were lost last month when I saw that elections had been called for 2011 and Morgan Tsvangirai's MDC party was going to split again. It was just a vicious circle with no hope. I sold off my hares at Imara SP Reid in Harare and ordered the money sent back to my pension account in Johannesburg. It appears that I recovered $12,971 US.
One of these days Robert Mugabe will die and South Africa will find itself in the same position as West Germany in 1989 when East Germany imploded. They will have to pick up the pieces in Zimbabwe at a huge cost to them.
Quand j'ai investi au Zimbabwe j'étais sûr que Morgan Tsvangirai allait remporter la présidence. Je savais que Mugabe ne serait pas aller tranquillement. Je savais aussi que, puis le président Thabo Mbeki d'Afrique du Sud seraient contraints par l'opinion publique mondiale à agir et pousser Mugabe à la retraite si Morgan Tsvangirai a remporté l'élection "juste et honnête." Le Président Mbeki n'aurait pas envoyé l'armée s'écraser à travers la frontière du Zimbabwe, comme le président Bush aurait fait. Au contraire, il aurait coupé l'électricité et autres systèmes de soutien. Zimbabwe aurait implosé rapidement. Malheureusement, Morgan Tsvangirai, a été privé de la victoire électorale qu'il avait gagné. Une faction dissidente de son propre parti réuni suffisamment de voix pour le priver d'une victoire électorale claire. Un second tour de scrutin a été appelée. Mugabe a été en mesure de mobiliser une armée de voyous et d'intimider les électeurs à voter pour le parti ZANU-PDF.
Mon $ 18,000 à $ 20,000 US investis s'est écrasé à zéro après cette élection truquée a vu le jour. Pour un pauvre homme à la retraite ce fut une perte énorme. Heureusement d'autres gouvernements dans le domaine forcé Robert Mugabe à accepter un pouvoir du gouvernement de partage avec Morgan Tsvangirai. L'économie a repris vie et a été plein d'espoir pour un certain temps. Mon investissement récupéré à partir de zéro à 16.000 $ US à un moment donné. J'étais plein d'espoir.
Mes espoirs ont été perdus le mois dernier quand j'ai vu que les élections avaient été appelés pour 2011 et le parti MDC Morgan Tsvangirai allait diviser à nouveau. C'était un cercle vicieux sans espoir. J'ai vendu mon lièvres à Imara SP Reid à Harare et a ordonné l'argent renvoyé à mon compte de retraite à Johannesburg. Il semble que j'ai récupéré 12.971 $ US.
Un de ces jours, Robert Mugabe va mourir et l'Afrique du Sud se trouvera dans la même situation que l'Allemagne de l'Ouest en 1989, lorsque l'Allemagne a implosé. Ils devront ramasser les morceaux au Zimbabwe, à un coût énorme pour eux.
Quando eu investidos no Zimbabué eu tinha certeza de que Morgan Tsvangirai ia ganhar a presidência. Eu sabia que Mugabe não iria tranquilamente. Eu também sabia que o então presidente Thabo Mbeki da África do Sul seria forçado pela opinião pública mundial para agir e pressionar Mugabe para a reforma se Morgan Tsvangirai venceu as eleições "justas e quadrado." Presidente Mbeki não teria enviado o exército bater em toda a fronteira com o Zimbabwe, como o presidente Bush teria feito. Ao contrário, ele teria cortado a eletricidade e outros sistemas de apoio. Zimbabwe teria implodido rapidamente. Infelizmente, Morgan Tsvangirai, foi privado da vitória nas eleições que ele tinha ganhado. Uma facção dissidente do seu próprio partido reuniu votos suficientes para privá-lo de uma vitória eleitoral clara. Um segundo turno foi chamado. Mugabe foi capaz de organizar um exército de assassinos e intimidar os eleitores a votar para o partido Zanu-PDF.
Meu $ 18.000 a $ 20.000 E.U. investido caiu para zero depois de este manipuladas eleição aconteceu. Para um pobre homem prestes a se aposentar esta foi uma enorme perda. Felizmente, outros governos na área forçado Robert Mugabe a aceitar um governo de partilha do poder com Morgan Tsvangirai. A economia se tornou viva e cheia de esperança por um tempo. Meu investimento recuperado de zero a 16 mil dólares americanos E.U. em um ponto. Eu estava cheio de esperança.
Minhas esperanças foram perdidas no mês passado quando eu vi que as eleições haviam sido chamados em 2011 e parte do MDC, Morgan Tsvangirai, estava indo para dividir novamente. Foi apenas um círculo vicioso sem nenhuma esperança. Eu vendi meu off lebres em Imara SP Reid, em Harare, e ordenou que o dinheiro enviado de volta à minha conta de pensão, em Joanesburgo. Parece que eu recuperei E.U. 12,971 dólares.
Um destes dias Robert Mugabe vai morrer e África do Sul encontra-se na mesma posição que a Alemanha Ocidental em 1989, quando a Alemanha Oriental implodiu. Eles terão que juntar os cacos no Zimbabué, a um custo enorme para eles.
Toe ek die eerste belê in Zimbabwe was ek seker dat Morgan Tsvangirai gaan die presidensie was om te wen. Ek het geweet dat Mugabe nie sou stil gaan. Ek het ook geweet dat as President Thabo Mbeki van Suid-Afrika sal deur die wêreld gedwing word om die openbare mening te tree en Mugabe in aftree stoot as Morgan Tsvangirai die verkiesing gewen het "'n eerlike en plein." President Mbeki sal nie die laer gestuur het oor die Zimbabwe gekraak grens, soos president Bush sou gebeur het. Eerder sou hy afgesny het die elektrisiteit af en ander steun stelsels. Zimbabwe het baie vinnig sou imploded. Ongelukkig is beroof Morgan Tsvangirai van die verkiesing oorwinning dat hy verdien. 'N splinter-faksie in sy eie party hom versamel genoeg stemme te ontneem van' n duidelike verkiesing oorwinning. 'N afloop verkiesing genoem. Mugabe was in staat om 'n leër van boosdoeners te beampte en intimideer kiesers in te stem vir die Zanu-PDF-party.
My $ 18,000 tot $ 20,000 US belê crashed tot nul na die verkiesing gekom het, getuig. Vir 'n arm man af te tree oor hierdie was' n groot verlies. Gelukkig ander regerings in die gebied gedwing om Robert Mugabe 'n magsdeling regering met Morgan Tsvangirai te aanvaar. Die ekonomie het in die lewe en is vol hoop vir 'n rukkie. My belegging verhaal van nul tot $ 16,000 US op 'n punt. Ek was vol van hoop.
My hoop is verlede maand verloor het toe ek sien dat verkiesings geroep het vir 2011 en Morgan Tsvangirai se MDC party was om weer te gaan verdeel. Dit was net 'n bose kringloop met geen hoop. Ek verkoop my af by Imara SP hase Reid in Harare en gelas om die geld terug gestuur na my pensioen rekening in Johannesburg. Dit blyk dat ek $ 12,971 US verhaal.
Een van hierdie dae Robert Mugabe sal sterf en Suid-Afrika sal vind homself in dieselfde posisie as Wes-Duitsland in 1989 toe Oos-Duitsland imploded. Hulle moet die stukke optel in Zimbabwe op 'n groot koste vir hulle.
當我第一次在津巴布韋的投資，我相信，摩根茨萬吉拉伊將要贏得總統寶座。我知道，穆加貝將不會坐以待斃。我也知道，當時的總統塔博姆貝基，南非將被迫由世界公眾輿論的行為，推到退休，如果穆加貝摩根茨萬吉拉伊贏得了選舉“公平，公正。”姆貝基總統也不會派軍隊越過津巴布韋的邊界崩潰，布什總統會做。相反，他會切斷電力和其他支持系統。津巴布韋將很快被引爆。可悲的是摩根茨萬吉拉伊被剝奪了選舉的勝利，他贏得的。一個分裂派在他自己的政黨聚集足夠的票數來剝奪他一個明確的選舉中獲勝。一個被稱為徑流選舉。穆加貝能夠元帥的軍隊暴徒和恐嚇選民將投票的津非PDF格式的一方。
我的18,000元至20,000元至零墜毀美國投資經此選舉舞弊來的。對於一個貧窮的人即將退休，這是一個巨大的損失。幸運的是在該地區其他國家的政府被迫接受羅伯特穆加貝分享權力的政府與摩根茨萬吉拉伊。經濟來活著，是充滿希望的一段時間。收回我的投資從零到16,000元美國在1點。我是充滿希望。
我的希望都失去了上個月，當我看到選舉已經要求2011年和摩根茨萬吉拉伊的民主變革運動黨將再次分裂。這僅僅是一個惡性循環，沒有希望。我賣掉了我的野兔在伊馬拉警司里德在哈拉雷，並下令錢送回我的退休金帳戶在約翰內斯堡舉行。看來，我收回12.971美元美元。
這些天的一個羅伯特穆加貝將死於和南非將發現自己在同樣的位置，這是由於德國在1989年時，東德破裂。他們將不得不收拾殘局的津巴布韋了巨大的成本給他們。
عندما كنت أول استثمار في زيمبابوي كنت واثقا من أن مورغان تسفانجيراي على وشك أن يفوز بالرئاسة. كنت اعرف ان موغابي لن تذهب بهدوء. كنت أعرف أيضا أنه بعد ذلك سيضطر الرئيس ثابو مبيكي رئيس جنوب أفريقيا لدى الرأي العام العالمي للعمل ودفع موغابي على التقاعد إذا مورغان تسفانجيراي فاز في الانتخابات "نزيهة ومربعا." والرئيس مبيكي لم يكن لديك ارسل الجيش الاسرائيلي عبر الحدود تسقط زيمبابوي ، والرئيس بوش قد فعلت. وبدلا من أن انقطعت الكهرباء ونظم الدعم الأخرى. كان انفجر زيمبابوي بسرعة. للأسف حرمت مورغان تسفانجيراي من فوزها في الانتخابات التي حصل. وتجمع الفصائل المنشقة في حزبه ما يكفي من الأصوات لحرمانه من الفوز في الانتخابات واضحة. ودعوا إلى انتخابات الاعادة. وكان موغابي قادرة على حشد جيشا من البلطجية وتخويف الناخبين الى التصويت لصالح حزب زانو ، قوات الدفاع الشعبي.
تحطمت بلدي 18،000 دولار إلى 20،000 دولار أمريكي استثمرت إلى الصفر بعد هذه الانتخابات مزورة وجاء عنه. عن رجل فقير كان على وشك التقاعد هذه خسارة كبيرة. لحسن الحظ الحكومات الأخرى في المنطقة اضطر روبرت موغابي لقبول تقاسم السلطة مع الحكومة مورجان تسفانجيراي. وجاء هذا الاقتصاد على قيد الحياة ، وكانت مليئة بالأمل لفترة من الوقت. تعافى الاستثمار بلدي من صفر إلى 16،000 دولار أمريكي في نقطة واحدة. وأنا مفعم بالأمل.
وتأمل بلادي فقدت الشهر الماضي عندما رأيت أنه قد دعا الى اجراء انتخابات في عام 2011 ، وحزب حركة التغيير الديمقراطي مورغان تسفانجيراي على وشك الدخول في تقسيم مرة أخرى. وكان مجرد حلقة مفرغة بلا أمل. بعت من الأرانب البرية وجودي في العمارة س ريد في هراري وأمر الأموال التي أرسلها إلى حساب معاش زوجي في جوهانسبرغ. ويبدو أن استرجعت الولايات المتحدة 12،971 $.
واحد من هذه الأيام روبرت موغابي ستموت ، وجنوب افريقيا وسوف تجد نفسها في نفس الموقف في ألمانيا الغربية عام 1989 عندما انفجر في ألمانيا الشرقية. وسيتعين عليهم ان نستدرك في زيمبابوي بتكلفة ضخمة لهم.
Posted by ohomen171 at 3:10 AM 0 comments
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