Infopost | 2022.05.03
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Source. Sobel edge filter on one of those canonical graphics processing images. |
void plotQuadBezierSeg(int x0, int y0, int x1, int y1, int x2, int y2) { /* plot a limited quadratic Bezier segment */ int sx = x2-x1, sy = y2-y1; long xx = x0-x1, yy = y0-y1, xy; /* relative values for checks */ double dx, dy, err, cur = xx*sy-yy*sx; /* curvature */ assert(xx*sx <= 0 && yy*sy <= 0);
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From the author: This library collects various image processing algorithms and provides simple access to them. All algorithms are implemented in Java and runs without any other dependencies. Some algorithms are pretty standard and others maybe do you know from Photoshop. Github link. |
Source. From the author: This is the source code of Pixelitor - an advanced Java image editor with layers, layer masks, text layers, 110+ image filters and color adjustments, multiple undo etc. Github link. |
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The Bloomberg index estimates that [Elon Musk has] already borrowed about $20 billion against his shares, leaving about $35 billion remaining that he could theoretically take out against the two holdings. |
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[Professor Ed] McCaffery came up with "Buy, borrow, die" in the mid-1990s to help students understand how the wealthy avoid paying taxes. "The public thinks the rich get away with paying no taxes because they have expensive lawyers and accountants that regular people can't get who are working their magic," McCaffery said. "That's not the case. The rich aren't paying taxes because of perfectly legal reasons." Here's how:
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There is not a repeat of the 2008 sub-prime debacle with NINJA (No Income, No Job, no Assets) loans. What is new - and whenever you get a financial crisis it's always, ALWAYS driven in large part by a "new" type of financial instrument (read debt) - is the sheer number of homes being bought up by with cash, and it's inferred these are all institutions and foreigners. For example, about $90 billion in US real estate was bought by foreigners in 2021. Wall Street however, blew that away, hitting as high as 1-in-7 of all homes and 1-in-2 of all apartments. Now, people look at that record institutional/foreigner buying and think it's the explanation, but the truth is, even with those crazy numbers, 6-in-7 homes and 1-in-2 apartments are still being bought by regular people, often with, again, "cash". These purchases are frequently referred to as "cash buys" because the buyer just pays the seller cash. However, they don't actually have piles of cash lying around in freighters to pay for this stuff. They take out loans. Specifically, they take out loans on their equity assets. |
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/u/Oddestmix Someone clarify if I understand this correctly: he is saying that people are leveraging their portfolios to make "cash" deals? When equities go down and margin is called, people will have to liquidate the homes to cover margin? |
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/u/filstolealan Most "cash" purchases by richer folks in the DC area are actually being structured as loans against brokerage accounts. Never seen it until covid. now its pretty standard |
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/u/champ999 How does this work, you go to the bank and say "here's my vanguard account with 5 million, give me a loan for a 2 million dollar house"? And since you have assets they give you a low interest rate since it's safe? I guess I don't understand how to a seller it's cash that way as opposed to a traditional home loan. |
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/u/Overhaul2977 It is governed under Regulation U. The most a bank can loan is for 50% of the stock?s value. If the value falls, the person who took out the loan needs to cure the shortfall or the stocks are sold to help cure it. The borrower is still on the hook for any shortfall. It is the primary cause for the crash of 1929, but the 50% limit did not exist back then so the damage should not be nearly as pronounced today. These are also on the Fed?s radar. You?re required to register with the Fed if you make margin loans using securities as collateral. |
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So basically, we've got loans on inflated assets fueling loans on other inflated assets. This is feedback loop that goes parabolic.. then crashes, hard. |
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But the coming death spiral of equity/asset sales isn't the only giant elephant in the room everyone is ignoring. I'm talking of course, about Evergrande in specific and Chinese property bonds in general. |
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Evergrande hasn't made hundreds of millions of dollars of interest payment on bonds since September. A couple weeks ago they failed to pay the principal payment on a maturing bond to the tune of $2.1 Billion. So, you'd think that means their debt is junk and they've defaulted, right? Not so fast. Let's check what the big 3 ratings agencies have to say about it: Fitch: RD - Restricted Default S&P: SD - Selective Default Moody's: Caa1- Rated as Poor Quality and Very High Credit Risk The reason Wall Street can survive a hit to something like AMZN and the indexes is that they're hedged to the balls for stuff like that. Know what they're not hedged for? Chinese property bonds universally going to zero. |
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We actually got a brief preview of what this is going to look like thanks to the wild incompetence and greed at Zillow - Z. Their stock crashed 40% in five days when it was revealed they'd bought too many houses they couldn't rent or flip and had to sell them at a loss. And that was just a couple of neighborhoods in Arizona. When this hits nationwide, it's going to be exponentially worse. |
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Source. Will this subprime meltdown comic see new life? We certainly have a lot more zero-dot-line houses these days. |
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2022.04.29
Lands betweenSome scenery from Elden Ring. |
2022.05.07
90s aestheticThe indieweb and blogging with a couple of webring rabbit holes. RSS with source and a small Elden Ring gallery. |
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2022.07.18
IndicatorsInterest rates, housing, and catalysts. |
2022.06.10
UnderdogsCPI Friday, asset-backed loans, and more indieweb. |
2023.10.18
Autopilot/soft landingInvestment risks, 401k funds are stupid, and ETFs that sell covered calls. |
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