Thursday, March 26, 2020

Lamar Adams & Selling Igloos......

How good of a con artist was Lamar Adams? Lamar Adams was so good that he sold timber investments promising 12% returns during a timber bust.  As Lamar shoveled phony timber deeds by the bushel to gullible investors, the timber market in Mississippi was in a ten-year depression. CALPERS lost more than $500 million on a ten-year investment in southern timber while Madison Timber investors enjoyed phony 12% returns,  The Institutional Real Estate website reported in 2018:


The $351 billion California Public Employees’ Retirement System reported it lost more than $500 million on timberland investments as part of its Lincoln Timber LP investment, according The Financial Times.

CalPERS exited the remainder of this investment in June with the sale of 1.1 million acres in east Texas, for $1.39 billion, a loss of $355 million on the purchase price. Combined with losses on disposals of previous portions of the holding, the total loss was more than $500 million.

CalPERS purchased Lincoln Timber in 2008 for $2.38 billion.

CalPERS’ return on the investment was a negative 0.5 percent over 10 years, underperforming its benchmark, the NCREIF Timberland Index, by 497 basis points during that time.

The Financial Times reported, “Many pension funds and endowments were lured into woodland in the past decade by the alternative asset class’s high returns and lack of correlation with other markets. But the CalPERS consortium wound up buying land in the southern United States just in time for a construction slump that has depressed log prices in the region to this day.” Article.

The article illustrates the real story of the whole Madison Timber fiasco: Lamar Adams was able to pull off his scheme during a timber depression.  Timber prices crashed in 2008 and proceeded to crater even more for the next ten years while Adams promised 12% returns  on timber investments. The Wall Street Journal reported in October 2018:

A glut of timber has piled up in the Southeast. There are far more ready-to-cut trees than the region’s mills can saw or pulp. The surfeit has crushed timber prices in Mississippi, Alabama and several other states....

It has been a big loser for some financial investors, among them the country’s largest pension fund. The California Public Employees’ Retirement System spent more than $2 billion on Southern timberland, and harvested trees at depressed prices to pay interest on money borrowed to buy. Calpers sold much of its land this summer at a loss. A spokeswoman for the pension fund declined to comment.

It has also been tough for the individuals and families who own much of the South’s forestland, and who had banked on its operating as a college fund or retirement account. The region has more than six million owners of at least 10 wooded acres, say academics and forestry consultants. Many of the owners were counting on forests as a long-term investment that could be replenished and passed on to heirs.

“If you work and you didn’t want to put all your money in the stock market, you’d buy 40 acres and plant trees and they’d be ready to cut by the time your kid went to college,” said Skip Steed, a timber broker in Lincoln, Ala. “It’s like a 401(k).”

The housing crash 10 years ago worsened the developing timber glut by depressing lumber demand and prompting woodland owners to postpone harvests. Mills closed....

 In the South, timber prices haven’t stopped sliding. Adjusted for inflation, the price of Southern pine is down about 45% since 2007, according to Daowei Zhang, an Auburn University professor of forest economics. So-called saw timber, for making lumber, is at a 50-year low, adjusted for inflation....

 Some timber harvests are barely worth the effort after the expense of logging, hauling, taxes and replanting. In some areas, there is hardly any margin for the imperfect pines that are pulped for paper and particleboard.
Waiting for better prices carries its own risks, because after a certain age, trees, like people, become more susceptible to disease. Hurricanes can lay down entire tracts. The Southern pine beetle can alter financial plans in days....

 A crush of maturing trees arrived just as U.S. housing markets collapsed in 2007 and 2008, creating a supply imbalance that in some places has never ended. Even with increased demand from the housing recovery, there remain about 25 years’ worth of softwood supply in the Southeast, said Brooks Mendell, chief executive of Forisk Consulting, which advises timber investors.

In parts of Mississippi and Alabama, the glut is even worse. “It’s unclear we’ll ever have timber prices like we did 10 or 20 years ago,” Mr. Mendell said.... Rest of article.

Kingfish note: Not bad, Lamar, not bad at all. 


10 comments:

Anonymous said...

Of course he had some of he best con men selling to investors that trusted them. These guys had to know the investment was a sham.

Anonymous said...

Our entire economy is a confidence scheme of global magnitude. Debt based fiat currency printed from thin air and propped up by OPEC as the de facto global reserve petrodollar. (Much to the chagrin of Russia and China)

Unfortunately for Lamar Adams, the perpetrators of the fractional reserve banking scheme own all 3 branches of our government, media, and academia. They shield themselves while absolutely roasting small fry like him.

Still better than living in North Korea.

Anonymous said...

I'm not sure this scam indicates superior sales abilities as much as it indicates the degree of cluelessness and greed of the marks and their crowd. It was likely this ecosystem of people thinking they were smarter than their peers, and the 'investment advisors' who 'help them manage and grow their wealth' for fat 'commissions' which created the opportunity of all those funds waiting to be separated from the holders.

All the organizers needed to do was construct the scheme and put the bait on the hook.

Pro-tip: If you are told it's an 'exclusive pitch', then it's a pitch and it ISN'T exclusive. Govern yourself accordingly.

Pro-tip: When your 'investment advisor' tells you 'it's a great opportunity' you need to already know what is in it for them.

Anonymous said...

"Everything will be fine. There is plenty of collateral. The promissory notes will be secured by an un-filed timber deed."

Anonymous said...

TP manufacturing and sales is HOTTTTTT right now. By TP futures.

Anonymous said...

The old saying is “if it sounds to good to be true, it usually is.” Why on earth people would think they could make 12% is mind boggling. You can guarantee that if there were investments offering these kinds of returns, they wouldn’t be available through the local country club. Big time sophisticated investors would have sucked up the opportunity way before it would ever have gotten to the small time occasional investor.

Anonymous said...

Too many pine trees hardwood in demand until Carona!

Anonymous said...

I thought I recognized the article as I read it. It’s a very good read, and anyone looking to buy property should read it. Land not used for farming is best as recreational use only. Pine is useless, and hardwood will take more than a generation to grow. Enjoy the outdoors for what it is and provides. It’s not an investment any more.

Anonymous said...

We need Lamar to run for Governor. At least he could scam corporations into building here with a less than desirable educational system and lie to the potential new businesses that we have people already trained to work since our vocational and technical system is a model to be compared by. Oh wait....that’s already been done. My bad.



Last one leaving please turn out the lights.

Anonymous said...

You lost me at 'pine is useless'. Are you aware of the home construction industry? Maybe your knowledge is limited to baseball bats.


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.