Morning Report 11/13/12

Vital Statistics:

  Last Change Percent
S&P Futures  1370.0 -8.2 -0.59%
Eurostoxx Index 2460.4 -13.1 -0.53%
Oil (WTI) 84.97 -0.6 -0.70%
LIBOR 0.31 0.000 0.00%
US Dollar Index (DXY) 81.2 0.166 0.20%
10 Year Govt Bond Yield 1.59% -0.01%  
RPX Composite Real Estate Index 192.8 0.3  

Markets are weaker this morning on Greek worries and a negative earnings report out of Weatherford. Bonds are up 1/2 a point and MBS are flat.

The NFIB Small Business Optimism index gained .3 points.  Uncertainty reached a record high, although this is understandable given it was an October before an election. CAPEX remains in maintenance mode, and hiring is absolutely flat. Generally it was a glum report.

Now that we have the election behind us, we can pretty much safely say that it is safer to be more constructive on Treasuries.  The Fed will continue to do what it does, and taxes are going up at the end of the year.  Combine that with the fact that Obama’s re-election is a negative for energy and the financials, and we could be facing a weak Q113 as well. 

But is there a bright spot?  Ah yes, housing.  Jamie Dimon has some optimistic comments regarding housing in the WSJ.  He basically cites the same things I have been talking about – household formation, affordability and inventory.  He makes the statement that housing isn’t going to recover in the absence of a strong economy, which I am not so sure I agree with.  I think the low household formation numbers of the last 6 years are artificially depressed due to a lousy economy and have created pent-up demand.  Eventually, people get married, move out of Mom and Dad’s place, and boot out the roommates.  In other words, housing can improve in spite of the economy.  

Not only that, but think about this:  As part of obamacare, obama instituted a 3.8% surtax on investment income for people making over $250k.  In a tight rental market, landlords will undoubtedly attempt to pass that cost on to renters, making the rent vs buy decision even more of a no-brainer.  Credit availability remains a problem, though as Dimon notes. 

Wapo notes that the REO discount is starting to disappear.

AIG is looking to expand its balance sheet in the mortgage business.

Morning Report

Vital Statistics 

  Last Change Percent
S&P Futures  1380.2 4.5 0.33%
Eurostoxx Index 2477.4 -2.4 -0.10%
Oil (WTI) 85.55 -0.5 -0.60%
LIBOR 0.31 0.000 0.00%
US Dollar Index (DXY) 80.97 -0.055 -0.07%
10 Year Govt Bond Yield 1.61% 0.00%  
RPX Composite Real Estate Index 192.8 0.3  

Stock markets are higher this morning after last week’s post-election sell-off.  Bonds are closed for Veteran’s Day. The government also has the day off, so there are is no major economic news.

Post election, all eyes turn to the fiscal cliff.  There appears to be a growing consensus that we can leave rates unchanged for the top and limit deductions. Partisan posturing and political jockeying will make the markets a miserable place for the next couple of months.  Capital gains and dividends remain a wild card. The obamacare surtax will happen regardless, so financial income is taking a hit right off the bat.

The Basel III requirements scheduled to take effect on Jan 1 have been pushed back to some time in the future.  SIFMA and the MBA agree with the decision.

So how will the election affect the markets and real estate?  I suspect FHFA Chairman DeMarco will be out of a job, which will pave the way for principal reductions on F&F/Ginnie loans. If they don’t think this through, they could face a deluge of homeowners suddenly finding themselves “unable” to make their mortgage payment.

Geithner is out for obama II, and the favorite for replacement seems to be Jack Lew. Lew is a “middle of the road” candidate that has already been unanimously confirmed by the Senate in 2010 for the OMB job. 

If we go over the fiscal cliff, we will undoubtedly have a 1H recession, which could result in a 1.25% 10-year.  Which means the refi boom will continue to have legs.  If FHFA starts modding underwater loans to LTVs of 1.0, we should see some refi activity, especially in the FHA space.  That said, if CFPB doesn’t come out with a bright line definition of a QM, refinancing these folks may prove to be difficult.

Regarding a 1H recession, earnings this quarter were not great, and Sandy will probably lop 1% to 1.5% of of 4Q GDP.  Taxes are going up, so we should start handicapping a 1H recession. Will it affect housing?  My sense is no, the bottom is in, and the recession will be felt more in cap goods / the energy patch than in housing. JP Morgan downgraded CAT this morning based on the expected negative impact the election will have on energy and mining. 

A Couple of Articles That May Be of Interest

I’m wading a bit into rocky waters with these two articles, but perhaps we can have a good discussion on this topic. I’m particularly interested in Michi and Okie’s thoughts on an article in The Atlantic discussing rape exceptions for abortions. Given our past difficulties in discussing abortion maybe Michi and Okie can send me their thoughts via email, but even if there is no discussion, I thought it was an interesting take on the subject.

For those who are not inclined to read the article, the author argues that were abortion to be made illegal, a rape exception would not really provide women with control over their bodies. She argues that any reproductive freedom from a rape exception would only by illusory because eventually some bureaucrat (possibly, if not probably, male) would likely have ultimate say over whether a particular woman qualified for the exception.

I must admit that I found the argument compelling with respect to its take on the fact that a rape exception would probably only make it seem like women still had some control. However, the article does ignore the more practical aspect of the rape exception, namely that a woman may not have to carry a rapist’s baby to term. Even if the decision is not entirely her own, there is obviously a benefit to the woman. The other thing the article ignores is what were to happen if there were no exception. What if the woman went on a hunger strike? What if she tried to hurt herself and/or the baby? Would the government intervene and force her to eat and deliver the baby? Would a jury convict a woman of murder if she killed the baby? Would physicians be required to report a miscarriage that they thought was a self-induced abortion? So many troubling questions.

This article, also from The Atlantic, talks about where racists tweets came from following Obama’s re-election. The results are both not at all surprising and surprising.

Bites & Pieces, Chili Edition

I don’t care if you get yours pre-packaged from Costco, lets hear about your best chili recipes.  Stick a recipe in and I’ll worry about getting us all formatted by next Sunday (the 11th).  Stick a recipe in any way–I may edit for formatting as the day goes on, but I’m busy shoveling snow.  🙂  And how timely!  It went from 72 and sunny on Thursday to four inches about a foot of snow outside as I type.  Definitely chili weather. . .

Michigoose’s White Bean and Chicken Chili

This is really a trip down memory lane, as I haven’t made this in several years.  I think the amount of chili powder is underestimated, so go with what you think is best.

Ingredients

  • 4 cups white beans
  • 3 chicken breasts
  • 1 medium white onion, chopped
  • 6 Tbl garlic, chopped
  • 1 tsp chili powder
  • 2 cans chicken stock
  • 1 cup white wine
  • 2 cups nonfat plain yogurt

Method

Soak bean overnight, rinsing several times.  Cook beans in water seasoned with salt and pepper, half of the garlic, and Emeril Lagasse’s Essence (recipe follows).

Brown onion in olive oil.  Add the remaining garlic and brown.

Dice chicken and place in a ziplock bag with salt, pepper and Essence; shake to coat.   Add to onions/garlic and brown.

Drain beans and add to the pot along with the remaining ingredients.  Simmer 2 – 3 hours covered, then uncover and simmer another 1 – 2 hours to thicken.  Serve with grated cheese.

Emeril Lagasse’s Essence

My Dad claims he’d eat this on ice cream if he ate ice cream, but I think that’s going a bit far.  It is my spice blend of choice, though, and I use it on about everything and anything.

  • 2 1/2 tbl paprika
  • 2 tbl garlic powder
  • 1 tbl black pepper
  • 1 tbl onion powder
  • 1 tbl cayenne pepper
  • 1 tbl dried oregano
  • 1 tbl dried thyme
  • 2 tbl salt (optional)

I make mine without the salt so that I can salt the food separately.  Yields about 1/2 cup of spice mixture.


Michigoose’s Sometimes It Doesn’t Matter How Bad You Cook Chili (You still get the guy)

Back in the day, my Mom was given Betty Crocker’s Picture Cook Book (Revised and Enlarged) at a “kitchen” wedding shower; when I graduated from college and moved out on my own I persuaded her into giving it to me (and it was a tough sell, as it was her “go to” cookbook–I think I had to get her an updated copy if I remember right).  This recipe is on page 277 of that edition of the cookbook and is one of the first things I ever fixed for Brian; our tastebuds got a lot better over the years, but we still had this right around our wedding anniversary every year.  I can think of several things I’d change in this recipe, but sometimes it’s fun to see a classic in all its glory!

“Zesty ‘south of the border’ specialty”!

Brown in 3 tbsp hot fat. . .

  • 1 lb ground beef
  • 1 1/4 cups minced onion

Add and cook 10 min. . .

  • 2 1/2 cups cooked kidney beans (no. 2 can)
  • 1 1/2 cups condensed tomato soup

Make into a paste and blend in. . .

  • 1 1/2 to 2 tbsp chili powder
  • 1 tbsp flour
  • 3 tbsp water
  • 1 tsp salt

Cook over low heat, stirring frequently, 45 min.  Serve hot. . . with crackers or hot Fried Corn Meal Mush (p 293).

(“Zesty” it said–wow, how times have changed!)


Okie’s Vegetarian Sweet Potato-Black Bean Chili [Source:  www.eatingwell.com]

Ingredients [Makes about 4 cups]

  • 2 teaspoons extra-virgin olive oil
  • 1 small onion, finely diced
  • 1 small sweet potato, peeled and diced
  • 2 cloves garlic, minced
  • 1 tablespoon chili powder
  • 2 teaspoons ground cumin
  • 1/4 teaspoon ground chipotle chile
  • 1/8 teaspoon salt, or to taste
  • 1 1/3 cups water
  • 1 15-ounce can black beans, rinsed
  • 1 cup canned diced tomatoes
  • 2 teaspoons lime juice
  • 2 tablespoons chopped fresh cilantro

Preparation

Heat oil in a large saucepan over medium-high heat. Add onion and potato and cook, stirring often, until the onion is slightly softened, about 4 minutes. Add garlic, chili powder, cumin, chipotle and salt and cook, stirring constantly, until fragrant, about 30 seconds. Add water, bring to a simmer, cover, reduce heat to maintain a gentle simmer and cook until the potato is tender, 10 to 12 minutes. Add beans, tomatoes and lime juice; increase heat to high and return to a simmer, stirring often. Reduce heat to maintain a simmer and cook until slightly reduced, about 4 minutes. Remove from the heat and stir in cilantro.

Nutrition — And remember that both sweet potatoes and black beans are considered “superfoods”

Per 2 cup serving : 374 Calories; 6 g Fat; 1 g Sat; 4 g Mono; 0 mg Cholesterol; 67 g Carbohydrates; 14 g Protein; 15 g Fiber; 699 mg Sodium; 603 mg Potassium

Exchanges: 4 starch, 1 1/2 vegetable, 1 fat


Mark’s Chili (No Beans)

For me, there is chili or chili and beans.

This is chili:
Step 1
2 lbs – “chili grind” beef chuck (you should have the butcher trim extra fat from chuck, or substitute round)
2 tsp – cooking oil/olive oil + “pam”
1 tbsp – Wick Fowler 2 Alarm chili powder
2 tsp – chopped garlic

After browning meat in big skillet [use a little oil and pam], (skim or drain excess fat and then) put the browned meat into a three quart heavy saucepan, add the remaining ingredients and simmer [10 min.] . Simmering is done on low-medium heat on most stove tops.
Prepare Step 2 during the 10 minute simmer.

Step 2
1 – 8 oz can of tomato sauce or home prepared sauce
1 – big can of beef broth or real beef broth
1/4 cup chopped sweet yellow onion Texas A&M1015Y or [Granex (Vidalia, Maui Maui or NoonDay)]
1 tsp – chopped garlic
8 oz – bottled or distilled or filtered water
1 tbsp – WF 2 Alarm chili powder
2 – serrano peppers
1/2 tsp – salt

Combine seasonings except the serrano peppers and add to beef mixture. Float the 2 serrano peppers on top of the mixture. Bring to a boil and hold for 3 minutes, reduce heat and simmer for 1 hour. Then remove the floating serrano peppers.

Taste the mixture after an hour.
Correction to your personal taste stage!

Have handy:
a little bit of chopped onion, a little bit of chopped garlic, more 2 Alarm chili powder, red pepper, a little cumin, salt, and [optionally] a little bit of brown sugar. Also more bottled water, of course. I personally never use the sugar, but a little bit is ok for most people. Do not overdo sugar or you will make a hopeless, disgusting mess.
GUESS HOW MUCH OF EACH YOU NEED TO CORRECT THE SEASONING AND USE LESS THAN YOUR GUESS FOR EACH.
THIS will be your first correction simmer.
If necessary do a second “correction to your personal taste stage”.

Simmer for 10 minutes.
Let stand for 40 minutes

Addendum: if you are not using a low sodium broth you might skip any salt until the correction stage. Canned beef broth can be really salty.


Geanie Tilley’s Chili Verde

Hello All, from OK here. Just thought perhaps a nice Chili Verde might also come in handy with the cooler weather. I have so many recipes going back decades but I find this Chili Verde recipe, from La Bola (Mexican restaurant), Denver CO (as printed in the 1978 Colorado Cache Cookbook by the Junior League of Denver) to be the “poster child” of chili verde recipes.

Makes 3 quarts
2 ½ lbs port roast (fresh shoulder preferred)
1 lb pork soup bones
44 ounces canned tomatoes (28-ounce and 16-ounce cans)
23 ounces tomato sauce (15-ounce and 16-ounce cans)
1 tbs garlic powder
28 ounces hot water (3 ½ cups)
21 ounces diced green chili strips (Ortega brand preferred, 3 7-ounce cans)
¾ – 1 ounce diced hot peppers (Ortega brand preferred, ¼ of a 3 ½ ounce can)
1 tbs sugar
1 ½ tbs salt

Cut pork into ½ inch squares and with the port bones, fry over low heat until brown and the meat is slightly dry. If pork is very fat, pour off all but 4 or 5 tablespoons of the grease.

Using a colander, strain tomatoes into an 8 qt saucepan and coarsely chop tomatoes.

Combine tomatoes, tomato sauce, garlic, hot water and cooked pork and bones in the same saucepan.

Bring to a rapid boil and continue boiling for 20 minutes.

Add spices, chopped hot peppers and chopped chili strips.
Continue boiling another 20 minutes.

Finish by cooking on medium heat until desired thickness, usually about another 20 minutes.

Remove bones and serve.

Note: May be kept refrigerated for a week or frozen for 3 months. Use to cover burritos, chili rellenos and most other Mexican favorites.

Also can melt an equal amount of grated sharp Cheddar cheese and the chili verde for a fantastic chili con queso dip.

ENJOY!


I am from Ohio and we often serve our chili over spaghetti.  Almost every divey diner has Chili-Mac on the menu, which is chili over spaghetti with cheddar cheese and chopped onion on top.  There is a famous chili place in Cincinnati called Skyline Chili.  This is a take on their recipe.  The allspice and cinnamon give this a distinctly different flavor from traditional chili recipes.

Brent’s Cincinati Chili Recipe

  • 2 lbs ground beef
  • 2 chopped onions
  • 1 qt water
  • 1 16 oz can tomatoes
  • 1.5 tsp vinegar
  • 1 tsp worstershire
  • 1 tbs chil powder
  • 1 tbs cumin
  • 2 tsp allspice
  • 2 tsp salt
  • 1 tsp cayenne
  • 1 tsp cinnamon
  • 1 tsp garlic powder
  • 3 bay leaves
  • 1 can kidney beans

Brown the meat, pour off the grease and then add all the ingredients and simmer for 3 hours or more.  Test for heat and add chili powder as necessary.

Serve over spaghetti with chopped onion and grated cheddar cheese.

I like the kitchen, but I think it needs a new Cabinet

I was planning this post for the weekend, but then events overtook me. 

Secretary of State: John Kerry replaces Hillary Clinton

I’m going with the obvious choice for this post. Rice will be blocked by a filibuster, so she’s out. Kerry covets the position, worked hard for Obama, and is probably tired of the Senate. The only strike against him is that it opens up the seat to a Republican who would very much like to return to the Senate. Frankly, I’d like to see Scott Brown back in the Senate. I would have voted for Warren if I still lived in Massachusetts, but I’d take him over the typical Massachusetts pol. If the some of the teeth of the filibuster were pulled, I’d probably vote for him. Brown will probably run for governor of Massachusetts if Kerry stays.

Secretary of Defense: Chuck Hagel replaces Leon Panetta

Hagel is a natural for a cross-party appointment. The occasional endorsement of a Democrat doesn’t hurt.

Treasury: Jack Lew replaces Timothy Geithner

Too obvious to justify.

Attorney General: Who replaces Holder?

I’m interested in the thoughts of those with a legal background or interest. Occasionally listening to Supreme Court arguments on C-SPAN doesn’t qualify me. I did enjoy the oral arguments broadcast this morning on Clapper vs. Amnesty International.

CIA: Jane Harmon replaces David Petreaus

I didn’t have this one on my list of changes. Just goes to demonstrate the foresight of Harold Macmillan, who when asked what might blow his government off course responded “Events, dear boy, events.” Elevating acting director Michael Morell is an obvious choice, but he was denied the chalice in the past. Perhaps Obama will go for continuity over history.

Agriculture: Bob Kerrey replaces Tom Vilsack

I think Bob Kerrey is a dead lock for the cabinet. The question is where? Several possibilities occurred to me. He’s a Cornhusker (like me) and he served on the Agriculture Committee in the Senate. He also served on the Intelligence Committee and the 9/11 Commission, so CIA and DHS are possibilities. He was president of the New School from 2001 – 2010, but I think Education won’t change.

Energy: Bob Chu is out. Who is in?

Here’s a chance for cross party work. I’m not sure who’s coming in here, but somebody with energy sector connections would be a savvy choice.

Anyone else have some thoughts on the cabinet?

BB

Friday 11/9/2012 Open Thread

Since it appears that Brent is still on the left coast, I figured I would do an open thread for today.

First up, the drug war ramifications of the election.

Mexico says marijuana legalization in U.S. could change anti-drug strategies

Should this be true, it’s a major vindication of the ballot initiative process as a way to end run around the two parties on specific issues.

Tax Law Changes

Now that the election is over, it’s time to turn to more important matters, namely avoiding being stuck with the bill.

I’m going to start compiling a list of links to the various tax law changes that are currently scheduled to take effect in 2013, both from the potential expiration of the Bush tax cuts and the implementation of the new Obamacare taxes. Comments on tax planning strategies are welcome.

We’ll start with wikipedia:

  • In 2008–2012, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets.
  • After 2012, dividends will be taxed at the taxpayer’s ordinary income tax rate, regardless of his or her tax bracket.
  • After 2012, the long-term capital gains tax rate will be 20% (10% for taxpayers in the 15% tax bracket).
  • After 2012, the qualified five-year 18% capital gains rate (8% for taxpayers in the 15% tax bracket) will be reinstated.

Wikipedia – Capital Gains

Marginal rate tables under three scenarios:

Scenario 1: Tax cuts under the extension of the Bush-era tax cuts for all

Rate Single Filers Married Joint Filers Head of Household Filers
10% $0 to $8,950 $0 to $17,900 $0 to $12,750
15% $8,950 to $36,250 $17,900 to $72,500 $12,750 to $48,600
25% $36,250 to $87,850 $72,500 to $146,400 $48,600 to $125,450
28% $87,850 to $183,250 $146,400 to $223,050 $125,450 to $203,150
33% $183,250 to $398,350 $223,050 to $398,350 $203,150 to $398,350
35% $398,350 and up $398,350 and up $398,350 and up

Scenario 2: Tax brackets under the expiration of the Bush-era tax cuts for all

Rate Single Filers Married Joint Filers Head of Household Filers
15% $0 to $36,250 $0 to $60,550 $0 to $48,600
28% $36,250 to $87,850 $60,550 to $146,400 $48,600 to $125,450
31% $87,850 to $183,250 $146,400 to $223,050 $125,450 to $203,150
36% $183,250 to $398,350 $223,050 to $398,350 $203,150 to $398,350
39.60% $398,350 and up $398,350 and up $398,350 and up

Scenario 3: Tax brackets under the expiration of the Bush-era tax cuts for high-income

Rate Single Filers Married Joint Filers Head of Household Filers
10% $0 to $8,950 $0 to $17,900 $0 to $12,750
15% $8,950 to $36,250 $17,900 to $72,500 $12,750 to $48,600
25% $36,250 to $87,850 $72,500 to $146,400 $48,600 to $125,450
28% $87,850 to $183,250 $146,400 to $223,050 $125,450 to $203,150
33% $183,250 to $203,600 $223,050 to $247,000 $203,150 to $227,300
36% $203,600 to $398,350 $247,000 to $398,350 $227,300 to $398,350
39.60% $398,350 and up $398,350 and up $398,350 and up

Forbes Tax Table
Obamacare taxes:

Main individual ones are these:

A 3.8% surtax on “investment income” when your adjusted gross income is more than $200,000 ($250,000 for joint-filers). What is “investment income?” Dividends, interest, rent, capital gains, annuities, house sales, partnerships, etc. Taxes on dividends will rise from 15% to 18.8%–if Congress extends the Bush tax cuts. If Congress does not extend the Bush tax cuts, taxes on dividends will rise from 15% to 43.8%

A 0.9% surtax on Medicare taxes for those making $200,000 or more ($250,000 joint). You already pay Medicare tax of 1.45%, and your employer pays another 1.45% for you (unless you’re self-employed, in which case you pay the whole 2.9% yourself). Next year, your Medicare bill will be 2.35%.

Yahoo Finance

Business Insider

longinvestmentadvisory.com

Anyone know of any I missed?

Whew!

well, jnc4p  was prescient.  And I’m glad it was as relatively clear cut as it was last night, in that Florida is still deadlocked but, as yello points out, irrelevant.  What do you want to see happen in the next four years–and for purposes here let’s not say gridlock (although I know a couple of you think that’s a good thing when it comes to federal government!  :-))

I, for one, am very glad that the PPACA is safe. . . although it’s too much to hope that it can be modified.  I’d like to see the DREAM Act actually become law and I’d like to see one actually liberal Justice get appointed to the SCOTUS.  I’m sure I’ll come up with more as the day goes on.

Plus, what happened with your various states?  I see that pot is now legal in Washington and Colorado (and that last I’m betting had something to do with CO going for Obama last night).

And about that fiscal cliff. . .

Forward!

P.S.  And I’m very glad that ATiM is around to see it happen.

Election Day Open Thread

I’m going to go ahead and put this post up tonight, since I’m going to go vote before work tomorrow and don’t know when I’ll be able to get it up.  Do any of you have big plans for the morrow?  After I reminded her that tomorrow is Election Day my boss moved our staff meeting back to 10:00 and told everybody to go vote before coming in to work; I don’t anticipate huge lines here (voter turnout in UT is abysmally low), but you never know.  Then tomorrow evening I’m going to some friends’ house to watch the returns with them and a couple of other folks.  Thanks to you guys, I’ve become the Recognized Expert among my friends on all things political. . . hoot!

Remember–vote early and often!

Bites and Pieces: Roll Those Oats

Oatmeal Oatmeal is my go to breakfast for the family. It cooks while I’m getting lunches or coffee ready, it’s happily eaten, and it’s a substantial breakfast. I tend to wake up about 20 – 30 minutes before the boys on school days, so that gives me enough time to make a basic oatmeal. I like to make it creamy, so I start it off cold and use half milk and half water.

Basic Oatmeal

1 cup rolled oats
1 cup milk
1 cup water
pinch of salt

Combine all ingredients and cook over medium heat, stirring occasionally until thick. Primo likes his sweetened with blueberries and pecans on top. Secondo just goes for maple syrup. I stir some maple syrup in before serving so that it’s not just on top (and a bit sweeter than Primo realizes). For Keen, I serve it in a low soup bowl with blueberries around the edge of the oatmeal, pecans sprinkled on top, maple syrup around the edges and a bit more on top.

Porridge

Better known here as steel cut or Irish oatmeal, this is worth the time. It takes the better part of an hour, so works if I’m a bit sleepless and wake up way too early. We tried a slow cooker recipe once, but didn’t like the results. To do it right, you have to take the time and stir it. It’s also good for a weekend breakfast if I don’t feel like making pancakes or waffles.

1 cup steel cut oats
~4 cups water (or 2 cups each of water and milk)
1/4 tsp. salt or to taste

Bring the liquid up to a near boil and gradually stir in the oats. Bring up to a simmer and cook, stirring occasionally, for about 30 – 40 minutes or until you get the consistency you like. I make mine thick and creamy.

Steel cut oats are variable. We generally buy ours from Trader Joe’s, which calls for a 4 to 1 ratio. I’ve seen higher and lower ratios and different cooking methods, so trust what’s on the box. The steelcut oats have a slightly nutty flavor to them and a bit more chew to the texture. Once made, I serve the oatmeal as with the regular kind. That is, until recently.

Oatmeal Brûlée

Doodles is a restaurant in Lexington, Kentucky, that specializes in breakfast. We stopped there on our last trip between DC and KC. One of their dishes is a bruleed steel cut oats. Basically, oatmeal with a sugar crust. I tried making it myself this weekend, as we’re at my parents and they don’t have maple syrup. Lacking a torch, I caramelized the sugar by heating it in a small pot until it melted and poured the syrup on top of the oatmeal. It worked beautifully. I figured I’d split a large bowl with Keen, but one of my sons became interested. Despite already having had a bowl of oatmeal, he polished off half the remainder.

Savory Oatmeal

For all that, you think I’d love oatmeal. Humphrey Bogart once summed up my feelings about hot breakfast cereals. If me and the boys wanted to eat mucilage, we would have ordered mucilage. I used to think it was an issue with texture, but that can’t be the case. I love risotto, which is Italian for mucilage. Then it hit me. It’s not the texture, but it’s sweetness combined with the texture. I started experimenting with savory oatmeal. I’ve haven’t had a chance to experiment much, but like what I’ve tried. For my first effort, I stirred in some leftover tomato sauce and some sriracha, then topped with grated parmesan cheese and a bit of fresh cracked pepper. Voila! Oatmeal that I enjoyed. Another effort is to mix in some chopped herbs and parseley and top with cheese. I think I’ll try bacon and eggs next. Break up crispy bacon and stir into oatmeal, top with a sunny side up egg. Perhaps a bit of cheddar cheese on top.

Savory oatmeal is not a terribly original concept. I’ve eaten something similar at Café Aurora, an Eritrean restaurant in Alexandria. GA’AT is an Eritrean porridge made from barley, bran, whole wheat flour lightly roasted porridge served with melted butter, spiced red pepper and side yogurt. Here’s a few other takes on the idea.

Olga Berman

Serious Eats

Mark Bittman

So, how do you roll with your oats?

BB