dondon

Are We Becoming a Nation of Renters? Investing for the New Housing Dynamic

I sold in 2005 and have rented ever since. I'm paying less than my last mortgage and live in a larger home. My hot water heater went out last week. I called the landlord and he replaced it. It cost me nothing. Renting is a good option until house prices start to rise again.

The wealthy don't enjoy the same political support as everyone else, and that's why high-end homes have a ways to go to the bottom, says Pimco's Scott Simon. As Congress approves credits for first-time homebuyers, he says, banks are looking for ways to avoid qualifying high-end buyers, or charge them hefty fees.

Then what do you call the trillion dollar bailout of the banking system if it is not political support? Are you saying that the billions in bonuses are due to hard work and a level playing field? What crap that the wealthy don't have political support.

Mike Shedlock has a hard time seeing why markets went giddy over today's Q3 GDP data: "The government sloshed trillions around and yet disposable income is down, jobs are horrendously weak, and the only reason GDP rose is wasteful government spending, cash-for-clunkers and extremely unaffordable housing tax credits whose effect is soon going to start diminishing."

I am an employer and have just re-employed two people in anticipation of a busy visitor season on Maui. My sales are down 20%, no one has received a pay increase in 2009, I pay myself last right now so as to keep the bills from piling up, Maui has the highest unemployment in the state, airfares are double now over last year and I am still hoping for a busy season. If it doesn't happen I will lay off two to three employees. Right now I am not anticipating giving any pay increases in 2010 unless things really turn around. I want the economy to grow 3.5% based on real top line growth but personally I just don't see that happening any time soon.

Contrary to opinion, the stock market will embrace a tightening monetary policy, says Jeffries & Co. chief strategist Art Hogan. Rather than seeing higher corporate borrowing costs, he says, investors will know the moves are coming because of positive economic signals: "The Fed has a pretty good picture of the economy, and can usually see around the corner."

And how come Ben didn't see the around the corner of the housing crisis?

The Treasury's flooded the market with record amounts of debt in 2009. Lucky thing that U.S. households have been soaking it up, doubling Treasury holdings in the first half, in a search for safety. With $606B, households hold more than the world's major oil exporters, Caribbean banking centers and Brazil combined - and only China and Japan hold more among major foreign debtholders.

And how much debt has the Fed purchased?

The Greatest Depression Is Coming

If you need a job, move oversees. That is where they will be hiring and paying in a currency that might have some value.

Today's Initial Claims Report: A New Upturn in Joblessness?

As an employer in Hawaii, I was informed that the State Unemployment Fund is near empty. To remedy the situation the State has decided that the unemployment tax that the employers pay will go from around $100-250 per employee per year to $1020 per employee per year for 2010 and $1500 per employee per year in 2011. I have 25 employees. How many businesses will survive this increase? How many employees will be laid off? How many raises will now become unemployment tax? In Hawaii you get 59 weeks combined State and Fed unemployment up to $2000 per month. I think it is time I laid myself off.

Case-Shiller's Recent Strength: It's Not Just Seasonality

Many of the homes that are hitting the foreclosure market are high end homes. These higher priced homes are what are pushing the average home prices up. The inventory supply of homes is far outstripping the demand and prices will continue to fall.

The Worst Economy Since the ... 1980s?

Why didn't you put up a graph showing mortgage defaults from the 1980's versus today? Why didn't you put up credit card defaults from the 1980's versus today. I would be curious if those numbers were greater or less than today's numbers.

Offshore Wind: Europe Now, U.S. When?

Offshore wind only works if it is heavily subsidized by the government. How many Americans are willing to pay substantially higher electric rates to reduce carbon emissions? Living on the ocean I know the destructive force of the sea and can only imagine repair and maintenance costs that will drive rates even higher.

The American economy will add jobs before the year is out, says Barclays Capital's chief U.S. economist. Dean Maki thinks unemployment will peak "slightly below 10%."

That was an easy call by Maki. Most businesses add employees because of the increase in business from Thanksgiving through the New Year. Those jobs though will be temporary. I personally will add one to two employees through April.

The bad part of the U.S. employment situation, as we well know, are the droves of unemployed looking for jobs in a market where almost no one's hiring. The good part is that those that have jobs continue to enjoy pay increases almost as big as during the late 1990s boom.

Last year I could not give my employees a raise but I did not cut wages or benefits. This year will probably be the same. My sales are down 20% and when I talk to other business owners, they say the same. Maybe the NYT writer has been talking only to employees at GS, JPM, MS and Citi.

Will High Unemployment Prevent Recovery from Recession?

Steve Hansen wrote: Where, pray tell, will the new jobs come from?
Obviously he hasn't been listening. We have been told that the new jobs will be "green jobs". As soon as the government taxes to death everyone that produces an income, they will take the money and green jobs will magically appear.

Ye of so little faith.

Ben Stein, Predatory Bait-and-Switch Merchant

Doesn't everyone fast forward through the commercials?

That job posting for a humorist at the Treasury has been canceled: Senator Byron Dorgan was not amused.

Why, the whole government is a f**king joke.