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Johann Galt

Johann Galt
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  • Despite nearly 11M borrowers being underwater on their mortgages, home equity lines of credit are suddenly on the rise again. During the housing boom, Americans used their homes like an ATM, withdrawing over $1T in home equity before the bubble burst. JPMorgan Chase says they've already seen a 31% jump in HELOC's over last year, and with home prices up another 8% year-over-year in December, the trend appears likely to continue unabated. [View news story]
    Ag:

    Having never looked into one, I didn't know that. It would appear then, that many of my childhood cohorts, who refinanced for money out instead of a lower payment, have really dug a hole for themselves.

    Thanks!
    Feb 11 09:14 AM | Likes Like |Link to Comment
  • Despite nearly 11M borrowers being underwater on their mortgages, home equity lines of credit are suddenly on the rise again. During the housing boom, Americans used their homes like an ATM, withdrawing over $1T in home equity before the bubble burst. JPMorgan Chase says they've already seen a 31% jump in HELOC's over last year, and with home prices up another 8% year-over-year in December, the trend appears likely to continue unabated. [View news story]
    Would it not be prudent for a homeowner to take a HELOC at a relatively low interest rate if one truly believes we are to embark on a period of higher inflation? (assuming the excess cash is used wisely, and not wasted on depreciating assets).
    Feb 9 02:10 PM | 2 Likes Like |Link to Comment
  • "Apple absolutely has to make an iPhone with a bigger screen," iPhone 5 owner Henry Blodget declares. While Apple (AAPL +0.1%) insists on using relatively small display sizes to guarantee effective one-handed iPhone use, devices such as Samsung's Galaxy S III (4.8" display) make the iPhone 5 look "puny and sad in comparison."  The iPhone 5's display size doesn't seem to be affecting its U.S. position much, as Strategy Analytics' numbers demonstrate, but international markets appear to be a different story. [View news story]
    Let me guess- no room?
    Feb 1 02:50 PM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    EA:

    I don't understand what most of the above acronyms are . . . but I do have a working comprehension of the use of a period.
    Jan 29 01:18 PM | 2 Likes Like |Link to Comment
  • President Obama is likely to approve a GOP proposal to suspend the debt ceiling until May 19, which has the backing of Senate Majority Leader Harry Reid as well. The House is due to vote on the measure today, with the bill also requiring both chambers to pass budgets by April 15; if they don't members' salaries would be withheld. [View news story]
    Sure, there'll be history books. But they will tell us what a great 8 years Obama had, and how he orchestrated a Great Leap Forward in the holy name of "progress."

    And we'll have plenty of time to read it in the food line.
    Jan 23 08:58 AM | 1 Like Like |Link to Comment
  • Fitch warns that the "age bomb" in developed countries, including the U.S., will exacerbate indebtedness and could hurt credit ratings unless governments enact labor and pension reforms. European countries are particularly at risk, although "recent reforms in Portugal, Italy and Greece have effectively neutralized the long-term impact of aging on public finances." (Fitch report[View news story]
    agreed
    Jan 21 12:21 PM | 1 Like Like |Link to Comment
  • Fitch warns that the "age bomb" in developed countries, including the U.S., will exacerbate indebtedness and could hurt credit ratings unless governments enact labor and pension reforms. European countries are particularly at risk, although "recent reforms in Portugal, Italy and Greece have effectively neutralized the long-term impact of aging on public finances." (Fitch report[View news story]
    At least one generation of Romans would beg to differ. Just for instance.
    Jan 21 11:08 AM | 4 Likes Like |Link to Comment
  • Sell AMR Corp. As Shares Spike [View article]
    not sure a hostile takeover is possible while AMR is in chapter 11.
    Jan 11 11:32 AM | 1 Like Like |Link to Comment
  • Illinois legislators ended their 2012 session yesterday without taking any measures to deal with the state's $97B unfunded liabilities, which are rising by $17M a day and which could lead to more downgrades. "I think we may learn from Wall Street very shortly about the importance of doing this quickly," says state Senator Daniel Biss. "We all look like idiots." (previous[View news story]
    He was close. Should've replaced "look like" with "are".
    Jan 9 09:32 AM | Likes Like |Link to Comment
  • AIG's (AIG) advertising tagline at the moment may be "Thank you America," but it's board will today consider joining a $25B lawsuit that's being led by former CEO and major investor Maurice Greenberg against the government. The suit argues that the heavy demands of AIG's rescue, such as the government taking a 92% stake and the high interest rate rates levied, deprived shareholders of tens of billions of dollars and violated the Fifth Amendment. [View news story]
    Bingo, Larry. This fall into the hindsight "beggars can't be choosers" category.
    Jan 8 09:11 AM | 1 Like Like |Link to Comment
  • Should You Buy Apple Before The Consumer Electronics Show? [View article]
    You must have a serious margin available if you can sell $520 puts.
    Jan 7 03:20 PM | Likes Like |Link to Comment
  • FOMC Minutes: Everyone is clearly not on board. Fed officials are "evenly divided" between ending QE around mid-year or continuing until year's end. Several FOMC members thought it appropriate to slow or stop QE well before the end of 2013. [View news story]
    Considering the increased car sales, better employment numbers, decreasing dollar store sales while high end stores report greatly improving sales ---

    could this just be an acknowledgment by those at the Fed that the economy is improving, and QE may not be necessary?
    Jan 3 02:53 PM | 1 Like Like |Link to Comment
  • Market recap: Wall Street celebrated the last-minute budget deal, renewing enthusiasm for risk assets and pushing the Dow to its best one-day point gain since July 2011. But opinions vary widely over how long the sugar high will last. Treasurys saw heavy selling, with 30-year and 10-year yields jumping to respective multi-month highs of 3.046% and 1.839%. [View news story]
    Macro:

    Read my first response. It's lengthy, I know, but I'm sure you can discern that I've answered your question.
    Jan 2 09:32 PM | Likes Like |Link to Comment
  • Market recap: Wall Street celebrated the last-minute budget deal, renewing enthusiasm for risk assets and pushing the Dow to its best one-day point gain since July 2011. But opinions vary widely over how long the sugar high will last. Treasurys saw heavy selling, with 30-year and 10-year yields jumping to respective multi-month highs of 3.046% and 1.839%. [View news story]
    He wasn't small gov't, obviously.
    Jan 2 09:07 PM | 1 Like Like |Link to Comment
  • Market recap: Wall Street celebrated the last-minute budget deal, renewing enthusiasm for risk assets and pushing the Dow to its best one-day point gain since July 2011. But opinions vary widely over how long the sugar high will last. Treasurys saw heavy selling, with 30-year and 10-year yields jumping to respective multi-month highs of 3.046% and 1.839%. [View news story]
    Yes, wrong then, wrong now. Just plain wrong.
    Jan 2 08:58 PM | 1 Like Like |Link to Comment
COMMENTS STATS
226 Comments
531 Likes