What REALLY Caused the Mortgage Crisis - And What to Do Now [View article]
Unemployment did not cause the mortgage crisis. Unemployment was one of the outcomes of the mortgage crisis. The causes of the mortgage crisis were stupidity,greed, and pride. When my wife and I went home hunting in 2003, we first decided to pay no more than $100 per square foot, and no more than 12% of our income on the mortgage. We ended up paying $90 per square foot for a very nice all brick home built in 1963. We sold it easily this year for a modest profit. We put the equity into a smaller but newer home which we bought for $18,000 below appraised value. In each case, we had more than 30% down payment and in each case we got a 4.5% mortgage because of our excellent credit. The bottom line is that we buy well within our means and we look at a home first as a comfortable place to enjoy and secondarily as an investment. We could qualifiy for more home in a more up scaled neighborhood with perhaps a golf course, but we need only to impress ourselves.
As a long time tax preparer I have yet to meet the investor that makes money by chasing capital gains. This is exactly the kind of advice that comes from the media.
On the other hand, I have tax clients that make money year after year by investing in dividend paying investments such as CEFs, MLPs, bonds, trusts, and preferred stock. So, guess what I do.
I always have wondered why the so called experts do not recommend this approach to investing.
Madoff's Investors Don't Deserve Compensation or Sympathy [View article]
I have written serveral notes to CNBC saying what you said about Madoff investors. I got no response for obvious reasons. The press portrayed Madoff investors as intellient investors. I regarded them as stupid lazy suckers with more money than sense.
I was beginning to think I was the only one that thought this way. Thanks for your article.
Entertainment Property: Long-Term Outlook Remains Favorable [View article]
I believe a safe way to play EPR is to buy their preferred which is symbol EPR-pE on Finance.Yahoo. At a price of 12-13 it is selling at a deep discount and paying a 17.5% yield. As long as EPR keeps paying a dividend on their common stock, this preferred dividend is safe. Also, you have a good opportunity to double your investment as this preferred climbs back to the 25 level when the economy recovers.
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Latest | Highest ratedHow PHEVs and EVs Will Sabotage America's Drive for Energy Independence [View article]
What REALLY Caused the Mortgage Crisis - And What to Do Now [View article]
The bottom line is that we buy well within our means and we look at a home first as a comfortable place to enjoy and secondarily as an investment. We could qualifiy for more home in a more up scaled neighborhood with perhaps a golf course, but we need only to impress ourselves.
Fortune 40 Best Stocks for Retirement: Part III [View article]
Cramer's Mad Money - Know Thyself (6/30/09) [View article]
On the other hand, I have tax clients that make money year after year by investing in dividend paying investments such as CEFs, MLPs, bonds, trusts, and preferred stock. So, guess what I do.
I always have wondered why the so called experts do not recommend this approach to investing.
Madoff's Investors Don't Deserve Compensation or Sympathy [View article]
I was beginning to think I was the only one that thought this way. Thanks for your article.
Entertainment Property: Long-Term Outlook Remains Favorable [View article]