This was an article from the St. Petersburg Times Newspaper on Sunday.
The Business Section asked readers for ideas on "How Would You Fix the Economy?"
I thought this was the BEST idea.
I think this guy nailed it!
Dear Mr. President,
Patriotic retirement:
There are about 40 million people over 50 in the work force; pay them $1 million a piece severance with stipulations:
1) They give up their jobs. Forty million job openings - Unemployment fixed.
2) They buy NEW American cars. Forty million cars ordered/sold - Auto Industry fixed.
3) They either buy a house or pay off their mortgages- Housing Crisis fixed.
40 million people retire, 40 million American autos sold, 40 million houses bought or mortgages paid up.
All this and it's still cheaper than the "bailout."
Monday, May 18, 2009
Friday, May 15, 2009
Guess which one?
Here is an interesting email I received from a friend. With current Malroney Inquiry going on,I wonder how do our clowns in Ottawa measure up to this test?
GUESS WHICH ONE!!
Is it a member of NFL & NBA?
36 have been accused of spousal abuse
7 have been arrested for fraud
19 have been accused of writing bad checks
117 have directly or indirectly bankrupted at least 2 businesses
3 have done time for assault
71, repeat 71 cannot get a credit card due to bad credit
14 have been arrested on drug-related charges
8 have been arrested for shoplifting
21 currently are defendants in lawsuits,
and
84 have been arrested for drunk driving in the last year
Can you guess which organization this is?
NBA Or NFL ?
Give up yet?
Scroll down,
Neither,
it's the 535 members of the United States Congress
The same group of Idiots that crank out hundreds of new laws each year designed to keep the rest of Americans in line.
GUESS WHICH ONE!!
Is it a member of NFL & NBA?
36 have been accused of spousal abuse
7 have been arrested for fraud
19 have been accused of writing bad checks
117 have directly or indirectly bankrupted at least 2 businesses
3 have done time for assault
71, repeat 71 cannot get a credit card due to bad credit
14 have been arrested on drug-related charges
8 have been arrested for shoplifting
21 currently are defendants in lawsuits,
and
84 have been arrested for drunk driving in the last year
Can you guess which organization this is?
NBA Or NFL ?
Give up yet?
Scroll down,
Neither,
it's the 535 members of the United States Congress
The same group of Idiots that crank out hundreds of new laws each year designed to keep the rest of Americans in line.
Thursday, May 7, 2009
Can You Trust Your Financial Advisors?
Here is an interesting investigative presentation from SUNDAY a show aired by the peoples TV better known as the CBC! COPY and PASTE the following link...
http://www.cbc.ca/sunday/2009/04/041209_3.html
and enjoy this presentation on buyer be aware
http://www.cbc.ca/sunday/2009/04/041209_3.html
and enjoy this presentation on buyer be aware
Tuesday, May 5, 2009
What is happening with the low,low interest rates?
I am paste-ing a discussion between a realtor and a reply. The reply, in my view as a trained/practsing economist, hits the problem right on head. It is makes a humorous reading!
Read on...
THE BEACH. FORMERLY KNOWN AS THE BEACHES
Real Estate in the beach area is sizzling hot again. Agents can't bake the buns fast enough. Things are going through the roof. In fact RE in general is once again out of control. Sales are booming, prices are climbing. Hey! What's going on? Was all the bad news about the economy a lot of BS? You know, about all those bank failures, AIG problem, automobile mfgs demise, job losses, extensive consumer debt overload, and the list goes on. In general, public mood is good, and they're out there buying things left, right and centre. Where is the money coming from all of a sudden? Oh! I forgot. In 1990 it cost about $1100.00 per month to carry a $100,000 mortgage. Today that same mortgage costs around $350.00 per month, and furthermore, such low payment structure is secured for at least 5 years. The current boom as such, makes a lot of sense doesn't it? It all sounds good, but the big problem I see, is that we are getting back to what got us into trouble in the first place: Big sales & big price increases, copmbined with BIG GREED. This madness in my view will evetually lead us to THE GREATEST DEPRESSION THAT MANKIND HAS EVER WITNESSED. It will happen, and I am giving you advanced warning. But don't come back to me and say: "Even a broken clock is right twuce daily", or throw other insults at my superior intellingence.
posted at: 5/2/2009 11:36:24 AM
Comment on this posting
re: THE BEACH. FORMERLY KNOWN AS THE BEACHES
As a reply to above posting:
There is a very simple explanation for the current real estate market boom. It's called the 3% long term mortgage. It's like buying a $400,000 house for only *$100,000 (*based on a 12% mortgage structure). Additionally, those who were deep into debt, are now restructuring their debt load at a much lower interest rate. The thousands of dollars they are now saving on their greatly reduced monthly debt payments, is being used on making purchases on a variety of items, thus boosting the economy. The problem: You can only boost your car battery so many times. After that, it ain't accepting the boost no more baby.
Read on...
THE BEACH. FORMERLY KNOWN AS THE BEACHES
Real Estate in the beach area is sizzling hot again. Agents can't bake the buns fast enough. Things are going through the roof. In fact RE in general is once again out of control. Sales are booming, prices are climbing. Hey! What's going on? Was all the bad news about the economy a lot of BS? You know, about all those bank failures, AIG problem, automobile mfgs demise, job losses, extensive consumer debt overload, and the list goes on. In general, public mood is good, and they're out there buying things left, right and centre. Where is the money coming from all of a sudden? Oh! I forgot. In 1990 it cost about $1100.00 per month to carry a $100,000 mortgage. Today that same mortgage costs around $350.00 per month, and furthermore, such low payment structure is secured for at least 5 years. The current boom as such, makes a lot of sense doesn't it? It all sounds good, but the big problem I see, is that we are getting back to what got us into trouble in the first place: Big sales & big price increases, copmbined with BIG GREED. This madness in my view will evetually lead us to THE GREATEST DEPRESSION THAT MANKIND HAS EVER WITNESSED. It will happen, and I am giving you advanced warning. But don't come back to me and say: "Even a broken clock is right twuce daily", or throw other insults at my superior intellingence.
posted at: 5/2/2009 11:36:24 AM
Comment on this posting
re: THE BEACH. FORMERLY KNOWN AS THE BEACHES
As a reply to above posting:
There is a very simple explanation for the current real estate market boom. It's called the 3% long term mortgage. It's like buying a $400,000 house for only *$100,000 (*based on a 12% mortgage structure). Additionally, those who were deep into debt, are now restructuring their debt load at a much lower interest rate. The thousands of dollars they are now saving on their greatly reduced monthly debt payments, is being used on making purchases on a variety of items, thus boosting the economy. The problem: You can only boost your car battery so many times. After that, it ain't accepting the boost no more baby.
Saturday, May 2, 2009
Renegotiating a Mortgage
Mortgage Renegotiating Tips
Rates on mortgages have fallen a lot in the past several months, prompting many people to think about renegotiating their mortgage in order to cut monthly mortgage payments. Are your thinking about breaking your mortgage? In other words "refinancing" your mortgage. But there is cost involved. The problem in breaking a mortgage is the penalty that mortgage lenders charge. Its doesn't matter which bank you deal with, all banks including RBC, TD Canada Trust, Cibc, BMO - Bank of Monreal, Scotia bank and all other credit unions and mortgage companies like MCAP, Fist National etc. charge you a hefty break up fee or "penalty". Previously, lenders and banks would charge the equivalent of three months' interest payments, but now they're starting to move towards what is called the interest rate differential (or IRD). The interest rate differential is the difference between your current mortgage rate and today's interest rates. Essentially, it's the amount of money a lender would lose from taking the amount of your mortgage and lending it out today at a lower interest rate. The interest rate differential penalty is usually much higher than the three months' interest penalty.
The first step in renegotiating a mortgage is to ask your lender what your penalty would be. There's no standard method for calculation of penalties, so your number will depend on your lender's own policies and personal circumstances like the amount you've borrowed and the number of years left on your mortgage amortization or term. Another possibility is a blend and extend, where you jump into a new mortgage that blends your existing rate with the lower current rate and extends your term by a few years. There's no penalty charged in a blend and extend, but you won't save as much as you would if you paid the penalty and got the best possible current interest rate. If you have any thoughts of breaking your mortgage, get on it today. If mortgage rates fall further, and they could ease a little bit more, then interest rate differentials will grow in size and cost you more.
Rates on mortgages have fallen a lot in the past several months, prompting many people to think about renegotiating their mortgage in order to cut monthly mortgage payments. Are your thinking about breaking your mortgage? In other words "refinancing" your mortgage. But there is cost involved. The problem in breaking a mortgage is the penalty that mortgage lenders charge. Its doesn't matter which bank you deal with, all banks including RBC, TD Canada Trust, Cibc, BMO - Bank of Monreal, Scotia bank and all other credit unions and mortgage companies like MCAP, Fist National etc. charge you a hefty break up fee or "penalty". Previously, lenders and banks would charge the equivalent of three months' interest payments, but now they're starting to move towards what is called the interest rate differential (or IRD). The interest rate differential is the difference between your current mortgage rate and today's interest rates. Essentially, it's the amount of money a lender would lose from taking the amount of your mortgage and lending it out today at a lower interest rate. The interest rate differential penalty is usually much higher than the three months' interest penalty.
The first step in renegotiating a mortgage is to ask your lender what your penalty would be. There's no standard method for calculation of penalties, so your number will depend on your lender's own policies and personal circumstances like the amount you've borrowed and the number of years left on your mortgage amortization or term. Another possibility is a blend and extend, where you jump into a new mortgage that blends your existing rate with the lower current rate and extends your term by a few years. There's no penalty charged in a blend and extend, but you won't save as much as you would if you paid the penalty and got the best possible current interest rate. If you have any thoughts of breaking your mortgage, get on it today. If mortgage rates fall further, and they could ease a little bit more, then interest rate differentials will grow in size and cost you more.
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