Fed Raises Rates Again
Interestingly, though not surprising at this point, but the long bond traded higher today. Under most normal situations, the long bond price should have moved lower (yield = higher.)
A chronicle of the collapse of the Jersey Shore real estate market, and elsewhere.
Here is a disgusting story about the lack of bathrooms in some towns on the shore. Towns that want lots of tourists have lots of bathrooms and towns that don’t want tourists definitely try to limit the number of bathrooms.
[ "You see people walk in up to their waist and sit there for 10 or 15 seconds and then splash themselves in that region," said Joe Palmer, a veteran Margate lifeguard. "We just hope they're not laying sea dumps."]
I guess if you are going to do that in the Ocean, don’t make it so obvious. Other activities that are frowned upon that people from up north tend to do at the shore are:
Pitching an 8 person tent in the middle of a crowded beach, or soon to be crowded beach.
Feeding sea gulls.
Screaming when you see a horseshoe crab.
Playing your radio too loud near others.
Playing with one of those football toys that whistle when it is thrown.
Barbequing in the parking lot.
This is an article that was originally published two days ago in a number of different newspapers across the country and on the Internet. For whatever reason, the Asbury Park Press decided to run it in today’s business section. So even though this story is two days old, some
[SAN FRANCISCO — Once a frustrated renter, Chris Economou is now a happy homeowner, enjoying a splendid view of San Francisco and an $80,000 increase in his property's value since he bought the one-bedroom condominium for $435,000 a year ago.
He credits his good fortune to an interest-only mortgage, an increasingly popular — and risky — loan that enables borrowers to lower their monthly payments enough for several years to afford rapidly escalating home prices in expensive markets like the San Francisco Bay area. Economou estimates he saves $1,000 a month by having his interest-only mortgage instead of a traditional 30-year fixed rate loan.
"I'd still be looking at renting for a long time," if not for that mortgage, said Economou, 33. "Home prices are so high that it's about the only way young people like me can get into the market.”] More…
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"I was surfing. I was up, and then I fell off and it felt like a baseball bat had whacked my foot," said Ryan Horton. "He bit into my foot and tore off a big part of flesh and skin."
Yet borough officials are not convinced after being notified of the incident through a police report.] More…
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“Take a $385,000 house, assume a 20% down payment ($77,000) and a 30-year, fixed-rate mortgage at 5.75%. You, the homeowner, would write a check for $1,800 a month. Over five years you'd wind up paying the bank a cumulative $108,000.
Now take the same $385,000 house, the same 20% down payment and the same 30-year maturity. But instead of a fixed-rate loan, assume a 5/1 interest-only ARM. For five years you pay a fixed rate--say 5.1%. That's $1,300 a month. Over the five years your cumulative payment would amount to only $78,000.
So the case is settled? Not quite. Starting in year six, the ARM buyer faces two moments of truth. His interest rate is adjusted, or "reset," and only then does he start to pay down principal. And note that over these first five years the ARM buyer has built up no equity, whereas the fixed-rate, amortizing borrower has amassed $22,000.”
I think the most important difference between north and south
Question – What town or physical landmark on the
I would guess it is the area called the
[In order to understand what I’m getting at, you first have to understand
I was 18 before I met anyone from
This article says that some believe all the talk about the housing bubble is a Wall Street talk to shift peoples money from real estate back into the stock market. The author straightens things out though.
"For hard evidence, Jim Grant reported some fascinating numbers in his latest issue of Grant's Interest Rate Observer. Jim says that from 1983 to 1998, housing sales stayed relatively constant, representing between 8% and 10% of GDP (the economy). Then things took off...
As of the latest numbers, home sales as a percent of the economy are at 17%. For the statisticians out there, that's 3.4 standard deviations from the mean. For the non-statisticians out there, speculation in home buying is literally off the charts. Said another way, it's not a Wall Street conspiracy that speculation in housing is at a statistical extreme; it's a fact."