Written by: Ken Sweet FOXBusiness
In his testimony in front of the House Financial Services Committee, Federal Reserve Chairman Ben Bernanke said Tuesday that the central bank’s new lending programs have eased some of the extensive problems in the credit markets, but banks should not be expected to immediately start lending.
The testimony is part of the Congress’ inquiry into the performance of the $700 billion TARP program and sharp decrease in lending since markets froze late last year. Chief executives of major financial houses, including Goldman Sachs (GS: 94.7301, 4.1201, 4.55%), Morgan Stanley (MS: 22.94, 1.84, 8.72%), Bank of America (BAC: 6.08, 0.51, 9.16%) and Citigroup (C: 3.65, 0.25, 7.35%), will testify on Wednesday.
In his testimony, Bernanke the Federal Reserve has been “encouraged” by the response of these newly created programs, including facilities to purchase commercial paper, asset-backed securities, credit card securities and student loans, and said the programs could be expanded to additional classes of investments if warranted.
“The Federal Reserve has responded forcefully to the financial and economic crisis since its emergence in the summer of 2007,” Bernanke said.
Since the passage of the $700 billion TARP rescue program, there has been heightened criticism from both Washington and the general public that banks are not lending enough to keeps the economy going. Consumer credit levels have declined month over month, according to the Fed, and anecdotal evidence has come from small businesses that lending is not available.
Bernanke said that despite many banks’ access to these additional programs, “concerns about capital, asset quality, and credit risk continue to limit the willingness of many intermediaries to extend credit.”
Despite the banks’ alleged unwillingness to lend and the decline in the stock markets, Bernanke said that certain parts of the credit markets -- including mortgage rates and agency debt -- have improved. Money market funds have begun to see “modest inflows” since the government instituted stabilization measures in September.
Bernanke continued to emphasize that the central bank has additional tools available at its disposal now that its key lending rate is now at its “effective floor.”
Wednesday, February 11, 2009
Monday, December 29, 2008
Connie On Fox Business "Bulls & Bears" with Dave Asman Dec 24, 2008
Connie appeared on Fox Business "Bulls & Bears" with anchor Dave Asman to discuss the recent increase in re-financing due to the most recent lowering of rates. Will this help housing? Connie De Groot and Greg Rand of New York were once again asked to comment on this issue. You can view the entire segment by visiting http://www.conniedegroot.com/ and click on "Connie on Tv".
Friday, December 5, 2008
Comment's On Connie's Blog Dec 5, 2008
"I like the ideas as they would certainly encourage people to buy now and create confidence in the market which currently is not there. The people who are now in the market to buy are unsure of what might be ahead for housing prices and rates, and this would be a way for them to hedge against any potential losses."
Jeff Sclesinger-Priority Financial Network
818-385-1970
http://www.jeffschlesinger.com/)
"It would work in theory but there are other factors that would recreate the same mess we are already in without any regulation."
John T.
"Capital gains idea is great. There also has to be a happy medium between handing out credit to everyone, and the current locked upsituation."
Ed R.
Jeff Sclesinger-Priority Financial Network
818-385-1970
http://www.jeffschlesinger.com/)
"It would work in theory but there are other factors that would recreate the same mess we are already in without any regulation."
John T.
"Capital gains idea is great. There also has to be a happy medium between handing out credit to everyone, and the current locked upsituation."
Ed R.
Treasury's Low-Rate Mortgage Plan- Would This Help Housing?
Reducing rates will increase demand but lenders need to relax their guidelines or many ready willing buyers will be turned away. An attractive rate would get some buyers off the fence but with most buyers thinking tomorrow's prices will be better, I think additional incentives are needed. Also, if buyers think lower rates will be around for awhile then there will be no real urgency to buy today.Here are my suggestions to GET BUYERS TO BUY NOW:
Lower mortgage rates but make it for a limited period of time.
Eliminate all capital gains on all existing homes purchased within the next 12months under 1 million dollars for as long as they own the property and withno limit on the number of purchases.
All buyers receive an investment tax credit equal to 10 percent oftheir down payment up to 20 percent down. This concept would immediately create additional demand and help stabilize the decline in housing prices.
All buyers receive an investment tax credit equal to 10 percent oftheir down payment up to 20 percent down. This concept would immediately create additional demand and help stabilize the decline in housing prices.
The Capital Gains exemption would cost taxpayers almost nothing and for 1 trillion in sales,the investment tax credit would cost 20 billion dollars. This is a very small amount compared to the numbers we hear about every day.
This incentive will offer a future reward to buyers who buy now. It will offset the risks of buying today when many think things will continueto decline tomorrow and it will help all home owners and builders by helping to set a floor on housing prices. Increasing demand will help stabilize prices and help preserve homeowner equity and keep more loans from defaulting.
Monday, November 24, 2008
Home Builders Make Plea for Federal Aid
I went on Fox Business a few weeks ago to speak about 2 ways I believed would help increase demand in housing. Although my idea will not solve every problem demand will help set a floor on housing and begin to effect all those that are dependent on housing. The idea was to eliminate capital gains on any home purchased within the next 12 months and to also offer an investment tax credit of 10 percent of any down payment up to a 20 percent down payment. This would not require a person to have the home be their primary residence and would not limit the number of purchases or length of ownership.
This article just came out in the Wall Street Journal today. I have only posted parts of that article.
NOVEMBER 24, 2008
Wall Street Journal
By NICK TIMIRAOS
The builders' lobby is ramping up its sales pitch for a $250 billion stimulus package called "Fix Housing First," arguing that financial markets won't recover until home prices stop falling. They are calling for a generous tax credit for home purchases and a federal subsidy that would lower a homeowner's mortgage rate.
Congress resisted a similar effort to pass a larger tax credit earlier this year, instead creating a $7,500 credit for new-home purchases that had to be paid back over 15 years, effectively extending an interest-free loan.
The homebuilders' proposal would offer home buyers a tax credit equal to 10% of the home's value, capping it at $22,000, nearly three times the $7,500 credit Congress offered to new buyers earlier this year. Builders say the earlier credit didn't work because it wasn't big enough and had to be repaid.
Builders also want subsidies for interest rates on 30-year fixed-rate mortgages for government-backed "conforming" loans, which currently are around 6.2%, to bring rates down to 3% for loans made in the first half of 2009 and 4% for those in the second half of the year.
A rate reduction of about 1% on a 30-year mortgage typically costs the lender -- in this case the government -- around 4% of the principal. So a 2% buy-down on a $200,000 mortgage would cost $16,000. The NAHB estimates the subsidy portion of its proposal would cost the Treasury $143 billion.
Other critics say that while a large tax credit could motivate buyers to get off the fence, it would do nothing for homeowners unable to refinance mortgages they can't afford, which is arguably a bigger problem.
One idea with broader support -- but with a potentially bigger price tag -- is an interest-rate buy-down that would allow existing homeowners to refinance to lower rates. Chris Mayer, senior vice dean of Columbia Business School, has suggested that the government push interest rates down to 5.25% for homeowners who prove that they can afford to live in their new homes and can document their income.
This article just came out in the Wall Street Journal today. I have only posted parts of that article.
NOVEMBER 24, 2008
Wall Street Journal
By NICK TIMIRAOS
The builders' lobby is ramping up its sales pitch for a $250 billion stimulus package called "Fix Housing First," arguing that financial markets won't recover until home prices stop falling. They are calling for a generous tax credit for home purchases and a federal subsidy that would lower a homeowner's mortgage rate.
Congress resisted a similar effort to pass a larger tax credit earlier this year, instead creating a $7,500 credit for new-home purchases that had to be paid back over 15 years, effectively extending an interest-free loan.
The homebuilders' proposal would offer home buyers a tax credit equal to 10% of the home's value, capping it at $22,000, nearly three times the $7,500 credit Congress offered to new buyers earlier this year. Builders say the earlier credit didn't work because it wasn't big enough and had to be repaid.
Builders also want subsidies for interest rates on 30-year fixed-rate mortgages for government-backed "conforming" loans, which currently are around 6.2%, to bring rates down to 3% for loans made in the first half of 2009 and 4% for those in the second half of the year.
A rate reduction of about 1% on a 30-year mortgage typically costs the lender -- in this case the government -- around 4% of the principal. So a 2% buy-down on a $200,000 mortgage would cost $16,000. The NAHB estimates the subsidy portion of its proposal would cost the Treasury $143 billion.
Other critics say that while a large tax credit could motivate buyers to get off the fence, it would do nothing for homeowners unable to refinance mortgages they can't afford, which is arguably a bigger problem.
One idea with broader support -- but with a potentially bigger price tag -- is an interest-rate buy-down that would allow existing homeowners to refinance to lower rates. Chris Mayer, senior vice dean of Columbia Business School, has suggested that the government push interest rates down to 5.25% for homeowners who prove that they can afford to live in their new homes and can document their income.
Monday, October 27, 2008
Eliminate Capital Gains Tax On Any Home Purchased For The Next 12 Months!
There have been extensive bailouts this past year and there could be more to come. Tax payers can not afford to keep throwing money at every problem. ELIMINATING CAPITAL GAINS ON ANY HOME UNDER $1 MILLION PURCHASED WITHIN THE NEXT 12 MONTHS for as long as they own the property will not require one more penny of tax payer's money and it will help set a floor on housing. This should be considered.
1. All buyers receive an investment tax credit equal to 10 percent of their down payment up to 20 percent down. These parameters could be of course modified but the concept would immediately create additional demand and help stabilize the decline in housing prices.
2. Demand drove prices up so increasing demand is part of the solution. An elimination of a capital gains tax on housing could cause many investors to reconsider real estate as a good investment by removing some of the risk in this uncertain marketplace. Since prices have adjusted downward and interest rates are quite attractive this one extra ingredient could move more buyers into buying even in those areas not as effected by foreclosures.
3. It will keep things from becoming worse and it will keep tax payers from continuing to bail out more bad loans and desperate companies.
4. The foreclosure market has attracted many buyers but other homeowners, not yet facing that burden, are in need of help to sell now. Eliminating the capital gains tax for purchases will cause investors and insecure buyers to see this as a unique buying opportunity with attractive future benefits. This will keep some distressed sellers from becoming another foreclosure statistic and from prices declining further.
1. All buyers receive an investment tax credit equal to 10 percent of their down payment up to 20 percent down. These parameters could be of course modified but the concept would immediately create additional demand and help stabilize the decline in housing prices.
2. Demand drove prices up so increasing demand is part of the solution. An elimination of a capital gains tax on housing could cause many investors to reconsider real estate as a good investment by removing some of the risk in this uncertain marketplace. Since prices have adjusted downward and interest rates are quite attractive this one extra ingredient could move more buyers into buying even in those areas not as effected by foreclosures.
3. It will keep things from becoming worse and it will keep tax payers from continuing to bail out more bad loans and desperate companies.
4. The foreclosure market has attracted many buyers but other homeowners, not yet facing that burden, are in need of help to sell now. Eliminating the capital gains tax for purchases will cause investors and insecure buyers to see this as a unique buying opportunity with attractive future benefits. This will keep some distressed sellers from becoming another foreclosure statistic and from prices declining further.
If I Can't Sell My Home, I Will Lease It!
The number of able and willing buyers has drastically declined but if you are one of the lucky Sellers to receive an offer, my recommendation is to do your very best to make it work.
Many home owners are growing tired of waiting for "the offer" and/or having to repeatedly reduce their asking price. So it has become a popular trend to lease and to try to and sell the home later when the market recovers. It seems that many feel the process of finding a good tenant is easy. Well, I should know since I have lease listings and have been working with clients looking to lease and believe me, it is not an easy task and it can be more complex than an actual purchase! Moreover, tenants in today's market want something in tip-top shape and they want it to be at those "deal" prices. They are not willing to spend money to make any changes to a property they do not own thus they commonly request that landlords make improvements to the property such as repairs, painting, new carpeting etc. before they agree to lease.
All property owners should be aware that there are risks involved such as, a tenant may not pay or may be responsible for serious damage the deposit does not cover or you may be trying to once again lease or sell in a market that is more troubled than before. The decision to lease a property should not be taken lightly or it could be a costly mistake.
Feel free to send me an email with your questions. I am here to help in any way I can.
Connie
Many home owners are growing tired of waiting for "the offer" and/or having to repeatedly reduce their asking price. So it has become a popular trend to lease and to try to and sell the home later when the market recovers. It seems that many feel the process of finding a good tenant is easy. Well, I should know since I have lease listings and have been working with clients looking to lease and believe me, it is not an easy task and it can be more complex than an actual purchase! Moreover, tenants in today's market want something in tip-top shape and they want it to be at those "deal" prices. They are not willing to spend money to make any changes to a property they do not own thus they commonly request that landlords make improvements to the property such as repairs, painting, new carpeting etc. before they agree to lease.
All property owners should be aware that there are risks involved such as, a tenant may not pay or may be responsible for serious damage the deposit does not cover or you may be trying to once again lease or sell in a market that is more troubled than before. The decision to lease a property should not be taken lightly or it could be a costly mistake.
Feel free to send me an email with your questions. I am here to help in any way I can.
Connie
Tuesday, September 23, 2008
Tips To Get The Job Done If You Must Sell Now
You do not always need a lot of money to increase the value of your home.
In these troubled times, most of us can not afford to pay a stager thousands of dollars to design the interior spaces. Here are some thoughts to get your property in tip top shape without breaking the bank!
1. First, get informed as to "what's hot" and "what's not" by visiting other open houses in exclusive neighborhoods nearby. You will quickly see what colors they have on the walls, how furnishings are positioned and you will definitely get some good ideas for decorating your own home. Ask the agent if you may take photos so that if you are having a contractor or handyman copy something, they will have an excellent idea of what you are trying to achieve.
2. You may also do as I have, visit exclusive interior design shops. Again, go into the high-end shopping areas for the best and most recent innovations in home design. You will find sample kitchens and bathrooms that will provide so many ideas and of course you can ask the sales associates about the materials used. You may also elect to purchase some items that will have a large impact and that can not be easily reproduced.
3. Pay for a consultation from a designer in a shop you appreciate or ask a friend to recommend someone. This could be very valuable since they will share ideas and that may be enough for you to move your home in the right direction.
4. Don't forget a resource everyone has.... your friends and family. If you need furnishings and do not have the money to afford them, ask each of your friends to lend you 2 pieces. If you have 4 friends that would give you 8 lovely pieces to add to your home. You are also inviting your friends and family to help you in this process and helping those we care about feels good.
5. Remember that many buyers make up their minds on a property at the CURB and spend the rest of the time trying to justify that FIRST IMPRESSION. Stand at your curb and see how you can improve the overall look and feel of your home and also exam if the exterior of your property matches the interior theme.
6. Paint, Paint, Paint. If you can not afford to paint a tired exterior paint just the trims or the decorative pieces along side the windows. The fresh paint will provide a good contrast and liven up the overall feel of the house. Paint in neutrals for the interior and use darker colors for rooms that are very very large and lighter colors for small rooms and spaces. Always keep in mind that you wish to attract the most buyers possible so keep your selections to calming neutral colors. Again, you can go to open houses and design shops for references.
7. Repair or Replace the Front Door: In searching for a front door do not forget to look on-line since just about everything is sold on-line. You may find an antique! If you do elect to keep your front door perhaps changing the hardware or painting would improve the overall appeal.
8. Small rooms or odd shaped spaces: These areas MUST be defined with decor or the buyer will not give that area any value and this will be reflected in the offer. Moreover, they may not believe the space could be used and that is why the use must be shown.
9. Lighting: Recessed lighting is costly but you can invest in table and floor lamps and spot lights for very little today. Again, this will lighten up the space, provide warmth expected in a home and also make a smaller space feel larger. Perhaps you have enough lighting fixtures and all you need are bulbs with a higher voltage.
10. Outdoor Living Spaces: Many homeowners are now using their outdoor areas as an extension of their home. If you have a small yard a buyer will see that as a negative. If you decorate the area with charming outdoor furniture, some candles, etc. this space will become a positive. The buyer may think, " Wow, we can sit under the stars and have dinner!" See how a little shift can turn a negative feature into something positive and don't forget, it will also add additional value to the property.
11. Lastly, make everything look and smell clean. For example: Be sure your kitchen & bathroom sinks are free of dirty dishes and debris, all fixtures clean, your trash cans emptied, tables and chairs free of clothes and clutter, etc.
Good Luck to Everyone!
Connie De Groot
In these troubled times, most of us can not afford to pay a stager thousands of dollars to design the interior spaces. Here are some thoughts to get your property in tip top shape without breaking the bank!
1. First, get informed as to "what's hot" and "what's not" by visiting other open houses in exclusive neighborhoods nearby. You will quickly see what colors they have on the walls, how furnishings are positioned and you will definitely get some good ideas for decorating your own home. Ask the agent if you may take photos so that if you are having a contractor or handyman copy something, they will have an excellent idea of what you are trying to achieve.
2. You may also do as I have, visit exclusive interior design shops. Again, go into the high-end shopping areas for the best and most recent innovations in home design. You will find sample kitchens and bathrooms that will provide so many ideas and of course you can ask the sales associates about the materials used. You may also elect to purchase some items that will have a large impact and that can not be easily reproduced.
3. Pay for a consultation from a designer in a shop you appreciate or ask a friend to recommend someone. This could be very valuable since they will share ideas and that may be enough for you to move your home in the right direction.
4. Don't forget a resource everyone has.... your friends and family. If you need furnishings and do not have the money to afford them, ask each of your friends to lend you 2 pieces. If you have 4 friends that would give you 8 lovely pieces to add to your home. You are also inviting your friends and family to help you in this process and helping those we care about feels good.
5. Remember that many buyers make up their minds on a property at the CURB and spend the rest of the time trying to justify that FIRST IMPRESSION. Stand at your curb and see how you can improve the overall look and feel of your home and also exam if the exterior of your property matches the interior theme.
6. Paint, Paint, Paint. If you can not afford to paint a tired exterior paint just the trims or the decorative pieces along side the windows. The fresh paint will provide a good contrast and liven up the overall feel of the house. Paint in neutrals for the interior and use darker colors for rooms that are very very large and lighter colors for small rooms and spaces. Always keep in mind that you wish to attract the most buyers possible so keep your selections to calming neutral colors. Again, you can go to open houses and design shops for references.
7. Repair or Replace the Front Door: In searching for a front door do not forget to look on-line since just about everything is sold on-line. You may find an antique! If you do elect to keep your front door perhaps changing the hardware or painting would improve the overall appeal.
8. Small rooms or odd shaped spaces: These areas MUST be defined with decor or the buyer will not give that area any value and this will be reflected in the offer. Moreover, they may not believe the space could be used and that is why the use must be shown.
9. Lighting: Recessed lighting is costly but you can invest in table and floor lamps and spot lights for very little today. Again, this will lighten up the space, provide warmth expected in a home and also make a smaller space feel larger. Perhaps you have enough lighting fixtures and all you need are bulbs with a higher voltage.
10. Outdoor Living Spaces: Many homeowners are now using their outdoor areas as an extension of their home. If you have a small yard a buyer will see that as a negative. If you decorate the area with charming outdoor furniture, some candles, etc. this space will become a positive. The buyer may think, " Wow, we can sit under the stars and have dinner!" See how a little shift can turn a negative feature into something positive and don't forget, it will also add additional value to the property.
11. Lastly, make everything look and smell clean. For example: Be sure your kitchen & bathroom sinks are free of dirty dishes and debris, all fixtures clean, your trash cans emptied, tables and chairs free of clothes and clutter, etc.
Good Luck to Everyone!
Connie De Groot
Friday, September 19, 2008
US Stocks- Extraordinary Rescue Effort Spurs Wall Street Rally
NEW YORK, Sept 19 (Reuters) - Sweeping government measures to rescue the financial system and restore confidence in shaky markets spurred a huge relief rally in U.S. stocks on Friday, ending a week when the financial landscape underwent the most dramatic reshaping since the Great Depression.
The benchmark S&P 500 index had its biggest two-day rally since October 21, 1987, two days after the 1987 stock market crash.
Led by U.S. Treasury Secretary Henry Paulson, officials are working on a solution to mop up hundreds of billions of dollars worth of bad mortgage debt.
In another extraordinary action, the United States joined the United Kingdom in temporarily banning bets that financial stocks will fall, while the Federal Reserve said it will use $50 billion to back money-market mutual funds.
The moves came at the end of an agonizing week for Wall Street, in which Lehman Brothers filed for bankruptcy, insurer American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) was bailed out by the government and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) was forced into a shotgun marriage with Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz). Investors had worried that the confluence of crises severely threatened the stability of the U.S. economy.
But even with the furious two-day rally, stocks still ended essentially flat in a week marked by extreme volatility -- with the Dow plummeting more than 500 points on Monday, only to rise on Tuesday and drop again on Wednesday.
"The government plan is seen as a comprehensive solution rather than a series of ad hoc, piecemeal moves," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey, noting that the ban on short-selling was also contributing to the surge in financial stocks as short sellers bought stocks to close out their positions.
An S&P index of financial stocks jumped 11.1 percent.
Short sellers, who profit when stocks fall, have been blamed for contributing to the demise of Lehman Brothers and the steep declines in other financial stocks this year.
The Dow Jones industrial average .DJI closed up 368.75 points, or 3.35 percent, at 11,388.44. The Standard & Poor's 500 Index .SPX advanced 48.57 points, or 4.03 percent, to 1,255.08. The Nasdaq Composite Index .IXIC shot up 74.80 points, or 3.40 percent, to 2,273.90.
Shares of Washington Mutual (WM.N: Quote, Profile, Research, Stock Buzz) surged 42.1 percent to $4.25 after the Wall Street Journal reported that Citigroup (C.N: Quote, Profile, Research, Stock Buzz) was considering making a bid for the U.S. savings and loan. Citigroup shares leaped 22.7 percent to $20.65 on the New York Stock Exchange.
Shares of Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), punished earlier this week as investors fretted about the outlook for the last two remaining U.S. investment banks, jumped 20.7 percent to $27.21. Shares of rival Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) climbed 20.2 percent to $129.80.
Morgan Stanley's talks with Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz), China Investment Corp and other institutions continue, a person familiar with the matter said, though the rebound in its securities gives the investment bank more time to consider its options. Wachovia's stock surged 29.3 percent to $18.75.
Trading was heavy on the New York Stock Exchange, with about 3 billion shares changing hands, far above last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 3.8 billion shares traded, also trouncing last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 7 to 1 and on the Nasdaq, by about 2 to 1. (Additional reporting by Steven C. Johnson; Editing by Jan Paschal)
Led by U.S. Treasury Secretary Henry Paulson, officials are working on a solution to mop up hundreds of billions of dollars worth of bad mortgage debt.
In another extraordinary action, the United States joined the United Kingdom in temporarily banning bets that financial stocks will fall, while the Federal Reserve said it will use $50 billion to back money-market mutual funds.
The moves came at the end of an agonizing week for Wall Street, in which Lehman Brothers filed for bankruptcy, insurer American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) was bailed out by the government and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) was forced into a shotgun marriage with Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz). Investors had worried that the confluence of crises severely threatened the stability of the U.S. economy.
But even with the furious two-day rally, stocks still ended essentially flat in a week marked by extreme volatility -- with the Dow plummeting more than 500 points on Monday, only to rise on Tuesday and drop again on Wednesday.
"The government plan is seen as a comprehensive solution rather than a series of ad hoc, piecemeal moves," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey, noting that the ban on short-selling was also contributing to the surge in financial stocks as short sellers bought stocks to close out their positions.
An S&P index of financial stocks jumped 11.1 percent.
Short sellers, who profit when stocks fall, have been blamed for contributing to the demise of Lehman Brothers and the steep declines in other financial stocks this year.
The Dow Jones industrial average .DJI closed up 368.75 points, or 3.35 percent, at 11,388.44. The Standard & Poor's 500 Index .SPX advanced 48.57 points, or 4.03 percent, to 1,255.08. The Nasdaq Composite Index .IXIC shot up 74.80 points, or 3.40 percent, to 2,273.90.
Shares of Washington Mutual (WM.N: Quote, Profile, Research, Stock Buzz) surged 42.1 percent to $4.25 after the Wall Street Journal reported that Citigroup (C.N: Quote, Profile, Research, Stock Buzz) was considering making a bid for the U.S. savings and loan. Citigroup shares leaped 22.7 percent to $20.65 on the New York Stock Exchange.
Shares of Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), punished earlier this week as investors fretted about the outlook for the last two remaining U.S. investment banks, jumped 20.7 percent to $27.21. Shares of rival Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) climbed 20.2 percent to $129.80.
Morgan Stanley's talks with Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz), China Investment Corp and other institutions continue, a person familiar with the matter said, though the rebound in its securities gives the investment bank more time to consider its options. Wachovia's stock surged 29.3 percent to $18.75.
Trading was heavy on the New York Stock Exchange, with about 3 billion shares changing hands, far above last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 3.8 billion shares traded, also trouncing last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 7 to 1 and on the Nasdaq, by about 2 to 1. (Additional reporting by Steven C. Johnson; Editing by Jan Paschal)
Source: Thomson Reuters 2008
Monday, September 8, 2008
Back To Basics
This past year has been challenging to many but it has offered powerful lessons as well. Many first-time home buyers are struggling with unsatisfactory loan terms of which some will be forced to make difficult decisions that will have long lasting effects. Here are some basic tips to keep in mind if you are out there now looking to buy:
1. Do not proceed if you can not COMFORTABLY afford to handle this financial obligation. Carefully read the loan documents and have them also reviewed by someone you trust.
2. Plan and SAVE for the unexpected. Have reserve accounts for life's surprises.
3. Do not buy on impulse! Take time to inspect a home and the neighborhood. Be sure you have looked at comparable homes in the area to be sure you are not over-paying.
4. Try not to buy on a busy (noisy) street.
5. Try to avoid buying a home with more than 2 levels
6. Try to avoid buying a home that has too unique a floor plan or style that is hard to change.
Remember, one day you may want to sell the property you are buying today so think not only as a Buyer but also as a Seller! In a healthy market, almost anything will sell but in a market like today, those same properties suffer the greatest losses. Since one never knows when they may have to sell, it is best to go for the best location and most popular style home you can afford. If you keep these basic points in mind and surround yourself with experienced professionals, you should do well in any market.
Good luck and Good Fortune to all!
1. Do not proceed if you can not COMFORTABLY afford to handle this financial obligation. Carefully read the loan documents and have them also reviewed by someone you trust.
2. Plan and SAVE for the unexpected. Have reserve accounts for life's surprises.
3. Do not buy on impulse! Take time to inspect a home and the neighborhood. Be sure you have looked at comparable homes in the area to be sure you are not over-paying.
4. Try not to buy on a busy (noisy) street.
5. Try to avoid buying a home with more than 2 levels
6. Try to avoid buying a home that has too unique a floor plan or style that is hard to change.
Remember, one day you may want to sell the property you are buying today so think not only as a Buyer but also as a Seller! In a healthy market, almost anything will sell but in a market like today, those same properties suffer the greatest losses. Since one never knows when they may have to sell, it is best to go for the best location and most popular style home you can afford. If you keep these basic points in mind and surround yourself with experienced professionals, you should do well in any market.
Good luck and Good Fortune to all!
Wednesday, July 30, 2008
Washington To The Rescue?
Since the elimination of sub-prime loans and the ever increasing challenges to obtain a loan, many willing buyers are struggling to purchase a home today. The result is that the national inventory of available homes is at about an 11 month supply. The steady increase in inventory and growing trend of desperate sellers reducing by large amounts will further be a downward pressure on the housing market unless something comes into play soon.
There needs to some replacement program to help get some buyers back in the marketplace and also more alternatives to keep homeowners in their homes.
The housing bill circulating in Washington, could help set a floor on the housing market by enabling more homeowners to stay in their homes. Slowing down the increasing inventory is one of the first steps to help stabilize markets and that is something every homeowner wants to have happen.
Moreover, the up to $7500 credit to first time home buyers will make it a little easier for those that are having trouble with current guidelines. The big question will be how many people will qualify for these programs because that will determine the effects on the housing crisis.
Your comments and opinions are welcome.
There needs to some replacement program to help get some buyers back in the marketplace and also more alternatives to keep homeowners in their homes.
The housing bill circulating in Washington, could help set a floor on the housing market by enabling more homeowners to stay in their homes. Slowing down the increasing inventory is one of the first steps to help stabilize markets and that is something every homeowner wants to have happen.
Moreover, the up to $7500 credit to first time home buyers will make it a little easier for those that are having trouble with current guidelines. The big question will be how many people will qualify for these programs because that will determine the effects on the housing crisis.
Your comments and opinions are welcome.
Monday, July 7, 2008
Add a Touch of Europe to Your Home: Build a Wine Cellar
Wine is becoming increasingly popular among Americans, and many homeowners are choosing to complete their luxurious homes with a classy wine cellar. Fortunately, although many factors must be considered before installing a cellar, there are several companies in the area that will guide you through the process. To help you determine whether a cellar will be a worthwhile investment for your home, I will tell you the basics of what you will need so that you can.
Wine is a very delicate and fussy item to properly store. Above anything, the temperature at which you store the wine is absolutely essential: storing wine at the wrong temperature greatly affects the flavors and aromas. Temperature fluctuation—when the wines experience hot and cold—is the worst for the wine’s health.
Therefore, you want to keep your wines in a steadily cool environment. Generally, the optimal temperature for red wines is around 55°-60°; the ideal temperature for white wines is from 49°-56°.
The reason why almost all wine cellars are located in basements or on the lowest floor is because heat rises, even through floors. The lower to the ground that a room is, the cooler it remains. If you have an empty basement, you’re in a great position to build a cellar. If you do not have a basement or have little room on the lowest floor, a cellar may not be a great fit.
Otherwise, you must also pay careful attention to how the coolness and moisture are kept in the wine cellar area:
Of course, you will need some space for the cellar itself as well as moving around and sitting down to drink the wine. But wine cellars come in many sizes and can be custom-built. For more information regarding installing wine cellars, visit http://www.vintagecellars.com/howto.asp or http://www.vinotheque.com/index.html.
**Thanks to vinotheque.com for providing great information
Wine is a very delicate and fussy item to properly store. Above anything, the temperature at which you store the wine is absolutely essential: storing wine at the wrong temperature greatly affects the flavors and aromas. Temperature fluctuation—when the wines experience hot and cold—is the worst for the wine’s health.
Therefore, you want to keep your wines in a steadily cool environment. Generally, the optimal temperature for red wines is around 55°-60°; the ideal temperature for white wines is from 49°-56°.
The reason why almost all wine cellars are located in basements or on the lowest floor is because heat rises, even through floors. The lower to the ground that a room is, the cooler it remains. If you have an empty basement, you’re in a great position to build a cellar. If you do not have a basement or have little room on the lowest floor, a cellar may not be a great fit.
Otherwise, you must also pay careful attention to how the coolness and moisture are kept in the wine cellar area:
- Insulation keeps it cool. Fiberglass or rigid foam are common options. These materials are less porous than regular foam, keep a steady climate and protect against harsh winters and hot summers. Additionally, the thicker the walls, the better. Consider using a 2 x 4 or 2 x 6 sizes.
- Ventilation airs it out. You must do everything that you can to keep heat away from the bottles. You may need a vent fan to move the energy generated from the environment and the electrical away from the cellar area. The cellar will also need unobstructed airflow.
- Electrical keeps it running. Most cellars, like refrigerators, require a significant amount of electricity. Make sure that you have at least a 20-amp circuit that can handle upwards of 110 volts.
- Floors keep out mold. The reason why cellars often have floors of slate, tile, or marble is not just because those materials look better but because they are non-porous and will not mildew. As you know, moisture and carpet or wood do not mix well. If you have carpet or wood floors, you will have to replace them.
Of course, you will need some space for the cellar itself as well as moving around and sitting down to drink the wine. But wine cellars come in many sizes and can be custom-built. For more information regarding installing wine cellars, visit http://www.vintagecellars.com/howto.asp or http://www.vinotheque.com/index.html.
**Thanks to vinotheque.com for providing great information
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