The new housing market is starting to send prospective homeowners into a frenzy. The question of whether or not they should be buying is starting to make many panic. The short answer to a long and complicated question is they shouldn’t, or at least they shouldn’t panic to buy now.
Yes, there is some truth to the idea that the presidents new jobs act might end up stimulating the economy and putting the housing market on the upward trend but if you are one of those people who have visions of insanely high priced real estate you should think again. There are many factors that have determined why there won’t be another surge in the market.
The first is the banks. Banks were a major culprit in the housing surge of the last decade and they are still a key ingredient for people looking to own, the reality now is that banks are not giving out mortgages the way they once were. The truth of the matter is that banks are very cautious and without mortgages being passed out like candy there is hardly the worry that people will be outpriced in their housing hunt.
The market sees the housing rates go up when there are plenty of buyers out there. While there are some buyers still on the line there are far more people who are choosing to wait rather than to buy. Renting is not something people are settling for, but rather it’s something that they are openly choosing for it’s variable cost and flexibility. So if you are thinking about buying but worried you’ll be priced out when you are ready, think again. Things have changed.
The rich are getting richer during recent corporate layoffs. Corporate big-wigs are getting huge bonuses after laying off hundreds, even thousands, of employees. How is that fair? See how much they got, and how many were laid off the same year a big payout was received by these bosses.
Well, so much for a good thing. It appears that Netflix is raising their rates. This means that the faithful subscribers to the premiere online movie rental service will have to pay increases in their fees. Some users could pay up to $72 dollars more a year changing Netflix from very affordable to questionable as a service.
Now, this isn’t anything new as we have all seen a recent rise in the amount of money people are paying for online subscriptions but it does leave the subscribers in a familiar place and one that ends up getting them in trouble. While Netflix isn’t the online service of it’s kind, it’s the one that people are used to and therefore it’s likely not to encourage people to bring their business elsewhere.
The word for this? Lazy. There are many lazy consumers out there who don’t want to do with a temporary hassle for a long term gain. It’s a shame but it’s the way that people are and it’s paramount to the reason why a company like Netflix can raise their rates. They know that the consumers who are with them won’t bother to find a cheaper alternative and the prospective customers won’t go ahead and do the searching to find an alternative either.
It’s this kind of lazy consumerism that has had a big effect on people in the homes. It’s about not taking the effort to protect their home budget and instead just allowing rate hikes and putting themselves in a bit of financial peril. The reality is that a company like Netflix will continue to raise their rates as long as there isn’t a competitive second company. And consumers will keep allowing it to happen.
Vice President Joe Biden will take another trip to Capitol Hill Wednesday for his second budget negotiating session of the week.
The Biden group met for several hours Tuesday before Biden headed to Chicago for an early evening speech.
The Biden group will meet at 2 p.m. Wednesday. It is also expected to meet Thursday and possibly Friday.
August isn’t just the deadline for the Treasury’s “extraordinary measures”: it’s also the month when these firms will likely request another multi-billion dollar cash infusion
A lot is written these days about the debt ceiling fight. Lots of articles also continue to bemoan the bailout of mortgage financiers Fannie Mae and Freddie Mac. Yet these two pet topics of economic and business commentators tend not to intersect. But they could in a few months. Every quarter, Fannie and Freddie go to the Treasury with their latest need for a cash infusion. Their next scheduled request will be in August — the same month when the Treasury’s “extraordinary measures” are set to dry up. Will Fannie and Freddie make the situation even more difficult for the Treasury if the debt ceiling isn’t raised by that time?
Growth in global gold demand is indeed rapid. And another decade of quintupling prices isn’t a certainty. But neither of those facts mean gold is a “bubble” today.
In fact, anyone calling gold a bubble right now is talking through their hat – at best. Take these jokers, for instance, all holding forth in the last month…
Myth #1. “Gold is a crowded trade”
The finance pages are packed with gold headlines, but actual investment levels remain low. In the early 1980s, private-bank clients were expected to hold 3% of their wealth in gold, many times the 0.5% allocation seen across the finance industry today. Even in the bullion market itself, three-quarters of the 500-plus analysts and traders attending last autumn’s LBMA conference in Berlin said they held as little as nothing (“Between 0% and 10%”) of their savings in precious metals. Saturation is a long way off.