Filed under: General Electric (GE), Options

General Electric (NYSE-GE) is recently up 55 cents to $37. GE is scheduled to report Q1 EPS on April 11. GE call option volume of 21,230 contracts compares to put volume of 33,791 contracts. GE April 37 straddle is priced at $1.55, May 37 straddle is at $2.55 according to Track Data.

Volatility Index S&P 500 Options-VIX down 1.00 to 21.80.
VIX below 200 moving average of 23.05.

M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Permalink | Email this | Comments

Via [bloggingstocks]

Share This

Filed under: Employees, Economic data, Recession

U.S. Initial jobless claims fell 53,000 to 357,000 to for the week ended April 5, substantially below the consensus estimate, the U.S. Labor Department announced Thursday. Claims for the previous week were revised up 3,000 to 410,000.

Economists surveyed by Bloomberg News had expected this week’s initial jobless claims to total 386,000.

Also, the 4-week moving average increased 2,500 to 378,250. Economists view the 4-week average as a better indicator of unemployment conditions, as it smooths out anomalies for strikes, holidays, or other idiosyncratic events.

The largest increases in initial claims for the week ending March 29 were Indiana (+7,443), New York (+4,123), Puerto Rico (+3,900), New Jersey (+3,294), and Kentucky (+2,840). The largest decreases were in Pennsylvania (-2,513), California (-1,595), Iowa (-895), Virginia (-800), and Illinois (-509).

The number of continuing claims increased by 3,000 to 2.940 million from a revised 2.837 million for the week ended March 29, the latest period for which figures were available.

Economic Analysis: This is a “teachable moment” weekly jobless report. Weekly jobless claims fell substantially to 357,000, giving the appearance of an improvement in claims. However, the key is the 4-week moving average, which rose by 2,500 to about 378,000 — a number well above the U.S. Federal Reserve’s danger level of 350,000. The U.S. Federal Reserve considers a 4-week average above 350,000 a signal of soft labor market conditions. Further, the continuing claims total, which measures the seasonally adjusted unemployed, also continued to track higher, at 2.940 million, also indicative of a tepid job market. In sum, the drop in weekly jobless claims underscores the inherent volatility of the weekly stat; the total can bounce around from week-to-week, due to several factors, which is why economists follow the 4-week moving average more closely. Jobless conditions remain a concern for the U.S. economy.

Permalink | Email this | Comments

Via [bloggingstocks]

Share This

Filed under: Before the bell, Analyst upgrades and downgrades, Intel (INTC), PetroChina Co Ltd ADR (PTR)

Bank of America upgraded Intel Corp. (NASDAQ: INTC) to “buy” from “neutral” according to Briefing.com. The news service also reports that Citigroup downgraded PetroChina (NYSE: PTR) from “hold” to “sell.”

Bank of America upgraded Analog Devices (NYSE: ADI) to “buy” from “neutral,” according to MarketWatch.

ADC Telecom (NASDAQ: ADCT) was raised to “buy” at Deutsche Bank, according to 24/7 Wall St. The financial website also reports that Cirrus Logic (NASDAQ: CRUS) was cut to “perform” from “outperform” at Oppenheimer.

Douglas A. McIntyre is an editor at 247wallst.com.

Read | Permalink | Email this | Comments

Via [bloggingstocks]

Share This

Filed under: Good news, Competitive strategy, Google (GOOG), Dell (DELL), Wal-Mart (WMT)

Dell, Inc. (NASDAQ: DELL) has announced that its entire corporate headquarters is now running on “green energy,” as the computer maker continues to become one of the most ecologically-conscious companies on the planet. It has competition in the retail sector, though, from Wal-Mart Stores, Inc. (NYSE: WMT) and internet search king Google, Inc. (NASDAQ: GOOG).

All 2.1 million square feet of Dell’s Round Rock, Texas headquarters facility is now powered by renewable energy sources — no fossil fuel burning is present. To get there, Dell has about 40% of its headquarters power needs supplied by a gas-to-energy plan from leading waste disposal company Waste Management, located in nearby Austin. The other 60% of its power needs comes from wind energy supplied by TXU Energy.

Paul Bell, President of Dell Americas, said “Powering an entire campus with green power, in partnership with these two leading companies, is an important step in becoming the greenest technology company on the planet and the right thing to do for our shared earth.” He’s right, and Dell is expected to save about $2 million per year on energy costs alone with the green conversion of its Texas-based facilities — along with cutting carbon dioxide emissions at the same time. That’s what being green is all about.

Share This

This post is from the Blown Mortgage Hall of Fame.  It originally appeared back in July 2007 on my series on credit.  Now more than ever your credit score is vital to securing financing.  I’m on vacation from Saturday until Tuesday the 15th so enjoy some of the classics while I’m gone. 

——————————————————–

In part 1 of this series on credit we talked about how important credit has become in surviving the current home depreciation environment and avoiding the ARM Reset Foreclosure Trap. In part 2 of the credit series we looked at the elements that comprise your credit score. Part 3 covered improving your score on your own and outlined the importance of credit management and protecting your credit report. In this part of the series we’ll look at options for improving your credit using third party services.  Here is a recap of the series so far and where we are at to date:

Credit Series Overview

1. Why credit is so important
2. Understanding elements of credit
3. Improving your score organically
4. Improving your score using 3rd party help
5. Managing your score

A note before we begin. Before you agree to work with any third party to improve your credit score you need to do the following things:

• Know and understand your current score, and understand the items on your credit report. You can do this by signing up for MyFICO, an inexpensive, accurate way to keep tabs on the accuracy of your credit report.
• Know and understand what is legal and what is illegal when it comes to credit repair.
• Check with the Better Business Bureau for any third party you choose to work with.
• Carefully examine the fees charged and the results guaranteed by the party you choose.

How to Avoid Scams

Just like in mortgage, if it’s too good to be true, it probably is. Ignore any company that makes any of the following claims:

• We can erase your bad credit - guaranteed!
• We can remove bankruptcies and judgments permanently!
• Get new credit instantly!
• Form a personal corporation and get all the credit you need, now!

These all represent untrue statements about credit repair. You are setting yourself up for disappointment if you do business with these types of firms.

Your Rights When Engaging a Credit Repair Service

From the Federal Trade Commission Web site on Credit Repair:

By law, credit repair organizations must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before you sign anything. The law contains specific protections for you. For example, a credit repair company cannot:

• make false claims about their services
• charge you until they have completed the promised services
• perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees

Your contract must specify:

• the payment terms for services, including their total cost
• a detailed description of the services to be performed
• how long it will take to achieve the results
• any guarantees they offer
• the company’s name and business address

I have heard horror stories of people sending thousands of dollars to “credit repair” companies only to find their situation unimproved and their precious cash squandered on false hope. Do not let this happen to you. As with all financial situations do not rush in to a decision; and always get a referral if possible.

Types of Third Party Credit Repair Companies

Consumer Credit Counseling - These companies take all of your outstanding debt, analyze the creditors, balances and interest rates compared to your monthly income. They then negotiate with all of your creditors to reduce your overall debt and monthly payments. While this sounds good; it really looks bad on a credit report. This is a red flag to an underwriter reviewing your credit history. Some banks will consider this almost as negatively as a bankruptcy. While it may be beneficial to consult with a credit counselor to help game plan a way out of your debt; it can be very costly to your future credit options should you engage them to restructure your outstanding debt.

If you choose to work with a credit counselor simply use them to help remove disputed items that appear on your report. They can provide you templates and contacts to help you remove incorrect information on your report.

Consumer Law Offices - Lawyers like to tout that they are more effective than credit counseling companies because, well, they are lawyers. The truth is that they take the same steps as everyone else to remove disputed items. There is nothing inherently bad about using a law firm to remove credit items that are erroneous; its just that they don’t have different avenues than other organizations that may be less expensive.

Individual Credit Counselors - There are many independent “credit experts” who offer services to repair or improve your credit score.  They may be former employees of the above types of firms or not.  As long as you use the same precautions in researching and selecting them as the above companies they can be a reasonable alternative to the above.

The Best Alternative?

Most people turn to third party companies when they are desperate and in need of help.  This is the wrong time to begin to work on your credit profile.  The best bet may be to do it yourself.  Using a copy of your credit report and some template correspondence you can effectively clean up your credit report with out having to pay the fees associated with the above services.  The bottom line is that, all things considered, being your own credit counselor may be your best bet.

If you’d like samples of the template letters you can use to dispute items on your credit report please email me at morganb@blownmortgage.com and I’ll be happy to send them to you.  if you’d like a detailed white paper on how your credit score impacts your home financing options please email me as well.  Much of this information is based on the FTC’s Consumer web site on Credit Repair - you can learn more byvisiting the FTC site.

Source [blownmortgage]

Share This

Filed under: Good news, Competitive strategy, Google (GOOG), Dell (DELL), Wal-Mart (WMT)

Dell, Inc. (NASDAQ: DELL) has announced that its entire corporate headquarters is now running on “green energy,” as the computer maker continues to become one of the most ecologically-conscious companies on the planet. It has competition in the retail sector, though, from Wal-Mart Stores, Inc. (NYSE: WMT) and internet search king Google, Inc. (NASDAQ: GOOG).

All 2.1 million square feet of Dell’s Round Rock, Texas headquarters facility is now powered by renewable energy sources — no fossil fuel burning is present. To get there, Dell has about 40% of its headquarters power needs supplied by a gas-to-energy plan from leading waste disposal company Waste Management, located in nearby Austin. The other 60% of its power needs comes from wind energy supplied by TXU Energy.

Paul Bell, President of Dell Americas, said “Powering an entire campus with green power, in partnership with these two leading companies, is an important step in becoming the greenest technology company on the planet and the right thing to do for our shared earth.” He’s right, and Dell is expected to save about $2 million per year on energy costs alone with the green conversion of its Texas-based facilities — along with cutting carbon dioxide emissions at the same time. That’s what being green is all about.

Read | Permalink | Email this | Comments

Via [bloggingstocks]

Share This

Zillow launched its mortgage product tonight and from my review of the platform seem to have taken a major step in the right direction when it comes to leveraging the internet to provide consumers with quality mortgage options without the treachery that is online lead generation. I had a sneak peak at the platform and I’m duly impressed at the way Zillow has put consumers in control of the transaction right from the start.

You’ll see the new Mortgage Marketplace as a new tab in Zillow’s home page navigation and there are two paths once you get to the marketplace, either as a lender or as a borrower. If you remember about a month ago Zillow started taking lender applications to prime the system to be ready for this day. I made a big deal out of the vetting that went in to the application process and I’ll go in to detail now about why that was such a big deal. The lender side isn’t that sexy, so let’s talk about what the Zillow Mortgage Marketplace means for the consumer.

Accurate information without the hounding

The paradigm-shifting change at Zillow is the separation of the consumer’s contact information from the loan information.  This gives the consumer total anonymity when soliciting mortgage quotes which is something that must sound like music to consumers’ ears.  With this one move Zillow has eliminated a MAJOR pain point for borrowers shopping online for a mortgage.  

The number one complaint we received from internet-based leads was that they had been hounded to death on the phone for business.  I knew of a lady who lost her job because her office line rang incessantly after she filled out a lead on lowermybills.com.  People turn off their phones, unplug their home phones and generally do whatever they can to avoid be hounded to death once their information gets out on the internet.  

Zillow allows them to 100% control the interaction by getting custom mortgage quotes by providing their scenario in a standard pre-qual format (their interface is pretty similar to a typical online prequalification form you’d see elsewhere - Zillowfied of course) minus their personal information.  Zillow has made it a bit more user-friendly by helping people estimate their credit scores through a series of questions and have also made the mortgage product choices easier by eliminating some of the more exotic programs from the quote options.

Once a consumer submits this anonymous quote lenders in the system can “bid” on the quote. They can quote rates, fees and terms that are submitted with a brief introductory paragraph from them as well as their picture and a link to their profile page.  The principal and interest payments are automatically calculated by Zillow based on the loan program, term and fees and the taxes and insurance are estimated based on property records (Zestimate?) so that there can’t be any manipulation of those numbers.  

Consumers are presented these quotes as they arrive and when they find one they like they can choose to contact the lender directly and share any additional information they choose to at that next step.  They are never bothered by unsolicited phone calls or emails.

The Originator Rating

In addition to the quotes that they receive that come packaged with an intro paragraph, easy-to-understand terms and pre-calculated payments the originators submitting the quote carry ratings with them of 0 to 5.  These ratings are calculated based on consumer feedback after dealing with the originator.  The ratings have nothing to do with fees or loan terms and everything to do with the process of working with that lender.  So if there were changes in the loan, or things seemed shady or uncertain consumers can rate that originator poorly, and vice-versa.

Loan originators who feel wrongly scored can rebut the poor score and all of it is kept with their profile to provide consumers the clear picture of who they are dealing with.  They can now determine whether they want to work with the person with the lowest rates and fees and a low rating, or pick someone with a higher rating that has higher fees.

I think this is a great step towards providing transparency for consumers and an easy-to-understand scoring system that allows them to make choices in a difficult decision-making environment.  Of course, Zillow will have to police the marketplace and eliminate offenders on both sides of the wall, ensuring that slanderous consumers don’t blackball innocent lenders and vice-versa; but the step is a positive one and one that should help consumers in their quest for an honest, straight-forward (non-blown) mortgage.

Originators get transparency too

In addition to the consumer getting multiple, anonymous offers the originators who are submitting the offer can see all of the other offers that the consumer has received and who has submitted those offers.  This is a great tool for originators to use as market intelligence - they now know who and what they are selling against.  They can talk intelligently about the universe of offers that the consumer has without having to sell without any information about what or who they are competing with.  I think this will be a big help in letting originators determine what customers they quote, how they quote and their overall strategy towards leveraging this platform.

The Code of Conduct

In addition to the upfront vetting that Zillow performs on originator-applicants Zillow has rolled out a Mortgage Marketplace “Code of Conduct” for all parties involved.  The code calls on consumers to be law-abiding, honest in their disclosure of income, credit and other material qualification criteria, and fair and reasonable in their rating of originators.  Originators are called on to be law-abiding, upfront, to stick to their original quotes as long as material facts don’t change from beginning to end, and to respect consumer’s in the marketplace regardless of what the consumer ultimately decides to do.

Zillow will of course play ombudsman in its sandbox and will bounce originators and consumers who use the marketplace in ways that Zillow deems unacceptable to a healthy environment.  This is at their sole discretion. 

Here are the highlights from the Zillow Code of Conduct, you can read the whole thing here:

Principles for Lenders

• Stand behind your quotes
  Don’t provide lowball loan quotes and teaser rates to intentionally draw in a borrower and then “readjust” your quote. We alert borrowers that the anonymous nature of Loan Quotes prevents an initial quote from being a binding Good Faith Estimate; however, we expect you to stand by your quote if the information provided by the borrower is accurate.
• Disclose all terms of the deal
  Be upfront and transparent with various rates and fees so that borrowers will regard you as a trusted lender. Do not hide details of the loan in fine print; our loan quote form is designed to easily identify these costs. Be ready to answer questions and walk borrowers through each step of the process. Helpful lenders will get good ratings on Zillow, leading to more business down the road.
• Obey the law
  Discrimination in mortgage lending is prohibited by the U.S. Department of Housing and Urban Development’s (HUD) Fair Housing Act and the Office of Fair Housing and Equal Opportunity actively enforces those provisions of the law. The Fair Housing Act makes it unlawful to engage in the following practices based on race, color, national origin, religion, sex, familial status or handicap (disability): 
  • Refuse to make a mortgage loan
  • Refuse to provide information regarding loans
  • Impose different terms or conditions on a loan, such as different interest rates, points, or fees
  • Discriminate in appraising property
  • Refuse to purchase a loan or set different terms or conditions for purchasing a loan
• No spamming
  If you have made contact with a borrower and things didn’t work out, please be professional and end your contact with that person. Do not add their contact information to your promotional lists or provide their contact information to others unless you specifically ask for the borrower’s permission first.

Principles for Borrowers

• Accuracy, accuracy, accuracy
  Be accurate when filling out mortgage loan requests, particularly when you estimate your credit score. Lenders will prepare quotes based on the information you provide. If you submit information that is not accurate, you will get loan quotes based on inaccurate information and the quote will likely need to be readjusted.
• Rate/review mindfully
  You may rate any lender you’ve contacted through Zillow Mortgage Marketplace. However, your rating for a lender with whom you’ve closed a loan carries more weight because you experienced the full extent of the lender’s service. So, please rate thoughtfully so that others can benefit from your feedback. 
  • If you contacted a lender, but did not close — Your rating should be based on how responsive a lender was in providing a quote and follow-through during the process; it should not be based on the quote received.
  • If you contacted a lender and closed a loan with them - Your rating should be based on how responsive a lender was in providing a quote, finding the right loan for you, the rate and terms for the quote and follow-through during the closing process.
• Report questionable or unscrupulous behavior
  While Lender Ratings is one of the most valuable tools you can use to rate the quality of a lender, we also want to know if you encounter any questionable practices by any lender. Contact Zillow Customer Support by e-mail at mortgagesupport AT zillow.com so that we can quickly respond if necessary. Also, if you feel you have been subject to discrimination, file a complaint with the U.S. Department of Housing and Urban Development (HUD).
• Be informed and responsible
  There are scores of tools at your fingertips to help you evaluate the loan offers you receive from various lenders. We have assembled many of these in our Help Center. Take advantage of these and weigh your options and long-term implications before signing up for particular loan. 

Will originators use it?

The first question that came to my mind is would a high-quality originator use this?  I can’t imagine a Brian Brady spending his days blindly filling out GFE’s to ghosts who may or may not work with him.  It is feasible that a consumer gets upwards of 20-30 offers on a quote or more (it’s not restricted).  What is going to make Brian Brady use his time for a small chance win when he has a million other strategies that will result in higher close rates?  Knowing Brian he will find a way to succeed with this platform, leverage administrative resources of find a way to leverage this marketplace; but what about those who are good but don’t want to fire shots in the dark?

I think that’s the big question to be answered as this marketplace evolves.  Are the consumers getting lower-quality originators because the good ones don’t want to play consumer roulette with GFEs?  It will be interesting to see how it plays out as the marketplace evolves. 

A big step in the right direction

The online “lead” model has been broken since its inception and has caused irreparable harm to not only countless consumers but to the image of the industry as a whole.  People who bought and sold private data across convoluted networks of lead brokers abused people’s trust that the lead form they completed would be a great offer from 1 of 4 lenders.  This clearly has not worked.  Zillow puts the power in the consumer’s hands.  Now they can shop from hundreds of offers at their discretion from behind the Zillow wall of privacy which is certainly a step in the right direction; now the question is - will the best in our industry use it?

What do you think?

Source [blownmortgage]

Share This

Filed under: Google (GOOG), Options

Google (NASDAQ: GOOG) closed at $471.10 Friday.

GOOG is expected to report Q1 EPS on April 17.

Cowen says: “ad budgets in search will remain robust because advertisers have historically favored high ROI channels that drive revenue - like direct mail - during recessions.”

GOOG April 470 straddle is at $35, May 470 straddle is at $55 according to Track Data, suggesting large price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Share This

A reader sent in a fascinating story from the L.A. Times (hat tip Exit) discussing the impact of the housing market on plastic surgery. If you’ve noticed recently that people are looking less like Hollywood stars and more like average folks, you can blame it on the disappearing equity. Here in Southern California […]
Related Posts:
■3 Things I Learned from Watching Property Ladder: Lack of Fundamental Analysis, Misunderstanding of Construction Time Lines, and Too Many Real Estate Books.
■Lords of Housing: Believing in the $22.5 Trillion Housing Market.
■Forecasting the Societal Impact of the Housing and Credit Crisis: Recession Trends and Psychological Changes Regarding Housing.
■The Menace of Mortgage Debts: Lessons from the Great Depression Series: Part IV: Where do we go After the Housing Crash?
■Today’s Illegal Immigrants, Are Tomorrow’s House Buyers.

A reader sent in a fascinating story from the L.A. Times (hat tip Exit) discussing the impact of the housing market on plastic surgery. If you’ve noticed recently that people are looking less like Hollywood stars and more like average folks, you can blame it on the disappearing equity. Here in Southern California in places like Los Angeles and Orange County, plastic surgery is as common as dying your hair a new shade of blonde. As much as the government wants people to keep spending, they have no idea where people will put their money. Not only were people adding granite countertops to their kitchen but also placing a few headlights on their body:

“Afterward, in a carefree mood, the ladies would dine at a popular restaurant on the Sunset Strip.

No more. The sub-prime loan crisis, the housing slump and the general decline of the economy have claimed another covey of victims. Anthony is in the real estate business, and under current conditions, the cosmetic treatments — at $1,800 or more a pop — can no longer be squeezed into her budget. It’s the same with others in the group.

“We used to make appointments together,” Anthony said. “Then they started saying, ‘I can’t go next week.’ People didn’t have the money, but they were ashamed to tell you.”

“I would rather have Botox than go out to dinner, but it’s just gotten so bad,” said Anthony, 41, who is looking for a job since her career in the mortgage business went sour. She has not had the facial treatments in months.

And what’s been happening in Beverly Hills is apparently happening around the country. After years of steady growth, the cosmetic surgery business seems to be going through a rough patch.”

I’ve noticed the lack of people talking about home equity last year at a few parties. In 2005 and 2006 the main topic usually was how much someone’s home appreciated. This is no longer the case. It seems that many people are dealing in silence now. Looking at the above, Anthony shows us an interesting perspective of priorities. She would rather get Botox than go out to dinner. Unfortunately, since the mortgage business has fallen off a cliff here, she will no longer be able to get those wonderful injections of Botulinum Toxin Type A. My question to you folks out there is what other kind of career can someone take up in the current environment to afford routine plastic surgery or touch ups? The story goes on to tell us that business is sagging nationwide:

“Doctors don’t like to talk about it publicly, but plastic surgeons from the Southland to South Florida said some colleagues are struggling to stay in business.

A leading manufacturer of breast implants recently reported that surgeries declined toward the end of last year.”

Now we have another unfortunate victim of the sub-prime mess, plastic surgeons. It is amazing the unintended consequences of bubble mania. This bubble has literally burst on many fronts. Yet there is another important caveat to this entire story and once again it uncovers the façade of this entire debt economy:

“Beyond the economics, there is another dimension: Once largely confined to movie stars and rich socialites, cosmetic surgery has been democratized — thanks in part to the popularity of “makeover” television shows and decades of prosperity that have put such treatments within reach of large numbers of people.

Botox, breast enhancement and “body sculpting” have joined designer clothes, upscale cars, and kitchen and bathroom upgrades as common symbols of the good life and success.

“No one can have a practice built on the ultra-wealthy, because there aren’t enough of those people to go around,” said Dr. Robert Kotler, a Beverly Hills surgeon who specializes in the face. “The reality is that cosmetic surgery became popular when the middle class became enamored of it: flight attendants, professional people, businesswomen — people whose appearance is important to them.”

Another extension of the desire to have a “large” life is not only seen on all the home upgrade shows but also in the life of those that want to appear as if they live like a Hollywood star. The problem with lack of ethics and values is that people pushed the housing envelope to as far as they could whether legal or not.  The quote above gives us a perfect insight into the culture that not everyone is uber-wealthy not even in California even though they like to appear they are. That is why, if you’ve watched any cable show, you’ll see advertisements pumping plastic surgery on installment plans. It doesn’t strike me that an actor or actress would get plastic on 12 monthly payments. The gold rush in California didn’t make millions rich but selling Levi’s and pick axes to those chasing the dream did make many businesses prosperous.

Yet fear not. There is a silver lining with a declining dollar. Yes, everything around you costs more but thanks to your federal government’s mismanaging of the dollar, we now will deal with it by seeing more beautiful Europeans:

“In Los Angeles, a world capital for plastic surgery, doctors are hoping that globalization will provide a cushion. Some are looking to European patients, who can capitalize on the weak dollar and combine their plastic surgery with a Hollywood vacation.

“This is a mecca,” said Dr. Stuart Linder, who specializes in breast augmentation. “I have women flying in from all over the world because this is Beverly Hills.”

But Linder said his surgeries were off by about 5% in January and February. He has heard some doctors are off by 30% to 40%.”

Thanks Ben Bernanke for literally making the world a more beautiful place! There has been arguments floating around that a lower dollar is going to boost exports and help us balance our economy. Check out the major bump we’ve gotten by a falling dollar:

Don’t you feel better knowing that the U.S. Dollar index has now fallen over 21 percent in a little over 2 years? If you are feeling the pinch in your wallet there is a real reason for it. Take a look at the steady decline of the U.S. Dollar:

The story itself ends by the journalist trying to sock it to the reader and make us shed a tear:

“A tummy tuck and breast augmentation were supposed to deal with the problem, but now they’re on hold.

Her husband’s job with an engineering firm appears to be secure, but the four-bedroom home the family bought 2 1/2 years ago has lost value. On their street in a brand-new subdivision, four or five houses now sit empty.

“If we weren’t upside-down in the house, I probably would take the money out and have it done,” said Hollingsworth, but “I don’t want to make my family do without.

“I’ll have to see how long I can tolerate wearing a girdle.”

Taking money out of homes to get elective plastic surgery is definitely a new thing that this housing bubble has brought on. It is really a feat to think that we reached a point where people were simply slapping on a virtual ATM machine to the side of their homes and raiding their equity. By the way, you have to pay that equity back. That is why we have seen like this Real Home of Genius homes being taken back with larger mortgage balances than the initial purchase price. Whether it is new Mediterranean tile on your home or a new pair in your chest, the upgrade bonanza is coming to a screeching halt. Now, if you want to get these things done you may actually have to have some money saved up (at least the $600 rebate check can be a down payment for these procedures). So if people aren’t looking so hot you can add that to the list of things to blame the housing bubble on.

Did You Enjoy The Post? Subscribe to Dr. Housing Bubble’s Blog to get updated housing commentary, analysis, and information

Share This

Related Posts:
■3 Things I Learned from Watching Property Ladder: Lack of Fundamental Analysis, Misunderstanding of Construction Time Lines, and Too Many Real Estate Books.
■Lords of Housing: Believing in the $22.5 Trillion Housing Market.
■Forecasting the Societal Impact of the Housing and Credit Crisis: Recession Trends and Psychological Changes Regarding Housing.
■The Menace of Mortgage Debts: Lessons from the Great Depression Series: Part IV: Where do we go After the Housing Crash?
■Today’s Illegal Immigrants, Are Tomorrow’s House Buyers.

Via [DrHousingBubble]

Share This