SGN, Rates Horizontal, Forbearance Update
Rates – moved sideways this week as the Fed closely monitors the amount of Mortgage Backed Securities they are purchasing in an effort to stabilize the mortgage rate environment. Jobs – the number of people that filed for unemployment this week was 800K less than last week. IN 4 weeks over 23M people have claimed […]
Intellectual Wealth, 10Y UST Historic Low, Appreciation
Wealth – currently California’s economy is larger than the entire global economy of 1870. CA makes up 0.3% of the world’s land surface and 0.5% of the population. 27% of global capital is physical things (items you can touch) 9% is land, and 64% of wealth is ideas. The US economy continues to make up […]
Capitalists, Shipping Decline, Strong Home Sales
Capitalists – in the past there was a stark division from those who made their money from labor and those who earned money from capital (ownership of equities, real estate, business, etc.). Increasingly the same people are simultaneously high wage earners and capital earners. Rates – improved very slightly this week as the 10 Year […]
529 Plans Expanded Again, Rates Improve, Strong Home Sales
As of December 2019 you can use up to $10,000 of 529 plans to pay down student loans for yourself or a sibling ($10,000 per). The new law also allows the funds to be used for apprenticeships that are registered with the Federal Labor Department. This is the second expansion in 2 years – in […]
Historic Bubbles, Rates Improve, Home Appreciation
Bubbles – NPR’s Planet Money is doing a series on bubbles & this one took place in Kuwait during the late 1970’s. A massive influx of oil money had recently changed the city from minimal infrastructure (no running water/minimal electricity) to a bustling metropolis. With a highly regulated market and stable political climate became a […]
Jets on Sale, Rates Improve, New Construction Strength
Sales of business jets were up 15 percent year over year at the end of Q3. The new tax laws made purchasing an airplane more affordable. If you use it for business purposes 50% of the time you can depreciate the plane 100% in year 1. Effectively you could purchase a $5M plane for $2.5M […]
Thanksgiving Price, Home Sales Strong, Rates Improve Marginally
Thanksgiving – NPR runs a story on the cost of Thanksgiving every year where they have volunteer shoppers from around the country survey and evaluate prices for the classic Thanksgiving meal for 10. The price came out to $48.91 which is up one single penny from last year. Turkey has come down 4% at $1.30 […]
Negative Rates? Strong Home Sales, Rates Flat
Global Interest Rates – Jyske Bank in Denmark announced it is offering a negative interest rate on a 10 year fix with a ‘strong equity position’. Of course this is after fees but it’s interesting to think that you could take a loan on your house for another investment and get paid to do so! […]