Rent Increases have outpaced Income growth 2 to 1 by Zillow

If rent is rising much faster than the growth of income there is only two possible outcomes in the long run. Either income will have to catch up with the debt load American families are taking on or the economy will force deflation to occur at a quick pace. Families will not be able to pay for the curent American lifestyle.

The world is facing a slow down. The economist say the main reason for the falling price of gasoline is because of slow down in demand world wide. The falling price of gasoline is not enough of a stimulus to drive an increase in spending in most parts of the world. Debt loads are way up everywhere. Because of the deflation and lower demand soon American exports will decrease and jobs lose will occur.. Very soon many oil well rigs will begin shutting down and a large number of people will loose high paying jobs. There are 1500 rigs drilling for oil in America today, but according T. Bone Pickens more than 30 percent of wells will lay down and layoff crews.

The question of the day is what will happen to rising house prices and will families and communities be able to cope with a decline in revenues?

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‘Boomerang buyers’ could boost market by Kimberly Miller

JUPITER, Fla. — Some housing experts are trumpeting changes that allow foreclosure sufferers to buy back into the American Dream sooner than they probably imagined, calling 2014 the year of the “boomerang buyer.”
Revisions made over the summer to Federal Housing Administration guidelines and technical updates in November to Fannie Mae loan approval systems have opened the door for some former homeowners to buy again just one year after foreclosure.
Founders of the San Diego-based company AfterForeclosure.com said last month that millions of banned borrowers nationwide will be eligible for a mortgage this year, while Jupiter, Fla., mortgage broker Skip McDonough said his firm is already doing deals with homebuyers who were forced into default during the housing bust.

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Housing market pits younger buyers against older homeowners flush with equity by Wall Street Journal

Housing sales will continue in 2014 much like sales were in 2013 with one difference. First time home buyers are through. Cash buyers will make up a larger portion of the market.

GeneHoffman


HOUSTON, Feb. 11, 2014 /PRNewswire/ -- While rising home prices are leaving older homeowners flush with increased equity so they can buy new or second homes -- increasingly outright with cash -- younger people are finding it more difficult to buy into the American dream of homeownership with price tags that outpace their income growth, according to the latest BBVA Compass research.
"For these prospective homebuyers, home prices have risen faster than their incomes during the recovery," BBVA Compass economist Jason Frederick wrote in his 2014 housing outlook. "Currently, home prices are now on the high end of a historical relationship between median home prices and median family income, and young families will need to see faster income growth and save additional money to make a larger down payment."

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Republican Party Platform of 1956

This was a viable program and at the I was born this was the direction the United states of America was heading.


President Eisenhower has given the world bold proposals for mutual arms reduction and protection against aggression through flying sentinels in an "open sky."
We support this and his further offer of United States participation in an international fund for economic development financed from the savings brought by true disarmament. We approve his determined resistance to disarmament without effective inspection.
We work and pray for the day when the domination of any people from any source will have ended, and when there will be liberation and true freedom for the hundreds of millions of individuals now held in subjugation. We shall continue to dedicate our best efforts to this lofty purpose.
We shall continue vigorously to support the United Nations.
We shall continue to oppose the seating of Communist China in the United Nations.

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Bitcoin Plunges as Exchange Halts Withdrawals Due to Technical Problems by Matt Egan

Bitcoin tumbled as much as 37% on Friday after the crypto currency’s leading exchange temporarily halted all withdrawals due to “technical” problems caused by increased withdrawal requests. The decision by Tokyo-based Mt. Gox to “temporarily pause” all withdrawal requests highlights the uphill battle facing the relatively young digital currency.

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'Time Is Short' On Debt Ceiling, Treasury Secretary Says By Mark Memmott

Warning that "simply delaying action on the debt limit can cause harm to our economy," Treasury Secretary Jacob Lew repeated Monday that he believes Congress should act soon to raise that limit so the federal government avoids even looking like it might default on its debts.
"Time is short," Lew also told an audience at the Bipartisan Policy Center, a Washington, D.C.-based nonprofit organization founded by four former Senate majority leaders — Republicans Howard Baker and Bob Dole; and Democrats Tom Daschle and George Mitchell.

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What is the qualified mortgage? By Jim Gay

Oh boy, more government regulations affecting consumers seeking mortgage loans that are eligible for Fannie Mae, FHA and Freddie Mac pricing. Could this be the last? We can only hope. However, for now the letters QM or qualified mortgage need to be understood and dealt with, like it or not. It is one of the final pieces of the Dodd-Frank Act. Whew!
On Jan. 10, QM went into full swing. It contains two main terms we all need to understand: “ability to repay” and “qualified mortgage.” Ability to repay is merely a refocus, once again, on the borrower’s income, credit and liabilities. If you have a mortgage, you surely went through this taxing scrutiny. It is the name of the game. So, what’s new? Extra scrutiny on the borrower’s income calculations and a new limit of 43 percent debt-to-income ratio.

A qualified mortgage is defined somewhat differently than mortgages have been for the last three decades. Negative-amortization loans, interest-only loans, loans exceeding 30 years, and balloon loans are not allowed. Also, a limit has been set on the fees normally paid to the mortgage companies or banks and may not vary even for the benefit of the borrower. Generally, under QM, the limit of points and fees associated with a home loan is now 3 percent of the total loan amount.

What is wrong with this? It sounds like these new QM rules will keep consumers from making unwise mortgage decisions. Yes and no. Qualified borrowers have long enjoyed the options of interest-only loans, balloon loans with lower rates, and amortizations longer then 30 years, but not any more.

Remember, also, that these rules are only for loans eligible for Fannie Mae, FHA and Freddie Mac, which means that jumbo loans are not part of the QM definition.

Most of the details in the QM regulations test the resolve of lenders and homebuyers will never see the complexity involved. So what is the bottom line for the consumer? Associate yourself with a lender possessing experience and knowledge to guide you through any new regulation.

All regulations that make the lending world more complex have the result of shrinking the available lenders that can complete your home loan. For the last three to five years, mortgage companies and loan officers have been leaving the business. Eventually, this trend may result in higher costs for loans because of less competition.

For the family looking to buy or refinance, my continued advice is to find a trustworthy and knowledgeable loan officer as an ally and proceed to accomplish your goals. Ignore the new QM regulations implemented on a national level. Let your chosen loan officer deal with any changes in the mortgage world.

Paper Money vs. Gold Money by Michael Edward and Vincent Cate

This article is very easy to follow and states the facts about the future value of our fiat money printing.

In 1913 the US took a big step away from gold when it authorized the Federal Reserve to issue paper notes that were only 40% backed by gold while claiming they were fully convertible. This fell apart when people tried to exchange their paper money for gold in 1933. Instead of admitting the central bank was bankrupt, the government confiscated everyone's gold, made it illegal for them to hold gold, and devalued the paper to $35 per oz of gold. At Bretton Woods the US agreed that central banks around the world could redeem $35 US for 1 oz of gold. As countries tried to exchange their dollars for gold it became clear US did not even have enough gold to back the dollars returning from overseas. Instead of admitting the central bank was bankrupt, the US said it was "closing the gold window". In reality this was stealing from billions of people. By the time the dollar:gold ratio went from 35:1 to 800:1 the government was able to stabilize the dollar by buying up dollars using gold and raising interest rates to 20%.

"I'm not upset that you lied to me, I'm upset that from now on I can't believe you" - Friedrich Nietzsche.

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