No $ No Help For Housing

As the Obama administration and Congress continue to plays politics with the American economy it is apparent that there is no money for any new government program aimed at helping the millions of Americans now facing foreclosure or the millions owing more than their home are worth.



Recently during a Twitter town hall,the President acknowledged that the weak housing market was one of his administrations chief burdens.

According to many economists, the fact is that there isn't likely to be any money or political desire to consider any legislation to address the problem.

In my opinion housing remains one of the biggest drags on the American economic recovery. Solving the housing and employment crisis together could have gone a long way toward avoiding the current standoff in Washington over raising the debt ceiling.

Isn't the reason America is at risk of default on it's debt simply because the administration relies too heavily on borrowing. Haven't they borrowed us into a corner while bailing out large corporations that they've considered too big to fail.

How can our government do so much in so little time, sometimes overnight for others while they stand and watch the American consumer struggle daily with higher food prices, continued rising oil prices, foreclosure, unemployment, out of control health care costs.

Most foreclosure now are caused by economic conditions and not by sub prime mortgages. Unemployment may be the biggest contributor to the foreclosure rate and underwater loans may be the second factor. The foreclosure rate continues to climb nationwide with virtually no end in sight. In fact we may now be living our futures.

The only way that could change would be for lenders to reduce the principal owed on both first and second mortgages in order to coincide with current market values. Lowering the principal would give people a ray of hope that they may again someday have some equity in the homes that they've struggled to keep. It would allow others to sell at market prices avoiding any possibility of foreclosure and it would make the nightmares of short sales go away.

While the politicians posture over how much more to borrow and Americans wonder what will happen to us if Washington fails us again the problems facing the economy go unattended, ignored and left to work themselves out.

I have little faith that our government will do what's right for the us, I have great faith that if left to what once was middle class Americans we would find our own way and someday get our country back on track.

Is Housing Nearing Bottom?

May 2, 2009 - As the housing market slowly moves closer to bottoming, rates on 30 year fixed rate mortgages tied a record low this past week.
Average rates on the 30 year fixed rate mortgages fell to 4.78%. A year ago average rates were 6.06%. A considerable difference for any borrower. A new 30 year fixed rate mortgage taken today could mean a savings of $165 monthly or close to $2000 a year.

Inventories are dropping as homes have become more affordable. Recently inventories of single family homes month to month in certain areas of South Florida that I like to watch closely have declined by 30% or more.As availability declines and prices begin to stabilize, lower more affordable mortgages are attracting more buyers.

Some REO or bank foreclosure inventories still not showing on the market could stall the momentum as lenders again begin to process and place foreclosed inventories on the market. It's my belief that once a bottom is recognized these lenders will indeed flood the market with inventories, creating another round of competition between sellers, albeit on a more even playing field, where pricing is key.

If rates remain low and prices bottom, affordability would than be more related to individual incomes, credit and employment stability. Housing may very well be near bottom. The underlying question may now be - will other economic conditions recover or lag behind housing?

Carving A Great Jack 'O Lantern

Enough about the economy and the election and such.This post is going to help in a very different and important way.

Carving a fantastic Jack 'O Lantern for Halloween can be easy, fun and even self fulfilling. Important stuff when we are all feeling the economic squeeze and very vulnerable. So without further delay let's get started and create something that brings a smile to our faces.

First we need to select a Pumpkin to carve. You can carve a real pumpkin from the pumpkin patch or a synthetic that will last from one Halloween to another. Whichever you choose make sure it's large enough and has a good flat or even bottom to it. We don't want to place our masterpiece on display lopsided so be sure that it can stand on it own. Remember when picking a pumpkin to never carry it by the stem.

Now that we have a great Pumpkin we can prepare it. You can draw your design right onto the pumpkin before you begin carving or make a template to use while carving. Making a template works great. Tape it in place on the pumpkin and poke holes about an eighth of an inch apart along the design cutouts. Most variety stores sell inexpensive carving kits. The key to safe carving is sharp tools. Make sure that your saws and knives are sharp enough. The least amount of force that you have to use lessens any chance of any accidental slip. Gut the Pumpkin either from the top or bottom. If you cut out the bottom you can easily place the Pumpkin over a candle or light. If you cut from the top remember to cut an angle inward so that the top can be placed back on without falling inside. You can also cut a notch in the lid so that it's easy to place back in it's spot.

Gutting the Pumpkin can be messy but a good wet-dry ShopVac can make it easy. If you don't have one use a margarine lid or empty tuna can to scrape out the guts. Be sure to get the walls nice and clean being careful not to crack your pumpkin from the inside out. After gutting and for increased stability, carve the smallest pieces out first and work your way to the larger sections. In fact leaving the cutouts in place until your ready to pop them out can help add support until you've finished carving.
Thoroughly gutting and cleaning the pumpkin before you carve it will help preserve it and make it last. Applying a little petroleum jelly to the cuts and edges will help to seal in the moisture and preserve your creation as well. Spraying the whole thing inside and out with Lysol will help to keep any pumpkin killing bacteria away.

Lighting is key to making your creation come alive. A low watt electric light can help reduce heat and any shriveling that may happen. A lighted candle works well inside the pumpkin also. As an added effect you may consider burning some incense or spice inside your Jack O Lantern.

Happy Halloween.