Thursday, June 20, 2013

Our Economy's Heroes: "Financial First Responders"

It is easy to understand why the U.S. economy is in crisis and decline. Forget the delusional stock market (fueled by Fed fake money printing). On Main Street our economy is sick and getting sicker. There are no jobs.

The U.S. has 90 million working age, able-bodied Americans unemployed - that’s almost one third of the country. The workforce participation rate is the lowest in decades. The rate of business startups is the lowest in decades. Food stamps, disability, welfare, and Medicaid are at record highs. We are facing economic disaster. Why?

The answer is found in how we treat the heroes of the economy. Firefighters are heroes because they run into burning buildings. Policemen and women are heroes because they run towards the sound of gunshots. That’s why they're called "first responders." Where would we be in a crisis without these heroes?

But our economy relies on heroes, too. I call these heroes "financial first responders." They are the business owners, investors, job creators and taxpayers. Financial first responders risk their money to create jobs, to provide a better life for their employees and to provide products that consumers need at a price they can afford. They risk their financial lives, just like the police and firefighters risk their bodies. [more...]

Tuesday, June 18, 2013

When Economic Policy Isn't Focused on Growth, the Poor Suffer Mightily

It’s been a long time, as in years, since we’ve had a certain sense that the economy is or might be set to enjoy sustained growth.  We are so eager for good news that any upward pointing indicator gets celebrated in the media, in part because it confirms the political biases of many people in the press about the worth of President Obama’s stimulus policies. But, even the most recent jobs data indicating that unemployment fell to 7.5 percent is clouded by the realization that the number of people who left the labor market grew to a record high.  It suggests fairly clearly that the lower rate of unemployment is what economists call “artifactual” data.  The number of permanently unemployed and those working in jobs well below their skill levels persists.  Just ask this year’s college graduating class about its prospects. [more...]

Wednesday, June 12, 2013

Why You Should Stop Renting and Buy a Home Now

Are you currently renting the home that you live in? We recently analyzed data on historical pricing for existing home sales of single family homes in the U.S. We looked at historical price data for single family homes from the U.S Department of Housing and Urban Development (HUD) going back to 1970. We applied historical real estate data to today’s real estate market in order to compare and analyze how a typical first time home buyer today could benefit by purchasing a home similar to the one that they are currently renting. Based on historical data, along with current home prices and mortgage rates we believe that if you are currently renting and you have decent credit then you should really think about buying a home right now. [more...]