Tuesday January 22
By Martin Crutsinger, AP Economics Writer
Federal Reserve Cuts Interest Rate Three-Quarters of a Point to Try to Head Off Recession
WASHINGTON (AP) -- The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point on Tuesday and indicated further rate cuts were likely.
The surprise reduction in the federal funds rate from 4.25 down to 3.5 percent marked the biggest one-day rate move by the central bank since it cuts its discount rate by a full percentage point in December 1991, a period when the country was struggling to get out of a recession.
Analysts said the Fed will likely delay cutting rates further at its Jan. 29-30 meeting but will probably keep moving rates down aggressively as the economy continues to weaken.
"This move is not an instant fix," said Ian Shepherdson, chief U.S. economist at High Frequency Economics. "The economy is still staring recession in the face, but at least the Fed now gets it."
In addition to cutting the funds rate, the Fed said it was reducing its discount rate, the interest it charges to make direct loans to banks, by a similar three-quarters of a percentage point, pushing this rate down to 4 percent.
Commercial banks responded to the Fed's action on the funds rate by announcing similar cuts of three-quarter of a percent on its prime lending rate, the benchmark for millions of business and consumer loans. The action will mean the prime lending rate will drop from 7.25 percent down to 6.50 percent.
The Fed action was the most dramatic signal it can send that it is concerned about a potential recession in the United States.
The Fed decision was taken during an emergency telephone conference with Fed officials on Monday night. Those discussions occurred after global financial markets had plunged Monday as investors grew more concerned about the possibility that the United States, the world's largest economy, could be headed into a recession.
In a brief statement, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth."
The central bank said that the strains in short-term funding markets have eased a bit, but "broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets."
The move caught financial markets by surprise. Many had expected the central bank would wait until its meeting next week to make any move in interest rates. The Fed made the move before markets had opened in the United States, hoping that the bold move would limit the decline in U.S. stocks.
Before Tuesday's move, the Fed had cut interest rates three times, beginning in September, the month after a severe credit crunch had roiled Wall Street and global financial markets. The Fed cut the funds rate by a half-point in September and then by smaller quarter-point moves in October and December.
In its statement, the Fed said, that "appreciable downside risks to growth remain" and held out the prospect of further rate cuts.
"The committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risk," the Fed statement said.
The Fed's action was approved on an 8-1 vote with William Poole, president the Fed's regional bank, dissenting. The statement said that Poole objected because he did not believe current conditions justified a rate move before the Fed's meeting next week.
Tuesday, January 22, 2008
Monday, December 17, 2007
That's the $64,000 Question...
Most people won't inherit millions of dollars, but according to the American Association of Retired Persons (AARP), the median amount of today's inheritance is about $64,000. While that's not enough to provide financial security for life, it's still a lot of money and requires careful planning before deciding what to do with it. So therein lays the question - if you receive an inheritance - what should you do?
Step One...Do Nothing: Remember, this is an emotional time. You may have lost a loved one, you're receiving a sizable chunk of money, and your judgment may be clouded by emotion. Rather than make a decision you regret later, take some time to step back and think. In the meantime, put the money in a money market or savings account that will keep it safe, and allow you to access when you're ready.
Check the Tax Laws: Some inheritances are tax free, but some are subject to federal and state taxes. Make sure that you diligently record everything that you inherit and the date that you inherited it. Most important, seek advice from a tax professional before you decide what to do with the inheritance - you don't want to spend money that you don't actually have. And if you need a referral to a great tax pro - just get in touch with me.
Stick to Small Wishes: Many people dream of a vacation home or taking a luxury cruise around the world. Receiving an inheritance may make those dreams seem within reach. Often, however, they're not realistic for your overall lifestyle and budget. So keep the splurging to a small gift for you or your family. Keep the big picture in mind for the rest of the money.
Invest as Usual: Don't gamble your inheritance away on a high-risk investment that doesn't make sense. Instead of thinking of it as "found money" or looking for a big score, treat it like the rest of your investments. Work with a professional advisor to determine which options and risk-level make sense, based on your entire portfolio and future plans - and feel free to contact me for a referral to a great financial pro.
Step One...Do Nothing: Remember, this is an emotional time. You may have lost a loved one, you're receiving a sizable chunk of money, and your judgment may be clouded by emotion. Rather than make a decision you regret later, take some time to step back and think. In the meantime, put the money in a money market or savings account that will keep it safe, and allow you to access when you're ready.
Check the Tax Laws: Some inheritances are tax free, but some are subject to federal and state taxes. Make sure that you diligently record everything that you inherit and the date that you inherited it. Most important, seek advice from a tax professional before you decide what to do with the inheritance - you don't want to spend money that you don't actually have. And if you need a referral to a great tax pro - just get in touch with me.
Stick to Small Wishes: Many people dream of a vacation home or taking a luxury cruise around the world. Receiving an inheritance may make those dreams seem within reach. Often, however, they're not realistic for your overall lifestyle and budget. So keep the splurging to a small gift for you or your family. Keep the big picture in mind for the rest of the money.
Invest as Usual: Don't gamble your inheritance away on a high-risk investment that doesn't make sense. Instead of thinking of it as "found money" or looking for a big score, treat it like the rest of your investments. Work with a professional advisor to determine which options and risk-level make sense, based on your entire portfolio and future plans - and feel free to contact me for a referral to a great financial pro.
Friday, December 7, 2007
Timing is money
Did you know that the fiscal year for Japanese companies ends in March? Do you care? You SHOULD...if you want the best deal on a new television for your home theater system.
That's because new models and products are scheduled for release at the beginning of the new fiscal year--which for Japanese electronics companies is April. And the release of the new models means...you guessed it...huge discounts on the previous year's models. So if you're shopping for a television, stereo or other electronics, your best bet is to watch for sales in spring.
Looking for Even More Savings?
You can save on just about every item you need...if you know what season or day of the week to purchase it. Below are some tips to help you save the most on your shopping list.
Airplane Tickets: Planning on traveling for the holidays this year? Want to save some cash on your airline tickets? Of course you do! Did you know your best chance for saving is Wednesday morning? That's because airlines introduce their savings over the weekend and during the first few days of the week, subtle price wars begin. By early Wednesday, the savings have usually hit their peak...and there are still plenty of seats left for you to capitalize on.
Gas: Going by car this holiday season? We've all seen gas prices jump as travel weekends approach. It's a common occurrence...but it can be avoided. Whether you're planning to travel or not, the best time to top-off your tank is early Thursday morning. Then, watch the prices rise and calculate your savings!
Cars: You probably already know that you can save on car purchases in early fall when new models are released and the current models go on sale. And you may also know that your best chance to negotiate a better price is at the end of a month when car dealers need to make their monthly quotas. But did you know you can drive home a great deal early in the week, especially during the morning? At that time, the dealerships aren't overflowing with shoppers like they are on the weekend, so you'll get more personalized attention. Plus, salespeople are more likely to negotiate when they don't have three or four other buyers waiting in the wings to pay full price.
Toys: The winter holiday season is a no-brainer for toy sales. Store shelves are stocked and prices are often priced to move the merchandise. But you can also save some serious dollars by shopping well before the holidays arrive...such as the end of summer. Think about it...department stores only have so much room to store their merchandise. And by the end of the summer and early fall, they're starting to stock up for the big holiday push...which means they have to get rid of their current inventory of fun. So for savings of 60 percent off and more, try getting a jump on your toy shopping as early as late summer and the beginning of fall--you'll avoid the mad holiday rush and save some cash.
Furniture: Unless you need to replace your sofa or dining room table right away, those "HUGE" weekend and holiday sales aren't the best time to buy. Instead, you should plan ahead and do your furniture shopping in October or early November as well as in April and early May. That's when new lines of furniture are unveiled at industry trade shows...which means you can save big on the in-store stock that needs to be sold before the new inventory takes a seat on the showroom floor.
Clothing: By the time the weekend rolls around, just about every dressing room is filled...and the best deals have been picked over already. Why? It's simple. With the large number of special promotions to be marked and shelves to be stocked, most clothing stores get started early. And savvy shoppers, like you, can get the best deals and the best selection by Thursday evenings. As an added bonus, the stores, dressing rooms, and checkout lines aren't nearly as crowded--so you save on stress too!
The moral of the story--plan ahead on your purchases and you'll be rewarded!
That's because new models and products are scheduled for release at the beginning of the new fiscal year--which for Japanese electronics companies is April. And the release of the new models means...you guessed it...huge discounts on the previous year's models. So if you're shopping for a television, stereo or other electronics, your best bet is to watch for sales in spring.
Looking for Even More Savings?
You can save on just about every item you need...if you know what season or day of the week to purchase it. Below are some tips to help you save the most on your shopping list.
Airplane Tickets: Planning on traveling for the holidays this year? Want to save some cash on your airline tickets? Of course you do! Did you know your best chance for saving is Wednesday morning? That's because airlines introduce their savings over the weekend and during the first few days of the week, subtle price wars begin. By early Wednesday, the savings have usually hit their peak...and there are still plenty of seats left for you to capitalize on.
Gas: Going by car this holiday season? We've all seen gas prices jump as travel weekends approach. It's a common occurrence...but it can be avoided. Whether you're planning to travel or not, the best time to top-off your tank is early Thursday morning. Then, watch the prices rise and calculate your savings!
Cars: You probably already know that you can save on car purchases in early fall when new models are released and the current models go on sale. And you may also know that your best chance to negotiate a better price is at the end of a month when car dealers need to make their monthly quotas. But did you know you can drive home a great deal early in the week, especially during the morning? At that time, the dealerships aren't overflowing with shoppers like they are on the weekend, so you'll get more personalized attention. Plus, salespeople are more likely to negotiate when they don't have three or four other buyers waiting in the wings to pay full price.
Toys: The winter holiday season is a no-brainer for toy sales. Store shelves are stocked and prices are often priced to move the merchandise. But you can also save some serious dollars by shopping well before the holidays arrive...such as the end of summer. Think about it...department stores only have so much room to store their merchandise. And by the end of the summer and early fall, they're starting to stock up for the big holiday push...which means they have to get rid of their current inventory of fun. So for savings of 60 percent off and more, try getting a jump on your toy shopping as early as late summer and the beginning of fall--you'll avoid the mad holiday rush and save some cash.
Furniture: Unless you need to replace your sofa or dining room table right away, those "HUGE" weekend and holiday sales aren't the best time to buy. Instead, you should plan ahead and do your furniture shopping in October or early November as well as in April and early May. That's when new lines of furniture are unveiled at industry trade shows...which means you can save big on the in-store stock that needs to be sold before the new inventory takes a seat on the showroom floor.
Clothing: By the time the weekend rolls around, just about every dressing room is filled...and the best deals have been picked over already. Why? It's simple. With the large number of special promotions to be marked and shelves to be stocked, most clothing stores get started early. And savvy shoppers, like you, can get the best deals and the best selection by Thursday evenings. As an added bonus, the stores, dressing rooms, and checkout lines aren't nearly as crowded--so you save on stress too!
The moral of the story--plan ahead on your purchases and you'll be rewarded!
Sunday, November 11, 2007
"Equity Man' Mike Brouse goes to Princeton!
Dear Friends,
I wanted to let everybody know that my practice is alive and well. I have taken advantage of an opportunity with a company called Princeton Capital (Residential Mortgage). Princeton Capital is a subsidiary of PHH. PHH is a strong and well-funded mortgage banker. PHH has thrived and survived through the current credit crunch because of their conservative approach to lending. In fact, PHH has such a stellar reputation with Wall Street that we continue to offer a plethora of mortgage solutions with extremely competitive pricing.
The highly regarded Princeton Capital mortgage consultants normally operate from inside of the Coldwell Banker offices in an “In-House” lending capacity. I will continue to focus my energy and attention on past clients, however, now there will be a strong emphasis on meeting the needs of over 130 exceptional Realtors in my office. I am grateful for the relationships I have established over the past eight years. I look forward to helping you achieve your long and short term financial goals. I believe now more than ever that your mortgage is the key to financial freedom. It remains the biggest debt and the greatest asset on most home owners balance sheet. As we navigate through the next several months of economic uncertainty, know that you have a professional in your corner ready and willing to answer any questions that may arise or handle any of your mortgage needs.
You will be receiving some mail correspondence from me in the next week or so. Please feel free to call me with any needs or concerns.
Please don’t keep me a secret this holiday season as you interact with friends, family, and co-workers, who could use my help.
I wanted to let everybody know that my practice is alive and well. I have taken advantage of an opportunity with a company called Princeton Capital (Residential Mortgage). Princeton Capital is a subsidiary of PHH. PHH is a strong and well-funded mortgage banker. PHH has thrived and survived through the current credit crunch because of their conservative approach to lending. In fact, PHH has such a stellar reputation with Wall Street that we continue to offer a plethora of mortgage solutions with extremely competitive pricing.
The highly regarded Princeton Capital mortgage consultants normally operate from inside of the Coldwell Banker offices in an “In-House” lending capacity. I will continue to focus my energy and attention on past clients, however, now there will be a strong emphasis on meeting the needs of over 130 exceptional Realtors in my office. I am grateful for the relationships I have established over the past eight years. I look forward to helping you achieve your long and short term financial goals. I believe now more than ever that your mortgage is the key to financial freedom. It remains the biggest debt and the greatest asset on most home owners balance sheet. As we navigate through the next several months of economic uncertainty, know that you have a professional in your corner ready and willing to answer any questions that may arise or handle any of your mortgage needs.
You will be receiving some mail correspondence from me in the next week or so. Please feel free to call me with any needs or concerns.
Please don’t keep me a secret this holiday season as you interact with friends, family, and co-workers, who could use my help.
Friday, October 26, 2007
Equity Man Mike Brouse has Moved!
My last day at CTX Mortgage Company was Tuesday, Oct. 23, 2007. Please send all further correspondence to mike@equityman.net. I will let you know what the next step for me is. I remain your trusted mortgage advisor. I value you and appreciate your business.
Please don’t keep me a secret when it comes to the next person you come across who could use my help in purchasing or refinancing a home.
Best,
Mike Brouse
707-888-8230
Please don’t keep me a secret when it comes to the next person you come across who could use my help in purchasing or refinancing a home.
Best,
Mike Brouse
707-888-8230
Thursday, October 4, 2007
Going once, going twice, SOLD .. on eBay
The garage sale season is coming to an end, but if you haven't had a chance to clean out your closets or spare rooms yet, don't fret. One of the most powerful sales is taking place right this minute...actually every minute of every day...on eBay!
The online auction site has quickly become a convenient way for consumers to buy the goods they're looking for--and for sellers to actually make money by auctioning off items they don't need or want. Even though listing and selling items may be easy, the tips below can help you increase the number and size of the bids you receive!
What You See Is What You Get.
Believe it or not, many buyers won't even look at your ad if you don't provide a picture of it...they still want to see what they're buying. To increase your number of potential bidders, make sure you include a quality photo for every item you're selling.
How Low Can You Go?
It sounds a little counter-intuitive, but the lower you start the bidding, the more money you may get. In fact, starting the bidding at 99 cents--versus a dollar or more--attracts a larger number of bidders. This larger pool has two powerful impacts. First, the more bidders you have, the more new bidders will be drawn to your ad, believing that you've got a red-hot item. Second, many bidders will continue the bidding game once they've begun it, which means they may bid more in their third or fourth round then they would have been willing to offer if you started that high in the first place. Finally, remember that your profit isn't just determined by how much you sell your item for...you also have to consider how much you will have to spend in order to sell it. By listing your item at 99 cents, you'll qualify for the lowest eBay listing fee.
Don't Get Carried Away With Shipping.
In order to receive an item, the buyer must pay for shipping in addition to the winning bid amount. Those shipping fees aren't determined by the post office...they're actually determined by you. To make sure you don't drive buyers away, clearly list the shipping fees that apply. And don't get greedy and run up those fees. Smart shoppers will know you're trying to take advantage of them and they'll walk away. So, be clear and be fair!
Consider the Alternatives.
Potential buyers will find your ad through searches. To make it easier for them to find it, consider alternative spellings--such as "videogame" and "video game." Also, once buyers find your ad they may have questions. To make sure they can contact you, consider providing a second e-mail address, in case your primary one is only checked while you are at work.
Everybody Loves Options. Some buyers prefer paying for their online purchases through a secure Internet payment service; others prefer using credit cards. Increase the number of bidders interested in your item by offering a variety of payment options.
Know When to Post 'Em and When to Hold 'Em.
The day that you post your ad makes a difference.
For instance, if you post a 10-day ad, the best day is Thursday. That way, your auction will end on a Sunday...which happens to be a big day for eBay bidding. Plus, your ad will be up for two full weekends, thus increasing your exposure on active bidding days. If you're getting ready to list an item, take a minute to consider how the listing day will impact your sale. It's better to wait a few days and get a better price in the long run, rather than rush into a situation that might mean fewer--and consequently lower--bids.
Follow these tips, start off small and work your way up to more expensive items, and have fun watching buyers bid!
The online auction site has quickly become a convenient way for consumers to buy the goods they're looking for--and for sellers to actually make money by auctioning off items they don't need or want. Even though listing and selling items may be easy, the tips below can help you increase the number and size of the bids you receive!
What You See Is What You Get.
Believe it or not, many buyers won't even look at your ad if you don't provide a picture of it...they still want to see what they're buying. To increase your number of potential bidders, make sure you include a quality photo for every item you're selling.
How Low Can You Go?
It sounds a little counter-intuitive, but the lower you start the bidding, the more money you may get. In fact, starting the bidding at 99 cents--versus a dollar or more--attracts a larger number of bidders. This larger pool has two powerful impacts. First, the more bidders you have, the more new bidders will be drawn to your ad, believing that you've got a red-hot item. Second, many bidders will continue the bidding game once they've begun it, which means they may bid more in their third or fourth round then they would have been willing to offer if you started that high in the first place. Finally, remember that your profit isn't just determined by how much you sell your item for...you also have to consider how much you will have to spend in order to sell it. By listing your item at 99 cents, you'll qualify for the lowest eBay listing fee.
Don't Get Carried Away With Shipping.
In order to receive an item, the buyer must pay for shipping in addition to the winning bid amount. Those shipping fees aren't determined by the post office...they're actually determined by you. To make sure you don't drive buyers away, clearly list the shipping fees that apply. And don't get greedy and run up those fees. Smart shoppers will know you're trying to take advantage of them and they'll walk away. So, be clear and be fair!
Consider the Alternatives.
Potential buyers will find your ad through searches. To make it easier for them to find it, consider alternative spellings--such as "videogame" and "video game." Also, once buyers find your ad they may have questions. To make sure they can contact you, consider providing a second e-mail address, in case your primary one is only checked while you are at work.
Everybody Loves Options. Some buyers prefer paying for their online purchases through a secure Internet payment service; others prefer using credit cards. Increase the number of bidders interested in your item by offering a variety of payment options.
Know When to Post 'Em and When to Hold 'Em.
The day that you post your ad makes a difference.
For instance, if you post a 10-day ad, the best day is Thursday. That way, your auction will end on a Sunday...which happens to be a big day for eBay bidding. Plus, your ad will be up for two full weekends, thus increasing your exposure on active bidding days. If you're getting ready to list an item, take a minute to consider how the listing day will impact your sale. It's better to wait a few days and get a better price in the long run, rather than rush into a situation that might mean fewer--and consequently lower--bids.
Follow these tips, start off small and work your way up to more expensive items, and have fun watching buyers bid!
Monday, August 13, 2007
Demystifying the Home Finance Hubbub
In the recent weeks news stories have been flying concerning the recent mortgage company failures and the significant hiccups our financial markets are experiencing.
This article on EquityMan.net under the article link of "Demystifying the Home Finance Hubbub" will explain in a very easy-to-understand way what all the hubbub is about. There is no doubt there are very serious problems, however, with every problem comes opportunities.
My desire is to keep you informed to instill confidence and clarity in these financially turbulent times. Many of you are in the Option Arm product. It can be un-nerving to see your principal balance grow while your home value perhaps shrinks.
My advice is to HANG ON. You are not alone in this and there will be brighter days ahead. For those of us who have leveraged equity and re-distributed it into liquid, safe, interest bearing side funds, we are experiencing first hand how powerful this concept can be especially as home values decline. Fortunately other sectors of the financial markets are fairing very well. No gloom and doom.
I am here for you should you have any questions.
I appreciate you and I value your business.
This article on EquityMan.net under the article link of "Demystifying the Home Finance Hubbub" will explain in a very easy-to-understand way what all the hubbub is about. There is no doubt there are very serious problems, however, with every problem comes opportunities.
My desire is to keep you informed to instill confidence and clarity in these financially turbulent times. Many of you are in the Option Arm product. It can be un-nerving to see your principal balance grow while your home value perhaps shrinks.
My advice is to HANG ON. You are not alone in this and there will be brighter days ahead. For those of us who have leveraged equity and re-distributed it into liquid, safe, interest bearing side funds, we are experiencing first hand how powerful this concept can be especially as home values decline. Fortunately other sectors of the financial markets are fairing very well. No gloom and doom.
I am here for you should you have any questions.
I appreciate you and I value your business.
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