Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.
All our client money is held in our investment funds, and excess fund cash is in T-Bills for security, so I wasn’t asking about that. I was asking about cash that our firm had on deposit at a commercial bank. Like so many other small and medium sized businesses, that in aggregate make up the US economy, we turned to a local bank when we started the firm in Santa Barbara, California, 10 years ago this week.
Newsfeed: “US Banking Will Be Forever Changed” Read More »
Federal Reserve Chair Jerome Powell on Tuesday pledged that the U.S. central bank would ratchet interest rates as high as needed to kill a surge in inflation that he said threatened the foundation of the economy.
Newsfeed: Fed’s Powell vows to raise rates as high as needed to kill inflation surge Read More »
While Powell may remain oblivious to the stock market turmoil crushing momo daytraders and billionaire Tiger cub “hedge funds” who have no idea how to trade when the Fed is not propping up their books, once the equity chaos spreads to bonds and other credit products, that’s when the Fed always begins to panic.
It’s hard to watch the financial news these days and not get the feeling the fragility in the financial system we’ve been concerned about … is starting to show. We grew up in California and learned as kids how to react to an earthquake … Get away from glass and hide under the shelter of a desk
Bitcoin, gold, oil, stocks, real estate, and popcorn … Read More »
“You can’t handle the truth!” – Jack Nicholson in A Few Good Men Neither optimists or pessimists can handle the truth.Optimists refuse to acknowledge the part of reality that’s negative … … while pessimists can’t see the ever-present opportunities hidden behind the problems. While we’d rather be optimistic than pessimistic, maybe it’s better to be BOTH.“The
Can you handle the truth? Read More »
Regular followers know we’re news hawks. We scour the headlines for clues about opportunities and threats facing real estate investors. We look at the good, the bad, the ugly … and consider things at the micro, macro, geo-political, and systemic level. Even though we watch a broad range of real estate niches … we tend
Headlines say real estate funds performing well … Read More »
A common adage is “treat your investing as a business”. Good advice! And at first blush, you might think it means … Figuring out your mission, vision, values … Establishing clearly defined goals and objectives … Developing strategies, tactics, processes, policies and procedures … Recruiting, training, and leading a team … Setting up communication and
SWOT are you worried about … Read More »
One of the primary purposes of easy money (“quantitative easing” or QE) is to inflate asset prices, bloat balance sheets, and create a wealth effect. The formula is simple. Print gobs of money, buy bonds to drop interest rates, and flood the markets with liquidity. Corporations borrow cheap money to buyback stocks … pushing stock
Protecting equity from bursting bubbles … Read More »
Ohhhh … there’s SO many directions we could go with that subject line … but let’s pick something both potentially polarizing and unifying … Income inequality. It’s a political cause and an economic reality. But we’re not here to talk politics. Because it doesn’t matter if we think it’s fair or not. We’ll leave that
Capitalizing on the American dumbbell … Read More »