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Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Thursday, June 4, 2009
Friday, May 22, 2009
Tuesday, May 12, 2009
TRADE DEFICIT $300 BILLION BELOW LAST YEAR, COULD THAT BE DUE TO OIL PRICES?
So, I read the report on the trade deficit and shockingly no where is oil mentioned. We import about 20 million barrels of oil a day. At today's approximated $60 per barrel that is $1.2 billion dollars a day in trade deficit. Multiply times 30 days in the month and $36 billion per month is our trade deficit with the world in oil. If my numbers are correct, then we would have a trade surplus if it weren't for oil imports!!! Please someone correct me if I am wrong!
Let's look at last year when oil was, say an average of $120 per barrel. Those are easy numbers, all other variables the same then our trade deficit would be $72 billion per month. Wow, read the article, last year we averaged $56.75 billion per month in trade deficit. I guess all other variables were not the same.
The REALITY IS the trade deficit is breaking this country, our wealth being shipped to other countries. Folks, this is a redistribution of wealth, in other words a TAX. This is easily curred, stop importing oil. That would break the backs of countries like: Russia, Iran, Venezuela, and affect others in the middle east, but those in the middle east don't need any more money.
I know we can't stop importing oil over night, but we can pass regulations that equalize the playing field for clean energies. REMEMBER, big oil has had the help of favorable regulations for years and today is still subsidized by the US Government or Tax payer for 10's of billions of dollars per year.
OK, just some food for thought.
Just my opinion...Jeff Cameron
Let's look at last year when oil was, say an average of $120 per barrel. Those are easy numbers, all other variables the same then our trade deficit would be $72 billion per month. Wow, read the article, last year we averaged $56.75 billion per month in trade deficit. I guess all other variables were not the same.
The REALITY IS the trade deficit is breaking this country, our wealth being shipped to other countries. Folks, this is a redistribution of wealth, in other words a TAX. This is easily curred, stop importing oil. That would break the backs of countries like: Russia, Iran, Venezuela, and affect others in the middle east, but those in the middle east don't need any more money.
I know we can't stop importing oil over night, but we can pass regulations that equalize the playing field for clean energies. REMEMBER, big oil has had the help of favorable regulations for years and today is still subsidized by the US Government or Tax payer for 10's of billions of dollars per year.
OK, just some food for thought.
Just my opinion...Jeff Cameron
Trade Deficit Widens to $27.6B
By MARTIN CRUTSINGER, AP
WASHINGTON (May 12) - The U.S. trade deficit rose in March for the first time since last July as the global recession cut sharply into sales of American exports. The politically sensitive deficit with China increased.
The Commerce Department said Tuesday the deficit widened to $27.6 billion in March, slightly lower than the $29 billion gap that economists had forecast.
The March deficit was 5.5 percent higher than February's revised $26.1 billion trade gap, which had been the smallest since November 1999.
Through the first three months of this year, the deficit is running at an annual rate of $359.7 billion, far below last year's $681.1 billion. Economists expect the deficit will remain at low levels this year as a recession in the U.S. crimps demand for foreign goods.
Read the rest of the story: http://money.aol.com/article/trade-deficit-widens-to-276b/471938
Wednesday, May 6, 2009
Federal Funds Aid Foreclosure-Home Purchases
If you are a thinking about buying home in the near future you may wanna check this out! You can get money towards your downpayment!!!! Check out this site....www.yourhomeaz.com!!!!!!! You could possibly get up to $15,000 towards your downpayment and closing costs!! WOW!!!
Funding is made available through the U.S. Housing and Urban Development Neighborhood Stabilization Program (NSP). The state of Arizona and nine other counties and communities received more than $121 million to help stabilize our hardest hit neighborhoods through a variety of efforts.
FIND OUT IF YOU ARE ELIGIBLE!!!
New programs, backed by federal funds, now are available to help people buy foreclosure homes across metropolitan Phoenix.
Money for the programs, which include down-payment and closing-costs assistance, is coming from the $121 million in Neighborhood Stabilization funds Arizona is receiving.
The money must go toward helping the state's neighborhoods hardest hit by foreclosure, and most of those areas are in the Valley.
Neighborhood Stabilization programs are being offered by the state, Maricopa and Pima counties and the cities of Avondale, Chandler, Glendale, Mesa, Phoenix, Surprise and Tucson. Information on most of the programs is on the Arizona Department of Housing's new Web site, YourWayHome Az.com. Go to the site to see if you qualify. In some cases, buyers could qualify for more than one program.
Most cities are offering qualifying buyers help in purchasing and even renovating foreclosure homes. Phoenix received the biggest share of the federal funds, $39.5 million. It is offering eligible buyers as much as $15,000 in down payment and closing costs.
The state is using more than half of the $38 million it is getting to help people with down payments on foreclosure homes. Borrowers who earn 120 percent or less of an area's average median income are eligible.
Arizona's Neighborhood Stabilization funding was approved in December, but the money wasn't available until April. Not all of the programs are fully operational yet, but prospective buyers can put their names on waiting lists.
Most programs require home-buyer counseling.
Also, watch out for company Web sites with similar names that ask for money.
All information on the state's Web site is free, said Donald Cardon, who took over as director of the Housing Department in March. He said the Neighborhood Stabilization programs will help some people afford homes who couldn't just a year ago.
The YourWayHomeAz Web site will be updated as new programs are available. Neighborhood Stabilization funds must be spent by 2011. One concern is that in some of the neighborhoods, the supply of foreclosure homes is falling as more investors purchase the properties. The recent drop in Valley foreclosures could also impact the programs.
Funding is made available through the U.S. Housing and Urban Development Neighborhood Stabilization Program (NSP). The state of Arizona and nine other counties and communities received more than $121 million to help stabilize our hardest hit neighborhoods through a variety of efforts.
FIND OUT IF YOU ARE ELIGIBLE!!!
New programs, backed by federal funds, now are available to help people buy foreclosure homes across metropolitan Phoenix.
Money for the programs, which include down-payment and closing-costs assistance, is coming from the $121 million in Neighborhood Stabilization funds Arizona is receiving.
The money must go toward helping the state's neighborhoods hardest hit by foreclosure, and most of those areas are in the Valley.
Neighborhood Stabilization programs are being offered by the state, Maricopa and Pima counties and the cities of Avondale, Chandler, Glendale, Mesa, Phoenix, Surprise and Tucson. Information on most of the programs is on the Arizona Department of Housing's new Web site, YourWayHome Az.com. Go to the site to see if you qualify. In some cases, buyers could qualify for more than one program.
Most cities are offering qualifying buyers help in purchasing and even renovating foreclosure homes. Phoenix received the biggest share of the federal funds, $39.5 million. It is offering eligible buyers as much as $15,000 in down payment and closing costs.
The state is using more than half of the $38 million it is getting to help people with down payments on foreclosure homes. Borrowers who earn 120 percent or less of an area's average median income are eligible.
Arizona's Neighborhood Stabilization funding was approved in December, but the money wasn't available until April. Not all of the programs are fully operational yet, but prospective buyers can put their names on waiting lists.
Most programs require home-buyer counseling.
Also, watch out for company Web sites with similar names that ask for money.
All information on the state's Web site is free, said Donald Cardon, who took over as director of the Housing Department in March. He said the Neighborhood Stabilization programs will help some people afford homes who couldn't just a year ago.
The YourWayHomeAz Web site will be updated as new programs are available. Neighborhood Stabilization funds must be spent by 2011. One concern is that in some of the neighborhoods, the supply of foreclosure homes is falling as more investors purchase the properties. The recent drop in Valley foreclosures could also impact the programs.
Thursday, April 16, 2009
Tuesday, March 10, 2009
Tuesday, February 24, 2009
NEW Weekly Video Update From Jeff Cameron!
We are getting a lot of calls from people asking about the real estate market. Since the news is unable to report good news, I will. This is the first of weekly market reports for the Metro Phoenix area. Please don't hesitate to send me questions or call.
Thursday, February 5, 2009
What a STEAL!!! This 2 Million Dollar home listed for WAY less!!
Beautiful private retreat located inEl Chorro Estates in the heart of Paradise Valley. Privately gated w/circular drive this home sits on 1.45 acres of land! With 5 bedrooms, 5.5 baths, bonus room & huge formal living room, this home is very spacious. You will find all the expected finishing touches: granite slab, 18'' travertine floors, coffered ceilings, custom cabinetry and built-in fridge w/wood panels. Huge family room with open kitchen, wet bar & built-in entertainment center, of course, there is surround sound & speakers throughout the home. Gourmet kitchen offers gas cooking, vegetable sink, big island and breakfast bar! Outside there is room to roam. Beautiful pebble tech pool & spa are heated for year round use. Lush tropical landscape, in the shadow of Camelback Mountain.
Friday, January 23, 2009
Lost Ducthman Just REDUCED IN PRICE!!
Beautiful private retreat located inEl Chorro Estates in the heart of Paradise Valley. Privately gated w/circular drive this home sits on 1.45 acres of land! With 5 bedrooms, 5.5 baths, bonus room & huge formal living room, this home is very spacious. You will find all the expected finishing touches: granite slab, 18'' travertine floors, coffered ceilings, custom cabinetry and built-in fridge w/wood panels. Huge family room with open kitchen, wet bar & built-in entertainment center, of course, there is surround sound & speakers throughout the home. Gourmet kitchen offers gas cooking, vegetable sink, big island and breakfast bar! Outside there is room to roam. Beautiful pebble tech pool & spa are heated for year round use. Lush tropical landscape, in the shadow of Camelback Mountain.
Friday, December 5, 2008
HUGE JOB LOSSES FOR NOVEMBER, NOT THE END OF THE WORLD
Don't think I am crazy, but I think we are beginning the path to recovery. I was shocked that we gained jobs a year ago. With the real estate market falling apart, how could we be gaining jobs in the first half of 2008? Realtors, lenders, title agents, home inspectors, repair people, appraisers, builders, construction workers, furniture sales people and on were out of jobs a year ago. Why were we still gaining. Most of all, the real estate flippers and others making tons of money in the hey day, stopped buying all the goodies! The reality is the jobs market is a lagging indicator. I believe things are getting better. I don't know when everything will turn around, but things will be getting better. If you are one that is or has lost your job recently, it is going to be tough. I have sympathy for you and am not meaning to disrespect your position. Everything is cyclical and some get hurt in the beginning and others at the end of a cycle.
I know one positive note, houses are selling at a much greater pace than a year ago! That is at their adjusted values, buyers are now seeing value again. A rental property with an actual down payment, will cash flow today!
Just my opinion...Jeff Cameron
Employers cut 533,000 jobs from nonfarm payrolls in November, the sharpest job loss since December 1974 and much more than the 340,000 decline economists had expected. The unemployment rate rose to 6.7 percent from 6.5 percent.
The prior two months' job losses were revise to show that a total of 199,000 more jobs were lost than previously thought in September and October. That means 1.25 million jobs were lost in the last three months alone, bringing the total to nearly 2 million since the start of the year.
But unemployment is a lagging indicator, telling investors what has been more than what lies ahead.
read the rest of the article: http://www.cnbc.com/id/28067738
I know one positive note, houses are selling at a much greater pace than a year ago! That is at their adjusted values, buyers are now seeing value again. A rental property with an actual down payment, will cash flow today!
Just my opinion...Jeff Cameron
Employers cut 533,000 jobs from nonfarm payrolls in November, the sharpest job loss since December 1974 and much more than the 340,000 decline economists had expected. The unemployment rate rose to 6.7 percent from 6.5 percent.
The prior two months' job losses were revise to show that a total of 199,000 more jobs were lost than previously thought in September and October. That means 1.25 million jobs were lost in the last three months alone, bringing the total to nearly 2 million since the start of the year.
But unemployment is a lagging indicator, telling investors what has been more than what lies ahead.
read the rest of the article: http://www.cnbc.com/id/28067738
Tuesday, November 25, 2008
Q3 GDP DROPS 0.5%
We are so statistic driven. OK, now that we have a recorded drop in the Q3 GDP of 0.5% will everyone agree we are in a recession that could get worse. My shock is that this was inevitable last year. You can't stop building homes and not affect the economy. I remember arguing with my stock broker last year, when selling retirement funds and going to an all cash position. He said, "you can't time the market Jeff!" I said, I can use my brain. Why walk through the big hole when I could walk around it????
Just My Opinion...Jeff Cameron
Economy Drops 0.5%, Worst Fall in 7 Years
AP 25 Nov 2008 08:50 AM ET
The economy took a tumble in the summer that was worse than first thought as American consumers throttled back their spending by the most in 28 years, further proof the country is almost certainly in the throes of a painful recession.
The updated reading on the economy's performance, released Tuesday by the Commerce Department, showed gross domestic product shrank at a 0.5 percent annual rate in the July-September quarter.
That was weaker than the 0.3 percent rate of decline first estimated a month ago, and marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.
Read the rest of the story: http://www.cnbc.com/id/27905989
Just My Opinion...Jeff Cameron
Economy Drops 0.5%, Worst Fall in 7 Years
AP 25 Nov 2008 08:50 AM ET
The economy took a tumble in the summer that was worse than first thought as American consumers throttled back their spending by the most in 28 years, further proof the country is almost certainly in the throes of a painful recession.
The updated reading on the economy's performance, released Tuesday by the Commerce Department, showed gross domestic product shrank at a 0.5 percent annual rate in the July-September quarter.
That was weaker than the 0.3 percent rate of decline first estimated a month ago, and marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.
Read the rest of the story: http://www.cnbc.com/id/27905989
Thursday, October 30, 2008
GDP DROPS BY .3%, LESS THAN .5% EXPECTED
Finally, it is here. The recession. We have been hearing about it for a year or so and it finally arrived. The good thing about the arrival is that the departure is now on the horizon. We all knew it was coming. Now, let's not be shocked, let's push through it.
GDP dropped by .3% for the 3rd quarter, less than what economist forecast of .5% drop. As this real estate market continues to recover, it will help us pull out of the recession. Remember, home sales here in the valley are up 102% when comparing September 2008 to September 2007. These are signs of a turn around. Oh, how about 2 of my listings getting multiple offers and selling over list price this week. Priced slightly aggressive, they attracted multiple offers and will sell higher than the last sales. How is that for a pricing strategy???
Signs of Recession: Growth Shrinks, Consumers Retreat
AP 30 Oct 2008 09:43 AM ET
The economy jolted into reverse during the third quarter as consumers cut back on their spending by the biggest amount in 28 years, the strongest signal yet the country has slipped into recession.
The broadest barometer of the nation's economic health, gross domestic product, shrank at a 0.3 percent annual rate in the July-September quarter, the Commerce Department reported Thursday.
It marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.
The latest GDP reading marked a rapid loss of traction for the economy, which logged growth of 2.8 percent in the second quarter, and is sure to buttress the belief of many economists that the nation is in the throes of a painful downturn.
The deterioration reflected a sharp retrenchment by consumers, whose spending accounts for the largest chunk of national economic activity.
Consumers ratcheted back their spending at a 3.1 percent pace in the third quarter, the most since the second quarter of 1980, when the country was in the grip of recession.
GDP measures the value of all goods and services produced within the United States and is the broadest barometer of the country's economic health.
The rest of the Story: http://www.cnbc.com/id/27453297
GDP dropped by .3% for the 3rd quarter, less than what economist forecast of .5% drop. As this real estate market continues to recover, it will help us pull out of the recession. Remember, home sales here in the valley are up 102% when comparing September 2008 to September 2007. These are signs of a turn around. Oh, how about 2 of my listings getting multiple offers and selling over list price this week. Priced slightly aggressive, they attracted multiple offers and will sell higher than the last sales. How is that for a pricing strategy???
Signs of Recession: Growth Shrinks, Consumers Retreat
AP 30 Oct 2008 09:43 AM ET
The economy jolted into reverse during the third quarter as consumers cut back on their spending by the biggest amount in 28 years, the strongest signal yet the country has slipped into recession.
The broadest barometer of the nation's economic health, gross domestic product, shrank at a 0.3 percent annual rate in the July-September quarter, the Commerce Department reported Thursday.
It marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.
The latest GDP reading marked a rapid loss of traction for the economy, which logged growth of 2.8 percent in the second quarter, and is sure to buttress the belief of many economists that the nation is in the throes of a painful downturn.
The deterioration reflected a sharp retrenchment by consumers, whose spending accounts for the largest chunk of national economic activity.
Consumers ratcheted back their spending at a 3.1 percent pace in the third quarter, the most since the second quarter of 1980, when the country was in the grip of recession.
GDP measures the value of all goods and services produced within the United States and is the broadest barometer of the country's economic health.
The rest of the Story: http://www.cnbc.com/id/27453297
Wednesday, October 29, 2008
DURABLE GOODS JUMPS
This economy continues to show incredible strength considering all the other activities...
Surprise rise in durable goods may help stocks10/29/08 08:44 EDT
By TIM PARADIS
NEW YORK (AP) - A surprise gain on big-ticket manufacturing goods is adding to already upbeat sentiment on Wall Street a day after an enormous surge in stocks. Stocks are poised to open higher.
The Commerce Department reported Wednesday that orders for durable goods - items like cars, appliances and machinery that are expected to last at least three years - rose 0.8 percent in September. Orders had ben expected to fall 1.5 percent.
The report comes as investors are awaiting an afternoon decision on interest rates from the Federal Reserve. The Dow Jones industrial average jumped 889 points Tuesday ahead of the Fed's move, its second-largest point gain.
Dow futures are up 58 at the 9,147 level.
Surprise rise in durable goods may help stocks10/29/08 08:44 EDT
By TIM PARADIS
NEW YORK (AP) - A surprise gain on big-ticket manufacturing goods is adding to already upbeat sentiment on Wall Street a day after an enormous surge in stocks. Stocks are poised to open higher.
The Commerce Department reported Wednesday that orders for durable goods - items like cars, appliances and machinery that are expected to last at least three years - rose 0.8 percent in September. Orders had ben expected to fall 1.5 percent.
The report comes as investors are awaiting an afternoon decision on interest rates from the Federal Reserve. The Dow Jones industrial average jumped 889 points Tuesday ahead of the Fed's move, its second-largest point gain.
Dow futures are up 58 at the 9,147 level.
Wednesday, October 8, 2008
RATE CUTS ACROSS THE WORLD
This saves everyone with an adjustable rate mortgage, credit cards and line of credit on a monthly basis. This is better than a tax rebate. Between these types of actions and lower gas prices, the consumer can step up and help us through this mess...Jeff Cameron
Fed Orders Emergency Interest Rate Cut
posted: 13 MINUTES AGOcomments: 493
filed under: Financial Crisis
Acting in concert with central banks around the globe, the Federal Reserve says it is slashing its key interest rate by a half-point to 1.50 percent. The move continues a string of aggressive actions by Ben Bernanke and the Fed to cope with the worst financial crisis since the 1929 stock market crash. On Tuesday, the Fed said that it would buy massive amounts of "commercial paper" -- a short-term financing option many firms rely on to fund day-to-day operations.
Fed Orders Emergency Interest Rate Cut
posted: 13 MINUTES AGOcomments: 493
filed under: Financial Crisis
Acting in concert with central banks around the globe, the Federal Reserve says it is slashing its key interest rate by a half-point to 1.50 percent. The move continues a string of aggressive actions by Ben Bernanke and the Fed to cope with the worst financial crisis since the 1929 stock market crash. On Tuesday, the Fed said that it would buy massive amounts of "commercial paper" -- a short-term financing option many firms rely on to fund day-to-day operations.
Read the full article here: http://money.aol.com/news/articles/_a/bbdp/fed-orders-emergency-interest-rate-cut/204500
Tuesday, October 7, 2008
Contrywide Loans to be Modified
I read this article in the republic and wanted to share with everyone. If you have a Countrywide loan, call your lender and see if you can get a loan modification. You don't have to be in foreclosure of trouble to get the modification...Jeff Cameron
Countrywide loans to be modified
13,000 mortgage holders on Ariz. Eligible for program
By J. Craig Anderson
THE ARIZONA REPUBLIC
Thousands of formers Countrywide Financial customers on the brink of foreclosure will be eligible for lower mortgage payments in the coming months, thanks to a settlement agreement.
Borrowers with subprime and other adjustable-rate loans will be eligible for significant loan modifications beginning in December, Arizona Attorney General Terry Goddard’s office said Monday.
The deal requires Bank of America to modify the loans of struggling borrowers to make their homes.
About 13,000 Arizona mortgage holders are eligible for loan modifications under the agreement, said Susan Segal, Goddard’s public-advocacy division chief.
BofA agrees to modify Countrywide mortgages
The modifications would be based on what each borrower can afford, Segal said, and most borrowers would end up with fixed–rate loans. Some also would get a reduction in the loan’s principal, she said.
In cases where foreclosure already has occurred or cannot be prevented, Segal said the borrowers would be eligible for relocation assistance from Bank of America.
A group of attorneys general representing Arizona, Texas, Ohio, Iowa and Washington state, agreed not to pursue any legal action against the former Countrywide based on its “alleged use of deceptive practices in their mortgage lending business.”
“There is no admission of guilt.” Segal said about the agreement.
Still, it could take weeks or months for every eligible borrower to get a loan modification, she said.
Countrywide is supposed to launch the program Dec. 1 but has said it will need about 60 days to prepare.
Segal said the bank has committed to a staff of 3,200 loss mitigation specialist to provide service to all of the affected customers nationwide.
Six other states, including California, have worked out their own loan-modification deals with Countrywide, formerly the nation’s No. 1 sub-prime lender and overall largest mortgage lender, in exchange for dropping consumer-protection lawsuits.
Segal said similar deals with other subprime and “alternative” mortgage lenders should be forthcoming.
How to get help
The Arizona Attorney General’s office suggests that customers of the former Countrywide Financial open all letters pertaining to their mortgage in coming weeks for further information about loan modifications.
They can also call:
Bank of America
(Acquired Countrywide in June)
800-669-6607
Arizona Attorney General Office
602-542-5763
Arizona Foreclosure Help line
877-448-121
Tuesday, September 30, 2008
Governments Actions 9/28/08
I received this summary of the Government’s Actions to help the credit crisis from Jeff Rodvien. I wanted to share it with you. I hope this helps answer questions.
Jeff Cameron.
Summary of Trouble Asset Relief Program.
The Emergency Economic Stabilization Act of 2008 (the “Act”) provides the Treasury Secretary with the authority to restore liquidity and stability to the U.S. financial system and to ensure the economic well-being of Americans. As part of this authority, the Treasury Secretary is authorized to establish a trouble asset relief program (“TARP”) to purchase troubled assets from financial institutions under the terms of the Act.
I. Taxpayer Protection Provisions
• Funds Released in Tranches – TARP’s initial $250 billion will be immediately available. Presidential certification to Congress will be required for the next $100 billion. The remaining $350 billion may be made available after the President transmits a written report to Congress detailing the Treasury Secretary’s plan to exercise the remaining authority. Congress must vote to approve.
• Insurance of Trouble Assets – The Secretary must establish a program to guarantee troubled assets in amount not greater than 100% of the amount of the payment of principle and interest on the trouble assets. Premiums to be paid by the financial industry. The details of the program are left to the secretary’s discretion.
• Warrants – The Secretary may not purchase troubled assets unless it receives from the financial institution:
• For listed public companies – a warrant for voting, nonvoting stock or preferred stock. The secretary must agree not to exercise by someone who purchases from Treasury. The warrant must provide the government with reasonable participation in equity appreciation and provide additional protection against loss in sale of the assets. Exercise and type of upside in set by the secretary “in the interest of the taxpayers.”
• Anti-dilution provisions must be included.
• For non-listed companies A warrant for common or preferred stock or a senior debt instrument with a “reasonable interest rate premium.”
• No warrants required for purchases of less than $100M for the duration of the program.
• The final provisions give significantly more discretion to the Treasury.
• The substantial majority of the technical changes suggested by SIFMA and Davis Polk & Wardwell late this afternoon were accepted in the purposed legislation improving the effectiveness of the warrant provisions.
• Pricing and Auction Mechanisms. The Secretary is required to use market mechanisms for purchases wherever possible and to maximize the efficiency of taxpayer resource with auctions or reverse auctions. The mechanics of pricing are left to the discretion of the Secretary altogether the Treasury is required to publish program guidelines on this and other areas on an expenditure basis. The guidelines must be out within 2 business days of the first purchase or, at the latest, 45 days after enactment.
• Recoupment of Taxpayer Losses – Five years after the date of enactment, OMB will report to Congress on the TARP’s net gain loss. If the progress is running a shortfall, the President will be required to submit a legislative proposal to Congress that recoups for taxpayers the amount of the shortfall from the financial industry.
• Exchange Stabilization Fund Reimbursement – Treasury must reimburse the Exchange Stabilization Fund for any funds used for the temporary guaranty program for money market funds.
II. Limits on Executive Compensation
• Direst Purchases – For financial institutions that participate in direct purchases, the executive compensation limits include: prohibitions on senior executive officer compensation that encourages unnecessary risk-taking; claw-back of bonuses paid to senior executive officers based on statement of earnings that prove to be materially inaccurate; and a ban on golden parachutes paid while Treasury holds an equity or debt position in the financial institution.
• For direct purchases, the Secretary also retains significant discretion to impose heightened corporate governance requirements – though the standards are undefined.
• Auction Participants – The executive compensation limits are triggered by purchased assets in a aggregate amount exceeding $300 million in assets in subject to tax deduction limits for compensation limits above $500,000 paid to “covered” employees as well as disallowance for certain severance payments on which certain senior executives are subject to a non-deductible 20% excise tax. In addition the institution is also prohibited from providing, in any new employment contract, for a golden parachute in the event of involuntary termination, bankruptcy, insolvency, or receivership. Further guidance will be issued by Treasury.
III. Independent Oversight and Transparency
• Oversight Board – Composed of (1) chairman of the Federal Reserve Board. (2) Chairman of the SEC, (3) director of the Federal Home Finance Agency, (4) secretary of HUD, and (5) Treasury Secretary. The private sector appointees by Congress from prior draft have been dropped. The Board has authority to review the exercise of authority under the program; make recommendations; report any suspected fraud or malfeasance to the Inspector General; and ensure the politics implemented are consistent with protecting taxpayers and the economic interest of the U.S The possibility of the Board intervening directly to prohibit or limit the Secretary’s actions has been dropped and the oversight is more on policy level.
• Special Inspector General – New independent Inspector General to monitor the Treasury Secretary’s decisions. Inspectors Generals exist in most administrative agencies and usually perform an audit like function.
• Reports – The Secretary must make various reports to congress, including tranches reports and a regulatory modernization report.
• GAO Oversight and Audits – The legislation mandates a GAO presence at Treasury to overseas the program and conduct audits to ensure strong internal controls and prevent fraud, waste and abuse. It will also include a study to determine the extent to which leverage was a factor behind the current financial crisis.
• Transparency – The Legislative also require the online posting of a description, amount, and pricing of assets acquired under the Act within 2 business days of purchase, trade, or other disposition.
• Judicial Review – The standard for judicial review is limited to arbitrary, capricious, abuse of discretion or not in according with law. No injunctions permitted related to purchase of assets, insurance program, management and scale of foreclosure mitigation efforts. Any other injunctions must be considered on an expedited basis. No suits by any financial institution seller unless permitted in the contract with Treasury.
• Regulatory. Requires that the Treasury Secretary implement guidelines and regulations in multiple area including reports, pricing mechanisms and conflicts of interest.
IV. Home Foreclosure Mitigation
• Tax Relief for Certain Homeowners – Under current law, forgiven mortgage debt is not subject to tax through December 31, 2009, The bill extends this tax relief for three years through December 31, 2012.
• Assistance to Homeowners – Requires the FHA, Federal Reserve, and originated before March 14, 2008 and, after consultation with the Chairman of the Federal Reserve Board, any other financial assets that the Secretary determines is necessary for financial stability. For the broader financial assets top apply, Congress must be notified in writing.
V. Miscellaneous
• Definition of Troubled Assets – Includes all mortgage related assets originated before March 14, 2008 and, after constitution with the Chairman of the Federal Reserve Board, any other financial asset that the Secretary determines is for financial stability. For the broader financial assets to apply, Congress must be notified in writing.
• Definition of Financial Institution – It currently covers any institution, including, but not limited to, any bank, savings associations, credit union, security broker or dealer, or insurance company establish and regulate under the laws of the U.S. or any state and having significant operations in the U.S. This covers branches and agencies of foreign banks. It does not on its face cover affiliates of covered institutions, the “including but not limited” will give the Secretary the power to define covered institutions in rules and guidelines.
• Suspension of Mark-to-Market Accounting – Reaffirms SEC authority to suspend the application of mark-to-market accounting rules with respect to any company.
• Public Disclosure – For any financial institution that sells troubled assets, the Treasury Secretary determines whether the public disclosure with respect to derivatives, contingent liabilities and off-balance sheet transaction is adequate to the Secretary will make additional disclosure requirements to the relevant regulators which include the SEC, the OCC and the OTS.
• Community Bank Relief – Community banks that sell Fannie and Freddie preferred stock could treat the gains and losses as ordinary income instead of capital gains. As a result, any losses could be used to offset ordinary income for tax purposes.
Prior Draft Provisions That Were Dropped:
• Bankruptcy cram-down
• Program will not divert revenues to any of the housing funds
• Program will not make foreclosure properties available at a discount to state and local governments receiving emergency assistance
• The “say on pay” requirement is dropped
Jeff Cameron.
Summary of Trouble Asset Relief Program.
The Emergency Economic Stabilization Act of 2008 (the “Act”) provides the Treasury Secretary with the authority to restore liquidity and stability to the U.S. financial system and to ensure the economic well-being of Americans. As part of this authority, the Treasury Secretary is authorized to establish a trouble asset relief program (“TARP”) to purchase troubled assets from financial institutions under the terms of the Act.
I. Taxpayer Protection Provisions
• Funds Released in Tranches – TARP’s initial $250 billion will be immediately available. Presidential certification to Congress will be required for the next $100 billion. The remaining $350 billion may be made available after the President transmits a written report to Congress detailing the Treasury Secretary’s plan to exercise the remaining authority. Congress must vote to approve.
• Insurance of Trouble Assets – The Secretary must establish a program to guarantee troubled assets in amount not greater than 100% of the amount of the payment of principle and interest on the trouble assets. Premiums to be paid by the financial industry. The details of the program are left to the secretary’s discretion.
• Warrants – The Secretary may not purchase troubled assets unless it receives from the financial institution:
• For listed public companies – a warrant for voting, nonvoting stock or preferred stock. The secretary must agree not to exercise by someone who purchases from Treasury. The warrant must provide the government with reasonable participation in equity appreciation and provide additional protection against loss in sale of the assets. Exercise and type of upside in set by the secretary “in the interest of the taxpayers.”
• Anti-dilution provisions must be included.
• For non-listed companies A warrant for common or preferred stock or a senior debt instrument with a “reasonable interest rate premium.”
• No warrants required for purchases of less than $100M for the duration of the program.
• The final provisions give significantly more discretion to the Treasury.
• The substantial majority of the technical changes suggested by SIFMA and Davis Polk & Wardwell late this afternoon were accepted in the purposed legislation improving the effectiveness of the warrant provisions.
• Pricing and Auction Mechanisms. The Secretary is required to use market mechanisms for purchases wherever possible and to maximize the efficiency of taxpayer resource with auctions or reverse auctions. The mechanics of pricing are left to the discretion of the Secretary altogether the Treasury is required to publish program guidelines on this and other areas on an expenditure basis. The guidelines must be out within 2 business days of the first purchase or, at the latest, 45 days after enactment.
• Recoupment of Taxpayer Losses – Five years after the date of enactment, OMB will report to Congress on the TARP’s net gain loss. If the progress is running a shortfall, the President will be required to submit a legislative proposal to Congress that recoups for taxpayers the amount of the shortfall from the financial industry.
• Exchange Stabilization Fund Reimbursement – Treasury must reimburse the Exchange Stabilization Fund for any funds used for the temporary guaranty program for money market funds.
II. Limits on Executive Compensation
• Direst Purchases – For financial institutions that participate in direct purchases, the executive compensation limits include: prohibitions on senior executive officer compensation that encourages unnecessary risk-taking; claw-back of bonuses paid to senior executive officers based on statement of earnings that prove to be materially inaccurate; and a ban on golden parachutes paid while Treasury holds an equity or debt position in the financial institution.
• For direct purchases, the Secretary also retains significant discretion to impose heightened corporate governance requirements – though the standards are undefined.
• Auction Participants – The executive compensation limits are triggered by purchased assets in a aggregate amount exceeding $300 million in assets in subject to tax deduction limits for compensation limits above $500,000 paid to “covered” employees as well as disallowance for certain severance payments on which certain senior executives are subject to a non-deductible 20% excise tax. In addition the institution is also prohibited from providing, in any new employment contract, for a golden parachute in the event of involuntary termination, bankruptcy, insolvency, or receivership. Further guidance will be issued by Treasury.
III. Independent Oversight and Transparency
• Oversight Board – Composed of (1) chairman of the Federal Reserve Board. (2) Chairman of the SEC, (3) director of the Federal Home Finance Agency, (4) secretary of HUD, and (5) Treasury Secretary. The private sector appointees by Congress from prior draft have been dropped. The Board has authority to review the exercise of authority under the program; make recommendations; report any suspected fraud or malfeasance to the Inspector General; and ensure the politics implemented are consistent with protecting taxpayers and the economic interest of the U.S The possibility of the Board intervening directly to prohibit or limit the Secretary’s actions has been dropped and the oversight is more on policy level.
• Special Inspector General – New independent Inspector General to monitor the Treasury Secretary’s decisions. Inspectors Generals exist in most administrative agencies and usually perform an audit like function.
• Reports – The Secretary must make various reports to congress, including tranches reports and a regulatory modernization report.
• GAO Oversight and Audits – The legislation mandates a GAO presence at Treasury to overseas the program and conduct audits to ensure strong internal controls and prevent fraud, waste and abuse. It will also include a study to determine the extent to which leverage was a factor behind the current financial crisis.
• Transparency – The Legislative also require the online posting of a description, amount, and pricing of assets acquired under the Act within 2 business days of purchase, trade, or other disposition.
• Judicial Review – The standard for judicial review is limited to arbitrary, capricious, abuse of discretion or not in according with law. No injunctions permitted related to purchase of assets, insurance program, management and scale of foreclosure mitigation efforts. Any other injunctions must be considered on an expedited basis. No suits by any financial institution seller unless permitted in the contract with Treasury.
• Regulatory. Requires that the Treasury Secretary implement guidelines and regulations in multiple area including reports, pricing mechanisms and conflicts of interest.
IV. Home Foreclosure Mitigation
• Tax Relief for Certain Homeowners – Under current law, forgiven mortgage debt is not subject to tax through December 31, 2009, The bill extends this tax relief for three years through December 31, 2012.
• Assistance to Homeowners – Requires the FHA, Federal Reserve, and originated before March 14, 2008 and, after consultation with the Chairman of the Federal Reserve Board, any other financial assets that the Secretary determines is necessary for financial stability. For the broader financial assets top apply, Congress must be notified in writing.
V. Miscellaneous
• Definition of Troubled Assets – Includes all mortgage related assets originated before March 14, 2008 and, after constitution with the Chairman of the Federal Reserve Board, any other financial asset that the Secretary determines is for financial stability. For the broader financial assets to apply, Congress must be notified in writing.
• Definition of Financial Institution – It currently covers any institution, including, but not limited to, any bank, savings associations, credit union, security broker or dealer, or insurance company establish and regulate under the laws of the U.S. or any state and having significant operations in the U.S. This covers branches and agencies of foreign banks. It does not on its face cover affiliates of covered institutions, the “including but not limited” will give the Secretary the power to define covered institutions in rules and guidelines.
• Suspension of Mark-to-Market Accounting – Reaffirms SEC authority to suspend the application of mark-to-market accounting rules with respect to any company.
• Public Disclosure – For any financial institution that sells troubled assets, the Treasury Secretary determines whether the public disclosure with respect to derivatives, contingent liabilities and off-balance sheet transaction is adequate to the Secretary will make additional disclosure requirements to the relevant regulators which include the SEC, the OCC and the OTS.
• Community Bank Relief – Community banks that sell Fannie and Freddie preferred stock could treat the gains and losses as ordinary income instead of capital gains. As a result, any losses could be used to offset ordinary income for tax purposes.
Prior Draft Provisions That Were Dropped:
• Bankruptcy cram-down
• Program will not divert revenues to any of the housing funds
• Program will not make foreclosure properties available at a discount to state and local governments receiving emergency assistance
• The “say on pay” requirement is dropped
Friday, September 12, 2008
NO SPECULATORS MANIPULATING OIL, NOW AT $100 PER BARREL
NO SPECULATORS MANIPULATING OIL, NOW AT $100 PER BARREL
I don't get these guys that are sticking to their guns that oil ran up to $147 per barrel due entirely to supply and demand issues. Here we are after a year of watching oil run all over the place. One year ago we were stressed about $75 per barrel oil, then 2 months ago it hits $147 per barrel and today it is near $100 per barrel. Has supply and demand changed that much over the past year?
Well, I guess we would have to argue that demand is down, but did it fall off a cliff or has it been down all year. Then we have OPEC, crooks, cutting supply. They like this crazy price of oil. I do agree we are in a position where oil is becoming scarce and the growth of supply is diminished, but did that cause this run on pricing. Then followed by the drop.
It has to be speculators! They didn't want to put their money in the stock market or real estate, so commodities got the boost. Their greed cut into every one's pockets and has helped accelerate this recession. Why is this allowed?
Just my opinion!
Jeff Cameron
I don't get these guys that are sticking to their guns that oil ran up to $147 per barrel due entirely to supply and demand issues. Here we are after a year of watching oil run all over the place. One year ago we were stressed about $75 per barrel oil, then 2 months ago it hits $147 per barrel and today it is near $100 per barrel. Has supply and demand changed that much over the past year?
Well, I guess we would have to argue that demand is down, but did it fall off a cliff or has it been down all year. Then we have OPEC, crooks, cutting supply. They like this crazy price of oil. I do agree we are in a position where oil is becoming scarce and the growth of supply is diminished, but did that cause this run on pricing. Then followed by the drop.
It has to be speculators! They didn't want to put their money in the stock market or real estate, so commodities got the boost. Their greed cut into every one's pockets and has helped accelerate this recession. Why is this allowed?
Just my opinion!
Jeff Cameron
Sunday, August 10, 2008
STRONG DOLLAR AND WEAK OIL MEANS STRONG STOCK MARKET
Let's see what happens this week. But with the dollar on the rise, oil should continue to drop. As oil drops further speculators will get out, fueling a further decline. If we can get gas back to $3 per gallon that would be equal to a $75 to $100 boost to each consumer. This would help get our economy back on track. All that means a stronger stock market. Let's see!!!!
Just my opinion,
Jeff Cameron
Just my opinion,
Jeff Cameron
Monday, July 28, 2008
AN ENERGY PLAN COULD SOLVE OUR HOUSING ISSUES
The answer, in this writers opinion to many of our problems lies in energy. We are sending $60 billion of our wealth to the OPEC nations each month. A clear plan on energy could create new investment in our economy, new investment in research and development, new research in our universities and lower oil prices today. Those lower prices are like a tax break to the American public. Think of a person who spent $400 per month on gasoline 2 years ago, that today needs $700 to $800 to pay for the same gas. Business that are paying double. Corn and everything made from corn is more expensive. It can't happen over night, but a clear plan will drive speculators out of the oil market and could lower oil $40 to $60 per barrel. That is a $300 to $1,000 bonus to most American households on a monthly basis. Way better than a one time $600 or $1,500 check. If the US government would have pledged $200 billion, or what ever the cost was from the recent stimulus plan, into an energy plan; the American public would benefit and so would our economy.
Below is an article I enjoyed by Thomas Friedman.
9/11 and 4/11
'By THOMAS L. FRIEDMAN
new_york_times:http://www.nytimes.com/2008/07/20/opinion/20friedman.html
By THOMAS L. FRIEDMAN
Published: July 20, 2008
I am reliably told by a Bush administration official that there is an old saying in Texas that goes like this: “If all you ever do is all you’ve ever done, then all you’ll ever get is all you ever got.”
Could anyone possibly come up with a better description of President Bush’s energy policy? America is in the midst of its worst energy crisis in years and what is the big decision our Decider has decided? Drum roll, please: Our Decider decided to lift the executive orders banning drilling for oil and natural gas off the country’s shoreline — even though he knew this was a meaningless gesture because a Congressional moratorium on drilling passed in 1981 remains in force.
The economist Paul Romer once said to me that “a crisis is a terrible thing to waste.” President Bush is well on his way to being remembered as the leader who wasted not one but two crises: 9/11 and 4/11. The average price of gasoline in the U.S. last week, according to the Energy Information Administration, was $4.11.
After 9/11, Mr. Bush had the chance to summon the country to a great nation-building project focused on breaking our addiction to oil. Instead, he told us to go shopping. After gasoline prices hit $4.11 last week, he had the chance to summon the country to a great nation-building project focused on clean energy. Instead, he told us to go drilling.
Neither shopping nor drilling is the solution to our problems.
What doesn’t the Bush crowd get? It’s this: We don’t have a “gasoline price problem.” We have an addiction problem. We are addicted to dirty fossil fuels, and this addiction is driving a whole set of toxic trends that are harming our nation and world in many different ways. It is intensifying global warming, creating runaway global demand for oil and gas, weakening our currency by shifting huge amounts of dollars abroad to pay for oil imports, widening “energy poverty” across Africa, destroying plants and animals at record rates and fostering ever-stronger petro-dictatorships in Iran, Russia and Venezuela.
When a person is addicted to crack cocaine, his problem is not that the price of crack is going up. His problem is what that crack addiction is doing to his whole body. The cure is not cheaper crack, which would only perpetuate the addiction and all the problems it is creating. The cure is to break the addiction.
http://www.nytimes.com/2008/07/20/opinion/20friedman.html?_r=1&oref=slogin
Below is an article I enjoyed by Thomas Friedman.
9/11 and 4/11
'By THOMAS L. FRIEDMAN
new_york_times:http://www.nytimes.com/2008/07/20/opinion/20friedman.html
By THOMAS L. FRIEDMAN
Published: July 20, 2008
I am reliably told by a Bush administration official that there is an old saying in Texas that goes like this: “If all you ever do is all you’ve ever done, then all you’ll ever get is all you ever got.”
Could anyone possibly come up with a better description of President Bush’s energy policy? America is in the midst of its worst energy crisis in years and what is the big decision our Decider has decided? Drum roll, please: Our Decider decided to lift the executive orders banning drilling for oil and natural gas off the country’s shoreline — even though he knew this was a meaningless gesture because a Congressional moratorium on drilling passed in 1981 remains in force.
The economist Paul Romer once said to me that “a crisis is a terrible thing to waste.” President Bush is well on his way to being remembered as the leader who wasted not one but two crises: 9/11 and 4/11. The average price of gasoline in the U.S. last week, according to the Energy Information Administration, was $4.11.
After 9/11, Mr. Bush had the chance to summon the country to a great nation-building project focused on breaking our addiction to oil. Instead, he told us to go shopping. After gasoline prices hit $4.11 last week, he had the chance to summon the country to a great nation-building project focused on clean energy. Instead, he told us to go drilling.
Neither shopping nor drilling is the solution to our problems.
What doesn’t the Bush crowd get? It’s this: We don’t have a “gasoline price problem.” We have an addiction problem. We are addicted to dirty fossil fuels, and this addiction is driving a whole set of toxic trends that are harming our nation and world in many different ways. It is intensifying global warming, creating runaway global demand for oil and gas, weakening our currency by shifting huge amounts of dollars abroad to pay for oil imports, widening “energy poverty” across Africa, destroying plants and animals at record rates and fostering ever-stronger petro-dictatorships in Iran, Russia and Venezuela.
When a person is addicted to crack cocaine, his problem is not that the price of crack is going up. His problem is what that crack addiction is doing to his whole body. The cure is not cheaper crack, which would only perpetuate the addiction and all the problems it is creating. The cure is to break the addiction.
http://www.nytimes.com/2008/07/20/opinion/20friedman.html?_r=1&oref=slogin
Thursday, July 3, 2008
PAYROLLS SHRINK BY 60,000, BUT UNEMPLOYMENT RATE REMAINS AT 5.5%
Losing 60,000 jobs is a bummer, but it is better than losing 100,000 jobs. And the fact the unemployment rate remained unchanged is a plus. Jobs and the consumer have kept us from free falling, where they go from here is essential.
Labor Market Remains Weak as Payrolls Shrink
By Reuters 03 Jul 2008 09:39 AM ET
U.S. employers cut workers from their payrolls for the sixth straight month in June for the longest losing employment streak since 2002, government data on Thursday showed.
AP
A separate report showed new applications for jobless benefits hurdling to 404,000, suggesting further weakness ahead for employment.
Another survey reported service companies such as airlines and restaurants that make up the bulk of the economy are being pinched by soaring costs and weakening demand and have responded by slashing staff.
U.S. stock futures rallied on the news, while prices on U.S. government debt retreated as investors shifted their attention toward the equities market.
http://www.cnbc.com/id/25509894
Labor Market Remains Weak as Payrolls Shrink
By Reuters 03 Jul 2008 09:39 AM ET
U.S. employers cut workers from their payrolls for the sixth straight month in June for the longest losing employment streak since 2002, government data on Thursday showed.
AP
A separate report showed new applications for jobless benefits hurdling to 404,000, suggesting further weakness ahead for employment.
Another survey reported service companies such as airlines and restaurants that make up the bulk of the economy are being pinched by soaring costs and weakening demand and have responded by slashing staff.
U.S. stock futures rallied on the news, while prices on U.S. government debt retreated as investors shifted their attention toward the equities market.
http://www.cnbc.com/id/25509894
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