Russo Mortgage

Deductible losses for professionals

Deductible losses for professionals:


Real estate expenses are deductible through depreciation, says CPA George Saenz.

Use cash-out refi if credit is good

Use cash-out refi if credit is good:


Refinance is better than HELOC for home improvement costs, says Dr. Don.

Bankruptcy means higher interest rate

Bankruptcy means higher interest rate:


The key to keeping a home is getting the right loan at right time, says the Bankruptcy Adviser.

Peak in Resets Poses Milestone

Peak in Resets Poses Milestone:


Optimists might argue that a record supply of homes for sale, combined with a peak in adjustable rate mortgage resets, means the housing market is near a bottom. More likely, it means the downturn will get even uglier.

Ranking Presidents – Personal Income Issues

Ranking Presidents – Personal Income Issues:


I’ve had posts in which I tried to rank Presidents by Economic Growth and by Fiscal Responsibility. This post ranks Presidents by something closer to income – how the average American fared economically during each President’s tenure.

One measure of how well Americans are doing is real median income. A graph real median income and how it has changed over time is available here. A summary of the growth rates is shown below:



What do we see? Well, JFK/LBJ came out tops, followed by Clinton, then Reagan, and in fourth, Ike, with a big gap between each one. The rest of the Presidents all had negative growth… GW was the least offensive of these, followed by Nixon/Ford, then GHW, and Carter brought up the rear. Despite Carter's dismal performance, on average, the Democratic Presidents did better than the Republican Presidents.

But while that shows how much income for the representative American earner has changed over time, it’s not an end-all be all measure. It would be nice to know how much this person takes home after taxes. And because some Presidents drove up the debt (cough cough, Reagan, cough, GW), a smart person knows that they have to pay more in taxes some time in the future in order to pay for that debt. Thus, it would be nice to have the change in real disposable (i.e., after tax) median income less that person’s future tax obligations. Since that isn’t available, we do the next best thing – we look at real disposable per capita income and subtract off the change from one year to the next in the real national debt per capita. A graph of that series is available here, and changes over the term of each President are shown below:



By this measure, the top three are Clinton, Carter, and JFK/LBJ. Reagan follows at a distance, then Nixon/Ford, then Ike, with the Bush leaguers way at the bottom. It goes without saying that Democratic Presidents outperformed Republican Presidents by this measure.

What about the folks at the bottom, namely the poor? Here’s a graph showing poverty over time. A summary (leaving out Ike, for whom there was only two years of data) appears below:



JFK/LBJ (think War on Poverty) did by far the best job of reducing poverty, followed by Clinton, followed distantly by Nixon/Ford. Reagan broke even. Poverty increased by 2.2% a year under GW, almost 2.45% a year under Carter, and 3.3% a year under GHW. On this measure as well, on average, Democrats did better than Republicans. Under Democrats, poverty decreased. Under Republicans, it increased.

Unfortunately, none of these measures by themselves is a good summary of what’s happening on the income front. The first measure looks at the average individual, but doesn’t take into account taxes or future taxes. The second does take into account taxes and future tax obligations, but being an average, is skewed toward high income individuals. The third only looks at the poor.

So a good ranking of how well people fared should take into account all three of the above measures. Here’s my way of creating that ranking…

1. for all presidents except Ike, weighted sum of rankings = [(rank by measure 1/8) + (rank by measure 2/8) + (rank by measure 3/7)]/3
2. for Ike, weighted sum of rankings = [(rank by measure 1/8) + (rank by measure 2/8)]/2

(The difference, of course, is because Ike can’t be ranked by the third measure.)

The lower the weighted sum of rankings, the better. Results are shown below:



JFK/LBJ and Clinton were essentially tied for first, with Reagan coming a distant third. Nixon/Ford came next, with Ike at about the same level. Carter followed – one can give GW the benefit of the doubt and say he was about as good as GW at this particular measure. The elder Bush brings up the rear.

Not surprisingly given that Democrats outperformed Republicans on economic growth, on average Democrats also did better when it came to increasing personal income.

Next post: Jobs…

Fannie Mae Core Capital Level Exceeds Minimum Capital; To Consider Preferred Stock Transaction [FNM]

Fannie Mae Core Capital Level Exceeds Minimum Capital; To Consider Preferred Stock Transaction [FNM]:

Fannie Mae Core Capital Level Exceeds Minimum Capital; To Consider Preferred Stock Transaction [FNM]

RTT News - 24 Sep 2007

9 / 24 / 2007 1 : 41 : 36 PM Monday , Fannie Mae ( FNM ) said that its core capital level on June 30 exceeded the minimum capital required by the Office of Federal Housing Enterprise Oversight ...

Middle class squeeze

Middle class squeeze:

Interesting graphic from CQ today. No wonder only 20% of people say economic conditions are getting better, while 72% say it's getting worse (see this Gallup Poll.)

Mortgage broker settles false advertising charges with Ariz.

Mortgage broker settles false advertising charges with Ariz.:


Attorney General Terry Goddard today announced a $95,000 settlement with Lenox Financial Mortgage an Atlanta-based mortgage broker. Company promised 'no closing costs.'

Long-Term Mortgage Rates Edge Higher

Long-Term Mortgage Rates Edge Higher:

Long-Term Mortgage Rates Edge Higher

Smartmoney.com - 20 Sep 2007

Long - term mortgage rates moved up slightly this week , with the 30 - year fixed rate averaging 6.34 % vs . last week's 6.31 % , according to Freddie Mac's weekly survey released on Thursday.The ...

Mortgage Rates Edge Up - Wall Street Journal

Another Dramatic Downturn in Mortgage Rates - MortgageNewsDaily.com

Fannie Mae's Capital Level Sufficient

Fannie Mae's Capital Level Sufficient:

Fannie Mae's Capital Level Sufficient

Forbes - 48 minutes ago

AP 09.24 . 07 , 8 : 45 AM ETMortgage financier Fannie Mae said its core capital was $42.375 billion as of June 30 , exceeding its minimum capital requirement set forth by the Office of Federal ...

Fannie Mae says capital OK, eyes preferred stock - Reuters

Fannie Mae, Freddie Mac portfolio caps may be lifted: WSJ - MarketWatch

Wall Street Journal
- TheStreet.com
- CNNMoney.com

Answer this: good plants for balconies

Answer this: good plants for balconies:

Balcony gardeners, please help. Can you suggest good plants for Rob?

“Can you please share what plants are good for balconies, particularly those by the lake where the winds tend to be constant and can be strong. I really want, next Spring, to avoid the impatient and marigold scene. Thank you.” -- Rob, Chicago

Please post your answer as a comment.

This post is part of The Chicago Gardener, a blog of the Chicago Tribune. See more posts with reader questions here.

Dodging the mortgage bullet

Dodging the mortgage bullet:


The credit crunch has many holders of bank and brokerage stocks quaking in their boots. But Chuck Lahr, manager of Franklin Templeton's Mutual Financial Services fund, isn't one of the worriers. Four years ago Lahr began shifting money out of U.S. financial services and into European financial stocks, which held up better in the recent turmoil.

Additional mortgage payment monthly or biannually?

Additional mortgage payment monthly or biannually?:


Additional principal payments can be biannually or monthly, says Dr. Don.

700 homes grabbed by eager auction bidders

700 homes grabbed by eager auction bidders:


DEARBORN -- Dreams and deals were realized Sunday in a noisy auditorium where an auctioneer's gavel ended months and years of uncertainty over foreclosed properties from throughout Metro Detroit -- sometimes for pennies on the dollar.

Fed rates and the bottom line

Fed rates and the bottom line:


When the Fed raises or lowers short-term interest rates, the impact doesn't ripple evenly through the economy. Different interest rate-related products will behave in different ways leading up to, and in response to, a Fed rate increase or decrease. Here's a look at how quickly your budget will take a hit, or benefit because of the Fed interest-rate moves.

Six low-cost touch-ups that will make your apartment livable

Six low-cost touch-ups that will make your apartment livable:


WASHINGTON (MarketWatch) -- Renters don't usually think about making home improvements to apartments they don't own. But there are some inexpensive projects that can make your rented nest more comfortable -- assuming your landlord approves.

Special Report: Secrets Of The Self-Made

Special Report: Secrets Of The Self-Made:


Answers to 20 thoughtful questions lobbed at some of America's wealthiest entrepreneurs.

What's up with recession and inflation?

What's up with recession and inflation?:


Last week’s half-point interest rate cut by the Federal Reserve – as it tries to head off  recession without letting inflation out of control — got plenty of attention.  That has some readers wondering: Just what are recession and inflation? And how are they related? The Answer Desk, by msnbc.com's John W. Schoen

Docking the yacht: Cribs of billionaires

Docking the yacht: Cribs of billionaires:

When you have it all, you need a place to put it all. Multimillion-dollar yachts need to be docked. The de Koonings have to be hung. And you've got to park the Rolls somewhere. That's where the billionaire's house comes in.

Greenspan sees slowdown versus recession

Greenspan sees slowdown versus recession:


WASHINGTON (MarketWatch) -- The U.S. is heading toward an economic slowdown but it's too soon to say whether a recession is on the horizon, former Federal Reserve Chairman Alan Greenspan said Sunday.

Barclays considers sale of subprime lending unit - report

Barclays considers sale of subprime lending unit - report:

White House sees improvements in jumbo loan market

White House sees improvements in jumbo loan market:


WASHINGTON (MarketWatch) -- There are signs that the market for mortgages worth more than $417,000 has recovered and it should “take off” in the months ahead, a top White House economic advisor said Sunday.

Smart new tricks: homeowner flicks that lead to clicks / Internet videos get potential buyers to take longer look

Smart new tricks: homeowner flicks that lead to clicks / Internet videos get potential buyers to take longer look:


The video Mary Canales created to sell her home was filmed in the cinema veritas style, with a shaky handheld camera wandering from room to room, occasionally bumping into a wall, dark bathroom or poorly lit corner. She also unwittingly borrowed from director...

Why appraisals are coming in above sale prices

Why appraisals are coming in above sale prices:


What's going on with appraisals in some parts of the country? Mortgage lenders - and appraisers themselves - say they're increasingly coming in with valuations higher than the contract prices agreed to by sellers and buyers. The differences can range into the...

Survey says buyers generally pleased with builder-lenders

Survey says buyers generally pleased with builder-lenders:


Despite charges of improprieties against builder-owned mortgage companies - and a federal investigation into the practices of at least one such firm - borrowers themselves were generally satisfied with their builder-lenders, according to new research. As part...

Obligation to agent lies in fine print

Obligation to agent lies in fine print:


Check buyer's agent contract for obligation when finding home for sale by owner in another region, says Real Estate Adviser Steve McLinden.

Timeliest data award goes to consumer confidence this week

Timeliest data award goes to consumer confidence this week:


WASHINGTON (MarketWatch) -- Economists have been holding contests for the “timeliest” economic data of the week ever since Federal Reserve Chairman Ben Bernanke said the central bank would focus on such data to assess whether the financial market turmoil is affecting the broader economy.

Personal Finance Daily: The week's 10 best Personal Finance stories -- Sept. 17-21

Personal Finance Daily: The week's 10 best Personal Finance stories -- Sept. 17-21:


In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Sept. 17-21:

The rights and wrongs of tree pruning

The rights and wrongs of tree pruning:

Here's what happens when economists discuss tree pruning. The most salient comment: “Take a walk in most nicer communities in this country and you will find a tree canopy that has little respect for property lines.”

For the record: In Illinois, you have a legal right to prune that part of a neighbor's tree that hangs over into your property, as long as you don't do serious harm to the tree. But smart people try to work it out with the neighbors before they grab the chain saw.

This post is part of The Chicago Gardener, a blog of the Chicago Tribune. See more posts about trees here.

Before You Build: Contractor, friend or not, needs a contract

Before You Build: Contractor, friend or not, needs a contract:


Q:I have a close friend who is a licensed contractor. He's offered to do some side projects for me when he has time off, and I will pay him for his work. I wasn't going to bother with a contract, but the work will probably total $1,000-$2,000. Is it necessary...

Architext: Keep it simple - and sturdy - to make exterior wood last

Architext: Keep it simple - and sturdy - to make exterior wood last:


Wood is a remarkable material - infinitely varied, easily workable, biodegradable and renewable to boot. But it does have an Achilles heel: Compared with many other building materials, wood is quite perishable. Hence, using wood in architectural details...

Oliphant on Greenspan

Oliphant on Greenspan:


The inimitable Pat Oliphant on Greenspan's collection of excuses...

How to sneak homegrown harvest into family dining

How to sneak homegrown harvest into family dining:


Ralph Waldo Emerson once compared gardening to getting your sleeve caught in the gears of a big industrial machine that pulls you in to your “irresistible destruction.” That has almost happened to me literally a few times while stuffing sunflower stalks into...

Around the House: All-in-one mini-kitchen perfect for tight spaces

Around the House: All-in-one mini-kitchen perfect for tight spaces:


YesterTec KitchenWorks operates in Center Valley, Pa., but this all-in-one mini-kitchen designed for a vacation house on the Jersey shore seems like a product worth considering for a Bay Area in-law unit, getaway or basement rec room. “With SF real estate...

Around the House: New Restoration line has classic but modern looks

Around the House: New Restoration line has classic but modern looks:


Yes, we see the dismal financial reports coming out of Restoration Hardware on the business wires - but on the bright side, there's the Westwood collection for fall 2007. In solid hardwood with mahogany veneers, it has a classic look that could also find a...

Builders' Stocks Up, but Price Cuts Sell Homes

Builders' Stocks Up, but Price Cuts Sell Homes:


The Fed's rate cut boosted home builders' stocks, but price cuts are what will sell homes. So when KB Home and Lennar hold conference calls this week, listen to what they say about discount plans.

Adding a new door sweep will keep out the coming cold

Adding a new door sweep will keep out the coming cold:


The more you can block out the cold, the lower your heating bills will be in the coming months. The bottoms of doors are not flush with the threshhold and a surprisingly large amount of air comes in through the opening between the threshhold and the bottom of the door. If you can see daylight underneath your exterior door, it means that cold winter winds soon will be coming from under the door. If the door already has a door sweep, it is time to remove and replace it. If you have not already installed a door sweep, no problem. Here's all you do.

Mission furniture will complement bungalow

Mission furniture will complement bungalow:


Dear Dr. Décor: My husband and I recently purchased a beautiful bungalow in Detroit, built around 1910. The house is in remarkably good condition and still has many original features, including exposed wooden beams and oak paneling in the dining room, and deep molding throughout. We're considering furnishing the house in Arts and Crafts or Mission, the styles popular when the house was built, but I really prefer a contemporary look in a house. Do you think I can do this and still give the house a modern, up-to date feel?

Fannie, Freddie portfolio caps may be lifted in Feb

Fannie, Freddie portfolio caps may be lifted in Feb:

Fannie, Freddie portfolio caps may be lifted in Feb

MSN Money - 21 Sep 2007

NEW YORK ( Reuters ) - The federal regulator of Fannie Mae and Freddie Mac on Friday said growth limits placed on the two biggest providers of money for US residential mortgages may be lifted ...

Fannie Mae, Freddie Mac portfolio caps may be lifted: WSJ - MarketWatch

Limits on Fannie, Freddie Could Be Lifted - Wall Street Journal

Reuters
- TheStreet.com
- Trading Markets

Decision One Mortgage closes Phoenix office

Decision One Mortgage closes Phoenix office:


London's HSBC Finance Corp. is closing a non-prime mortgage lending unit, affecting an undisclosed number of jobs at an office in Phoenix

Pssst! Modernism hidden within

Pssst! Modernism hidden within:


In San Francisco the concept of change carries great currency when it comes to food, technology, family and politics, but utter the word in the context of a peeling Victorian facade or a distressed brick warehouse, and people will begin muttering about “...

Declining dollar: Who wins, who loses

Declining dollar: Who wins, who loses:


With the dollar's further fall all but certain, the winners and losers are starting to come into clearer focus.

Major Homebuilder Runs Successful Weekend Sale

Major Homebuilder Runs Successful Weekend Sale:

It seemed to smack a bit of desperation at the time, but in hindsight

it appears to look more like marketing genius.

Hovnanian Enterprises, Inc., one of the nation's

largest homebuilders, threw open the doors of literally thousands of its

newly built homes or those that were under construction last weekend and,

in what media has described as a fire sale, offered deep discounts,

sometimes in the six figure range, to buyers ready to make a deal.

Well, whatever it was, it apparently worked...

Read More Now

Mortgage Giants Aim to Reduce 'Jumbo' Rates

Mortgage Giants Aim to Reduce 'Jumbo' Rates:

Mortgage Giants Aim to Reduce 'Jumbo' Rates

TheStreet.com - 21 Sep 2007

Fannie Mae ( FNM - Cramer's Take - Stockpickr ) and Freddie Mac ( FRE - Cramer's Take - Stockpickr ) think they can do what the Federal Reserve can ' t : lower the interest rates on residential ...

Greenspan: House prices to drop much lower

Greenspan: House prices to drop much lower:

A big overhang of property will bring U.S. house prices down further, but it is too early to say if the economy will plunge into recession, former Federal Reserve chief Alan Greenspan was quoted as saying on Friday.

Mortgage lenders may have to simplify the language used in the terms of their loans

Mortgage lenders may have to simplify the language used in the terms of their loans:


Wall Street Journal's Your Money Matters

Does Condo Life Suit You?

Does Condo Life Suit You?:


Association fees and disputes with neighbors could spoil your move if you're unprepared.

No Longer Nomads: The History Of Real Estate

No Longer Nomads: The History Of Real Estate:


From caves to condos, we look at how homo sapiens hunted for a home.

Are mortgage-backed securities backed by any guarantees?

Are mortgage-backed securities backed by any guarantees?:


Frequently Asked Investing Question

Negative Amortization

Negative Amortization:


Term of the Day for Friday, September 21, 2007