BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Comfort Zone Investing: Can You Feel the Pendulum Swinging?]]>http://www.bloggingstocks.com/2011/01/15/comfort-zone-investing-can-you-feel-the-pendulum-swinging/http://www.bloggingstocks.com/2011/01/15/comfort-zone-investing-can-you-feel-the-pendulum-swinging/http://www.bloggingstocks.com/2011/01/15/comfort-zone-investing-can-you-feel-the-pendulum-swinging/#commentsFiled under: , , , , , , , ,

a golfer swinging - economic pendulum - comfort zone investingEconomies go in cycles. They push to their breaking points, then move in the opposite direction. We saw it clearly in the '90s when there was no end to up (except there was and we abruptly hit it in 2000). In 2008, it felt like there was no end to down. But we now know there is. Things are picking up, and there are numbers to prove it.

Don't be the last to figure out we're in an economic recovery. Sitting on the sidelines, waiting for one more chance to buy a stock at the bargain price you saw in March of 2009 isn't going to happen. Times have changed. The U.S. economy is on the mend.

Continue reading Comfort Zone Investing: Can You Feel the Pendulum Swinging?

Comfort Zone Investing: Can You Feel the Pendulum Swinging? originally appeared on BloggingStocks on Sat, 15 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAPLbankingComfort Zone InvestingDANDDFfeaturedGMGSKhousing sectorHPQIBMINTCNNBRPGstock marketstocksTTMunemployment numbersSat, 15 Jan 2011 10:30:00 EST<![CDATA[Is Now a Good Time to Invest in a Home?]]>http://www.bloggingstocks.com/2010/12/08/is-now-a-good-time-to-invest-in-a-home/http://www.bloggingstocks.com/2010/12/08/is-now-a-good-time-to-invest-in-a-home/http://www.bloggingstocks.com/2010/12/08/is-now-a-good-time-to-invest-in-a-home/#commentsFiled under: ,

A frequent question voiced in dinner party circles in this neck of the woods (the metropolitan New York City area) is, 'Is now a good time to consider buying or investing in a home?'

Well, the latest S&P Case Shiller home price index suggests that home prices are likely to remaining sluggish -- selected, niche market gains, with flattish prices in most other markets -- through at least mid-2011. Hence, from a home price standpoint, the bias in tipped toward waiting a quarter or two, if you do not have to purchase a home.

Continue reading Is Now a Good Time to Invest in a Home?

Is Now a Good Time to Invest in a Home? originally appeared on BloggingStocks on Wed, 08 Dec 2010 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bond marketCase-Shillerfeaturedhousinghousing sectorinterest ratesmortgage ratessingle family homesWed, 08 Dec 2010 17:00:00 EST<![CDATA[Is Now a Good Time to Consider Armstrong World Industries?]]>http://www.bloggingstocks.com/2010/11/08/is-now-a-good-time-to-consider-armstrong-world-industries/http://www.bloggingstocks.com/2010/11/08/is-now-a-good-time-to-consider-armstrong-world-industries/http://www.bloggingstocks.com/2010/11/08/is-now-a-good-time-to-consider-armstrong-world-industries/#commentsFiled under:

Is it time to start thinking about housing sector plays? Yes, but only on a highly selective basis. With this in mind, Armstrong World Industries Inc. (AWI) is worth a review.

Armstrong, a leading producer of flooring products and ceiling systems for commercial, institutional, and residential buildings, closed up more than $4 Friday to about $49.90, after it trounced First Call's third quarter 64 cent per share estimate by earning 83 cents per share.

Armstrong also raised 2010 earnings guidance to $1.69 to $1.79 per share. Further, every Armstrong unit should register modest revenue growth next year, in 2011, and if the U.S./North American economic recovery strengthens, 2011 revenue could increase substantially.

Continue reading Is Now a Good Time to Consider Armstrong World Industries?

Is Now a Good Time to Consider Armstrong World Industries? originally appeared on BloggingStocks on Mon, 08 Nov 2010 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Armstrong World IndustriesAWIfeaturedhousing industryhousing sectorhousing sector stocksMon, 08 Nov 2010 09:00:00 EST<![CDATA[Comfort Zone Investing: Timing Is Everything]]>http://www.bloggingstocks.com/2010/09/18/comfort-zone-investing-timing-is-everything/http://www.bloggingstocks.com/2010/09/18/comfort-zone-investing-timing-is-everything/http://www.bloggingstocks.com/2010/09/18/comfort-zone-investing-timing-is-everything/#commentsFiled under: , , , , ,

straw hat with red, white and blue bandWhen Russell Sage was asked how to to become wealthy, he replied: "Buy straw hats in the winter." Who was Russell Sage? A Congressman from New York who was also a Wall Street financier who died with $70 million ... in 1906. His (sage) advice still works today, especially for stocks.

If you can buy stocks when they're out of season, or more likely, out of favor, you've got a much better chance of making money than when everyone else is jumping on the band wagon. The key item to remember is this: there are four seasons in a year ... every year, and when you buy straw hats in the winter (on sale no doubt), you know summer will be coming and their price will go higher. There are no seasons in the stock market. A stock out of favor now could stay that way for a long, long, long time. Even go bankrupt. So don't believe that a "cheap" stock now will automatically become valuable later.

Continue reading Comfort Zone Investing: Timing Is Everything

Comfort Zone Investing: Timing Is Everything originally appeared on BloggingStocks on Sat, 18 Sep 2010 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACbanking sectorCComfort Zone InvestingDHfeaturedhousing sectorJPMLENNBTFPHMSat, 18 Sep 2010 10:30:00 EST<![CDATA[Case-Shiller Index: Home Prices Have Increased]]>http://www.bloggingstocks.com/2010/07/27/case-shiller-index-home-prices-increase/http://www.bloggingstocks.com/2010/07/27/case-shiller-index-home-prices-increase/http://www.bloggingstocks.com/2010/07/27/case-shiller-index-home-prices-increase/#commentsFiled under: ,

home pricesAccording to Standard & Poor's Case-Shiller home price index, prices for single-family homes in 20 major cities increased a seasonally unadjusted 1.3% in May.

According to the report, prices have increased 4.6% during the past year. Compared to April, prices increased in 19 of the 20 metro areas that the index tracks. The last month's increase was the second-straight following six monthly declines.

Continue reading Case-Shiller Index: Home Prices Have Increased

Case-Shiller Index: Home Prices Have Increased originally appeared on BloggingStocks on Tue, 27 Jul 2010 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Case ShillerCase Shiller Home Price Indexhousinghousing markethousing sectorinthenewsTue, 27 Jul 2010 12:00:00 EST<![CDATA[Chasing Value: 43% Gain to Build a Position in KB Homes]]>http://www.bloggingstocks.com/2010/03/17/chasing-value-43-gain-to-build-a-position-in-kb-homes/http://www.bloggingstocks.com/2010/03/17/chasing-value-43-gain-to-build-a-position-in-kb-homes/http://www.bloggingstocks.com/2010/03/17/chasing-value-43-gain-to-build-a-position-in-kb-homes/#commentsFiled under: , , , , ,

It's time to get serious about home builders again, and today I started building a position in KB Home (KBH) using options. Since the collapse of the residential real estate market three years ago prognosticators have been debating when the home builders might be worthy of investing your precious coin of the realm.

As is to be expected in these volatile times most were either too optimistic or pessimistic and few got it right. Like many stocks the home builders appear to have bottomed last March. In the case of KB Home shares were available at $10. Today they have been trading between $17.64 and $18.00 per share, up 80%, although it has been a rocky road.

That is a very healthy return, but there is much more upside to come. How would you like to make 43% quick? Yeah me too!

Continue reading Chasing Value: 43% Gain to Build a Position in KB Homes

Chasing Value: 43% Gain to Build a Position in KB Homes originally appeared on BloggingStocks on Wed, 17 Mar 2010 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>chasing valueChasingValuefeaturedhousinghousing bubblehousing markethousing sectorHousingBubbleHousingMarketHousingSectorKBHkbhomesoptions tradingOptionsTradingsheldon liberSheldonLiberWed, 17 Mar 2010 16:40:00 EST<![CDATA[Existing Home Sales Plunge 17% in December]]>http://www.bloggingstocks.com/2010/01/25/existing-home-sales-plunge-17-in-december/http://www.bloggingstocks.com/2010/01/25/existing-home-sales-plunge-17-in-december/http://www.bloggingstocks.com/2010/01/25/existing-home-sales-plunge-17-in-december/#commentsFiled under: , , , , ,

Sales of existing homes plunged 17% in December, the sharpest drop since records began in 1968. The sales pace fell to 5.45 million annual rate from 6.54 pace the previous month.

Part of the reason for the drop was attributed to the termination of the first $8,000 tax credit for first time buyers. That kept buyers away from the market. Since then Congress has extended the tax credit. Realtors expect a pick up in sales going into the Spring season.

Continue reading Existing Home Sales Plunge 17% in December

Existing Home Sales Plunge 17% in December originally appeared on BloggingStocks on Mon, 25 Jan 2010 16:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>existing home sales declinefeaturedhousing sectorHousingSectorreal estateRealEstateMon, 25 Jan 2010 16:40:00 EST<![CDATA[Toll Brothers earnings preview: A big Q3 loss expected ]]>http://www.bloggingstocks.com/2009/08/26/toll-brothers-earnings-preview-a-big-q3-loss-expected/http://www.bloggingstocks.com/2009/08/26/toll-brothers-earnings-preview-a-big-q3-loss-expected/http://www.bloggingstocks.com/2009/08/26/toll-brothers-earnings-preview-a-big-q3-loss-expected/#commentsFiled under: , , ,

Luxury homebuilder Toll Brothers Inc. (NYSE: TOL) is scheduled to discuss its fiscal third-quarter 2009 results tomorrow in a conference call at 2:00 PM ET hosted by CEO Robert I. Toll. You can catch the live webcast of the call on the company's website.

Recent good news about the housing sector ought to be good news for homebuilders such as Toll Brothers. Yet, for the three months that ended July 31, analysts surveyed by Thomson Reuters expect the Pennsylvania-based company to report that its net loss widened to $1.74 per share from $0.18 per share a year ago. That largely due to the fact that revenue for the quarter is expected to have fallen 42.3% to $460.2 million, because of of falling home prices, tighter mortgage lending standards, and rising unemployment.

Continue reading Toll Brothers earnings preview: A big Q3 loss expected

Toll Brothers earnings preview: A big Q3 loss expected originally appeared on BloggingStocks on Wed, 26 Aug 2009 17:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>D.R. HortonDHIearningshomebuildershousing sectorHOVHovnanianTOLToll BrothersWed, 26 Aug 2009 17:20:00 EST<![CDATA[Housing sales come back, led by first-timers]]>http://www.bloggingstocks.com/2009/08/23/housing-sales-come-back-led-by-first-timers/http://www.bloggingstocks.com/2009/08/23/housing-sales-come-back-led-by-first-timers/http://www.bloggingstocks.com/2009/08/23/housing-sales-come-back-led-by-first-timers/#commentsFiled under: ,

It looks like the housing market is coming back, but there's still reason to be careful. In July, home resales had their highest monthly increase in at least a decade. The rush is driven in part by a tax credit that expires on November 30, 2009. The rate of sale grew 7.2%, ahead of expectations.

Last month, sales hit a seasonally adjusted annual rate of 5.24 million in July -- up from a 4.89 million in June. This is the fourth month in a row in which seasonally adjusted sales increased, and it was the strongest growth rate since August 2007. A Thomson Reuters survey had forecast 5 million, but the reality exceeded that.

Continue reading Housing sales come back, led by first-timers

Housing sales come back, led by first-timers originally appeared on BloggingStocks on Sun, 23 Aug 2009 11:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>home priceshome sale trendshome saleshome valueshousing bubblehousing markethousing priceshousing saleshousing sectorinthenewsmortgage ratesmortgagesSun, 23 Aug 2009 11:10:00 EST<![CDATA[Mortgage applications up and down: Who to believe?]]>http://www.bloggingstocks.com/2009/08/13/mortgage-applications-up-and-down-who-to-believe/http://www.bloggingstocks.com/2009/08/13/mortgage-applications-up-and-down-who-to-believe/http://www.bloggingstocks.com/2009/08/13/mortgage-applications-up-and-down-who-to-believe/#commentsFiled under: , ,

There's good news and bad news about the mortgage market. The good news is that you can get your information from a variety of sources. The bad news? You really need to get your news from a variety of sources.

Conflicting reports Wednesday suggest that mortgage applications are up -- and down.

Continue reading Mortgage applications up and down: Who to believe?

Mortgage applications up and down: Who to believe? originally appeared on BloggingStocks on Thu, 13 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>adjustable rate mortgagesarmsfixed rate mortgagehousinghousing markethousing sectorinterest ratesinthenewsmortgage bankers associationmortgage ratesThu, 13 Aug 2009 12:00:00 EST<![CDATA[Half of all mortgages to be underwater by 2011]]>http://www.bloggingstocks.com/2009/08/06/half-of-all-mortgages-to-be-underwater-by-2011/http://www.bloggingstocks.com/2009/08/06/half-of-all-mortgages-to-be-underwater-by-2011/http://www.bloggingstocks.com/2009/08/06/half-of-all-mortgages-to-be-underwater-by-2011/#commentsFiled under: , , ,

Deutsche Bank (NYSE: DB) expects almost half of all U.S. homeowners to be underwater -- figuratively, of course -- by 2011.

Declines in home prices and the fact that some of those difficult mortgages just aren't going away put 26% of homeowners in this situation by the end of last March, and it seems the situation is only going to get worse. Unlike the early stages of the credit crisis, which were driven by subprime mortgages, the next iteration will have a greater effect on prime mortgage borrowers, which comprise two-thirds of the loans outstanding.

Continue reading Half of all mortgages to be underwater by 2011

Half of all mortgages to be underwater by 2011 originally appeared on BloggingStocks on Thu, 06 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>adjustable rate mortgagesarizonaarmscaliforniafinancial crisisfloridahome priceshomeownershousing bubblehousing markethousing sectorillinoisinthenewsjumbo mortgageslas vegas nevadamassachusettsmichiganmortgagemortgagesnevadaohioprime mortgagerecessionsubprime loanssubprime mortgagesunderwaterwest virginiawisconsinThu, 06 Aug 2009 12:00:00 EST<![CDATA[U.K. economy has worst quarter since 1958]]>http://www.bloggingstocks.com/2009/06/30/u-k-economy-has-worst-quarter-since-1958/http://www.bloggingstocks.com/2009/06/30/u-k-economy-has-worst-quarter-since-1958/http://www.bloggingstocks.com/2009/06/30/u-k-economy-has-worst-quarter-since-1958/#commentsFiled under: , , ,

Early estimates of a contraction in the U.K. economy were not enough. First quarter 2009 estimates were revisited, showing a 2.4% fall in gross domestic product from the last quarter of 2008 to 2009. This downward revision made the first three months of the year the worst since people wore skinny ties, hated communism, and bore nicknames like "Buzz."

In the second quarter of 1958, U.K. GDP plummeted 2.6%, though the 2.4% threshold matches the depths hit in 1979. The original 2009 Q1 estimate was -1.9%, according to the Office for National Statistics in London.

Continue reading U.K. economy has worst quarter since 1958

U.K. economy has worst quarter since 1958 originally appeared on BloggingStocks on Tue, 30 Jun 2009 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank of englandbritainenglandfinancial servicesgdpgreat britaingross domestic producthousinghousing markethousing priceshousing sectorinthenewsmortgagemortgage approvalsmortgagesunited kingdomTue, 30 Jun 2009 10:40:00 EST<![CDATA[Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill ]]>http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/#commentsFiled under: ,

Now we're talking fiscal stimulus. In a move to provide stimulus and economic incentives to a sector that, arguably, needs them the most, the U.S. Senate has added to the fiscal stimulus package a tax credit for up to $15,000 for homebuyers, The New York Times reported.

Economists and public policy analysts caution that the Senate has yet to vote on the stimulus bill, and the legislation, if approved, would then have to be reconciled, via a conference committee, with the stimulus package passed by the House. Nevertheless, economist Peter Dawson still likes the direction of the February wind in Washington.

Continue reading Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill

Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill originally appeared on BloggingStocks on Thu, 05 Feb 2009 16:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Democratsfiscal stimulus packagegdphomebuyer tax credithousing sectormedian home pricesObama AdministrationRepublicansU.S. economyU.S. SenateThu, 05 Feb 2009 16:50:00 EST<![CDATA[Ray of Light: Obama administration may offer mortgage refinance plan ]]>http://www.bloggingstocks.com/2009/02/03/ray-of-light-obama-administration-may-offer-mortgage-refinance/http://www.bloggingstocks.com/2009/02/03/ray-of-light-obama-administration-may-offer-mortgage-refinance/http://www.bloggingstocks.com/2009/02/03/ray-of-light-obama-administration-may-offer-mortgage-refinance/#commentsFiled under: , ,

Economists note that the U.S. recession that has mushroomed into a global recession with constrained credit and falling demand began with the rise in foreclosures in the U.S. housing sector.

Hence, ending the rise in foreclosures, while it would not mean U.S. GDP growth would immediately follow, will help put the world's largest economy on the road to recovery, many economists agree.

Further, it looks like the Obama administration is set to make a large financial commitment toward achieving that goal by allocating up to $100 billion of the TARP's second $350 billion in bailout / rescue funds for home mortgage refinances, Bloomberg News reported Tuesday.

Continue reading Ray of Light: Obama administration may offer mortgage refinance plan

Ray of Light: Obama administration may offer mortgage refinance plan originally appeared on BloggingStocks on Tue, 03 Feb 2009 12:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsforeclosureshousing sectorinthenewsObama administrationRepublicansTue, 03 Feb 2009 12:15:00 EST<![CDATA[Median U.S. existing home price plunges 13% to $181,300 in past year]]>http://www.bloggingstocks.com/2008/12/23/median-u-s-existing-home-price-plunges-13-to-181-300-in-past/http://www.bloggingstocks.com/2008/12/23/median-u-s-existing-home-price-plunges-13-to-181-300-in-past/http://www.bloggingstocks.com/2008/12/23/median-u-s-existing-home-price-plunges-13-to-181-300-in-past/#commentsFiled under: , , , ,

One holiday wish by investors -- and business executives -- should be for a U.S. economic recovery, starting with the housing sector.

That's because the housing sector showed few signs of renewal in November, as the median sales price of existing homes plummeted 13.2% to $181,300 on a year-over-year basis, the National Association of Realtors announced Tuesday. In November 2007, the median price was $208,800.

By region, the median existing home price in November dropped 0.1% in the Northeast to $257,700, decreased 25.5% in the West to $242,500, dropped 10.6% in the South to $154,500, and declined 11.2% in the Midwest to $142,200.

Meanwhile, sales of existing homes sank 8.6% in November to a 4.49-million-unit annualized rate. Sales have declined 10.6% on a year-over-year basis.

Equally distressing, the number of existing homes on the market in November rose to an 11.2-month supply at the current sales rate, up from a 10.3-month supply in October. A typical healthy market has a three to five month supply.

Home prices are 'not delightful'

Economist Peter Dawson said the weather outside is frightful, and home prices are not delightful.

Continue reading Median U.S. existing home price plunges 13% to $181,300 in past year

Median U.S. existing home price plunges 13% to $181,300 in past year originally appeared on BloggingStocks on Tue, 23 Dec 2008 12:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>housing sectorinthenewsinventoriesmedian home pricesNational Association of RealtorsTue, 23 Dec 2008 12:10:00 EST<![CDATA[Should Congress fund a homeowners' refinance program after the bailout?]]>http://www.bloggingstocks.com/2008/09/24/should-congress-fund-a-homeowners-refinance-program-after-the-b/http://www.bloggingstocks.com/2008/09/24/should-congress-fund-a-homeowners-refinance-program-after-the-b/http://www.bloggingstocks.com/2008/09/24/should-congress-fund-a-homeowners-refinance-program-after-the-b/#commentsFiled under: , , ,

If a vote were held Thursday or Friday, the U.S. Treasury's $700 billion bailout bill would probably pass both chambers of the U.S. Congress, but by narrow margins and with a) an equity stake for U.S. taxpayers for every company that receives assistance, b) a cap on executive compensation, and c) oversight provisions.

Once the bailout work is done, should the U.S. Congress also pass a homeowners assistance bill to help more homeowners with at-risk / burdensome mortgages refinance to secure a lower interest rate?

As BloggingStocks' Jon Berr pointed out Monday, while lawmakers (and no doubt taxpayers) do not want to reward housing speculators, there's a large pool of borrowers who will be able to pay their mortgages if they can get out of high interest rate notes, and other burdensome adjustable rate mortgages, and refinance at a low, 30-year fixed rate.

While it's true the U.S. Government and taxpayers would end up subsidizing refinanced mortgages if the government receives interest that's less than it could by investing the money elsewhere, the costs of foreclosure - leading to bond defaults - leading to banking institution stress / systemic stress will undoubtedly be far greater, so says economist David H. Wang.

Continue reading Should Congress fund a homeowners' refinance program after the bailout?

Should Congress fund a homeowners' refinance program after the bailout? originally appeared on BloggingStocks on Wed, 24 Sep 2008 18:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aigbailout billbarney frankBarneyFrankDarwinEconomic DarwinismfeaturedFederal Housing AdministrationFederalHousingAdministrationfinancial crisisfnmforeclosuresfrefree marketgdphome ownershipHouse Financial Services CommitteeHouseFinancialServicesCommitteehousing sectorinterest ratesmortgagesSocial DarwinismU.S. economyU.S. TreasuryWed, 24 Sep 2008 18:30:00 EST<![CDATA['Too big to fail' seen protecting Bank of America, JPMorgan]]>http://www.bloggingstocks.com/2008/09/22/too-big-to-fail-seen-protecting-bank-of-america-jpmorgan/http://www.bloggingstocks.com/2008/09/22/too-big-to-fail-seen-protecting-bank-of-america-jpmorgan/http://www.bloggingstocks.com/2008/09/22/too-big-to-fail-seen-protecting-bank-of-america-jpmorgan/#commentsFiled under: , , ,

If you think that the 'too big to fail' / 'too interconnected to fail' doctrine probably protects the Bank of America and JP Morgan Chase, you think right. But don't expect either stock to race-up like Microsoft (NASDAQ: MSFT) did in the 'Wonderful 1990s' -- not just yet.

The U.S. Government's estimated $700 billion plan to stabilize credit markets will likely safeguard both BAC and JPM due to the large impact a failure of each would have on the financial system, Luigi Zingales, professor of finance at the University of Chicago, told Bloomberg News Monday, adding that it "will definitely make their bonds safer."

BAC, JPM: Operational challenges ahead

However, economist Richard Felson told BloggingStocks Monday investors should not rush out and buy either stock just yet. Felson added that he does not have a rating on nor own shares in either company. The Bank of America (NYSE: BAC), which closed Friday at $37.48, has a p/e of 21; JP Morgan Chase (NYSE: JPM), at $47.05, a p/e of 15.5.

"Each has a series of operational issues to address in the financial services space," Felson said. "The Bank of America has a major merger and culture integration process ahead following the purchase of Merrill Lynch. Major employee, client retention and investment decisions are ahead, and this will weigh on shares."

Continue reading 'Too big to fail' seen protecting Bank of America, JPMorgan

'Too big to fail' seen protecting Bank of America, JPMorgan originally appeared on BloggingStocks on Mon, 22 Sep 2008 10:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bacbanking sectorFederal Housing AuthorityFHAfinancial crisisforeclosuresgdphousing sectorinthenewsjpmmortgagesretail bankingtoo big too failU.S. economyU.S. TreasuryMon, 22 Sep 2008 10:00:00 EST<![CDATA[Easy credit and rising home prices are not engines of economic growth]]>http://www.bloggingstocks.com/2008/09/15/easy-credit-and-rising-home-prices-are-not-engines-of-economic-g/http://www.bloggingstocks.com/2008/09/15/easy-credit-and-rising-home-prices-are-not-engines-of-economic-g/http://www.bloggingstocks.com/2008/09/15/easy-credit-and-rising-home-prices-are-not-engines-of-economic-g/#commentsFiled under: , , , , , ,

Many economists, analysts, traders and others agree it's way too soon to assess the impact of this latest, mortgage-related jolt on the stock and bond markets, and on the U.S. and global economies.

There are too many moving parts, and too many unknowns to form meaningful, enduring conclusions. The reason? The financial world order we see today may not, in fact, be the financial world order we see tomorrow. The Dow was down about 256 points to 11,165 early Monday afternoon.

But there is one conclusion U.S. investors / citizens can form regarding the U.S. economy, so says an economist: expanding credit and rising home prices, in and of themselves, are not engines of economic growth.

Now, everyone's recognizing 'the obvious'

"We have now entered the age of recognizing the obvious," economist Richard Felson said. "Almost everyone knew that the booming housing market would slow down as soon as all potential buyers had been tapped and as the American economy slowed. But few foresaw the impact the slowdown would have on mortgage bonds, their owners, and the financial system. We now have to rebuild the American credit market, and global credit market, as well, to a degree. It will be a major task."

The primary source of all the above, in Felson's interpretation? Structural problems in the U.S. economy, primarily a lack of jobs, or low job growth, he said.

"For the better part of four years, America went blithely along, confident that the fundamentals of the [U.S.] economy were sound. Yet all the while, job growth and its companion, rising median wages, were inadequate. But they were ignored because corporate earnings were up and home values were rising. But it was a building constructed on quicksand," Felson said. "The boom was not sustainable. The [U.S.] economy did not have growth engines in place for sustainable growth. "

Continue reading Easy credit and rising home prices are not engines of economic growth

Easy credit and rising home prices are not engines of economic growth originally appeared on BloggingStocks on Mon, 15 Sep 2008 14:19:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>091508assetsFedforeclosuresgdphousing bubblehousing sectorinthenewsinvestmentjob growthjobsmedian home pricesmedian incomemortgage backed securitiesmortgagesU..S. TreasuryU.S. economyU.S. Federal ReserveMon, 15 Sep 2008 14:19:00 EST<![CDATA[Some old financial habits experience a comeback]]>http://www.bloggingstocks.com/2008/08/31/some-old-financial-habits-experience-a-comeback/http://www.bloggingstocks.com/2008/08/31/some-old-financial-habits-experience-a-comeback/http://www.bloggingstocks.com/2008/08/31/some-old-financial-habits-experience-a-comeback/#commentsFiled under: ,

The real estate research firm Zillow.com released a sobering statistic, and it took some by surprise: more than one-third of homeowners who bought in the past five years have negative equity in their homes.

Negative equity is owing more on your mortgage than the market value of your home. On the heels of the United States' greatest residential real estate boom in the modern era, how did the above occur?

Two factors, so says economist Peter Dawson.

First, many regions of the U.S., particularly the west, experienced abnormal gains during the 2003-2007 real estate boom. "Total appreciation rates over 300% were not unusual during the period. It was an amazing run, fueled by adequate national GDP growth, and low mortgage rates," Dawson said. "But as we've seen, ultimately the appreciation rates proved to be unsustainable, everywhere they occurred."

Dawson says a 7-9% annual increase in the U.S. median home price is normal, and his models label a 10% annual increase or higher as "outsized" -- a deviation from the mean that calls for a correction at some point in time. "But during the boom, it was not uncommon to see 30%, 40%, 50% annual increases over multiple years," Dawson said. "Clearly unsustainable. Downright frothy. But these conclusions were largely ignored during the boom, on the fallacy of 'what has occurred will continue.' "

Second, a financial habit shifted, Dawson said. Way, way back in the twentieth century, Dawson recalled, the biggest stigma when he grew up in a typical neighborhood in White Plains, N.Y., a suburb about an hour north of New York City, was... Not gaining acceptance at a good college? No. Not getting the hottest date for the high school senior prom? No. "We learned that the Smith's [not their real name] down the street had to take out...a second mortgage," Dawson said.

Continue reading Some old financial habits experience a comeback

Some old financial habits experience a comeback originally appeared on BloggingStocks on Sun, 31 Aug 2008 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredgdphome equity loanshousing bubblehousing sectormedian home pricemortgagessecond mortgageU.S. economyZillow.comSun, 31 Aug 2008 15:30:00 EST<![CDATA[U.K. home prices record largest annual decline in 20 years]]>http://www.bloggingstocks.com/2008/08/28/u-k-home-prices-record-largest-annual-decline-in-20-years/http://www.bloggingstocks.com/2008/08/28/u-k-home-prices-record-largest-annual-decline-in-20-years/http://www.bloggingstocks.com/2008/08/28/u-k-home-prices-record-largest-annual-decline-in-20-years/#commentsFiled under: , , , , ,

The protracted housing slump that has devastated U.S. home prices now appears to have fully-enveloped the United Kingdom. Home prices in the United Kingdom in August fell at their fastest pace in two decades (pdf), U.K.-based mortgage lender Nationwide Building Society announced Thursday.

On a year-over-year basis, the average price of a U.K. home plummeted 10.5% to $301,500 or 164,654 British pounds in August, NBS said. Further, it was the first year-over-year double-digit decline in the U.K. since 1990.

London-based economist Mark Chandler told BloggingStocks Thursday the August U.K. housing data, "is just dreadful."

"Housing in the U.K. is becoming a bit of a 'magical mystery tour,' to borrow a phrase from The Beatles. For a month or so, we thought the declines in home prices had moderated. Apparently not," Chandler said. "Tighter lending requirements and real concern about the economy have sapped sales and it's really showing up in the price data."

Continue reading U.K. home prices record largest annual decline in 20 years

U.K. home prices record largest annual decline in 20 years originally appeared on BloggingStocks on Thu, 28 Aug 2008 13:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>average home priceBank of EnglandBOEECBEuropean Central BankFedgdphome priceshousing sectorinterest ratesinthenewsNationwide Building SocietyU.S. Federal ReserveUnited KingdomThu, 28 Aug 2008 13:17:00 EST