| Search by tag or site | Login to my blog ? Start my own blog |
 |
Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
Happy Birthday America
Posted on 07/04/2007 17:39:28 | Link | Post Comment
As a country we are not alone in innovation, but we are ahead of most of our economic peers in extending financial tools and their benefits to as large a swath of the population as possible. All of these consumer tools have at times been roundly critical of empowering people that have not earned the right to dream large.
America applauds innovation and even failure provided lessons are learned and you try again. This has lead to innovative economic experiments like subprime mortgages being explored. These inventions expand markets and contribute to growth. The strength of the American economy is almost solely due to leverage (credit) and the social policy behind access to consumer loans and mortgages, thus homeownership.
Sure the subprime market may have seen massive abuses by a greedy few who gamed the system or truly unqualified but lied to receive mortgage credit.
The hard to ignore reality is the fact the US has a homeownership rate of 68% of people eligible to own homes. This is now the highest rate in the First World. At some time in the past, Australia, UK and New Zealand all had better homeownership rates, but these have fallen behind as affordability has slipped and financial innovation has not kept pace with the dream of homeownership at a reasonable price.
When the smoke clears and Wall St realizes that "their subprime sky may have fallen," the underlying asset and the number of diligent homeowners making mortgage payments have just grown. Only 13% of mortgages classed as sub-prime mortgages are anywhere near default and this represents a miniscule fraction of the $14 trillion of residential real estate assets.
Housing Bubble and Real Estate Market Tracker from SA for 7/3
America applauds innovation and even failure provided lessons are learned and you try again. This has lead to innovative economic experiments like subprime mortgages being explored. These inventions expand markets and contribute to growth. The strength of the American economy is almost solely due to leverage (credit) and the social policy behind access to consumer loans and mortgages, thus homeownership.
Sure the subprime market may have seen massive abuses by a greedy few who gamed the system or truly unqualified but lied to receive mortgage credit.
The hard to ignore reality is the fact the US has a homeownership rate of 68% of people eligible to own homes. This is now the highest rate in the First World. At some time in the past, Australia, UK and New Zealand all had better homeownership rates, but these have fallen behind as affordability has slipped and financial innovation has not kept pace with the dream of homeownership at a reasonable price.
When the smoke clears and Wall St realizes that "their subprime sky may have fallen," the underlying asset and the number of diligent homeowners making mortgage payments have just grown. Only 13% of mortgages classed as sub-prime mortgages are anywhere near default and this represents a miniscule fraction of the $14 trillion of residential real estate assets.
Housing Bubble and Real Estate Market Tracker from SA for 7/3
- How (bad) Certain Investments Did Last Week
- Dow Dips Below 8,000 Threshold, Reaching April 2003 Levels
- Some Insight From The Blogs:
- Canslim.net Morning Comment And Links (for Traders)
- Stocks Fail To Turn Up; Sec's Shorting Ban On Financial Shares Expires
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- Millionaire Now!
- The 7 Steps to Millionaire Now!
- Build Your Financial Plan
- RETIRE RICH: Survival Guide
- ASSET ALLOCATION MODEL
- THE BIG ROLLOVER IS HERE
- THE END OF THE GRAND SUPERCYCLE?
- Marin Real Estate Bubble
- The Average Joe Investor
- Millionaire Now! by Larry Nusbaum
- Don't Mess With Taxes
- The Prudent Investor
- Trader X
Examples
ATM Wallstreet - Mon Oct 06, 2008 03:39PM
Made several great trades today. Traded the QID, QQ [read more]
Made several great trades today. Traded the QID, QQ [read more]
ATM Wallstreet - Tue Oct 07, 2008 10:07PM
Today we have the Fed speaking and release of Fed mi [read more]
Today we have the Fed speaking and release of Fed mi [read more]
Morpheus Trading - Tue Oct 07, 2008 08:33AM
NOTE: Please click on the charts below to enlarge them [read more]
NOTE: Please click on the charts below to enlarge them [read more]
<< My Home | TheMoneyBlogs Home