Ok, I could go on for hours, sorting through the problems. Where is the good news I promised?
Here's what I should have said to Tiffani's group: Let's face it. Running a small business is never easy. I am a serial entrepreneur. I have started and run a lot of very different businesses. Some have been very, very good and some went down in spectacular flames. I can remember some near-death experiences when the economy was booming. I have watched a million-dollar income stream dwindle to zero and there was not a damn thing I could do about it, except enjoy the money while it was there and use it to buy the next income stream. I have had to rebuild several times from scratch as markets shifted drastically underneath my feet. And I've changed directions as new opportunities revealed themselves.
In all this I'm like every other small-business entrepreneur out there. It is never easy. But that is what we do. We get up in the morning and figure it out. Some 80% of startups die within ten years. But we pick ourselves up and start over.
I know unemployment is 10%. But that means almost 90% are employed. Consumers are saving more. So adjust. Figure out what your New Normal looks like.
The '70s were a bitch. I woke up many times in the middle of the night with real pains in my stomach wondering whether to pay the rent or make payroll. So did a lot of people. But look at all the new companies that came out of that era and changed everything: Microsoft, Apple, Intel, etc. Cell phones. The internet. The list is long.
Yes, we have to make our way in this Muddle Through World. It will be challenging, but I can almost guarantee you that when we do get through there will be other challenges. If it was easy everybody could do it and there would be no money in it. Embrace the challenge!
I asked one of my really close (36 years) friends and business associates last year how his business was doing. "We are doing great!" he said. That was not the answer I was expecting. "Why? How?" I asked.
"Well, most of our competitors have folded. We survived and got the business."
Ultimately, that is how we get out of this. A hundred million families and millions of businesses figuring it out, learning how to adapt to the New Normal. Sadly, some of them won't make it. But most of us will!
As I said, I am a serial entrepreneur. I have a friend who designs and oversees large teams of programmers of really robust analytic software, very cutting-edge stuff. She is a winner, and I am backing her (I know nothing about software but the rule is, invest in people!). We'll see how it goes, but my bet is that in a few years there will be a lot of people getting jobs because we take on some risk now.
We are adapting our own business here. We will soon have new websites. I will be doing (at first) an audio podcast called the Mauldin Minute and then (hopefully) by the end of the year morphing into video. That's the wave of the future and I need to keep up.
I am addicted to information and reading . We are going to try and make some money from my addiction. What would you pay to look over my shoulder and read the 5-10 most important things I find in a week? I will become your personal reader. Will that be a life-style changer? No, but it will provide some income diversification.
When Tiffani made her presentation to her Vistage group about our business, she had a lot of charts and graphs. I was surprised how our sources of income have varied over time. Some previously large (at least on my scale) sources literally dried up within a few years, completely askew from our original optimistic expectations. It was very apparent that we cannot sit and assume things will be the same year to year. So we adapt.
I have been presented with a very different opportunity in a non-finance field that is right in my wheelhouse, as they say. Tiffani and Ryan and I are going to pursue it. Will it thrive? Be a real business in five years? We will see, but I have the ability to take that risk and I am going to do so.
And so will hundreds of thousands of other visionaries and dreamers. That is how we get through this. We work through the ugly and then we get to the 2020s, and I think we will once again be talking about the Roaring 20s! Whole new industries will come into existence. Pay attention to the advancements in robotics. Biotech will be HUGE this decade, but we need to change the rules so we don't lose the intellectual property and the jobs. Electric cars will boom as we replace our fleet all over the world. Nanotech later in the '20s. Green energy and nuclear. Artificial intelligence (finally!). Really cheap (I mean really cheap!) wireless high-speed broadband all over the world will open the door to all kinds of possibilities. I met last night with very credible scientists who have developed a way to filter water very cheaply. A desalinization module that fits in a cargo container. Yes, they need a lot of money to finish, but they will figure it out. And on and on. The opportunities are going to be huge. Trillions will be made.
So, we get through this. We Muddle Through. We figure it out, one business and family at a time. And as a culture, a world, we get to a better place. My bet is that in 2020 no one is going to want to go back to the good old days of 2010. We will be excited about the future and all the cool stuff that is happening.
Recessions and tough times are God's way of telling you that you need to adjust a few things, both on a personal and business level – also nationally and globally. I am an optimist. I believe we will adjust and grow, not just in the US but as an emerging world. There are just so many opportunities.
So, don't let the problems I write about in this letter make you crawl into a cave. Just be realistic and figure out where your opportunities are. And then go make them happen! You are responsible for creating your own future. And I hope it is a good one. I plan on making mine one.
I found John Mauldin’s article inspiring. I hope you enjoy it as well. Wishing you all a great week!
Monday, August 30, 2010
Monday, August 16, 2010
Obama Administration to Provide $3 Billion in Housing Aid
The Obama administration is providing $3 billion to unemployed homeowners facing foreclosure in the nation's toughest job markets.
The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.
Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.
The administration was required to launch the HUD emergency loan program by the financial regulatory bill signed by President Barack Obama last month.
The Treasury are using money from the $700 billion Wall Street bailout to pay its share of the program. Officials said they won't know until next month how many people are likely to be helped.
California will get the largest share of money for the Treasury program, at $476 million. Florida is in line for nearly $239 million. Illinois will receive $166 million and Ohio will receive $149 million.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, provides lenders with incentives to reduce mortgage payments. So far, it has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.
Also receiving money are Michigan, $129 million; Georgia, $127 million; North Carolina, $121 million; New Jersey, $112 million; Indiana, $83 million and Tennessee, $81 million.
Alabama is due to receive $61 million, South Carolina, $59 million; Kentucky, $56 million; Oregon, $49 million; Mississippi, $38 million; Nevada, $34 million; Rhode Island, $14 million; and Washington, D.C., $8 million.
Published: Wednesday, 11 Aug 2010
2:22 PM ET (CNBC)
The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.
Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.
The administration was required to launch the HUD emergency loan program by the financial regulatory bill signed by President Barack Obama last month.
The Treasury are using money from the $700 billion Wall Street bailout to pay its share of the program. Officials said they won't know until next month how many people are likely to be helped.
California will get the largest share of money for the Treasury program, at $476 million. Florida is in line for nearly $239 million. Illinois will receive $166 million and Ohio will receive $149 million.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, provides lenders with incentives to reduce mortgage payments. So far, it has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.
Also receiving money are Michigan, $129 million; Georgia, $127 million; North Carolina, $121 million; New Jersey, $112 million; Indiana, $83 million and Tennessee, $81 million.
Alabama is due to receive $61 million, South Carolina, $59 million; Kentucky, $56 million; Oregon, $49 million; Mississippi, $38 million; Nevada, $34 million; Rhode Island, $14 million; and Washington, D.C., $8 million.
Published: Wednesday, 11 Aug 2010
2:22 PM ET (CNBC)
Monday, August 2, 2010
Mortgage brokers to be fingerprinted and registered
Mortgage loan originators will have to be fingerprinted and sign up to a central registry to do business in future, according to final rules issued on Wednesday by the Federal Reserve and other regulators.
The rules are part of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, also called the S.A.F.E. Act.
They were issued by the Fed, Comptroller of the Currency, Federal Deposit Insurance Corp, Office of Thrift Supervision, Farm Credit Administration and National Credit Union Administration.
Mortgage brokers came under tough scrutiny in the wake of the 2007-09 financial crisis, with some lawmakers and regulators sharply critical of underwriting standards and practices that were seen as so loose they helped foster a housing price bubble.
The S.A.F.E. Act specifies that mortgage brokers who are employees of agency-regulated institutions must register with the Nationwide Mortgage Licensing System and Registry,
"As part of this registration process, residential mortgage loan originators must furnish to the registry information and fingerprints for background checks," a joint release from regulators said.
The final rules take effect on October 1 and it is anticipated that the registry could start accepting registrations as early as January 28, 2011.
Industry sources say that thousands of brokers have gone through mandatory education, credit checks and state and federal testing in order to retain the right to handle mortgage originations.
The process has thinned the ranks of brokers, who may be even fewer soon given talk of a 30 percent fail rate on testing, said Bob Moulton, president of Americana Mortgage Group in Manhasset, New York.
"It cleaned up the industry," said Moulton, who nonetheless cautioned that he felt credit availability for mortgage lending has been reduced as a result of uncertainty caused by U.S. financial regulatory reform.
Published: Wednesday, 28 Jul 2010
6:51 PM ET (CNBC)
The rules are part of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, also called the S.A.F.E. Act.
They were issued by the Fed, Comptroller of the Currency, Federal Deposit Insurance Corp, Office of Thrift Supervision, Farm Credit Administration and National Credit Union Administration.
Mortgage brokers came under tough scrutiny in the wake of the 2007-09 financial crisis, with some lawmakers and regulators sharply critical of underwriting standards and practices that were seen as so loose they helped foster a housing price bubble.
The S.A.F.E. Act specifies that mortgage brokers who are employees of agency-regulated institutions must register with the Nationwide Mortgage Licensing System and Registry,
"As part of this registration process, residential mortgage loan originators must furnish to the registry information and fingerprints for background checks," a joint release from regulators said.
The final rules take effect on October 1 and it is anticipated that the registry could start accepting registrations as early as January 28, 2011.
Industry sources say that thousands of brokers have gone through mandatory education, credit checks and state and federal testing in order to retain the right to handle mortgage originations.
The process has thinned the ranks of brokers, who may be even fewer soon given talk of a 30 percent fail rate on testing, said Bob Moulton, president of Americana Mortgage Group in Manhasset, New York.
"It cleaned up the industry," said Moulton, who nonetheless cautioned that he felt credit availability for mortgage lending has been reduced as a result of uncertainty caused by U.S. financial regulatory reform.
Published: Wednesday, 28 Jul 2010
6:51 PM ET (CNBC)
Wednesday, July 28, 2010
Social relationships key to survival, study says
It turns out that people with adequate social relationships have a 50 percent greater likelihood of survival than people who have poor or insufficient relationships. That means that having good relationships is comparable to quitting smoking in terms of survival benefit, and is a stronger factor than obesity and physical activity.
Researchers from Brigham Young University and the University of North Carolina at Chapel Hill looked at 148 different studies that examined the connection between survival and relationships. Regardless of age, sex, initial health status, cause of death, and follow-up period in the individual studies, the new analysis finds that those with stronger relationships have an increased likelihood of survival.
This principle of social relationships aiding survival has even been seen in babies, the study noted. In the mid-20th century, infants in orphanages were observed to have high mortality rates predicted by lack of human contact. Death rates in these settings substantially decreased with changes in practice and policy to promote social interaction.
One theory behind these results is that social relationships may buffer the negative effects of stressors on health, such as illness and transitions and changes in life. Social relationships may also promote healthy behaviors, in the sense that people may directly encourage each other's good habits or indirectly provide good models.
"In addition, being part of a social network gives individuals meaningful roles that provide esteem and purpose to life," the authors wrote.
As seen in the research of Nicholas Christakis and James Fowler, positive attributes such as happiness spread in social networks, as well as negative behaviors such as smoking and obesity. But they also found that people who dropped their friends who gained weight were more susceptible to obesity themselves.
The study on social relationships and mortality appears in the journal PLoS Medicine.
Post by: Elizabeth Landau - CNN.com Health Writer/Producer
Filed under: Longevity • Relationships
Monday, June 21, 2010
The Best Time to Buy Almost Everything
House and home
• Real estate—March through August are active months for buying and selling, so a buyer looking for a deal will have better luck negotiating on an offer in autumn and winter.
• Flooring—Carpet and flooring goes on sale near the end of the year due to slow sales, though discounts are possible throughout the year from independent retailers.
• Furniture—January and July, when stores need to make room for new inventory.
• Gas grill—Like air conditioners, the best time to buy is during winter months, when demand for outdoor grills is low.
• Cookware—April and May (think graduation and wedding prime time) and October and November (holidays approaching).
• Linens—January “white sales” and the end of each season (i.e. as spring approaches, winter-colored linens will go on sale). It’s common to see linens (in all colors, not just white!) on sale for up to 60 percent off retail.
• Mattress—New mattresses arrive in stores in May, when you’ll find a good deal on the previous year’s models.
• Vacuum cleaner—June, when new models hit the floors, and end of winter.
• Hardware—Big sales occur around Father’s Day and between Thanksgiving and Christmas.
• Home appliances—New models arrive in September and October, when you’ll find good deals on last year’s models. Holiday weekends—Fourth of July, Labor Day, Columbus Day, Presidents Day—also are good bets for deals. If you’re willing to buy an appliance with a ding or a scratch, you can save hundreds.
• Air conditioner—Winter months, when demand is low.
Flora
• Flowers—Tulips are less expensive in February, peonies in May. Flowers are at their best when in season.
• Shrubs, trees, etc.—Autumn is a good time to buy bulbs (store them according to directions on the packaging) and trees and shrubs (nurseries are trying to clear out inventory).
Recreation
• Outdoor (general)—Swings, beach and pool toys, swimming gear, and other outdoor items go on sale in August, when retailers are trying to make room for fall and winter items.
• Outdoor gear (bicycles, for example)—February and March, when new models replace last year’s models.
• Boat—Boat shows, held from January through March, generally offer the best prices.
• Gym membership—Membership sales soar in January as everyone resolves to lose weight, but lag in spring and summer. You’ll find lower fees and waived enrollment fees to lure you to their treadmills.
• Movie tickets—Matinees are an established way to spend less at the theater (as is smuggling in your own M&Ms, not that I’d condone such behavior or ever do so myself…). A.M. Cinema (AMC Theaters) sells discounted tickets before noon from Friday to Sunday and on holidays.
• Broadway tickets—Find bargains hours before the show, or try the well-known TKTS booth in Times Square.
Electronics
• Blu-ray player—Black Friday sales and after-Christmas sales offer some of the best deals.
• TV—Sales can be found throughout the year. Times to note include Black Friday, between Thanksgiving and Christmas, right after New Year’s Day, before the Super Bowl, and in May and June. New models hit stores in August and September, when you’ll find sales on new models and discounts on the previous year models.
• Cell phone—New customers get the best deals. For new phones, wait six months if you can. Search online for coupon codes, as well.
• Digital camera—The Consumer Electronics Show and Photo Marketing Association convention mean new models will arrive in stores. Shop in January and February for deals on last year’s models.
• Computer—Back-to-school season yields a few sales, but the best deals can be found when a technology is outdated and retailers want to get rid of the older models. Look for a few extras (free shipping, bundled accessories, etc.) around the holidays.
Tip: In general, you’ll find a good deal when an electronic item is outdated. Wait until after technology shows like MacWorld and the International Consumer Electronics Show to see if your iWhatever will be discounted to make way for the next big thing.
Auto
• New car—New models roll into the lot in fall, so shop in September for last year’s model. Shop on a weekday at the end of the month to get the undivided attention of a salesperson trying to make their monthly quota.
• Used car—Dealers increase their inventory in April to start the spring selling season. You’ll find a good selection and willing negotiators.
• Recreational vehicle—Dealers sometimes offer specials in winter, but generally buying an RV works like buying a car (see new cars).
• Gasoline—Fuel up on a weekday, early in the morning if gas prices are rising or in the evening if gas prices are going down (prices are usually changed between 10 a.m. and noon).
• Oil change—Look for early bird specials in your area.
• Tires and auto parts—During April (National Car Care Month) and October (Fall Car Care Month), you are likely to find buy-three-get-one-free deals on tires, free oil changes, and other checkups.
• Car wash—Early birds (before 8 or 9 a.m.) can often find deals at full-service car washes.
Travel
• Airline tickets—For domestic nonholiday travel, look for the lowest fares 21 days from your departure. Fares are updated at 10 a.m., 12:30 p.m., and 8 p.m. on weekdays, and airlines file one update on Saturday and Sunday. Lowest fares are filed on Tuesdays, Wednesdays, and occasionally on Saturdays. Wednesday is generally the cheapest day to fly and Sunday the most expensive. (Exception: the Wednesday before Thanksgiving—the busiest travel day of the year.) For holiday travel, start looking in September to get a good price. Fares can change quickly, and much depends on the carrier and the market.
• Travel (general)—The off-season or shoulder-season for your destination will offer the most savings on lodging, recreation, transportation, etc.
Food
• Groceries (supermarket)—On Sunday evenings, you’ll save money through store sales (typically run Wednesday through Thursday), and by shopping in the evening, you can save even more on items that must be sold by day’s end. If you clip coupons from the Sunday newspaper, you’ll enjoy additional savings.
• Coupons—While coupons are available throughout the year, the most coupons appear in the Sunday paper during November and December. The best deals on turkeys can be found two weeks before Thanksgiving to Christmas. In spring, you’ll find coupons on seasonal produce, ham, and frozen food (apparently March is National Frozen Food Month—who knew?). Summer coupons offer discounts on grilling items and ice cream. Autumn brings coupons on soup and other canned items.
• Groceries (farmers market)—Vendors often lower prices near closing to avoid having to pack up perishables and take them back to the farm.
• Champagne—With steep competition to be your New Year’s Eve bubbly, Champagne houses drop prices during the holidays.
Clothing and accessories
• Clothing (general)—Got your heart set on something in particular? Shop on a Thursday evening six to eight weeks after the item arrived in the store. By Thursday, the weekend sales have started and the selection will still be good. Season-end clearance sales also offer up savings.
• Baby clothes—Shop during your pregnancy for end-of-season clearance items. If it’s springtime and you are due in winter, look for winter closeout sales now for infant clothing.
• Jewelry—Avoid the holidays, when you are most likely to pay full price.
Weddings
• Wedding (general)—The off-season can mean big discounts. If you live in a cooler climate, you’ll find savings during the winter months. Hotter climates mean likely deals in summer months.
• Wedding dresses—After Thanksgiving and before Christmas. Boutiques are stocked with gowns for Christmas engagements, but it’s a slow sales period.
Other
• Toys—October and November offer good bargains as retailers gear up for the holiday season.
• Wrapping paper—January, of course!
• Real estate—March through August are active months for buying and selling, so a buyer looking for a deal will have better luck negotiating on an offer in autumn and winter.
• Flooring—Carpet and flooring goes on sale near the end of the year due to slow sales, though discounts are possible throughout the year from independent retailers.
• Furniture—January and July, when stores need to make room for new inventory.
• Gas grill—Like air conditioners, the best time to buy is during winter months, when demand for outdoor grills is low.
• Cookware—April and May (think graduation and wedding prime time) and October and November (holidays approaching).
• Linens—January “white sales” and the end of each season (i.e. as spring approaches, winter-colored linens will go on sale). It’s common to see linens (in all colors, not just white!) on sale for up to 60 percent off retail.
• Mattress—New mattresses arrive in stores in May, when you’ll find a good deal on the previous year’s models.
• Vacuum cleaner—June, when new models hit the floors, and end of winter.
• Hardware—Big sales occur around Father’s Day and between Thanksgiving and Christmas.
• Home appliances—New models arrive in September and October, when you’ll find good deals on last year’s models. Holiday weekends—Fourth of July, Labor Day, Columbus Day, Presidents Day—also are good bets for deals. If you’re willing to buy an appliance with a ding or a scratch, you can save hundreds.
• Air conditioner—Winter months, when demand is low.
Flora
• Flowers—Tulips are less expensive in February, peonies in May. Flowers are at their best when in season.
• Shrubs, trees, etc.—Autumn is a good time to buy bulbs (store them according to directions on the packaging) and trees and shrubs (nurseries are trying to clear out inventory).
Recreation
• Outdoor (general)—Swings, beach and pool toys, swimming gear, and other outdoor items go on sale in August, when retailers are trying to make room for fall and winter items.
• Outdoor gear (bicycles, for example)—February and March, when new models replace last year’s models.
• Boat—Boat shows, held from January through March, generally offer the best prices.
• Gym membership—Membership sales soar in January as everyone resolves to lose weight, but lag in spring and summer. You’ll find lower fees and waived enrollment fees to lure you to their treadmills.
• Movie tickets—Matinees are an established way to spend less at the theater (as is smuggling in your own M&Ms, not that I’d condone such behavior or ever do so myself…). A.M. Cinema (AMC Theaters) sells discounted tickets before noon from Friday to Sunday and on holidays.
• Broadway tickets—Find bargains hours before the show, or try the well-known TKTS booth in Times Square.
Electronics
• Blu-ray player—Black Friday sales and after-Christmas sales offer some of the best deals.
• TV—Sales can be found throughout the year. Times to note include Black Friday, between Thanksgiving and Christmas, right after New Year’s Day, before the Super Bowl, and in May and June. New models hit stores in August and September, when you’ll find sales on new models and discounts on the previous year models.
• Cell phone—New customers get the best deals. For new phones, wait six months if you can. Search online for coupon codes, as well.
• Digital camera—The Consumer Electronics Show and Photo Marketing Association convention mean new models will arrive in stores. Shop in January and February for deals on last year’s models.
• Computer—Back-to-school season yields a few sales, but the best deals can be found when a technology is outdated and retailers want to get rid of the older models. Look for a few extras (free shipping, bundled accessories, etc.) around the holidays.
Tip: In general, you’ll find a good deal when an electronic item is outdated. Wait until after technology shows like MacWorld and the International Consumer Electronics Show to see if your iWhatever will be discounted to make way for the next big thing.
Auto
• New car—New models roll into the lot in fall, so shop in September for last year’s model. Shop on a weekday at the end of the month to get the undivided attention of a salesperson trying to make their monthly quota.
• Used car—Dealers increase their inventory in April to start the spring selling season. You’ll find a good selection and willing negotiators.
• Recreational vehicle—Dealers sometimes offer specials in winter, but generally buying an RV works like buying a car (see new cars).
• Gasoline—Fuel up on a weekday, early in the morning if gas prices are rising or in the evening if gas prices are going down (prices are usually changed between 10 a.m. and noon).
• Oil change—Look for early bird specials in your area.
• Tires and auto parts—During April (National Car Care Month) and October (Fall Car Care Month), you are likely to find buy-three-get-one-free deals on tires, free oil changes, and other checkups.
• Car wash—Early birds (before 8 or 9 a.m.) can often find deals at full-service car washes.
Travel
• Airline tickets—For domestic nonholiday travel, look for the lowest fares 21 days from your departure. Fares are updated at 10 a.m., 12:30 p.m., and 8 p.m. on weekdays, and airlines file one update on Saturday and Sunday. Lowest fares are filed on Tuesdays, Wednesdays, and occasionally on Saturdays. Wednesday is generally the cheapest day to fly and Sunday the most expensive. (Exception: the Wednesday before Thanksgiving—the busiest travel day of the year.) For holiday travel, start looking in September to get a good price. Fares can change quickly, and much depends on the carrier and the market.
• Travel (general)—The off-season or shoulder-season for your destination will offer the most savings on lodging, recreation, transportation, etc.
Food
• Groceries (supermarket)—On Sunday evenings, you’ll save money through store sales (typically run Wednesday through Thursday), and by shopping in the evening, you can save even more on items that must be sold by day’s end. If you clip coupons from the Sunday newspaper, you’ll enjoy additional savings.
• Coupons—While coupons are available throughout the year, the most coupons appear in the Sunday paper during November and December. The best deals on turkeys can be found two weeks before Thanksgiving to Christmas. In spring, you’ll find coupons on seasonal produce, ham, and frozen food (apparently March is National Frozen Food Month—who knew?). Summer coupons offer discounts on grilling items and ice cream. Autumn brings coupons on soup and other canned items.
• Groceries (farmers market)—Vendors often lower prices near closing to avoid having to pack up perishables and take them back to the farm.
• Champagne—With steep competition to be your New Year’s Eve bubbly, Champagne houses drop prices during the holidays.
Clothing and accessories
• Clothing (general)—Got your heart set on something in particular? Shop on a Thursday evening six to eight weeks after the item arrived in the store. By Thursday, the weekend sales have started and the selection will still be good. Season-end clearance sales also offer up savings.
• Baby clothes—Shop during your pregnancy for end-of-season clearance items. If it’s springtime and you are due in winter, look for winter closeout sales now for infant clothing.
• Jewelry—Avoid the holidays, when you are most likely to pay full price.
Weddings
• Wedding (general)—The off-season can mean big discounts. If you live in a cooler climate, you’ll find savings during the winter months. Hotter climates mean likely deals in summer months.
• Wedding dresses—After Thanksgiving and before Christmas. Boutiques are stocked with gowns for Christmas engagements, but it’s a slow sales period.
Other
• Toys—October and November offer good bargains as retailers gear up for the holiday season.
• Wrapping paper—January, of course!
Monday, June 14, 2010
9 Ways to Save Money at the Grocery Store
No. 1: Stick to Groceries
Many supermarkets are expanding their product offerings beyond food products, but they tend to carry a heftier price tag than a drug or wholesale store.
No. 2: Don’t Get Sucked in By Displays
Manufacturers often pay to have their items on display, which means they aren’t necessarily on sale, according to Nelson.
You will have to pay attention, there can be a lot of signs on a display, but they might not actually say ‘sale.
No. 3: Bigger Isn’t Always Better
It’s important to pay attention to the unit costs, not the list prices. Convert the unit cost by dividing the price by the number of units -- and then compare to find out which product is cheaper.
Also be mindful of what you are buying in bulk. Sometimes when you buy produce in bulk you end up throwing half of it away because it couldn’t be used in time.
No. 4: Stock Up on Sales
Track the prices of the top ten items you most often buy, so you know when it hits its lowest price and you stock up.
No. 5: Three’s a Crowd
Stores will often pair sale items with non-sale items to entice you to buy more.
No. 6: Skip Special Sections
If you need bagels, go to the actual bread aisle, don’t just grab them off the table in the bakery aisle.
No. 7: Scan Above Eye Level
Many of the sales aren’t on eye-level, the experts said. Look at the top and bottom of the shelves to make sure you are snagging the best deal.
No. 8: Early Bird Gets the Discount
Be sure to ask the manager when the mark-downs are done in the produce and meat prices.
No. 9: Shop Alone and on a Full Stomach
While they can be helpful at times, kids and spouses can often lead to impulse buys, so leave them at home, Jones suggested. It’s also a good idea to eat before heading to the store.
Many supermarkets are expanding their product offerings beyond food products, but they tend to carry a heftier price tag than a drug or wholesale store.
No. 2: Don’t Get Sucked in By Displays
Manufacturers often pay to have their items on display, which means they aren’t necessarily on sale, according to Nelson.
You will have to pay attention, there can be a lot of signs on a display, but they might not actually say ‘sale.
No. 3: Bigger Isn’t Always Better
It’s important to pay attention to the unit costs, not the list prices. Convert the unit cost by dividing the price by the number of units -- and then compare to find out which product is cheaper.
Also be mindful of what you are buying in bulk. Sometimes when you buy produce in bulk you end up throwing half of it away because it couldn’t be used in time.
No. 4: Stock Up on Sales
Track the prices of the top ten items you most often buy, so you know when it hits its lowest price and you stock up.
No. 5: Three’s a Crowd
Stores will often pair sale items with non-sale items to entice you to buy more.
No. 6: Skip Special Sections
If you need bagels, go to the actual bread aisle, don’t just grab them off the table in the bakery aisle.
No. 7: Scan Above Eye Level
Many of the sales aren’t on eye-level, the experts said. Look at the top and bottom of the shelves to make sure you are snagging the best deal.
No. 8: Early Bird Gets the Discount
Be sure to ask the manager when the mark-downs are done in the produce and meat prices.
No. 9: Shop Alone and on a Full Stomach
While they can be helpful at times, kids and spouses can often lead to impulse buys, so leave them at home, Jones suggested. It’s also a good idea to eat before heading to the store.
Monday, June 7, 2010
Market Recovery...Could it Really be Here?!
Flex 97 Product M.I. Return
When the Mortgage Insurance companies decide that the market has stabilized enough to offer a product like this, it proves we are on the way back up. M.I. companies spend millions on market research, they don’t make changes like this unless that very expensive data says the rewards outweighs the risk!
Modified Guidelines
On top of returning the Fannie Flex 97, they also modified the guidelines and added a few new features that are completely in line with credit “loosening”. You can call me for further details but they are called “boarder income” & “second job or O.T. history”. Exciting stuff.
The Jumbo Market Makes a Comeback
First Jumbo bulk is a purchased by Redwood Trust Inc. for $238 Million. There has not been a Jumbo bulk sold in the private sector for several years. Redwood then announced they will buy Jumbo loans on a “flow” basis, shortly after they purchased this bulk. That means, the Jumbo market is finally making comeback.
85% Cash-Out Returns
This says two things, credit is loosening, and that investors are confident the Real Estate market is nearing recovery with regard to value. Otherwise the cash-out offering stays below 80% as investors anticipate values declining further. This is excellent news
Condo Purchase to 90% Allowed Again
The condo market has probably been beaten down worse than any other sector. For a short time, there was virtually no financing available to purchase a condo. Now, the LTV restrictions have been lifted up to 90% again. Further proof that the credit curve is loosening and the values are stabilizing.
Overlays Removed
Two of our major investors have made guideline changes to loosen the credit curve just this week. They are removing what are called “overlays” that are put in place to lower risk, tighten the credit curve and essentially they eliminate certain segments of the population from obtaining credit due to fear of default. When those are removed, it is proof that there is an appetite for mortgages and that risk is being managed properly.
When the Mortgage Insurance companies decide that the market has stabilized enough to offer a product like this, it proves we are on the way back up. M.I. companies spend millions on market research, they don’t make changes like this unless that very expensive data says the rewards outweighs the risk!
Modified Guidelines
On top of returning the Fannie Flex 97, they also modified the guidelines and added a few new features that are completely in line with credit “loosening”. You can call me for further details but they are called “boarder income” & “second job or O.T. history”. Exciting stuff.
The Jumbo Market Makes a Comeback
First Jumbo bulk is a purchased by Redwood Trust Inc. for $238 Million. There has not been a Jumbo bulk sold in the private sector for several years. Redwood then announced they will buy Jumbo loans on a “flow” basis, shortly after they purchased this bulk. That means, the Jumbo market is finally making comeback.
85% Cash-Out Returns
This says two things, credit is loosening, and that investors are confident the Real Estate market is nearing recovery with regard to value. Otherwise the cash-out offering stays below 80% as investors anticipate values declining further. This is excellent news
Condo Purchase to 90% Allowed Again
The condo market has probably been beaten down worse than any other sector. For a short time, there was virtually no financing available to purchase a condo. Now, the LTV restrictions have been lifted up to 90% again. Further proof that the credit curve is loosening and the values are stabilizing.
Overlays Removed
Two of our major investors have made guideline changes to loosen the credit curve just this week. They are removing what are called “overlays” that are put in place to lower risk, tighten the credit curve and essentially they eliminate certain segments of the population from obtaining credit due to fear of default. When those are removed, it is proof that there is an appetite for mortgages and that risk is being managed properly.
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