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Wednesday, May 14, 2008

Ownership Society?

From the President's America's Ownership Society Initiative from the summer of 2004:

Expanding Homeownership. The President believes that homeownership is the cornerstone of America's vibrant communities and benefits individual families by building stability and long-term financial security. In June 2002, President Bush issued America's Homeownership Challenge to the real estate and mortgage finance industries to encourage them to join the effort to close the gap that exists between the homeownership rates of minorities and non-minorities. The President also announced the goal of increasing the number of minority homeowners by at least 5.5 million families before the end of the decade. Under his leadership, the overall U.S. homeownership rate in the second quarter of 2004 was at an all time high of 69.2 percent. Minority homeownership set a new record of 51 percent in the second quarter, up 0.2 percentage point from the first quarter and up 2.1 percentage points from a year ago. President Bush's initiative to dismantle the barriers to homeownership includes:

*American Dream Downpayment Initiative, which provides down payment
assistance to approximately 40,000 low-income families;

*Affordable Housing. The President has proposed the Single-Family Affordable Housing Tax Credit, which would increase the supply of affordable homes;

*Helping Families Help Themselves. The President has proposed increasing support for the Self-Help Homeownership Opportunities Program; and

*Simplifying Homebuying and Increasing Education. The President and HUD
want to empower homebuyers by simplifying the home buying process so consumers can better understand and benefit from cost savings. The President also wants to expand financial education efforts so that families can understand what they need to do to become homeowners.


Well, it seems the encouraging the real estate industry and mortgage industry to make homeownership easier has really worked out for us.

UPDATE: Foreclosures are up 65% over this time last year.

Monday, May 12, 2008

Increases in Mass Transit Ridership

And it seems like just yesterday that my Uncle was complaining that no one uses the Denver Light Rail.

One bright side of the ever increasing price of gasoline is the fact that more and more people are switching to mass transit (where available). There have been modest increases in usage on North Eastern cities such as NY, DC, and Boston where Mass Transit is well established, but some Midwest and western cities are seeing double digit percentage increases in ridership. The Denver Transit is actually reaching capacity during rush hour. (I've ridden the Denver light rail, its is great and every time I have ridden it, I found a seat. In fact I think I laid down.)

Now lets just wait and see how much ridership needs to increase before OPEC gets scared and lowers prices. That seems to be what happens everytime it looks like the West might break its dependence on them.

Sunday, May 11, 2008

Al Gore for President?

August 26, 2008-Denver, CO

The Democratic Race for President has continued to keep the attention of America with a continued close and one might say, “bloody” race between Barrack Obama and Hillary Clinton. John Edwards 38 Delegates have turned into the linchpin for the eventual candidate and after four unsuccessful ballots, there has been no winner due to John Edwards holding onto his Delegates. With no change of either candidate winning the nomination without Mr. Edwards’ Delegates the Candidates and party leaders were in closed session until 4 AM attempting to settle the matter once and for all. What came out of that meeting is a shock to the entire party and the nation, prompting an unofficial initial, “Crap” from Senator John McCain.

Facing a deadlock and two candidates who have done all but enter the Octagon and engage in combat, Senators Clinton and Obama, and former Senator Edwards have released their delegates. In addition to this, both Senator Clinton and Senator Obama have withdrawn their names from consideration. What would have caused the Senators not only to release their delegates but also withdraw from the race after months of one of the hardest fought Democratic Primary Seasons in history? The arrival of the Democratic Party’s knight in shinning (yet biodegradable) armor, former Vice President Al Gore.

Al Gore has put his name forward to the convention for consideration as the Democratic Candidate for President. He is now the only candidate up for consideration and will be the Democratic Candidate for President.

This is prompted speculation that this had been the Democratic Plan all along. Let two highly qualified candidates fight it out for months and bloody each other only to have an unscathed and certainly popular candidate come out of no where at the last moment. After McCain’s initial comment his campaign spokesman had this to say:

“This is just another blatant attempt by the so called, “Democratic” Party, to undermine the Democratic Process. First it was not seating delegates from two states and now nominating a candidate who has no delegates who the American people have never had an opportunity to vote for as the Democratic Candidate. They should be ashamed of themselves.”

Strong words from the McCain camp, but one could not help notice the trembling hands of the spokesman while making that statement. This is a completely new race for the Presidency. The next few weeks will tell whether this was one of the greatest political moves of all time, or one of the worst.

Hey, it could happen…

Tuesday, May 06, 2008

New GI Bill

It is nice to know that some of our leaders are looking out for our veterans and our economic future.

A new GI Bill has been proposed in Congress that would cover education costs equivalent of state schools in the state that the veteran is living in. As mentioned in Bob Herbert's opinion, this is a fantastic idea. Not only would it give out veterans something to come back to besides families that desparately miss them but it would promote economic growth by putting highly motivated, well educated adults into the work force and would probably be a boost recruitment. College is way too expensive these days and people can use all the help they can get to pay for it.

While proponents say that this would not decrease reenlistment, I have to agree with the opponents that it would. Why stay in the military when you can get out, get and education, and get a good job close to your family? However, as this benefit would likely be a boon for recruitment so that those who do not re-enlist would be more easily replaced.

It still ceases to amaze me that some of our leaders talk about how we need to strengthen America but they do everything they can to hurt the educational opportunities available. Without properly educating our youth we will lose the only comparable advantage we have over much of the world, our innovation, research, and development.

Monday, May 05, 2008

Gas Tax

Suspension of the Gas tax for the summer do little to help people at the pump. The Congressional budge office predicts that it would save maybe $30 per family over the summer. It would have a minimal if any effect on the price of goods (prices have been increasing because of transportation costs) because it is a short term tax break and would be so minimal for truckers. Yes, Obama was (possibly) incorrect that Hillary's plan to suspend the tax for the summer would increase Oil Company profits. However, that still does not mean it will decrease the costs of anything. Sure we won't be paying the gas tax, but oil companies, knowing a tax hit is coming to them would be sure to keep pre-tax prices high in order to retain their profits for their shareholders. Overall, such a short term fix woudl have little or no effect.

I propose a slightly different method. Suspend the diesel tax for a period of at least a year (with a rider that says it will be reinstated if the price drops below a certain set amount). This would have a significant effect on the costs of good becuase it would lower transportation costs and be in effect for long enough to actually affect prices. You could do the same for air plane fuel. The price of truck and airplane transportation has a much greater potential to cause serious harm to our economy than gasoline prices. The high gasoline prices are already causing people to buy new more fuel efficient cars replacing some of the higher fuel cost vehicles. However, if consumer prices continue to rise due to the diesel and airplane fuel costs than people will not even be able to afford more fuel efficient cars.

Something needs to be done, but a short term suspension of the gas tax is not the answer.