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Archive for the ‘…On Money, Business and the Markets’ Category

Check out my latest newsletter! Featured Article: Is House Price Appreciation Dead? Many are wondering if the recent nationwide uptick in house prices is only temporary. After all, isn’t the myth of house price appreciation dead?  Here is an interesting concept that may shed some light on the situation… >>Read More!

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Check out my latest newsletter! Featured Article: Ballad of the Creative Down Payment Jack and Jill Went up the hill Their first home to buy. Smiling bright, In the sunlight, Anticipation in their eye… >>Read More!

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Check out my latest newsletter! Articles include: How to Save Over $30,000 on Your Home Purchase Most home buyers today are looking for a great deal.  What if there was a unique way to save tens of thousands of dollars on your home purchase WITHOUT asking the seller for a huge reduction in price? Kids [...]

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Check out my latest newsletter! Articles include: Two Reasons Why House Prices Will Go Up There are two major reasons why house prices are likely to go up over the next few years. Are you aware of these issues and are you prepared to participate in the market recovery? Financially Intelligent Children Begins With Financially [...]

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Check out my latest newsletter! Articles include: Why the First Time Home Buyer Credit Matters to YOU Are you or someone you know thinking of buying your first home? Here is an easy-to-understand explanation of the first-time home buyer tax credit along with great financing strategies to go along with it! Is Housing Still Over-Valued? [...]

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Okay fine. It’s getting old already. All the negativity in the market, that is. Who wants to make a bet that this is NOT the worst economic crisis since the days of the Great Depression? Deal? I’m in! The US Unemployment Rate is soon to be over 7% when the numbers come out later this [...]

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Many thanks to those of you who have commented on my two previous posts! The main concern that some of you have expressed is that I am calculating the US debt ratio using our total national economic output (GDP) as opposed to looking at the actual tax dollars received by the government. This is quite normal when discussing the economics and debt ratios of sovereign governments like the United States. Here’s why:

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We just established that the US has a debt ratio of approx. 48% – 84% (48% if you are optimistic, and 84% if you think home values in the United States are going to $0). How does this 48% – 84% debt ratio compare with other countries in the world?

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As part of the latest stimulus package, the Congress is set to authorize an expansion of the total US debt burden to a whopping $12.14 TRILLION! This staggering number includes all the provisions of the latest $789.5 billion economic stimulus plan, as well as other potential government liabilities that were part of last year’s $700 billion bailout package and the conservatorship of government sponsored mortgage giants Fannie Mae and Freddie Mac. So, the multi-trillion dollar question is: How much debt is too much?

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