Kelly Ellis Notes
Novembver 15, 2011
So, we hear today that reserves at the FHA (Federal Housing Authority) have fallen so low that there is a 50% chance that they will need some sort of tax-payer funded bailout in the next year. The low reserve number is reflective of the rising home-loan defaults amid falling home prices, which together generate greater losses on the sale of foreclosed homes. This comes at a time when the volume of FHA loans has increased during the last 4 years, as other lenders have backed out of the mortgage market. So, the FHA steps in to fund those that need the most help. Unfortunately, mortgage deliquencies remain high for FHA loans. Around 630k loans backed by the FHA were three or more months past due on their mortgages at the end of September. And, the Wall Street Journal Reports, when they need a bailout, they just go directly to the Treasury Department, and don’t have to be congressional approval.
On Monday, Italy was forced to offer investors a euro-era record interest rate to place five-year government bonds, highlighting doubts over the new government’s ability to rein in Rome’s large debt load.
Hungary’s currency traded near record lows against the euro Monday as fears mounted that the country’s sovereign debt rating could be downgraded to junk-bond status because of slowing growth and the government’s unorthodox economic policies.
Europe’s fragile economy showed deepening distress as industrial production dropped across the euro-zone, dimming hopes that the Europeon debt crisis will be resolved any time soon. Germany’s Prime Minister Merkel said that Europe is in its “most difficult hours since World War II.”
It seems like the economy is taking a dramatic turn toward the value and use of technology to solve business problems, to grow markets, the make life easier, to handle more routine tasks, etc. Adoption of the use of technooogy is easy for those under 40, as they have mostly grown up comfortable with technology and staying up with trends, new services, and can easily fit it all together. For those over 45, it is getting harder and harder to stay ahead, to keep up, to adapt, and move toward technology in every aspect of your life. Either you get it or you don’t, and its very hard to get it when you have never been trained, don’t know how it all fits together, etc. You get news about things such as Twitter, HootSuite, Facebook, Url’s, Androids, Tablets, etc., and may know the basics, but you don’t know the true value that the younger generation does. For the older set, it’s a nice to have. For the younger set, that’s the new way to communicate and it’s cooler, more normal. That’s just the way it is. And I guess these things happen to every generation (radio, tv, cars, stereos, walkmans, etc.). To me, the difference is that the older generation is just being left out, left behind, to fend for themselves, because there is no sense at that age in learning all there is to learn about technology, it’s too late.
Example: Watching TV: older set, turn on tv or check out the tv guide to see what is on, watch it, deal with the commercials, etc.
Younger Set: Watch what you want when you want, either by buying it, subscribiing to it. You direct your time, not the TV.
Music: Older Set: You listen to the radio, whatever is on, you listen to.
Younger set: You listen to what you want, when you want.
Movies: Only reason to go to the theater is to get away, to hide in the dark, and for the experience. However, this is quickly being replaced by Home Theater Systems almost being a standard home feature.
Job market: If you don’t have tech skills, good luck. Work in Business Services, Grocery Store, Accounting, Law, Financial Services, etc.
Article in WSJ today - Wanted: Chief: E-commerce. That is the job that even in today’s tough economy, there is no limit to what you can make, if you have the right education and training. Article is about Retail chains hunting for On-line Guru’s, because brick and mortar stores are going away, more business will be on-line, in all markets, all product types.
Gaming is in even bigger demand, as gaming companies can’t find enough quality talent. (zynga).
Real Estate: Investors have poured more than $6 billion into publicly traded funds of US real estate investment trusts, or REITS, which mostly buy commercial properties. That is up 18% from all of 2010 and up 400% from 2009. Reason: the income they are producing is around 7% including dividends.
Coach K goes for win 903 tonight, would eclipse his mentor Bobby Knight, to become the all-time Division I NCAA Men’s basketball winning record. Duke plays against Michigan State at New York’s Madison Square Garden.