A new year is upon us and everyone is reflecting on the past or planning for the future. I’ve done well in 2009, but there are more things I want to accomplish in 2010. For example:
1. Financials: As always, I will pay myself first before I distribute one red cent to anyone. In order of priority: 401k ($16,500), IRA ($5,000) BabyGirl’s college fund ($2,000), investments ($12,000), regular savings ($12,000), and remaining debt free – these are my basic financial goals. I divide each goal by 26, the number of paychecks in a year. Then I set up an allotment through payroll and authorize them to send a specific amount to each account automatically. The money never touches my hands. Barring any major life emergencies, it creates a fool proof way to reach my financial goals by the end of the year.
2. Vacation: We are definitely going to Europe in 2010 – Paris and London to be exact. We’ll spend 3-4 days in each city and my budget is $5K-$7k. I was hoping to travel in July as a graduation gift to BabyGirl, but depending on which school we choose, she may have to attend an 8 week summer session. For now, our travel plans are pending college decisions.
3. Decide What’s
There are some really exciting listing being added to our selection of Algarve Properties, with some really contemporary looking houses in amazing locations close to the Atlantic Ocean. Throughout the selection we are currently listing there are also some interesting plots with pre-approved plans that will enable prospective owners to embark on the construction of their new Portuguese residence almost immediately. There are some exciting things happening within this area currently that are bringing the spotlight to this region.
There has recently been a motorspot circuit constructed in Portimao that is starting to stage some serious events, the Formula One organisation is seeing some constructors using the track for testing and there are actual super bike competitions being held there. The Radisson hotel group is doing something interesting, by allowing individual investors to actually buy rooms within their new hotel, giving them a guaranteed yield and return based on occupancy levels.
Public opinion may have won out this week, as large financial corporations that have been bailed out by TARP shy away from awarding large end-of-year bonuses to their employees this year. Goldman Sachs announced today that 30 of its top executives will receive no year-end bonuses, but instead will be given stock options which cannot be sold for at least five years.
Recognition of Taxpayer Assistance
According to an December 9th interview with Goldman Sachs boardmember William George, the move was in part done to ameliorate some of the anger directed at the company, and to “moderate things and to recognize that Goldman and every other firm benefited from the actions of the Federal Reserve Board and the Treasury Department.” However, other experts have cautioned that restrictions on salaries and bonuses such as those enforced by the pay czar could simply cause the top talent to leave, perhaps even seeking employment overseas if the limits become a federal law.
A Bloomberg National Poll stated that while financial institutions may be recovering, their standing in the eyes of the public is not. Wit
Public Trustee filings for 2009 Foreclosures in Denver remain on a par with 2008. Information released from the Public Trustee’s office showed 480 filings for the month October 2009, with a projection that total filings in Denver County will approximate 2008’s total filings of 6,145. The 2008 total was some 2,100 les filings than the peak of 2007, when the total filings exceeded 8,200.
It is difficult to compare the foreclosure filings resulting from the current economic crises with the economic crises beginning in 1986. The foreclosure crises that accompanied the economic troubles of the latter half of the 1980’s decade was dictated both by creative mortgage loans and a severe job loss, much as we have seen in the latter half of the current decade. There is one major difference that creates a statistical anomaly, in that many of the foreclosures filings since 2003 have involved 2 filings per household. Many homes purchased since the latter half of the 1990’s were done so with a combination loan involving an 80% loan to value (LTV) first mortgage, and a second mortgage with an LTV varying from 5% to 20%. In almost all cases where there is a default on the first, there is a similar default on the second mortgage, resulting in the 2 filings per household phenomenon.
Many observers of the housing market predict that Denver foreclosures could continue at a strong pace for the next few years. This observer’s view is that predictions are very difficult with the overall market in such upheaval. Increasing employment in the Denver area, the effect of so-called “short sales”, and the various loan modification programs make predicating the near term foreclosures market difficult indeed.
Federal Reserve Chairman Ben Bernanke’s speech to the Economic Club of Washington revealed his concerns over a possibly slow rate of economic recovery. He expects ‘formidable headwinds,’ which will include the high unemployment rate, hard-to-get credit, and cautious consumer spending.
Ben S. Bernanke
The Fed chief predicts that “we will continue to see modest economic growth next year,” which will increase the rate that the job market improves – “but at a pace slower than we would like”. Currently, the U.S. unemployment rate is 10% but that number is predicted to decline in the second half of next year as the economy stabilizes.
The ubiquitous concern of the future of the economy has been the effect of inflation. The Federal Reserve has used super-low rates to suppress deflationary threats that, in turn, helped keep the U.S. markets from collapsing. Bernanke expects