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Sports
High School Football
11-07-09 - Hoosac Valley beats Drury.
More photo's on Monday |
 | Thursday, Nov. 06
Boys' Soccer: State Vocational Championship Game
McCann Tech 3, Keefe Tech 2
Girls' Soccer: State Vocational Championship Game
Blackstone Valley 8, McCann Tech 0 |
Election
Trying to remember who won what and why? All the information is right here. |
Daily Digest
This is Jake
He's been lost in Pittsfield for weeks but frequently sited. He was last seen heading toward the fire station on Peck's Road. He's tired, dirty and needs seizure medication. He's chipped. If you see him, call Julie at 413-537-5616, the vet 24/7 at 413-499-2820 or animal control at 413-448-9700. |
What's Playing
The popular anime character "Astro Boy" searches for acceptance on the big screen.
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ObituariesSales FliersBazaarsNov. 7:
VNA & Hospice, Community Room, North Adams
North Adams Elks
10-4; Nov. 8, 9-2
Crafters, Chinese auction, bake sale
For vendor information, Melanie at 413-743-5562.
Nov. 14
Berkshire Community Church, Richmond
10-4; Crafters, bake sale. Contact Evelyn Goggia at 413-445-5747
Lanesborough Elementary School annual Fall Craft Fair from 10 to 4. Free admission, huge variety of arts and crafts, raffles, food and more. Proceeds go to sixth-grade trip to Cape Cod.
Vendors can contact Deb at 413-738-5349 or debhutton@aol.com or Lori at 413-499-0065 or lorittod@yahoo.com to secure a spot.
Dec. 12-13
North Adams Country Club, crafts 9-4; food from That's a Wrap from 11-2. Contact Sheryl Morehouse at 413-822-3329.
Planning a bazaar this season? Submit information to info@iberkshires.com to have it listed here. |
Related Stories |
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Independent Investor: Treasury Floats a Mortgage Trial BalloonBy Bill Schmick
iBerkshires Columnist
07:54PM / Thursday, December 04, 2008
 | | Bill Schmick |
Wednesday night, the U.S. Treasury Department leaked the rough details of a plan designed to boost home sales. The scheme would use the weight of government-owned mortgage giants Fannie Mae and Freddie Mac to "encourage" banks to lend money a full point below existing 30-year, fixed-rate mortgages. OK, I admit, that got my attention.
No, it isn't a total solution to the housing mess since it does nothing to solve the foreclosure problem, which continues to worsen. Nor does it allow homeowners struggling with high adjustable-rate payments to refinance at the lower rate. What it could do however is allow as many as 2.5 million Americans to make a hefty dent in the growing inventory of unsold homes.
To me, the plan would make more sense if they permit re-financings. Otherwise, we would end up with a two-tier interest rate scheme: one rate for new buyers and a higher rate for everyone else. If history is any guide, it would take less than a nano-second before some enterprising mortgage company figures a way to arbitrage the two rates while circumventing the intent of the plan.
Some critics rightfully argue that it would help those least in need of a bail-out. It would allow the wealthy or those with jobs with financial assets to buy up real estate at bargain basement prices with the lowest interest rate in 50 years.
True enough but riddle me this, dear reader: how else are we going to get those buyers sitting on the fence to actually plunk money down on a home? Prices have already dropped 20 to 30 percent and still the inventory of houses for sale continues to rise. Without an incentive will housing prices have to fall by 20 percent, 40 percent or even more?
There will also be a salutatory ripple effect on overall mortgage rates as well as home equity loans. As more and more houses are sold at the lower rate, I believe it will pressure other lenders to lower their rates in order to attract some of that new business. That would benefit those most in need.
Take my situation for example. Fortunately, I'm one of those writers who follow my own advice. Over the last few years, I've managed to pay down debt. At the same time my wife lost her job this summer and prospects for employment seem dismal. I vacillate between wanting to buy a home closer to work and enjoying my debt-free security. I've been looking and waiting for home prices to decline further. If this 4.5 percent fixed-rate plan actually happens, I would be sorely tempted to take the plunge.
Detractors of the plan argue that the last thing the country needs right now is for another couple million of us to go into debt. Since hundreds of thousands of workers are projected to lose their jobs next year, saddling oneself with a 30-year mortgage could be financial suicide. Others say that lowering interest rates is what created the housing bubble in the first place and this plan is simply an attempt to revive that process.
Clearly, it would do nothing for those who are unemployed or shortly will be losing their jobs. Banks lend or re-finance on the customer's ability to re-pay not on what collateral the borrower can put up. Recent forecasts point to a doubling of this year's 2.25 million foreclosures by the end of 2009 because of job losses and the recession. The government has already begun to address those issues through a variety or programs.
However, Federal Reserve Chairman Ben Bernanke told Congress on Thursday that "more needed to be done" to stem foreclosures in the country. He outlined several new avenues lawmakers should consider. No doubt, the new administration will do just that. And yes, it would be nice if someone could come up with one simple solution for the myriad of problems that seem to pop on a daily basis in this economic maelstrom.
But wishing gets us no where. This plan actually addresses part of the demand side of this housing problem and because it does it deserves our attention.
Bill Schmick is a licensed investment adviser representative and portfolio strategist as well as a registered financial planner with Berkshire-based Dion Money Management, which manages more than $500 million for middle-class Americans from coast to coast. Direct your inquires to Bill at 1-877-850-7942, Ext. 146, (toll-free) or e-mail him at wschmick@dionmm.com. You can also visit www.afewdollarsmore.com for more of Bill's insight. |
| Great article. You are a great American. We appreciate your insight and look forward to you and your wife buying a home at great bargain price in the Berkshires at a 4 and a half interst rate. | | from: Ben and Hank | on: 12-05-2008 |
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