Wednesday , January 22 2020
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Tag Archives: Personal finance

Real Estate Investing: Amazon’s Regional Office in Arlington, Virginia

Amazon announced they are opening major new offices in Arlington, Virginia and New York City. Each site will hold 25,000 new Amazon employees at an average salary above $150,000. Getting to that level with take many years, next year under 1,000 employees will be at each site. I lived in Arlington for many years and own rental property there. The Amazon decision is likely to catalyze a much more rapid ascent of the technology sector in the DC area. The DC area has a strong...

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Only 28% Of Americans Are “Financially Healthy” During The Largest Wealth Bubble

MarketWatch published a piece today called “Here is the ‘true state’ of Americans’ financial lives,” which stated that 42% of Americans have no retirement savings at all and that only 28% of Americans are considered “financially healthy”: The finances of Americans may not be as good as they look from the outside. Despite optimistic metrics like a nine-year-long bullish, if volatile, stock market, low unemployment levels, and consumer confidence levels nearing record highs, millions of...

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Improvements to Credit Collection Requirements Have Had an Positive Impact

Abuse of the credit system by 3rd party collection agencies (and credit reporting agencies) in the USA has been a long term problem. An attempt to partially address some of the abuses was a change in the required reporting practices that impacted collections accounts specifically, known as the National Consumer Assistance Plan (NCAP), which rolled into effect during the second half of 2017. The plan has many components, including: (1) a requirement for more frequent, detailed, and...

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USA Household Debt Jumps to Record $13.15 Trillion

The Federal Reserve Bank of New York’s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit, which reported that total household debt increased by $193 billion (1.5%) to $13.15 trillion in the fourth quarter of 2017. This report marks the fifth consecutive year of positive annual household debt growth. There were increases in mortgage, student, auto, and credit card debt (increasing by 1.6%, 1.5%, 0.7% and 3.2% respectively) and another modest...

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“Explaining” Random Variation

Apple analysts are of no value to investors When I was a reporter covering Cisco Systems Inc. in the late 1990s, it was my job to talk to several analysts a day to find out the latest bit of news that might move the networking company’s share price. If the stock moved more than 2% on any uptick in volume, I had to write a story explaining why. After dealing with that every day for about three years, I realized the overwhelming majority of analysts had no better clue than I did about...

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Here Is The Full Text Of The Final Republican Tax Bill

Update: in addition to the previously leaked highlights (see below), Republicans on Friday evening released the final version of their legislation to slash tax rates for corporations and individuals. The 1,097 page document, containing the bill and an explanatory statement, was crafted by the House-Senate conference committee. The bill is expected to come up for votes in Congress next week. Read the bill below, courtesy of The Hill: The "shorter" - only 570 page long - explanatory...

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This Michigan Bank Just Brought Back The Zero-Down Mortgage; They’ll Even Cover Your Closing Costs

A small savings bank in Michigan, Flagstar Bank, has come up with a genius, innovative new mortgage product that they believe is going to be great for their investors and low-income housing buyers: the "zero-down mortgage."  What's better, Flagstar is even offering to pay the closing costs of their low-income future mortgage debtors.  Here's more from HousingWire: Under the program, Flagstar will gift the required 3% down payment to the borrower, plus up to $3,500 to be used...

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Yale’s Endowment CIO Has Some Really Bad News For Public Pensions…

Public pensions all around the country like to play a clever little game that allows them to drastically understate the current value of their future liabilities and therefore pretend that their ponzi schemes are something other than insolvent frauds.  Of course, we're talking about the artificially high discount rates that pension boards consistently use to understate their net underfunding levels...a topic that we've written about frequently over the years. Alas, at least in the...

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Senate GOP Unveils Tax Proposal: Here Are The Main Highlights

Confirming the leaks that occurred in the last hours, Senate Republicans just released their proposal for the tax bill and it is notably different from the House bill. Here are the most notable highlights (more details below): 20% permanent corporate tax cut delayed by 1 year Complies with the $1.5 trillion cost (will cost $1.44 trillion) Preserves 7 tax brackets: top tax bracket is 38.5%, down from 39.6% Doubles standard deduction from $12,700 to $24,000 (married couples) Ends state and...

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Lending Club Crashes Near Record Lows After Slashing Guidance

Despite record high stocks, record high consumer confidence, and 'full' employment, LendingClub is struggling to originate high-enough quality loans - crashing almost 20% after slashing its Q4 outlook. CEO Scott Sanborn on LendingClub’s conference call pointed to a new credit model that represents "a tightening with an overall shift to higher-quality grades and higher quality approvals within grades," and said Equifax’s significant data breach...

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