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Do I have to get a $620.000 loan to purchase an average (medium) priced home in San Diego County. Low interest rates (mainly pushed by Bush to get the eco nomy rolling again: low interest rates means affordable loans for businesses).

Significant amount of loans are short term or flexible with very low rates. All these homeowners might be happy to stay in their current place as a realistic interest rate for a family with average credit is around 7% (March 2006). Which means 40% less to spend with a new loan compared to a 5% loan.

What might this mean:

Based on these low interest rates, 2 income families spend often 50% of their income on cost for their house. Moving means a new loan, which means they do not move as the bank start saying NO now.

Equit/ Investment?? Yes/ No : More NO, is it likely that a house priced on the top of a high conjuncture will keep on increasing or more likey after 7 years of above average increase it might be 0% increase or less. 0% increase means losing money.

Losing money: Beside all the write off/ tax advantages you still pay 50% - 90% more a month then renting. This is not investing but money out the pocket moire than renting. ONLY with significant increases in house prices, owning a home is great (or buying  in a low conjuncture: but that might take aniother 12 years).

Anyway: common sense, math skills of a 14 year old is all you need.

Halliburton stock soard after 9-11 but since went up 800% (approx $10 to $80), The war did them pretty well, also Katrina might have had positive impact on the stock.

Do we want a vice - president owning stock in a company were he was involved with.

Most countries have very strict rules for the president and ministers. No involvement with any companies…

A president/ vice-president should be a very hard working job which shoud only pay reasonable and does not allow “extras” and stock/ involvement in comapnies….

Economic growth?

The US econmy is still growing? But what really grows. The GDP was in 2005 (estimated)

3.5% (compared with 2004). Tasking in account the GDP growth in 2001- 2004 also 1-4% average a year (source: www.bea.gov): has the average American 10% more to spend. What does economic growth mean. When “we” spend 120,000,000,000 a year in Iraq and Haliburton makes 4+ billion with contracts, does that mean GDP/ economic growth.

Yes/No is the answer. In my opinion, technically it does. Is this a good meassure of economic growth? I do not think so.

Economic growth has been good for Haliburton, Militairy Services/ goods provider, Companies related to George Bush “helping” Katrina (for 700% of the market price).

 Is there Economic Growth for me, paying double the price for the same home, significant higher gas prices, less jobs, lower wages/ equal wages.

No, zero growth for the normal guy. Not even taking in account the level of the quality of life.

Shoes of at the airport, there is no money for infrastructure, there is no money for pensions….

They have done this by a combination of historic low interest rates, rates only seen before in times of war or depression, and by stimulating the economy by record budget deficit spending, issuing government bonds to finance it. The world has been flooded with cheap dollars as a result.

Since 1975, practically all the gains in household income have gone to the top 20% of households.
Source: http://www.cia.gov/cia/publications/factbook/geos/us.html 2005

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