August 06th, 2008
August is here and the seemingly overabundance of recent news saturating television and print media over the last couple of weeks is enough to make anyone's head spin around several times and say "huh?"
Presidential candidates John McCain and Barrack Obama are sparing for the top seat in the country while speculation is high among voters and political pundits as to who each will choose for a running mate. The Democratic convention will take place in Denver, beginning August 28, with the Republican convention following shortly thereafter on September 1 in St. Paul.
Foreclosures across Arizona and the rest of the country are still making headlines. New foreclosures in Arizona, broken down by county, as of May 2008, totaled 6 in Apache County, 13 in Gila, 4 in Graham, 3 in La Paz, 1 in Greenlee, 9,965 in Maricopa (about 332 per day in the Valley), 1,099 in Pima, 900 in Pinal, 421 in Mohave, 274 for Yavapai, 136 in Yuma, 66 in Santa Cruz, 29 in Cochise, 25 in Coconino and 22 in Navajo county.
The Treasury department has bailed out (now there's a contradiction in terms since the Treasury department has no money - it should read "taxpayers bail out . . .") Fannie Mae and Freddie Mac. President Bush is throwing government support behind Fannie Mae and Freddie Mac with the signing of the Foreclosure Prevention Act of 2008 (H.R. 3221), which will give up to $300 billion in assistance to troubled homeowners. Over the next 18 months, under the new bill, the Treasury can offer Fannie and Freddie an unlimited line of credit and also has the authority to buy stock in the companies if necessary. The Federal Housing Administration will be overhauled and a new regulator for Freddie and Fannie will be established under the new law. Up to $300 billion in new 30-year fixed rate mortgages for at-risk borrowers in owner-occupied homes could be insured by FHA (Federal Housing Administration) if lenders agree to write down loan balances to 90% of the homes' current appraised value. Lenders would also have to agree to pay upfront fees to the FHA equal to 3% of a home's appraised value and borrowers must agree to pay an annual premium to the FHA equal to 1.5% of their new loan balance. They must also agree to share with the government any profit when they sell or refinance.
Consumer spending seems to have dropped dramatically in the wake of spiraling gas prices while oil companies are recording record profits. Combined sales of the top five oil companies totaled a whopping $1.5 trillion profit, which was higher that Canada's 2007 GDP of $1.2 trillion. Exxon shattered records for the latest quarter, recording $11.6 billion in profits, while Royal Dutch Shell reported net income of $7.9 billion. I have, however, noticed a drop in prices at the pump in Globe over the last week. Stations were pretty much all under $4.00 a gallon, with prices ranging from a low of $3.76 per gallon (I can't believe we're referring to $3.76 as low) to $3.85 a gallon.
And, if you're thinking about having a beer to drown all of your sorrows, Budweiser (the King of beers, according to their slogan), is no longer an American-owned company. Owner Anheuser- Busch was acquired in mid-July by Belgian brewer InBev SA for $52 billion. The new company, Anheuser-Busch InBev, will become the world's largest brewer and the fourth-largest consumer product company.
After reading all this news, I'm sure many would agree, "why bother reading any more print or turning on the TV?" Well in the midst of all these clouds, silver linings always appear. We still have family and friends, and if they fail to make you laugh, there's always humor (and if you don't believe me, turn to page 22) in the Arizona Free Press. If none of this works for you, you can always go jump in the lake (Roosevelt Lake is still at 94% full). That should cool off all that steam coming out of your brain. Until the next issue, take care. back...
Presidential candidates John McCain and Barrack Obama are sparing for the top seat in the country while speculation is high among voters and political pundits as to who each will choose for a running mate. The Democratic convention will take place in Denver, beginning August 28, with the Republican convention following shortly thereafter on September 1 in St. Paul.
Foreclosures across Arizona and the rest of the country are still making headlines. New foreclosures in Arizona, broken down by county, as of May 2008, totaled 6 in Apache County, 13 in Gila, 4 in Graham, 3 in La Paz, 1 in Greenlee, 9,965 in Maricopa (about 332 per day in the Valley), 1,099 in Pima, 900 in Pinal, 421 in Mohave, 274 for Yavapai, 136 in Yuma, 66 in Santa Cruz, 29 in Cochise, 25 in Coconino and 22 in Navajo county.
The Treasury department has bailed out (now there's a contradiction in terms since the Treasury department has no money - it should read "taxpayers bail out . . .") Fannie Mae and Freddie Mac. President Bush is throwing government support behind Fannie Mae and Freddie Mac with the signing of the Foreclosure Prevention Act of 2008 (H.R. 3221), which will give up to $300 billion in assistance to troubled homeowners. Over the next 18 months, under the new bill, the Treasury can offer Fannie and Freddie an unlimited line of credit and also has the authority to buy stock in the companies if necessary. The Federal Housing Administration will be overhauled and a new regulator for Freddie and Fannie will be established under the new law. Up to $300 billion in new 30-year fixed rate mortgages for at-risk borrowers in owner-occupied homes could be insured by FHA (Federal Housing Administration) if lenders agree to write down loan balances to 90% of the homes' current appraised value. Lenders would also have to agree to pay upfront fees to the FHA equal to 3% of a home's appraised value and borrowers must agree to pay an annual premium to the FHA equal to 1.5% of their new loan balance. They must also agree to share with the government any profit when they sell or refinance.
Consumer spending seems to have dropped dramatically in the wake of spiraling gas prices while oil companies are recording record profits. Combined sales of the top five oil companies totaled a whopping $1.5 trillion profit, which was higher that Canada's 2007 GDP of $1.2 trillion. Exxon shattered records for the latest quarter, recording $11.6 billion in profits, while Royal Dutch Shell reported net income of $7.9 billion. I have, however, noticed a drop in prices at the pump in Globe over the last week. Stations were pretty much all under $4.00 a gallon, with prices ranging from a low of $3.76 per gallon (I can't believe we're referring to $3.76 as low) to $3.85 a gallon.
And, if you're thinking about having a beer to drown all of your sorrows, Budweiser (the King of beers, according to their slogan), is no longer an American-owned company. Owner Anheuser- Busch was acquired in mid-July by Belgian brewer InBev SA for $52 billion. The new company, Anheuser-Busch InBev, will become the world's largest brewer and the fourth-largest consumer product company.
After reading all this news, I'm sure many would agree, "why bother reading any more print or turning on the TV?" Well in the midst of all these clouds, silver linings always appear. We still have family and friends, and if they fail to make you laugh, there's always humor (and if you don't believe me, turn to page 22) in the Arizona Free Press. If none of this works for you, you can always go jump in the lake (Roosevelt Lake is still at 94% full). That should cool off all that steam coming out of your brain. Until the next issue, take care. back...
