Mortgage Interest Rates: Up Up And Away
Up up and away. Mortgage interest rates continue on their upward trajectory. 30 Year mortgage rates went from 6.32 to 6.42. 15 year notes rose from 5.93 to 6.02 and 5 year arms rose almost 20 basis point going from 5.7 to 5.89. 1 Year arms rose this week from 5.09 to 5.19. But unlike the other mortgage products (which are higher) 1 Year Arms remain about where they were a month ago. As we have talked about for the last several months since the FED is no longer cutting rates we can expected rates to rise throughout the summer. The only question is when they will stop rising and start stabilizing. Below is the rates for the last month.
June 19,2008
30-yr 6.42 15-yr 6.02 5-yr ARM 5.89 1-yr ARM 5.19
June 12,2008
30-yr 6.32 15-yr 5.93 5-yr ARM 5.70 1-yr ARM 5.09
June 5,2008
30-yr 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5.06
May 29,2008
30-yr 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22
May 22,2008
30-yr 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24
May 15, 2008
30-yr 6.01 15-yr 5.60 5-yr ARM 5.57 1-yr ARM 5.18
Using our free mortgage calculator lets see how the increasing rates have changed the payment on a 200k loan.
June 19th
30-yr $1253.63
15-yr $1689.87
5-yr ARM $1184.99
1-yr ARM $1096.98
May 15th
30-yr $1196.53
15-yr $1639.47
5-yr ARM $1149.41
1-yr ARM $1103.16
Mortgage payments on most of the mortgage products went up quite a bit over the last month. Looking at a 30 year note the mortgage on a 200k loan has increased $57.10 or about 4.8 percent in a little over a month. In fact the only mortgage product to fall is the 1 Year Arm ($6.18 or about 0.5 percent). Why banks would want to push ARM which is the very loan product that caused all the problems in the first place is anyones guess. Although I typically avoid ARMs the cost savings on a 1 or 5 Year ARM is hard to ignore. That said I would only look at ARMs if you think their is a reasonable chance you will sell your property in that time frame. The general expectation is that rates should be higher and not lower in a few years.
So the question remains where are rates going to be in the next month. While I was fairly confident that rates would rise this month I am not as sure what will happen in a month. If the FED continues to avoid anymore rate cuts I would expect to see mortgage rates at about the same level or higher. Banks have been dealing with massive losses from foolish bets on subprime loans and are looking to make up for these losses through higher mortgage rates.
Another change occuring with loans is a limit on the number of investment properties an individual can recieve a loan on. It looks like most banks are limiting the number of investment property loans per individual to 4. This should obviously have a negative effect on investment properties. I also expect to see more cash offers from investors looking to pick up properties at currently depressed prices.
Personally I think this rule is a little bit foolish. I would make more sense to limit loans based on some networth to total loan amount ratio. For instance if someone has 2 million in the bank it seems reasonable to allow them to buy 5 duplexes for 180k. But if the banks were well run they probably would not be swimming in subprime debt right now.
Ki is real estate agent in Austin Texas. He runs a website covering the ins and out of Austin real estate along with providing a free search of the free mortgage calculator and information on mortgage interest rates.
What Happens to America With Expensive Energy?
What happens to an America built on cheap energy when energy is no longer cheap? It’s a question that most Americans do not want to confront. Especially the slick talking politicians.
The fact is that most of the way America was built depends upon cheap energy supplies. The love for the automobile, the vast suburbs that surround America’s majors cities, the neglect of a high speed railway system, huge suburban shopping malls and office parks, American agriculture with its dependence upon fertilizers, pesticides, and massive diesel fuel driven combines and tractors, the aviation industry, and the trucking industry, all were constructed on the back of cheap energy.
Now that energy is not cheap what will happen to the American lifestyle? Optimists look towards the development of alternative energy sources. Some of these possible aids to the energy crisis will be helpful, such as solar and wind power, and some will be counterproductive, like ethanol production using corn as the energy source.
However, in time the optimists will learn that we are nowhere near to replacing a significant percentage of our total energy needs with alternative energy sources. Time is already up. We are going to have an energy shortfall and the energy that we do have will be very expensive.
We live in a world designed for cheap energy inputs and energy is no longer cheap. We are already transferring hundreds of billions of Dollars a year to oil producing nations with no end in sight. America is going broke.
American citizens will be feeling the pain of this fact for a long time to come, perhaps from now on as the American standard of living drops as expensive energy pricing takes its toll. It is hard to imagine the many changes that will be taking place in the way Americans live.
Unfortunately, your imagination will not have to be active for very long. The unpleasant changes that are coming will happen will stunning speed. Food shortages and the collapse of the America trucking and air transportation industries may occur by the end of 2008. The next American president will likely began his term with a full blown crisis on his hands.
The end of a lifestyle based upon cheap energy resources is likely over. The adjustment to a lifestyle of serious energy conversation and reduced expectations will not be easy. American leadership has been weak for a long time. Leadership will be severely tested in the near future as will the strength of the American people.
I’m confident that America and Americans will survive and adapt but it is impossible to predict the shape of the coming transformation of America as it adjusts to a world of expensive energy and decreasing resources.
However, one thing is very clear. The sooner that America comes out of denial and addresses the energy problem in a realistic way the better off we will be.
Gerald “Taipan” Greene is a retired forex trader and portfolio manager who worked in Asia for over 20 years. He now writes for a number of financial, political, and Internet business related blogs. One of them is at Article Discovery News Analysis
Austin Hipness Moves South
For decades, bumper stickers have adorned cars all over central Austin, proudly proclaiming “78704 More Than just a Zip Code.” The South Austin lifestyle originated there, but as Austin real estate prices rose, and fancy restaurants and shops re-energized South Congress, a migration of hip-ness began. Now, a new bumper sticker is gaining in popularity, reading “78745 the new 78704.”
This is the perfect area for a young couple to start off. The area is roughly bordered by Westgate Blvd. to the west, Ben White to the north, Slaughter to the south, and Congress to the east, and has the feel of an established, homey neighborhood. Mature trees, fabulous mid-century ranch houses, great starter properties, winding streets with charming names like Jinx and Redd, and a casual but upwardly mobile vibe are hallmarks of the area.
The commercial center of the region is the Westgate Center, on Ben White, featuring the foodie mecca, Central Market. A wonderful store that highlights organics and international foods, Central Market also has a great cafe that features live music four days a week. For takeaway, they have, a Chef’s case and salad bar, as well as prepared full-meals for two or four, sushi, sandwiches, and a soup bar. Their cooking school offers classes on topics such as grilling, dim sum, tapas, and many other creative subjects. They recently added a wine bar to emphasize their world-class wine section, and their on-site bakery is one of the few places in South Austin to get fresh, organic breads. Also located in the shopping center are Whole Earth Access, Beall’s, Yoga Yoga, and the Westgate 11 Cinema, as well as many other boutiques and cafes.
Garrison Park is a large, well-appointed park smack dab in the middle of “the four-five.” Their playground has two playscapes one geared towards toddlers, and one towards older kids, and they have swings for all sizes as well. With a toddler/wading pool in addition to a full size recreation and lap swimming pool, this is a popular destination in the summer. They have grill grates, picnic tables, a basketball court, and a decent sized parking lot, making this one of the cities finer parks.
While the quiet tree lined streets and bucolic feel are a big plus, one of the most attractive qualities of the 78745 neighborhood is its proximity to central Austin. Manchaca leads right to Lamar, with South First and South Congress being the other two main north/south arteries that lead straight to the heart of Austin’s business center, and to the other vibrant neighborhood shops and restaurants. Ben White hooks right into Mopac and Loop 360, and I 35 is just a stone’s throw.
This neighborhood has all the qualities that make Austin such a cool place to live. With a great range of housing options and prices, a settled, mature neighborhood feel, and a great array of businesses and restaurants in close proximity, this is an up-and-coming area waiting to be discovered.
Escapeso Austin Texas real estate is a realty company in Austin. They provide web visitors a map search for Austin Homes along with updates on their blog about Austin real estate.
Consumers Reported To Be Feeling The Heat From Rising Energy Costs
With Britons continuing to struggle with money, it is important that they take steps to ensure the heat on their financial situation is not turned up even further.
Such is the claim of uSwitch, which reports that despite a series of price increases occurring earlier in 2008, consumers should prepare themselves for at least one more round of hikes in the cost of gas and electricity. According to the price comparison firm, experts believe that the cost of energy bills are set to surge by up to 40 per cent over the remainder of this year. Such a move would see the typical household bill stand at 1,467 pounds by this winter, a rise of 61 per cent from the 912 pounds which was noted at the start of the year.
Following on from rising utility bill costs it may also be possible that consumers encounter problems in managing other areas of monetary demand. These areas may well include personal loans, transport expenses, store cards and groceries.
In addition, it was asserted that should rises of this magnitude take place then some 1.6 million Britons would be plunged into a state of fuel poverty, causing the total of such consumers reported to be struggling with utility bills to stand at 6.1 million. The projected increase in utility costs was partially attributed to rises in wholesale gas, in addition to a lack of storage capacity for energy within British shores.
Ann Robinson, director of consumer policy at uSwitch, said: “The days of cheap energy are over. Households could see the largest ever increase in household energy bills this year. If suppliers do increase bills by a further 40 per cent by this winter then consumers will have seen a 61 per cent or 555 pounds increase in household energy bills in a year. If average energy bills do hit 1,467 pounds by the end of 2008, spending on energy will account for five per cent of the average household’s net income. This is going to cause huge financial pressure and consumers will naturally expect their salaries to increase to help them meet the spiralling costs of living and working in Britain.”
She went on to report that as the financial outlook is “grim” it is important for consumers to be proactive in negating the impact that prospectively higher household bills will have on their finances. Ms Robinson reported that although online and capped tariffs can be of assistance, those wishing to take advantage of such deals will have to act quickly as availability begins to diminish.
The news comes as Britons are shown to be increasingly struggling with overall demands on their finances. Although uSwitch pointed out that net salaries have increased by an average of 44 pounds per month this year, expenditure on necessary monetary demands - energy, food, mortgage repayments and fuel - has gone up by 148 pounds.
For consumers concerned about how they will manage their money in the face of rising energy costs and a slowing in wage growth, applying for a debt consolidation loan might be recommended. In getting such a loan, borrowers may be able to merge numerous constraints on their spending into a single low-cost monthly repayment. This may be of particular assistance after a recent moneysupermarket study revealed two-thirds of Britons claim to be “very concerned” about their ability to manage money should the cost of energy continue to rise.
Mark Dawson writes for the Loan Arrangers. Where visitors can compare cheap loans online, and apply for debt consolidation loans. To read more articles from Mark go to http://news.loan-arrangers.co.uk
Mismanaged American Economy at Great Risk
Bankers, who benefit from the American fractional reserve banking system, never criticize the Fed, especially since it is the lender of last resort that bails out financial institutions when crises arise.
This year the Fed even extended its bailout provisions to Wall Street brokerage firms, like Bear Sterns, but the Fed’s aggressive actions in trying to avoid a recession may well make matters only worse. The mismanagement of the spend, spend, spend federal government and the unofficial US policy over many years of letting the US Dollar lose value has unleashed inflationary forces that Ben Bernanke is going to find exceedingly difficult to control.
Unleashing a flood of additional liquidity when excessive debt is already a major part of the problem will surely backfire on the Fed chairman and tragically on the American people.
It is true that special interests and bankers do benefit from the Fed, and may well get bailed out, just as we saw with the Long Term Capital Management fund crisis a few years ago. Bankers own the earth; take it away from them but leave them with the power to create credit, and, with a flick of the pen, they will create enough money to buy it all back again. Take this power away from them and most great fortunes would soon disappear.
The present economic analysis is grim. Until very recently it appeared that the leaders of the world’s major central banks, Fed, ECB, Bank of Japan, all seemed comfortable with a further decline in the dollar. Unlike previous dollar decline periods, the Bank of Japan shows little interest in propping up the dollar, and the ECB, despite signs of moderating growth in Europe, is not sending monetary easing signals. In fact the ECB is more likely to tighten up money supply in Europe as they seem more determined to seriously fight inflation.
The problem now is that inflation is surging worldwide as the Dollar’s fall and the Fed’s efforts to prop up the US economy by allowing even more Dollars to be created is feeding inflation in commodity prices. The years of US policies that have lead to a weak US Dollar have lead to the creation of a very dangerous bubble in commodity prices, including food, that is destabilizing the world’s economy.
Even the Chinese, at the most recent WTO meeting, openly criticized the US for pursuing unwise policies that have helped to increase the cost of oil and all energy prices, which in turn are adding to the input costs of producing food and many other items. The Chinese hold some 1.5 Billion in US treasuries so the US government had better learn to listen and to take some action on their concerns. It is not wise at all to disregard your banker’s warnings.
Economist Kenneth Rogoff suggests that the US deficit will see a sudden reduction as US imports slow and that the US will experience a major fall in the value of the dollar. Growth in the US economy is slowing down and employment rates are falling. Economically speaking, in order for an empire to initiate and conduct a war, the benefits must outweigh its military and social costs.
The benefits to America from Iraqi oil fields are never going to be worth the long-term, multi-year military cost as insurgent activity will prevent much of the oil from reaching the US market. When you factor the cost of the war effort into Iraqi oil prices the true cost is probably over $1000 a barrel.
Under the Bush administration America is now viewed as unfriendly to foreign investors. Certain provisions of the Patriot Act and the Sarbanes-Oxley Act produce excessive and costly paperwork and unnecessary privacy intrusions. With the passage of these acts America became less strong and less competitive. America is not taking care of its own best interests and may come to regret it.
Private sector expectations evolve in part according to the outlook for future policy itself and the implications of that policy for the path of the economy. This view, once considered radical, is now widely accepted in academia and by monetary policymakers around the world.
What that means is that once underway economic trends can take on a life of their own and the direction of the economy can accelerate as expectations evolve. That may be manageable and even welcome when the direction is positive but it can make a turn around difficult when an economy is deteriorating.
Housing is an example of this. Private single-family housing starts peaked in January 2006 at an annual rate of 1.823 million units. Since that time, housing starts have continued to fall; in April 2008, they were only at an annual rate of 692 thousand units, roughly 38 percent of the previous peak value.
The unemployment rate is on the wrong path as well. Private nonfarm payrolls were little changed in January, and the unemployment rate moved up to 4.9 percent, on average, during December and January, after remaining around 4-1/2 percent from late 2006 through most of 2007. Then the unemployment rate surged to 5.5% in May , 2008. Probably worse reports will be released as 2008 grinds on. The economy seems to have reached a point where unfavorable expectations for the future are indeed fueling a negative feedback loop.
In the US private businesses make and sell most goods and services. These markets work by bringing together buyers and sellers who establish market prices and output levels for thousands of different goods and services. Unfortunately high energy prices are now adding to input costs for almost all goods. The Fed has an impossible task in attempting to fight inflation by increasing interest rates without tanking an already stressed out economy with excessive debt to equity ratios at every level of public and private institutions and enterprises.
America now is viewed as unfriendly to foreign investors. Certain provisions of the Patriot Act and the Sarbanes-Oxley Act produce excessive and costly paperwork and unnecessary privacy intrusions. Out of 9/11 induced fear America became less strong and less competitive. America is not taking care of business and governing in a smart competitive way in an increasingly competitive world. No doubt America will regret it.
The mismanaged American economy is now at risk. The Fed has to make some hard decisions. The better course of action is to start fighting inflation now. This means increasing interest rates, supporting the Dollar, and probably taking a lot of flack as the economy enters a deep recession. Will the Fed have the guts to take this action?
That question will soon be answered. The most likely action for the Fed to take at this months meeting is to hold the Fed funds rate at the unchanged 2% level. If that is what happens that will not be good enough to bring down inflationary expectations. The Fed must realize how dangerous a high rate of inflation is to the American economy and culture. With the American middle class already under financial stress a few years of double digit inflation will destroy them and the American way of life.
It may already be too late to save America as we know it. A far different country may emerge from the seeds that eight years of mismanagement have sown.
Gerald “Taipan” Greene is a retired forex trader and portfolio manager who worked in Asia for over 20 years. He now writes for a number of financial, political, and Internet business related blogs. One of them is at Article Discovery Articles and Analysis
Mortgage Interest Rates Jump Up
After several weeks of staying relatively flat mortgage interest rates jumped up this week. 30 Year mortgage went from 6.09 to 6.32. 15 Year Mortgage moved from 5.65 to 5.93. 5 Year rates went from 5.51 to 5.70. The only rate that was somewhat stable was 1 Year Arms which went up from 5.06 to 5.09. Two weeks ago we predicted that rates would increase over the summer and they seem to be doing exactly that.
June 12,2008
30-yr 6.32 15-yr 5.93 5-yr ARM 5.70 1-yr ARM 5.09
June 5,2008
30-yr 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5.06
May 29,2008
30-yr 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22
May 22,2008
30-yr 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24
May 15, 2008
30-yr 6.01 15-yr 5.60 5-yr ARM 5.57 1-yr ARM 5.18
May 8, 2008
30-yr 6.05 15-yr 5.60 5-yr ARM 5.67 1-yr ARM 5.29
Using out free mortgage calculator lets see what the rate increase mean for the payments on a 200k mortgage. We calculated out the mortgage payments based on today’s mortgage interest rates and rates a week and a month ago.
June 12th
30-yr $1240.55
15-yr $1680.15
5-yr ARM $1160.80
1-yr ARM $1084.67
June 5th
30-yr $1210.69
15-yr $1650.11
5-yr ARM $1136.83
1-yr ARM $1080.98
May 8th, 2008
30-yr $1205.53
15-yr $1644.79
5-yr ARM $1157.00
1-yr ARM $1109.36
So for a 30 Year Mortgage on a 200k loan the mortgage payment went up about $30 or about 2.5 percent. The mortgage on a 15 Year mortgage also went up about $30. What is weird is rates on 1 Year ARMs stayed about the same and are actually down from a month ago. This makes no sense. Banks are dealing with foreclosures that are mostly coming from borrowers that got 5 and 1 Year ARMs. Basically when the ARMs reset borrowers are frequently unable to make the higher payments and wide up facing foreclosure.
One would think banks would be discouraging these high risk loans. I would like to think the banks know something I don’t. But looking at their foolish behavior over the last few years (giving loans to everyone that walked in the door from 2004-2006) its a distinct possibility they are just plain foolish. So again this week 1 Year ARMs look attractive. Just remember in a year your rate and mortgage could be higher so it would be wise to have some cash on the side to pay a potentially higher mortgage. And I would expect rates to be higher one year from today.
So what would I expect to happen over the rest of the summer. First off I don’t see rates going down. The FED has given numerous signals they don’t plan to lower rates. Will rates continue to go up? I am not sure. I expected rates to creep up over the next month instead of jumping up this month. So I hope rates stay relatively flat but they could go higher over the next month.
Escapeso Realty operates in the Austin real estate market. They provide a free mortgage calculator along with a tool to track mortgage interest rates.
High Energy Prices Are a Disaster for America
Energy prices are continuing to increase as the global demand for fossil fuels increases, the US Dollar falls in value, and our limited refining capacity is regularly disrupted by hurricanes and flooding.
A major part of America’s current predicament is that America has not taken energy conservation seriously and has not planned well for the future. For example, part of the problem with high gasoline prices in the US is the lack of refining capacity. It has been many years since a new refining facility has opened in America.
I believe that alternative fuels will only give a partial answer to high energy prices. Energy prices are rising fast all over the world. Even with such a strong incentive to move towards alternative energy there are important uses for oil that are difficult if not impossible to substitute. For example, no one has yet been able to find a substitute for jet fuel. Perhaps one will be created in time but with peak oil already here in at least a few important oil producing fields, like the North Sea field in the UK and Mexico’s Cantarell field, we don’t have much time.
Energy conservation offers the best short term solution to our energy crisis but no matter how effective energy conservation measures may be we can not completely conserve our way out of an oil shortfall. The obvious conclusion is that living standards will fall in America and other oil deficit nations as oil demand continues to grow globally and supplies remain tight. This will force prices even higher and drain off more precious resources just to pay for imported oil.
The kind of thinking that got us into this mess is not the kind of thinking we need to create our future. A weak dollar, unofficially pursued by the American government as a way of making it easier to service America’s huge foreign debt, only serves to push oil prices higher. The spot price of oil rises as the dollar falls in value.
This is followed in a few weeks, even a few days, by the pump price of gasoline. There will be a lot more whining by American government congressmen and people about OPEC and other “bad guys” in the oil picture, like big oil companies, but the injury to the economy is largely self inflicted and is a failure of US government policies over many years.
Increased costs are always a challenge for businesses. Increasingly, as we are experiencing an energy crisis, the weight of international diplomacy is moving towards the global warming advocate’s camp. More and more legislation is being passed at the global, regional, national, state and local level to drive compliance with carbon emission reduction standards. The tightening up of emission standards does increase production costs.
While this action is needed in order to attempt to slow down the effects of climate change, these actions tend to increase the cost of energy inputs, especially with coal. Mankind has created a catch 22 energy and climate change trap and there may be no good escape.
Refiners were once relatively free to use heavy crude to make transportation fuel. Today, environmental regulations make it difficult and costly. Refinery capacity is just too tight, and some argue that Saudi Arabian oil production has peaked. If the this is true, this will put incredible pressure on crude oil prices because growing demand is going to run head on into falling supply.
Even with the tremendous economic growth achieved by India and China over the past decade the amount of oil used by those nations citizens is only a fraction per capita of that used by US citizens. There is room for huge increases in oil consumption by those countries. There is a frightening possibility that it will take much higher prices for crude oil than $135 a barrel to cut into this demand.
Higher energy prices act like a tax. They reduce the disposable income people have available for other things after they’ve paid their energy bills. In America many families are now feeling the belt tightening effects of this “tax”.
Renewables are not developed enough to replace barrel for barrel our current US energy demand. Relying solely on renewables would mean that the US would have to severely restrict our current energy use. Renewable sources of energy are a growing part of the energy mix, and will become increasingly important in the years to come.
Although the amount of energy generated by renewable sources is presently small, investment in renewable technologies is increasing. Unfortunately, it is unlikely that renewable energy sources can be developed fast enough to prevent a considerable amount of pain as people are forced to reduce their standard of living. This is going to be a political minefield for the next US president, whether its Obama or McCain.
Consumers should feel outraged by the purposeful federal failure when they pay spiraling charges. The federal government’s inaction in promoting energy conservation and in putting forth a massive effort in developing alternative energy is inexplicable, inexcusable, and anti-consumer. Consumption is fundamental to underpinning a favorable business cycle in the U.S. With consumers now hurting from high energy prices, by being deep in debt, and by falling housing prices, a deep recession, even a depression, is all but inevitable.
Ben Bernanke and his partners in crime at the Fed are making a heroic effort to prevent a severe contraction of the US economy. The problem is that mismanagement of the American economy has taken place for many years. The US manufacturing base has been all but destroyed. If it weren’t for Boeing and a few other high tech manufacturers and American farmers there would be few products made or produced in America that foreigners want.
American energy policy is a complete failure. We now import over 65% of our energy needs and that high percentage is increasing. With a shortage of high value products to export and with extreme bills to pay for imported oil America is on a path to third world nation status. It will be a total disaster for the American middle class.
With billions flowing overseas daily to pay for energy imports, with 12 billion a month being spent on wars in Iraq and Afghanistan, with the US relying upon China, Japan, and other nations for funds to keep on going the future of the American Empire looks increasingly grim. By running up such a trade balance with China, they now hold some 1.4 trillion dollars in foreign exchange, most of it in Dollars, we have given the Chinese the power to bring down the American economy any time they chose.
All the Chinese would have to do is to start aggressively selling US Dollars on foreign exchange markets. The panic that would follow would quickly take the US Dollar down to levels that would create hyperinflation in the US as oil and all imported goods prices soared in Dollar terms. Yet, our government seems to not at all understand this. Our elected officials visit China and lecture the Chinese on how to run their own government. It is not wise to insult those that you depend upon for living money.
High energy prices and all of the complications that they bring are a disaster for oil deficit nations like the United States. For one thing we continue to borrow huge amounts of money from the Chinese and our financial institutions accept billions in investments from sovereign wealth funds and the like just to stay afloat. Giving so much leverage to foreigners over America’s affairs and assets can not possibly be good long term foreign policy for the US.
As long as America remains hooked upon oil and in spending more than we take in it will likely take more than an Obama or McCain to save us from a long downward spiral off the top dog heap.
Gerald “Taipan” Greene is a retired forex trader and portfolio manager who worked in Asia for over 20 years. The nickname was acquired in Hong Kong and is now used for a number of financial, political, and Internet business related blogs. One of them is at Learn to Invest
Water Meters; Coming To A Street Near You
As utility bills climb to unseen levels it is unsurprising that many people are starting to install water meters to their homes. This is because the old system of having a categorised water bill has become increasingly more expensive as water companies try to increase their revenue. As such, water meters are a way to not only reduce the prices of your bill but to also use less water in your home.
The move towards water meters is not just a result of a homeowner’s pursuit of cheaper bills. The government in the last twelve months has made it law that all new builds must be built with water meters as standard. These new regulations are supposed to ensure that those buying new homes have a greater respect for the environmental effects of being wasteful with water, as well the financial costs of wasting this precious resource.
It is not just new builds where the government is trying to introduce water meters in a uniform manner. This battle to conserve water is being fought in the cause of water conservation. With droughts seemingly becoming a regular, if not annual occurrence this move by the government, in conjunction with the amenities is unsurprising. These environmental policies were only a short time ago being championed by the environment minister.
In a statement he professed a desire to increase water conservation in drought prone areas through a variety of measures. Not only were meters at the heart of this conservation effort but points also raised in the statement included the introduction of more porous paving slabs in gardens to aid drainage as well as attempting to reduce the use of phosphates in washing powder to further reduce environmental harm.
Water meters for all homes are key to the government’s strategy over the next twenty years. With so many new houses being built it will not be long before a major water shortage occurs across Britain nationwide. It was argued that this would be a result of not only wastefulness of homeowners but also a result of climate change and economic growth.
The problem with an all encompassing water supply strategy is that regions are different and have different characteristics. As such, for any policies to be successful it is important to take a local approach taking into account factors that relate to that area directly. That said it is still possible to draw general policies that can be applied across the country. By 2030 the government wants average daily water usage to be reduced from 150 to 120 litres. Part of this reduction is to introduce water meters into homes so people are conscious of the water they are using.
Many homeowners however are not happy with the introduction of water meters wholesale. While those who live alone or in small families will benefit, it is those houses that have many residents that will feel the financial pinch of the usage of water meters. Thankfully government ministers are also researching the different charging policies to create a fair pricing structure that will suit all. One thing is agreed, that the existing pricing methods are not only archaic, but wholly unrepresentative. The hope of the research is to produce a pricing system that will actively encourage people to conserve water.
There is little doubt that water meters will become a large part of the water charging and measuring system in the UK. This can not only be seen as a good thing for homeowners’ wallets but also for the environment that will benefit from the reduced amounts of water being used and processed.
Current affairs expert Thomas Pretty looks into the different legislature surrounding water meters and how the governement is intending their widepsread use in the future.
The Record High Price Of Gasoline Is A Good Thing
There is a new way to get cheap fuel that is good for us all. How we have gotten to this new discovery is no secret.
The truth is that the United States accounts for about 44 percent of the world’s gasoline consumption. We drive more cars, more often and we’ve become dependent on fossil fuels about as stubbornly as a drug addicted is dependent on his or her next fix.
In 2003 The United States consumed over 119,000,000,000 gallons of gasoline which is an absurd amount of fuel to consume my any standard. Each day that equates to about 360 million gallons. The U.S. used about 138 billion gallons of gasoline in 2006. That’s when the pain and expense of our addiction began to rear its ugly head and the search for a cheaper alternative fuel source began to grow.
Fuel prices began to spike in 2006 but have been rising steadily since the start of 2008, especially in western countries such as Canada and the USA. From that time forward the words Cheap Gasoline or Cheap Gas became extinct like the dinosaurs.
From the mid 1980s to September 2003, the inflation adjusted price of a barrel of crude oil was generally under $25 per barrel. During 2004 the cost increased to more than $40, then $50 per barrel. A sequence of events pushed the price of oil to exceed $60 per barrel by August 11, 2005, and yet we still continued to consume gasoline at a gluttonous pace.
The price for a barrel of oil, for a short time, exceeded $75 in the middle of 2006, then fell back to $60 per barrel by the early part of 2007 only to jump steeply to $92/barrel by October 2007 and went to $99.29 per barrel for December 2007. All the way through the first half of 2008, oil frequently reached record high prices. On February 29, 2008, oil prices peaked at over the century mark at $103.05 per barrel for the first time in history despite there not being a gas shortage, but the price also for the first time in history was based not on consumption but on speculation of future markets.
It was reported that a barrel of oil was priced at $110.20 on March 12, 2008, which was the peak of six consecutive records in seven trading days. The most current price per barrel cost ceiling of $138.83 was set on June 6, 2008. Consumers no longer look for cheap gas, but are settling for cheaper gas, meaning it’s outlandishly high everywhere and saving .03 gallon has become a marvel to behold and be apart of in our economy.
Alternative fuel sources research, such as on Hydrogen as a fuel for cars and trucks has reached all time highs. The use of hydrogen fuel as a supplement to gasoline to run your car or truck is matching the rate of gasoline prices. Hydrogen is really the last true cheap fuel source because it is so abundant and the technology to separate it from water has become very fundamental and inexpensive to acquire.
Our enormous appetite for fuel, or addiction to big cars and trucks has seemingly met its match because for the first time in decades, due certainly to the highest costs of gasoline in the history of the world, Americans are now using less gasoline. In the United States, gasoline consumption dropped by 0.5% in the first two months of 2008 which was even higher than the .4% drop in consumption back in 2007.
Alternative cheap fuels such as ethanol and Hydrogen hybrids can be and are being built right at home. The one good thing about the higher prices of gasoline is that its forcing us to use a cleaner, a more reliable and a more abundant fuel sources that is better for our planet. After all, our planet is about 80% water and technology is finally able to tap into this cheap source of fuel just in the nick of time.
Michael Littles is a big supporter of the continued development of Hydrogen as a fuel source and provides a free video for all those who want to learn more about this technology in order to save 35% to 50% on your fuel costs. Get your free video by visiting: http://www.H2O-n2fuel.com
Alternative Ways Of Dealing With The Fuel Crisis
Car drivers have been suffering of late due to the ludicrous prices of fuel and people’s lack of keenness to be driving anywhere. Information has been issued on the way to drive as economically as possible, (which if you ask me involves a push bike) but still drivers are under the impression that if they drive faster they will get to their destination before their fuel runs out. This is idiot thinking as a car takes more fuel to drive at speeds (whereas a pushbike uses the same amount of energy whatever speed you wish to ride it at). So, what are the alternatives?
You could sell your car and buy a motorbike. These are more economical on fuel and quite speedy but Saturday afternoon shopping with your granny is going to be a hair-raising experience for both of you. You could get a moped which, while cheaper still on fuel and insurance, is still going to struggle taking granny shopping or the kids to school.
A pushbike is always going to be the cheapest option as once the initial outlay is over with, there is virtually no more maintenance. You can get up to quite a tidy speed on one of these, they require no fuel, no insurance, no road tax, they incorporate no speeding fines and no MOT’s.
If this doesn’t suit you and you still want the comfort of a car like we are all so used to, you can still make the options cheaper for yourself. Start by selling your own car (don’t panic, I’m not done yet). This immediately deprives the government of the revenue from your car tax, the garages with windows large enough to see you coming of the maintenance and MOT stings and the greedy oil giants of the fuel prices that beggar belief. Feeling better already?
Now you have a little cash in your pocket, call in the professionals. Use car hire, chauffeur driven. The one off payment means that you can budget your money without the worry that prices are going to increase in the blink of an eye as with petrol. It means you can get as drunk as you like whenever you go out as long as you are using car hire that is chauffeur driven without the fear of losing your licence.
On top of that, car hire that is chauffeur driven will impress your friends no end, especially if you use something like a hummer or a limousine. It does rather defeat the object somewhat but what the hell - if you don’t spend your hard earned then the government will just find another way of taking it off you, so go for it. Your granny will be pleased when it comes to the shopping trips, the kids will be the envy of all their friends on the school run and if you’re single, the girls will be falling over themselves.
If you have been lucky enough to invest in limousine car hire that is chauffeur driven and you cannot afford your mortgage, like so many hundreds of thousands of people in the UK every year, you could always camp out in the back of your car. After all, these vehicles are the size of the modern houses that are currently being constructed.
Transport expert Catherine Harvey looks at the way to use car hire that is chauffeur driven to get over the cost of running your own car.