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Housing Bubble, Interest Rates, Timber Costs; What Has Changed?
What has really changed in the housing market with regards to timber dumping from Canada, lumber costs since the Professional Building Magazine issue in Sept. 2001. How is this affecting the housing market or the predicted housing bubble burst which was suppose to cripple the economy. We have seen the Federal Reserve raise rates, lumber prices go up, still America was buying up new homes and joining the ownership society faster than at any other time in the history of our nation.
Unfortunately the ease to buy a house was truly too easy judging by the current foreclosure rates and one might wish to ask why should young couples with only two to five percent down be buying a home anyway? That is not fiscally responsible. These buyers will be upside down in these homes in some markets almost as before the ink is dry. In other markets they will be growing equity extremely fast as long as their local market holds out, but when things change; there will be more over all foreclosures. And they cannot realize their equity because they will not be able to sell their homes. If they use the equity to pay off credit cards by re-financing before the prices stabilize they will alleviate high interest rates but have also committed themselves to more over all debt?
With increased costs of interest rates, building materials; if the houses cost an estimated $1000-2000 more, and I am talking about you basic starter home of modest size 1400-2000 square feet; then fewer will qualify to buy a home and chances are those who have not yet bought a home may not be able to secure financing anyway; if they do, they pose a higher risk of loan fall out rates being thrust upon the mortgage arena. Our Commerce Department Imposed a 19.3% countervailing duty on timber from Canada. It should have been 10-14% max and only for 9 months, so US companies could get back on their feet without pissing off the envi-moron-mental-lists (someday I will explain exactly how we came up with that term). Our gross national product has 5% written over the new housing market. This is significant and in 2000, 34% of all the lumber for the new housing starts came from Canada, in 2001 37% and it is expected to be 30% even in 2002 with the newest tariff in place for anti-dumping duty of nearly 40%.
These tariffs are too high and are anti-competitive. Canada should have policed them selves a little better and not taken such advantage of the situation, but today we are all to blame. What I think is the funniest thing as I read the old articles in the building industry is that Enron was selling lumber futures during this time and they would have been the ones who took the bath as companies like US Homes, Pulte Homes and other major players had their prices locked in earlier. You want to hear something else? The Canadians now wish to retaliate with less cooperation of the pipeline for natural gas from Alaska, after all they sell us natural gas and oil (1 billion barrels) and any pipeline easement situation cuts into their perceived right to further offset our already 85 Billion Dollar per period trade deficit. In British Columbia there are many towns out of work where the mills are located. Oh really and what do you think happened to our towns in WA, OR, ID and other places. If the free market system could be evenly placed with proper cooperation then we would not have had to take the hit in our towns and now they had to take the hit in their towns. With the big builders locked in and the US Lumber and Truss companies forced to honor these contracts by companies like Enron (ha ha), Pulte, etc. it will be the little lumber companies and builders who get hurt the most. So who wins? No one, see the problem? I do.
Will builders try to shave prices by not pressure washing finished homes, yes the smaller ones will. Will they withhold payments to sub contractors too? Yes, will they cut corners to further cut their losses due to increased prices, yes. So what happened? Canadian's took advantage of our policies, rubbed it in our faces and now they are mad, with the media in Canada is making it a huge deal and blowing it out of proportion. We have been great to the Canadians and they are talking a lot of smack in their media. I think maybe they should defend themselves, rather than relying on our military. We should treat them just like Mexico. Remember all those terrorists? Where did they come from; Canada remember? They act nice and say Aye, but I have done enough business with them not to trust them as much as American Businesses. It seems unfortunate that these provinces will not cooperate with us after all it is by our own good nature that we allow them to come here and rip us off, use our financial markets to go public and fund most all of their GNP.
If you are Canadian and you are reading this, you owe me personally an apology for the way your countrymen have treated me and those I associate with in the past. We have done nothing but lend a helping hand. I rescued a lady run off the road from a Candian Truck driver in the US. I have been cut off, denied access to the country because they thought I was hauling something in my motor home and wanted to rand sack search it, treated like crap once at customs after landing in Calgary. I have had proprietary information stolen from our company by Canadian businessmen, (crook). I cannot even tell you how many bad experiences we have had there. What say you AYE? Think about it, AYE. Maybe some of the tariffs ought to stay; AYE?
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
John Roberts - Supreme Court Nominee
President Bush's selection of the Hon. John Roberts is an interesting choice.
Protectionism in Russia
The new law "Special Protective, Antidumping and Import Compensatory Measures" differs from the old one by the fact that it fully complies with the WTO (World Trade Organization) standards. It is for the first time in the Russian practice that a law describes in detail what is necessary to do in order to protect the Russian market and how to do it.
Franchising Democracy and Creating Cohesive World Government
There are so many problems with our perceived perfect checks and balances system of our government, that one cannot use the exact United States version model of government to create a franchise agreement for future governments of the world. A standardized system of government in all countries of the World needs to exist if we are all to live peacefully on the planet, trade and respect each others cultural heritage and tolerate the many different renditions of World Religion.
Workaholism, Leisure and Pleasure
The official working week is being reduced to 35 hours a week. In most countries in the world, it is limited to 45 hours a week.
Fuel Prices at the Pump: That is not the problem, Natural Gas Prices are high too
The price at the gas pump is certainly on everyone's mind. We read about Airliner Bankruptcies too and their fuel costs.
George Bush and the Iraq War - Down on Downing Street
You, the reader, should be aware of my affluence of love for literature in all its forms, for instance: the novel, the novella, the short story, the poem, and the comic strip - which, in its own right, is a literary and creative milestone tantamount in importance to Shakespeare.However, without doubt, one of my favorite genres of literature is: the memo.
Joseph Campbell - Permanent Human Values
At the start of the US involvement in WWII Joseph Campbell was put in the position of having to defend culture and truth rather than go along with the crazed nationalism and outright invasion of so many public institutions through all manner of propaganda. He ended up being accused of being a Nazi by many who should have known better.
The Distributive Justice of the Market
(1) Each person is to have an equal right to the most extensive total system of equal basic liberties compatible with a similar system of liberty for all.(2) Social and economic inequalities are to be arranged so that they are both: (a) to the greatest benefit of the least advantaged, consistent with the just savings principle, and (b) attached to offices and positions open to all under conditions of fair equality of opportunity.
Federal Trade Commission Partnerships Questioned
In many reports we see that the Federal Trade Commission has referenced the Better Business Bureau. It appears that the Federal Trade Commission is using this private business as an example and potential justification of their on-going rule making and regulation in many industry sectors and categories.
How Can You Have True Freedom if They Control Every Aspect of Your Life?
Freedom is in the eyes of the beholder. In Communist Countries the populations are told they have a good life and a great life's purpose, supporting the country and leadership with a much needed and important job.
The Cost of the COLD WAR
Many people who are expert in the issue of the Oswald's rifle are able to clearly demonstrate that the best marksman in the world could not have done what that one rifle was supposed to have done. I suppose once the story was manufactured they had to stick with it before they knew about the ricochet and other evidence.
Reprisal of the Bill of Proposed Electronic Crime Act 2004
The clause (c) of Electronic Crime Act 2004 has been defied Cyber Stalking as defined in XXII of the Pakistan Penal Code 1860 and also clause (g) defines defamation which means Section 499 of the Pakistan Penal code 1860; but no as such provision are included on matter connect with commission of offence of electronically misuse and infringement of Internet Domain Names as Trade Marks which have defined in Chapter XIII Trade Marks Ordinance 2001.The section 8 has defined the offence of fraud but the misrepresentation has not been declared as offence.
Accounting Nightmare at the FTC
Most government agencies cannot pass an audit of their expenses. I can vouch for that and have been a long-time advocate; that the government follow the same rules they force on business.
The Will To Fight for Islam
The more I study the dynamics of WWII the more I am convinced that we won the war because of our entrepreneurs and their output; manufacturing capability. With most other things being equaled; technology, techniques of war strategy, etc.
When Political Correctness in NOT a Virtue
The other day I was sucker punched, hoodwinked, bamboozled, had the wool pulled over my eyes, and generally sidelined by an expert in Political Correctness. In fact, so sidelined did I get that I have been depressed for a week-and I mean really depressed.
How Senator Sarbaines and Oxley Destroyed America
You have probably heard of the Sarbaines Oxley Law (SOX) on corporate governance to make corporations totally transparent. And the voters and investors wanted this law so they could know which companies to invest in so they could make 20% per year on their money, which they damn well feel entitled to.
Peace in the Middle East
Peace in the Middle East - whoa that is a toughie.You have millennia of sheople being led around by the nose while abusing their mothers and daughters on both (or all eight or nine) sides of the issue and then there is all that oil that corpserists backing the US are in need of.
Biz Op Marketing and the Federal Trade Commission
Many had made mention of the problems of business opportunities in letters to the Federal Trade Commission in the public hearings in 1995, 1997 and 1999. They cited issues with advertising and earnings claims from Biz Op sales people.
Quick Thought on The Flow of Fuel and Costs
Without the flow of fuel our very mobile society comes to a complete stand still. When the supplies get low and the free-markets dictate higher prices; every one of us feels the pain in some way.
On The Privatization of Social Security
Reform Social Security has been talked of Capital Hill for many years. However, it is just put in a real action by President Bush recently.
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