Treasury Secretary Timothy Geithner stated in a recent ABC interview that the US is in no danger of losing its triple A credit rating despite its growing deficit.
Textbook Prices Got You Down? Try Renting.
CengageBrain.com has launched a textbook rental service with over 1,200 titles available. Hat Tip to my favorite economist on this one. And yes, his textbook is also available for rental.
The Economics of Living in a Walkable Neighborhood
A study conducted by CEOs for Cities suggest that neighborhoods that are accessible to amenities, services, and public transportation by foot, command higher housing prices than those that are not. The website Walkscore.com actually rates neighborhoods from a scale of 1-100 based on their walk-ability.
Conway has an average score of 43 and my apartment has a disapointing score of 5. Meanwhile a friends apartment in Burbank, CA scores an impressive 75.
Should More People Voluntarily Default on Their Home Mortgage?
This NY Times article makes a case that people who owe significantly more on their mortgage than their home is worth might be better off to walk away, even if they can afford the payments. The Wall Street Journal ran a similar article a few weeks ago.
The idea is that many people who bought homes with little or no down payment during the market’s peak could walk away and rent a similar home for a fraction of the price. The additional savings could significantly increase their financial well-being by sacrificing their credit.
John Courson, the president of the Mortgage Bankers Association disagrees and questions what kind of “message” homeowners who voluntarily walk away will send to family, kids, and friends. He correctly cites that foreclosures futher depress surrounding home prices.
The Future of Conway
Conway Chamber of Commerce is putting together its long range plan and would like your help prioritizing its goals for the next 15 years. You can take the survey here.
Priorities on my list included:
- Young Professionals
- Sidewalks
- Parks & Recreation
- Beautification
- Art & Culture
The Myth of the American Dream
I have often told my friends and colleagues that the I disagree with the idea of home ownership being the American Dream or a path to personal wealth. I have cited that even in the best markets, the actual rate of the return in too low. Home ownership also makes the workforce less mobile which causes other problems for our economy. Brett Arends of the Wall Street Journal agrees.
Story courtesy of Yahoo.
He’s Back!
My favorite American General and Statesman, Colin Powell was interviewed on this morning’s episode of Face the Nation. The interview was more backward than forward looking than I would have liked. Powell insisted that he is still a member of the Republican Party and hope the party will broaden its base by becoming more inclusive. He took the high road when speaking about the recent criticism he has received from Rush Limbaugh and Dick Cheney. He also discussed Guantanamo Bay and enhanced interrogation techniques.
More MBA Bashing: MBA’s Public Enemy #1
Francesca Di Meglio at Business Week thinks it is possible.
Philip Delves Broughton, who received an MBA from Harvard… calls the three-letter acronym “scarlet letters of shame,” and suggests they stand for “Masters of the Business Apocalypse.”
Ouch! Is it too late for me to switch to the MAC program.
Hat Tip To Kris Allen
I am not a fan of the show and only saw him perform a few songs, but he defied the odds and became this year’s American Idol. I have never met him, but a few friends of mine that I take very seriously hold him in very high regard.
Good luck Kris.
America’s Poor Are Its Most Generous Givers
A friend passed this story on to me via Facebook. The story is based on data from the US Bureau of Labor that was compiled by DC’s McClatchy. I remember discussing this phenomenon during my sociology studies and I really don’t find this at all surprising. Lower income people are more likely to empathize with their fellow poor. They are also less likely to fear further destitution.
Here is the full story.
