Thursday, October 9, 2008
Friday, December 14, 2007
Tuesday, September 18, 2007
Feds Do Good
Fed slashes interest rates by half a point
by William Neikirk
The Federal Reserve slashed interest rates by a half percentage point today in a bold and aggressive move to prevent the economy from sliding into a recession because of a major housing correction.
The central bank also reduced its discount rate, the interest rate charged banks for direct loans, by a similar amount in an effort to ensure that financial markets do not lock up for a lack of credit.
The stock market liked the move, with the Dow-Jones industrial average surging by more than 200 points immediately after it was announced. Some saw it as a pre-emptive strike.
In a short statement, the Fed said its action "is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time."
It added that readings on "core" inflation, the rate of price increases excluding food and energy, "have improved modestly this year," but added that "some inflation risks remain."
The central bank dropped its "federal funds rate," which banks charge each other for short-term lending, from 5.25 percent to 4.75 percent. It was the first cut since 2003. The Fed targets the funds rate as its benchmark interest rate. All other short-term interest rates, including home equity loans rates, are tied to it.
Most analysts had been expecting a reduction of only a quarter of one percentage point, to be followed by further cuts in subsequent meetings. But the Fed, headed by Chairman Ben Bernanke, decided on a deeper cut--apparently out of concern for the danger posed by the housing correction.
"Developments in financial markets since the (Fed's) last regular meeting have increased the uncertainty surrounding the economic outlook," the central bank said. "The committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."
The decision did not preclude further reductions later this year, particularly if this move fails to settle down financial markets that have been hurt by a credit crunch, caused chiefly by the proliferation of "sub-prime" mortgages during the housing boom.
"Given the high level of fog and the dangers of financial stress and recession, the Fed decided today to take an aggressive course by cutting both the funds rate and the discount rate by 50 basis points (one half of one percent)," said John Silva, chief economist at Wachovia Securities. "In addition, the Fed emphasized the downside risks to growth due to credit conditions."
Troubles in the housing credit market began early in this decade as loose lending practices by mortgage brokers enabled many marginally qualified Americans to buy a home. Many of the loans started with a loan interest rate, which would then be reset over a period of time.
Some two million Americans who took out adjustable rate mortgages will see their interest rates reset to a higher rate this year, and many cannot afford to pay the higher bills. Defaults and foreclosures are on the increase.
Beyond that, these mortgages have been packaged and sold as securities around the world, spreading the problems in housing to many credit markets. In particular, the ability of corporations to finance through short-term borrowings by issuing notes has been severely restricted. The constriction of credit has raised fears of a recession.
by William Neikirk
The Federal Reserve slashed interest rates by a half percentage point today in a bold and aggressive move to prevent the economy from sliding into a recession because of a major housing correction.
The central bank also reduced its discount rate, the interest rate charged banks for direct loans, by a similar amount in an effort to ensure that financial markets do not lock up for a lack of credit.
The stock market liked the move, with the Dow-Jones industrial average surging by more than 200 points immediately after it was announced. Some saw it as a pre-emptive strike.
In a short statement, the Fed said its action "is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time."
It added that readings on "core" inflation, the rate of price increases excluding food and energy, "have improved modestly this year," but added that "some inflation risks remain."
The central bank dropped its "federal funds rate," which banks charge each other for short-term lending, from 5.25 percent to 4.75 percent. It was the first cut since 2003. The Fed targets the funds rate as its benchmark interest rate. All other short-term interest rates, including home equity loans rates, are tied to it.
Most analysts had been expecting a reduction of only a quarter of one percentage point, to be followed by further cuts in subsequent meetings. But the Fed, headed by Chairman Ben Bernanke, decided on a deeper cut--apparently out of concern for the danger posed by the housing correction.
"Developments in financial markets since the (Fed's) last regular meeting have increased the uncertainty surrounding the economic outlook," the central bank said. "The committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."
The decision did not preclude further reductions later this year, particularly if this move fails to settle down financial markets that have been hurt by a credit crunch, caused chiefly by the proliferation of "sub-prime" mortgages during the housing boom.
"Given the high level of fog and the dangers of financial stress and recession, the Fed decided today to take an aggressive course by cutting both the funds rate and the discount rate by 50 basis points (one half of one percent)," said John Silva, chief economist at Wachovia Securities. "In addition, the Fed emphasized the downside risks to growth due to credit conditions."
Troubles in the housing credit market began early in this decade as loose lending practices by mortgage brokers enabled many marginally qualified Americans to buy a home. Many of the loans started with a loan interest rate, which would then be reset over a period of time.
Some two million Americans who took out adjustable rate mortgages will see their interest rates reset to a higher rate this year, and many cannot afford to pay the higher bills. Defaults and foreclosures are on the increase.
Beyond that, these mortgages have been packaged and sold as securities around the world, spreading the problems in housing to many credit markets. In particular, the ability of corporations to finance through short-term borrowings by issuing notes has been severely restricted. The constriction of credit has raised fears of a recession.
Monday, September 17, 2007
Arthouse Fall 07'
Arthouse is a unique partnership between local artists, Realtors & developers devoted to raising community awareness of the arts and creating a symbiotic relationship in which all involved benefit. Will Brokhof of Prudential Unlimited Realty provides the space and marketing support for group art shows in newly constructed or renovated properties attracting a wide and diverse audience consisting of both art lovers and home buyers.
The next Arthouse event will be held from 11am-6pm. on Sept. 29th-30th, and again on Oct. 6th-7th at 230 Amory Street in Jamaica Plain, a propertybeing developed by Clint Keeney & Sean McGovern, longtime Jamaica Plain residents.
Kenney & McGovern are creating three unique loft-like condomuniums with a distinctive modern twist. Under the plan, eight artists will display their work in these three homes. They'll not be charged exhibition space, and they'll keep 100 percent of their sales. In addition, this will be the 1st Arthouse that will coincide with Jamaica Plain Open Studios.
There are many benefits to the Arthouse concept. "The property gets good exposure in a market where getting ahead of the competition is crucial, the community is enriched by sustaining its artist community, and the artists get both a temporary exhibit and funding for their work. It's a win-win situation."
The next Arthouse event will be held from 11am-6pm. on Sept. 29th-30th, and again on Oct. 6th-7th at 230 Amory Street in Jamaica Plain, a propertybeing developed by Clint Keeney & Sean McGovern, longtime Jamaica Plain residents.
Kenney & McGovern are creating three unique loft-like condomuniums with a distinctive modern twist. Under the plan, eight artists will display their work in these three homes. They'll not be charged exhibition space, and they'll keep 100 percent of their sales. In addition, this will be the 1st Arthouse that will coincide with Jamaica Plain Open Studios.
There are many benefits to the Arthouse concept. "The property gets good exposure in a market where getting ahead of the competition is crucial, the community is enriched by sustaining its artist community, and the artists get both a temporary exhibit and funding for their work. It's a win-win situation."
Jamaica Plain's Green Roof Initiative
A green roof is not just a roof colored green. A green roof, as defined by environmentalists, can be important to homes and built surroundings.
Imagine rooftops covered in plants and flowers, softened and beautified by nature. Imagine clean air; reduced energy needs; no more peak demand during hot spells.Think of having minimal storm water runoff, reducing flooding, the pollution of our rivers and oceans, and the need for bigger pipes and sewer treatment plants. Imagine the reduction of asthma and allergens. Imagine the creation of new green space for insects, birds and plants. Imagine a means to reduce greenhouse gases and carbon dioxide and increase oxygen. It is all possible with a single low-tech solution: Green roofs.
On Sept. 19 at 7 p.m., the JP Design Club will host a special green roof presentation at the Taylor House Bed & Breakfast at 50 Burroughs St.
Green roofs have been serving Germany and other parts of Europe for over 50 years. They are composed of a layered system involving a waterproof membrane; a protection layer; a layer for water drainage and retention to keep plants moist but not flooded; and a layer of planting media and plants. This integrated green roof system protects the roof of a building for at least 50 years while reducing energy costs and improving storm water management.
In Jamaica Plain, there are several green roofs being planned. The Jackson Square redevelopment project aspires to include eight green roofs. The Jamaica Plain Neighborhood Development Corporation is looking at the possibility of installing four or more green roofs on various buildings over the next few years.
The benefits of a green roof on one building are wonderful, but when there are many buildings, the effects are cumulative and begin to reduce the overall ambient temperature.
The more green roofs established in Jamaica Plain, or any other locality, the greater the positive impact.
The Sept. 19 forum sponsored by JP Design Club, a group of six Realtors with Prudential Unlimited Realty, is free and open to the public. For more information, check the website or contact Will Brokhof at 522-2200.
The writer is the co-founder, with two other women, of a Roslindale company to combat global warming, Earth Our Only Home, Inc.
Imagine rooftops covered in plants and flowers, softened and beautified by nature. Imagine clean air; reduced energy needs; no more peak demand during hot spells.Think of having minimal storm water runoff, reducing flooding, the pollution of our rivers and oceans, and the need for bigger pipes and sewer treatment plants. Imagine the reduction of asthma and allergens. Imagine the creation of new green space for insects, birds and plants. Imagine a means to reduce greenhouse gases and carbon dioxide and increase oxygen. It is all possible with a single low-tech solution: Green roofs.
On Sept. 19 at 7 p.m., the JP Design Club will host a special green roof presentation at the Taylor House Bed & Breakfast at 50 Burroughs St.
Green roofs have been serving Germany and other parts of Europe for over 50 years. They are composed of a layered system involving a waterproof membrane; a protection layer; a layer for water drainage and retention to keep plants moist but not flooded; and a layer of planting media and plants. This integrated green roof system protects the roof of a building for at least 50 years while reducing energy costs and improving storm water management.
In Jamaica Plain, there are several green roofs being planned. The Jackson Square redevelopment project aspires to include eight green roofs. The Jamaica Plain Neighborhood Development Corporation is looking at the possibility of installing four or more green roofs on various buildings over the next few years.
The benefits of a green roof on one building are wonderful, but when there are many buildings, the effects are cumulative and begin to reduce the overall ambient temperature.
The more green roofs established in Jamaica Plain, or any other locality, the greater the positive impact.
The Sept. 19 forum sponsored by JP Design Club, a group of six Realtors with Prudential Unlimited Realty, is free and open to the public. For more information, check the website or contact Will Brokhof at 522-2200.
The writer is the co-founder, with two other women, of a Roslindale company to combat global warming, Earth Our Only Home, Inc.
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