Category Archives: Economy News

Housing Recovery, has begun…

September 10, 2012

 No matter which way you do the arithmetic the answer will always come out the same way. And really, that’s a positive. When you own a home you are going to pay off the mortgage and be done with it.  If you were to buy a home today in 2042 you will be free and clear, it would be all yours!  No more monthly payments…what a great goal to have. You can will it to your children or anyone you like. Yes, after you pay it off you will still have to pay your property taxes, but the monthly dollar amount will be a fraction of what the mortgage was. Consider what rents might be in 30 years. Would you rather be paying an inflated monthly lease or rent in 30 years, or just be paying the taxes on your home? I know what your answer is. It is just that simple. Smart people do everything possible to own their own home. Write out a plan; Scrimp and save for the down payment. Where can you save more money to go towards your down payment/closing costs of your new home? You only need 3.5% if you go with an FHA Loan, or if not 5 to 15% . Or if you can put 20% down you will not have to pay PMI insurance which is a safety net for the banks and lenders. That is usually the price of a modest car payment. Remember do not finance ANYTHING when you are preparing to buy a home. You will lower your price point; Loan to Dept Ratio and have to buy a lower priced  home perhaps not in the neighborhood you desire. Be careful when considering buying a new car or financing furniture, remember DON”T DO IT! Just good Advice:  Don’t pay for anything new in your rental unit…carpet/flooring, patio covers, sinks, faucets, make sure you have the owner do all the up grades and repairs. That money should not come out of your pocket, but should be going into that down payment savings account.

Today home prices are going up slightly, which means the sooner you can purchase a home the better. Stop giving your hard earned money to your landlord…who is making a mint off you.

Renee Baccaro Realtor “At Your Service”.

(562) 972-9886

Housing Trends News Letter

Click the link above to see what the current housing trends are in Southern California .


Renee Baccaro Realtor (license 01718366) & Min Kim Realtor

Talks with Bernie Sanders


There are enormous issues that face our county today. You know them as well as I do. Our middle class is collapsing. For the first time in our history young people will have a lower standard of living then their parents. Our deficit is now 14 and a half  Trillion dollars in dept.

 The Mortgage Market is, well a very sensitive topic these days. Once a richly driven economic powerhouse; stimulating jobs with regular raises, pushing our education and educators to higher expectation of future success…now, chewed down to the bare bone. What or who will get us out of this suffering sluggish depression?  

Things are looking bleak today when Senator Bernie Sanders on the Thom Hartman program states “We are at a pivotal moment in history”, reporting on the job market report which came out on Friday stating that hiring slowed down in May and unemployment is up to 9.1%.  Oil spikes, causing another problem, and the house of Republicans voted not to increase the nations borrowing power.

Senator Bernie Sanders talked to Vermont students at a “Town Meeting” at a university in Vermont. Sanders opened the topic with “Young people must know what they face today. They must become involved in our government process”.

The first question from a student is “How do we educate people to come up with solution about global warming?

Bernie Sanders says “Republicans control the house in Washington DC and it will be difficult to go forward with global warming…because the Republican Party does not believe that global warming is real. There is an enormous amount of work that needs to be done; moving to electrification; educating people about the fragility of our planet”.  It takes major communicating and brainstorming.

The following is a synapsis of the discussion at the town meeting:

Student question: About education costs and funding. The state is no longer funding as they agreed to. What can we do?

Bernie Sanders says it is a difficult issue because Government and legislation has to deal with so many financial issues at once; they need to think about “When we invest in education, is it an expense or an investment”? If you go to Europe or Germany, do you know how much college education cost you? Nothing! Young people, regardless of their income in those countries the citizens get the best education available. In the U.S. Medical school students upon graduating incur loans they have to repay up to $250,000. It doesn’t look as though under the Obama plan it will be getting any better; rather it looks as though it will become even more negative.  Government Pell grants will be less and other financial aid once provided for students to get higher education.


A student asks about after graduation will he be able to find a job?

Sen. Obama plan does help to put money into economy. We are in a severe recession and we need to help the small business to expand; single payer help care system need to get free up; we desperately need to put money in infrastructure to create jobs; water systems; trade system; products made in the UNITED STATES. Our trade system encourages companies to leave the US; we have lost up to 50,000 factories to places like China and other low-wage paying countries.

Student: Regulation of the financial institutions; Wall Street reforms let off the hook; what can be done?

Sanders: Where we want to go; Banks; Dodd–Frank Wall Street Reform and Consumer Protection Act; bring transparency to the Federal Reserve. We were able to for the first time to trace and make public where 3 Trillion dollars of US Dollars went; to every large financial institutions in the country during the wall street crisis; The money went around the world; Auto companies, GE; Foreign banks. Information will come out in a few months because of the Reform bill. Four Giant financial Institution has top assets that are two-thirds of the  GDP; they issue 2/3 of credit cards and provide over half of mortgages. Break the huge financial institutions up…if not we’ll see another collapse. It is a hindrance to the kind of economic development we need. For example: Wall Street should be helping our small business; help them get the affordable loans they need to gain jobs, etc., etc. Help our manufacturing sector to gain jobs. Study the power of Wall Street; they exert Hugh influence over congress. One example:  In order to get deregulated (Sen. Sander opposed) Wall Street spent 5 billion in lobbying over ten years. It’s an issue that has to be dealt with.

What is the American supplement with the American troops in Afghanistan?

Sen. In my view given the recession; with 50 million Americans with no health insurance; young people cannot afford to go to college,  with our infrastructure falling apart; we have been there for ten long years. We need to improve our infrastructure. Ten years is a very, very long time. We need to support the Afghanistan people by training their troops, sooner or later Afghanistan will have to rely on themselves. We cannot just walk away, but we need to slowing start pulling our troops out.

Student asks a question relating to new energy from gas and how it will effect local air and water.

New energy sourse from gas: they are finding new potentials with natural gas in various parts of the country. The problem is with the methodology the process by which we develop can have a negative impact on the water in the region. First we want to make sure of the environment impact it will have.  

Bernie continues…with vigor on this subject.

EPA – Study the congress republican party! I don’t mean to be bipartisan but the republicans in control are  a right wing extremist party. They believe there should be minimal government regulations in digging or drilling for oil, coal, or gas exploration. Despite the significant success…these guys want to get the EPA out so those companies can do what they want. That will make lack of clean air and water and toxins will make people sicker in this country. They want to convert medicare in to voucher program. This extremist right wing party is working on turning our country backward…for their own greedy profits.

Student asks about Planned Parenthood.

Planned Parenthood –Defunded: Planned Parenthood does an excellent job.  Planned Parenthood was placed on the chopping block because women can get an abortion. They were saying fed funds were going to abortion “planned parenthood”, but this was not true. We have worked very hard…Planned Parenthood was not cut.

Very important Planned Parenthood; environmental; providing loans and aid for college student. This all comes down to the budget issue; do we move toward deficient reduction. I believe there are other ways to tripled deficit cuts, bringing troops home as a part of that reduction effort, 1% of the income earners of this country are doing phenomenally well, they need to pay their fair share of taxes. Look at the budget of the US. This would be of tremendous help.

Conclusion Sen. Sanders goes on to conclude the town meeting.

We need to turn this country around…we need your brains, your youth, your energy, your commitment. It is too important for you not to participate. Get involved in debates and be active in your pursuits.

Rising Retail Sales Threaten Low Mortgage Rates

Another day, another piece of evidence that the U.S. economy is expanding.

Thursday, the Census Bureau released the April Retail Sales report. Excluding cars and auto parts, retail receipts rose for the 10th straight month and, at $321 billion, reached an all-time high.

Retail sales account for roughly half of consumer spending, and roughly one-third of the economy overall.

For home buyers and rate shoppers in Los Angeles, the sales figures have positive and negative implications.

On the positive side, more retail sales suggests more confidence in the U.S. economy. This can spark a growth cycle that benefits the country, on the whole.

  1. Consumers spend more money
  2. Businesses sell more product
  3. Businesses expand payroll to meet new product demand
  4. Governments collect more taxes; fund more projects
  5. Consumers gain more confidence and the cycle repeats

Furthermore, rising employment rates help to support higher levels of home sales which, in turn, can lead to higher home prices in California.

This is why Retail Sales data is so important to Wall Street and economists. It can hold clues to the future of the U.S. economy.

On the negative side, however, rising Retail Sales figures can harm home affordability. In addition to the aforementioned pressure on home prices, a strengthening economy can lead to higher mortgage rates. The weak economy of 2009-2010 is a major reason why mortgage rates were so low for so long.

As the economy improves, therefore, it follows that rates should reverse.

Each 1/8 percent increase to mortgage rates raises a mortgage payment $8 per $100,000 borrowed.

Retail Sales are up 7 percent from a year ago.