March 1st, 2014
Econintersect: Would you believe that -
- Young people were actually significantly less likely than older borrowers to be more than 90 days delinquent?
- Unemployment was less likely to lead to mortgage delinquency and foreclosure in those states where unemployment insurance was more generous?
Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
- New Federal Tax Proposal To Hit Homeowners Hard! (Michael Haltman, Hallmark Abstract Service) Michael Haltman contributes to Global Economic Intersection. The proposed tax legislation from the House Ways and Means Committee, David Camp (R, MI) would slash several tax benefits for home mortgages and capital gains. The bulk of the changes would impact higher incomes and expensive homes.
Econintersect: Research Affiliates chairman and CEO Robert D. Arnott and two associates (Katrina F. Sherrard and Lilian Wu) have published a paper in The Journal of Retirement (Fall 2013) which analytically decimates traditional formulas for retirement investing. Specifically, the paper determines that the rule of thumb for increasing the ratio of bonds:stocks as the investor ages is far from optimal. Such formulas have been implemented in target-date mutual funds and such funds do not meet the objectives that have been assumed: (1) maximize the real value of the retirement account; and (2) minimize uncertainty about the prospective income after retirement starts.
Video can be viewed at end of article.
Econintersect: Often severe cases of the flu and many of the deaths occur because of the over-reaction of the patients' immune systems, not from the flu virus directly. So when you hear of a "deadly new flu virus", it is a misnomer. The reaction to the virus is deadly, not the virus itself. An article in the Proceedings of the National Academy of Sciences by scientists from the Scripps Research Institute describe the over-reaction and how ways of mitigating that with a "potent new class of anti-inflamatory compounds". The research studies have been carried out with animal populations and apparently not yet with human subjects.
Influenze virus from bioquel.
It's not the bomb that does the damage, but the bomb squad.
Chart of the Week
In the U.S. homes for sale have flat-lined at about 2% of total housing units since 2008, rising slightly above 2% 2008-2010 and then declining gradually 2010 into the end on 2013 to slighlty below 2%. Over the same 5+ years rental properties available have risen by approximately a factor of three, from around 0.1% in early 2010 to nearly 0.3% in 2013. But the numbers vary depend on location and three specific metro markets are discussed in the Chart of the Week video.
This and other graphs discussed in video after Read more >> jump.