Price Bubbles 101; Tax Credit Update; Updates from BofA & USB

October 29th, 2009 · No Comments





According to the police, a Texas woman lived in an apartment with her dead boyfriend for a week. Know why he didn’t marry her? Cold feet.

And speaking of cold, here we are at the World Series…baseball in November in the Northeast. Lots of folks in mortgage banking like numbers and statistics, so here is one question (totally un-mortgage related) that is interesting:how many baseballs does a major league team use per season? It turns out that, on average, a ball only lasts 3-4 pitches (foul balls, scuffs, home runs, end of inning, etc.) so each game consumes roughly 100 balls. So with 30 teams, 162 games, the approximate usage is 220,000 balls per year! The ones that don’t end up on fan’s shelves are used for batting practice, or by minor league teams.

Most economists believe that although the internet bubble took its toll on stock prices and the stock market in general, the housing bubble has had more of an impact on our sense of well-being. It seems to remind us that, for whatever reason you attribute to the dramatic rise in housing prices (low interest rates, a government mandate to make loans to unqualified buyers, Wall Street, etc.), that the faster something goes up, the faster it comes down. Any time the price that people will pay today depends on the belief that other people will pay even more tomorrow, you have a potential price bubble.

more on the economy, Bank of America Home Loans, US Bank, plus daily joke CLICK HERE

Tags: Commentary · Mortgage Market · Rob Chrisman

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