To read the Press Release, click on the link: http://www.digitaljournal.com/pr/3607214
Sunday, December 31, 2017
Author's New Book THE ENGLISH SLAVE Receives Warm Literary Welcome
Author's New Book THE ENGLISH SLAVE Receives a Warm Literary Welcome
#EnglishSlave #empireskingdoms #besthistoricalfiction #DavidEugeneAndrews
To read the Press Release, click on the link: http://www.digitaljournal.com/pr/3607214
To read the Press Release, click on the link: http://www.digitaljournal.com/pr/3607214
Sunday, February 13, 2011
Marijuana and Mental Illness
The Archives of General Psychiatry published a landmark study in 2010 that found early marijuana use is “associated with psychosis-related outcomes in young adults.” When teenagers had used marijuana by the age of 15, researchers in Australia concluded that a statistically significant percentage of them developed psychosis by early adulthood. Since the researchers only looked at paired siblings, they reduced or eliminated the effects of genetic and environmental factors that may have skewed previous studies, an effect known as “residual confounding.”
The researchers from Queensland stated bluntly: “the longer the duration since first cannabis [marijuana] use, the higher the risk of psychosis-related outcomes.” The study, entitled “Association Between Cannabis Use and Psychosis-Related Outcomes Using Sibling Pair Analysis in a Cohort of Young Adults,” measured non-affective psychosis, hallucinations, and Peters et al Delusion Inventory (PDI) scores. The mental illness study found that “compared with those who had never used cannabis, young adults who had six or more years since first use of cannabis were twice as likely to develop a non-affective psychosis and were four times as likely to have high scores on the PDI.”
In short, any use of marijuana in early teenage years increases the probability of an individual developing psychosis. The American Psychological Association defines psychosis as “an abnormal mental state characterized by serious impairments or disruptions in the most fundamental higher brain functions--perception, cognition and cognitive processing, and emotions or affect--as manifested in behavioral phenomena, such as delusions, hallucinations, and significantly disorganized speech.”
The National Survey on Drug Abuse and Health, conducted by the University of Michigan as part of its Monitoring the Future (MTF) program, recently reported that 33.4 percent of 10th graders in the United States had used marijuana at one point during their life in 2010, up from 29.9 percent in 2008. This means that, on average, in a typical secondary school class of 23 students, seven of those students would have already used marijuana. If the results of the Australian study hold true for the American students, those seven students--compared to the other 16 classmates who had never smoked marijuana--would be four times more likely to score high on the Peters Delusion Inventory.
If the risk of mental illness is greater than previously believed, so is the acceptance of casual marijuana usage, especially for “medical” purposes. In February 2009, the same month that Congress passed the $787 billion stimulus program (American Recovery and Reinvestment Act), U.S. Attorney General Eric Holder, citing “limited resources,” stated that the U.S. Justice Department (D.O.J.) would no longer raid medical marijuana clinics. He reversed the drug enforcement policies of previous attorney generals.
More recently, the M.T.F. survey, funded by the National Institute for Drug Abuse, an arm of the National Institutes of Health, reported the marijuana use among 8th graders had increased from 14.3 percent in 2008 to 15.7 percent in 2009 and 17.3 percent in 2010 (see figure). The M.T.F. Drug Abuse survey also reported that--for the first time in 30 years--less than half (46.8 percent) of high school seniors in 2010 saw “great risk” in using marijuana regularly.
In California, the “medical marijuana” law allows dispensaries to sell marijuana with a doctor’s prescription. Although originally marketed to the public as a means to alleviate suffering, such as vomiting, that is often associated with chemotherapy or the treatment of AIDs, prescriptions are now commonly written for a variety of other illnesses, including migraines. Despite the fact that some states allow “medical marijuana” dispensaries, the U.S. Drug Enforcement Administration (D.E.A.) still classifies cannabis as a Schedule I Drug. Under authority of the Controlled Substances Act, this means that marijuana: 1) has a high potential for abuse; 2) no current accepted medical use in treatment; and, 3) has lack of accepted safety.
When Proposition 19, which would legalize possession of marijuana in small quantities, appeared headed for passage in California in November 2010, Attorney General Holder stated the D.O.J. would “vigorously enforce” federal marijuana laws. Proposition 19 failed by a slim margin.
The murder of U.S. District Judge John M. Roll by Jared Lee Loughner in Tucson, Arizona, on January 8, 2011 has a strong marijuana angle. Reportedly an early and relatively heavy user of marijuana, Jared Loughner, as a minor, was arrested for possession of drug paraphernalia in 2007, but received a small fine of $20. After his latest arrest, authorities found candles near a white plastic skull resting on dried orange peels in a terra cotta pot in his back yard. Loughner also used salvia divinorum, a plant of the mint family with hallucinogenic properties. Although currently legal in many states, the D.E.A. is reviewing whether to classify salvia divinorum, like marijuana, a Schedule I Drug, its strictest classification.
The aforementioned Queensland study, funded by the National Health and Medical Research Council of Australia and led by Dr. John McGrath, only looked at psychosis-related outcomes for young adults. Researchers could not “confidently exclude the possibility that some of the cohort members may have developed psychosis as young adolescents, which may have contributed to subsequent cannabis use.” Consequently, this mental illness study on the effects of early cannabis use may not provide insight into the relationship between an individual’s early marijuana use and any change in behavior during late teens.
A slew of defense and prosecution psychiatrists will evaluate Loughner’s mental condition and produce expert reports on his mental state before, during, and after the shooting in Tucson. The American Psychiatric Association lists a whole section related to cannabis use, including schizophrenia, but judges and juries will determine Jared Loughner’s exact culpability in the murders of six individuals, as well as the attempted assassination of Congresswoman Gabrielle Giffords and the wounding of a dozen others.
The association between marijuana and mental illness, long dismissed as either non-existent or irrelevant, can be traced, in part, to the popularity of a movie entitled “Reefer Madness.” A church group originally produced the low-budget, black and white film in 1936, entitling it “Tell Your Children.” During the late 1930s, the Bureau of Narcotics (a predecessor of the D.E.A.) under the Roosevelt Administration distributed it under several names, including “Reefer Madness.” When a founder of the National Organization for the Reform of Marijuana Laws located the film in the 1970s in the Library of Congress, he distributed it widely. The movie became a counter culture phenomenon: the association of smoking a joint and instant insanity was perceived as both a hoax and a fraud. Following the release of the Australian study and the shooting in Tucson, the question must be asked: could “Reefer Madness” hold a smidgeon of truth?
References:
www.nida.nih.gov/nidahome.html
Sunday, August 16, 2009
Analysis of Why We Need Health Care Reform by Barack Obama
In an emotional appeal promoting his Health Care Reform Plan, President Barack Obama, in his article, “Why We Need Health Care Reform,” published in the New York Times on Sunday, August 16, 2009, gives three examples. According to the Health Care Reform article, three individuals were either denied coverage or their coverage was rescinded, because of preexisting health conditions.
Two questions must be asked: Who are these three individuals that President Obama mentions in the second paragraph of the Health Care Reform article? What are their complete stories?
President Barack Obama states that he met Lori Hitchcock “in New Hampshire last week.” The President continues, “Because she has Hepatitis C, she cannot find an insurance company that will cover her.” It may be true that President Obama just met her last week, but Lori Hitchcock is not unknown to the White House. She was the person who introduced President Obama at the Portsmouth, New Hampshire Town Hall Meeting.
The White House Press Release on the Health Care Reform Town Hall, dated August 11, 2009, gives some background on Lori Hitchcock. The White House Release states that Lori’s husband died in 2006 because of Hepatitis C. She has two grown children.
Is it true that Lori Hitchcock cannot get coverage? The Press Release from the White House Briefing Room states: “There is a state program that would provide health insurance; however, at $750/month and a $500 deductible, Lori is unable to afford this coverage.”
New Hampshire, like 33 other states, provides some form of health insurance to individuals through high-risk pools. The health insurance coverage may be expensive, but the White House admits it is available. Information on the New Hampshire Health Plan can be found at http://www.nhhealthplan.org/.
The second person that President Obama references in his Health Care Reform article concerned “a woman who testified that an insurance company would not cover illnesses related to her internal organs, because of an accident she had when she was five years-old.” Who was this woman? Where and when did she testify?
On April 3, 2008 Lee Anne Fitzpatrick testified before the Senate Select Committee on Aging. In her testimony, Lee Anne stated that she was 57 years old. When she was five, she was in a serous accident. Two surgeries were required to save her life. She worked 10 years as a nurse, before starting her own business. Later, she began working for Paloma Clothing in Portland, Oregon. When Lee Anne applied to Blue Cross, the insurance company denied her individual health coverage because of “preexisting conditions,” the result of the unfortunate injury she had as a child.
A year after the health care coverage was denied, however, Lee Anne Fitzpatrick did get health insurance through her husband’s work at Intel. That health insurance paid for two new surgeries for her. Later, her husband was laid off because of cancer (the health insurance paid for treatments), so Lee Anne went to her boss at Paloma Clothing in Portland. She convinced him to obtain group coverage, which she participates in. In other words, despite being denied health care coverage due to “preexisting conditions,” at the time of her testimony before the Senate Select Committee, Lee Anne Fitzpatrick had health insurance.
Lee Anne Fitzpatrick’s testimony on health care can be found at: http://www.aging.senate.gov/events/hr191lf.pdf.
The third individual President Barack Obama references in his New York Times article on Health Care Reform concerned “a man who lost his health coverage in the middle of chemotherapy, because the insurance company discovered that he had gallstones, which he hadn’t known about when he applied for his policy.” President Obama then states: “Because his treatment was delayed, he died.”
This certainly is the most gut wrenching of the three stories. Who was this man? And, did the delay in treatment actually cause his death?
The name of the man is Otto Raddatz, a 59 year-old restaurant owner in Illinois. His sister, Peggy M. Raddatz, who is a lawyer, told his story to the Subcommittee on the Oversight and Investigation of the House Energy and Commerce Committee on June 16, 2009.
Otto Raddatz applied for and received coverage from Fortis Insurance Company in 2003. A year later he was diagnosed with Stage IV Non-Hodgins Lymphoma, a very aggressive cancer. The doctors suggested intensive chemotherapy and stem cell transplantation. Fortis Insurance began a routine review. Fortis Insurance found that Otto had a CT scan in 2000 that showed an aneurysm and gallstones.
Otto Raddatz, however, had not disclosed this information on his original application. Fortis cancelled his policy for “material failure to disclose,” a form of fraud. It should be noted that fraud, “upon clear and convincing evidence,” is also not covered in HR 3200 (Section 162, p. 55), America’s Affordable Health Choices Act of 2009.
Otto Raddatz’s doctor, however, had not informed Otto of the aneurysm and gallstones, so, with the help of the Illinois Attorney General’s Office, Fortis Insurance reversed its decision to rescind. But did the delay in his treatment cause his death?
The transcript on page five states otherwise: “The company relented and Otto received his stem cell transplant. He was able to live 3 more years before passing away earlier this year.”
The complete transcript of the Energy and Commerce subcommittee can be found at: http://energycommerce.house.gov/Press_111/20090616/transcript_20090616_oi.pdf
In the first example, Lori Hitchcock of New Hampshire does have a health insurance option that will cover her, according to the White House itself. At the time of her testimony in the second example, Lee Anne Fitzpatrick of Oregon had health insurance coverage through her employer, Paloma Clothing. In the third example, Otto Raddatz of Illinois received the stem transplant within weeks. Though certainly agonizing for the family, Otto lived for three more years.
References:
New York Times Article: “Why We Need Health Care Reform” by Barack Obamahttp://www.nytimes.com/2009/08/16/opinion/16obama.html?bl&ex=1250568000&en=b4c154e09828e75c&ei=5087%0A
Two questions must be asked: Who are these three individuals that President Obama mentions in the second paragraph of the Health Care Reform article? What are their complete stories?
President Barack Obama states that he met Lori Hitchcock “in New Hampshire last week.” The President continues, “Because she has Hepatitis C, she cannot find an insurance company that will cover her.” It may be true that President Obama just met her last week, but Lori Hitchcock is not unknown to the White House. She was the person who introduced President Obama at the Portsmouth, New Hampshire Town Hall Meeting.
The White House Press Release on the Health Care Reform Town Hall, dated August 11, 2009, gives some background on Lori Hitchcock. The White House Release states that Lori’s husband died in 2006 because of Hepatitis C. She has two grown children.
Is it true that Lori Hitchcock cannot get coverage? The Press Release from the White House Briefing Room states: “There is a state program that would provide health insurance; however, at $750/month and a $500 deductible, Lori is unable to afford this coverage.”
New Hampshire, like 33 other states, provides some form of health insurance to individuals through high-risk pools. The health insurance coverage may be expensive, but the White House admits it is available. Information on the New Hampshire Health Plan can be found at http://www.nhhealthplan.org/.
The second person that President Obama references in his Health Care Reform article concerned “a woman who testified that an insurance company would not cover illnesses related to her internal organs, because of an accident she had when she was five years-old.” Who was this woman? Where and when did she testify?
On April 3, 2008 Lee Anne Fitzpatrick testified before the Senate Select Committee on Aging. In her testimony, Lee Anne stated that she was 57 years old. When she was five, she was in a serous accident. Two surgeries were required to save her life. She worked 10 years as a nurse, before starting her own business. Later, she began working for Paloma Clothing in Portland, Oregon. When Lee Anne applied to Blue Cross, the insurance company denied her individual health coverage because of “preexisting conditions,” the result of the unfortunate injury she had as a child.
A year after the health care coverage was denied, however, Lee Anne Fitzpatrick did get health insurance through her husband’s work at Intel. That health insurance paid for two new surgeries for her. Later, her husband was laid off because of cancer (the health insurance paid for treatments), so Lee Anne went to her boss at Paloma Clothing in Portland. She convinced him to obtain group coverage, which she participates in. In other words, despite being denied health care coverage due to “preexisting conditions,” at the time of her testimony before the Senate Select Committee, Lee Anne Fitzpatrick had health insurance.
Lee Anne Fitzpatrick’s testimony on health care can be found at: http://www.aging.senate.gov/events/hr191lf.pdf.
The third individual President Barack Obama references in his New York Times article on Health Care Reform concerned “a man who lost his health coverage in the middle of chemotherapy, because the insurance company discovered that he had gallstones, which he hadn’t known about when he applied for his policy.” President Obama then states: “Because his treatment was delayed, he died.”
This certainly is the most gut wrenching of the three stories. Who was this man? And, did the delay in treatment actually cause his death?
The name of the man is Otto Raddatz, a 59 year-old restaurant owner in Illinois. His sister, Peggy M. Raddatz, who is a lawyer, told his story to the Subcommittee on the Oversight and Investigation of the House Energy and Commerce Committee on June 16, 2009.
Otto Raddatz applied for and received coverage from Fortis Insurance Company in 2003. A year later he was diagnosed with Stage IV Non-Hodgins Lymphoma, a very aggressive cancer. The doctors suggested intensive chemotherapy and stem cell transplantation. Fortis Insurance began a routine review. Fortis Insurance found that Otto had a CT scan in 2000 that showed an aneurysm and gallstones.
Otto Raddatz, however, had not disclosed this information on his original application. Fortis cancelled his policy for “material failure to disclose,” a form of fraud. It should be noted that fraud, “upon clear and convincing evidence,” is also not covered in HR 3200 (Section 162, p. 55), America’s Affordable Health Choices Act of 2009.
Otto Raddatz’s doctor, however, had not informed Otto of the aneurysm and gallstones, so, with the help of the Illinois Attorney General’s Office, Fortis Insurance reversed its decision to rescind. But did the delay in his treatment cause his death?
The transcript on page five states otherwise: “The company relented and Otto received his stem cell transplant. He was able to live 3 more years before passing away earlier this year.”
The complete transcript of the Energy and Commerce subcommittee can be found at: http://energycommerce.house.gov/Press_111/20090616/transcript_20090616_oi.pdf
In the first example, Lori Hitchcock of New Hampshire does have a health insurance option that will cover her, according to the White House itself. At the time of her testimony in the second example, Lee Anne Fitzpatrick of Oregon had health insurance coverage through her employer, Paloma Clothing. In the third example, Otto Raddatz of Illinois received the stem transplant within weeks. Though certainly agonizing for the family, Otto lived for three more years.
References:
New York Times Article: “Why We Need Health Care Reform” by Barack Obamahttp://www.nytimes.com/2009/08/16/opinion/16obama.html?bl&ex=1250568000&en=b4c154e09828e75c&ei=5087%0A
Tuesday, March 3, 2009
The ATM Machine Ate My Card
A friend once excused his tardiness, telling his teacher, “The dog ate my homework,” but now my friend’s out in the workforce. If my old friend becomes your new friend, he may decline to split the bill or perhaps hesitate to pay for a date. He’ll claim, “Oops! The ATM machine ate my card!”
Don’t laugh! It happens. This morning before dawn it happened to me.
As soon as I parked my Toyota Corolla in front of the local Starbucks coffee shop and pulled the keys from the ignition, I picked up my cell phone, pressed the speed dial, and checked my bank balance. When I pressed the ‘END’ button, the digital readout displayed the exact time: 5:45 a.m., Friday morning.
I had four bucks in my pocket: two for an apple fritter, warmed on a plate; and, two more for a Venti Bold coffee, a little room for cream, chocolate powder and Maui raw sugar at the condiment bar. I didn’t want to be rushed later, so I walked across the parking lot to the local bank branch.
Standing in front of the nearest ATM machine, I pulled the bankcard from my wallet and lined the correct end with the slot. It wouldn’t accept it. Behind the large, square L.C.D. screen to the side, I read, in small, faint letters: Not Working at This Time, Use Another Machine. I retrieved the bankcard, took a couple of steps to the left, and stopped in front of the other automated teller machine.
The second ATM machine readily accepted my card. Slowly but firmly, it squeezed the bankcard from my fingers. Beep. Beep. Beep. Beep. I punched my secret, four-digit P.I.N. on the keypad and waited. Do I want to Check Balance? No. I had just done that, plenty of money.
The machine now told me Out of Receipts. That often happens at gas stations, but hardly ever at ATM’s. Do I want to Continue? I keep all of my receipts and always ask for them from Starbucks, or from fast food restaurants that used to always give them away, but now don’t. No receipt? I’ll just jot it down later on another piece of paper.
Amount to withdraw? I quickly navigated through three more menus and pressed the square button, three down from the top: $60 from checking.
Swish. Swish. Swish. The ATM machine quickly dispensed the cash, three $20 bills, not new.
Whoosh. The curved cash door guard slid shut. I needed $40 for a Smog Check later that morning and $20 for incidental expenses, such as food, a couple gallons of gas, and postage for a partial manuscript of a novel I had written.
No beep? That’s right, Out of Receipts.
The bankcard started to come out. I could see it and feel it, but it did not extend beyond the ATM’s upper lip. It tried to come out, but couldn’t. I tried to grab it with my fingers and thought of prying it out with my car keys. I knew the ATM’s eye, the camera behind opaque glass, watched me, recording everything.
The ATM machine took the card back in and tried to spit it out again. The card still didn’t extend beyond its narrow upper lip. In my car I had a razor-sharp, steel pointer, the perfect tool for the job, but I’d parked at the far end of the lot. I didn’t want to leave my bankcard alone. Who could really trust that ATM machine on the left?
My index fingernail touched the top and my trimmed thumbnail touched the bottom, but the gold card wouldn’t budge. I just couldn’t get any traction. The card slipped back in. The L.C.D. screen read, in big, bold type: OOPS! I Took Your Card!
Oops? Did the ATM machine actually say, “Oops?” Yep. I couldn’t believe it. The ATM swallowed my card, whole!
When I reached the Starbucks coffee shop across the parking lot, I ordered a Venti Bold coffee with “room” and an apple fritter, warmed on a plate. I kept the three twenties in my wallet and handed over exactly $3.80. The requested receipt read the exact time: 5:52 a.m. After sitting down in a comfortable chair, I decided that the next chapter in my novel must wait. I’ll first type out on my laptop the experiences of the previous seven minutes.
Later in the morning, I’ll pay the $39.95 for the Smog Check on my 2003 Corolla, California plates. At noon I’ll go back and talk to the bank branch manager about his tellers--no, not the human tellers with polished customer service skills inside, but the two automated ones outside, especially the one on the left. That ATM machine my card! Oops?
Originally posted on:
ACWRITER, David Andrews's Content Producer Page - Associated Content
http://www.associatedcontent.com/user/130452/acwriter_david_andrews.html
Don’t laugh! It happens. This morning before dawn it happened to me.
As soon as I parked my Toyota Corolla in front of the local Starbucks coffee shop and pulled the keys from the ignition, I picked up my cell phone, pressed the speed dial, and checked my bank balance. When I pressed the ‘END’ button, the digital readout displayed the exact time: 5:45 a.m., Friday morning.
I had four bucks in my pocket: two for an apple fritter, warmed on a plate; and, two more for a Venti Bold coffee, a little room for cream, chocolate powder and Maui raw sugar at the condiment bar. I didn’t want to be rushed later, so I walked across the parking lot to the local bank branch.
Standing in front of the nearest ATM machine, I pulled the bankcard from my wallet and lined the correct end with the slot. It wouldn’t accept it. Behind the large, square L.C.D. screen to the side, I read, in small, faint letters: Not Working at This Time, Use Another Machine. I retrieved the bankcard, took a couple of steps to the left, and stopped in front of the other automated teller machine.
The second ATM machine readily accepted my card. Slowly but firmly, it squeezed the bankcard from my fingers. Beep. Beep. Beep. Beep. I punched my secret, four-digit P.I.N. on the keypad and waited. Do I want to Check Balance? No. I had just done that, plenty of money.
The machine now told me Out of Receipts. That often happens at gas stations, but hardly ever at ATM’s. Do I want to Continue? I keep all of my receipts and always ask for them from Starbucks, or from fast food restaurants that used to always give them away, but now don’t. No receipt? I’ll just jot it down later on another piece of paper.
Amount to withdraw? I quickly navigated through three more menus and pressed the square button, three down from the top: $60 from checking.
Swish. Swish. Swish. The ATM machine quickly dispensed the cash, three $20 bills, not new.
Whoosh. The curved cash door guard slid shut. I needed $40 for a Smog Check later that morning and $20 for incidental expenses, such as food, a couple gallons of gas, and postage for a partial manuscript of a novel I had written.
No beep? That’s right, Out of Receipts.
The bankcard started to come out. I could see it and feel it, but it did not extend beyond the ATM’s upper lip. It tried to come out, but couldn’t. I tried to grab it with my fingers and thought of prying it out with my car keys. I knew the ATM’s eye, the camera behind opaque glass, watched me, recording everything.
The ATM machine took the card back in and tried to spit it out again. The card still didn’t extend beyond its narrow upper lip. In my car I had a razor-sharp, steel pointer, the perfect tool for the job, but I’d parked at the far end of the lot. I didn’t want to leave my bankcard alone. Who could really trust that ATM machine on the left?
My index fingernail touched the top and my trimmed thumbnail touched the bottom, but the gold card wouldn’t budge. I just couldn’t get any traction. The card slipped back in. The L.C.D. screen read, in big, bold type: OOPS! I Took Your Card!
Oops? Did the ATM machine actually say, “Oops?” Yep. I couldn’t believe it. The ATM swallowed my card, whole!
When I reached the Starbucks coffee shop across the parking lot, I ordered a Venti Bold coffee with “room” and an apple fritter, warmed on a plate. I kept the three twenties in my wallet and handed over exactly $3.80. The requested receipt read the exact time: 5:52 a.m. After sitting down in a comfortable chair, I decided that the next chapter in my novel must wait. I’ll first type out on my laptop the experiences of the previous seven minutes.
Later in the morning, I’ll pay the $39.95 for the Smog Check on my 2003 Corolla, California plates. At noon I’ll go back and talk to the bank branch manager about his tellers--no, not the human tellers with polished customer service skills inside, but the two automated ones outside, especially the one on the left. That ATM machine my card! Oops?
Originally posted on:
ACWRITER, David Andrews's Content Producer Page - Associated Content
http://www.associatedcontent.com/user/130452/acwriter_david_andrews.html
Friday, February 20, 2009
U.S. Banks Tighten Loose Lending in 2008
U.S. Banks Tighten Loose Lending
By David Andrews
Recently released data provided by the Federal Home Financing Board (FHFB) reveals that homeowners are putting large down payments to purchase a home. The percentage of all conventional mortgage loans with less than a ten percent down payment dropped dramatically in 2008. From 29 percent of all loans in January, the percentage of loans with low down payments fell to only nine percent in December 2008. (See Chart).
Low down payment loans accounted for one-third (33 percent) of all conventional loans in December 2007. This figure dropped to one-quarter (25 percent) of all loans in March 2008, the month when Bear Stearns, which was the first major casualty in the sub-prime mortgage crisis, collapsed. With the relatively high risk of falling home prices, mortgage lenders became more cautious over the summer. The percentage of loans financed by less than ten down payments fell to 13 percent in September 2008, the month when Lehman Brothers filed for bankruptcy.
Banks further tightened their lending standards during the autumn by requiring larger down payments by borrowers. In October, the U.S. Congress passed the $700 billion Emergency Economic Stabilization Act of 2008. The U.S. Treasury Department began buying stock in the nation’s largest banks. Using funds from the first half of the revised Troubled Asset Relief Program (TARP), the Treasury bought preferred stock and warrants and quickly capitalized lenders.
Many mortgage lenders had suffered unrealized losses because of the sub-prime mortgage crisis. By December 2008, only nine percent of all conventional home mortgages were made to borrowers who had put down less than ten percent toward the purchase price of their single-family homes.
As the percentage of mortgage borrowers who put low down payments fell during 2008, the percentage of single family home purchasers who put larger down payments increased. In December 2008, nearly half (49 percent) of all purchasers had a down payment of between 20 and 30 percent, up from the approximately one-third (35 percent) of all borrowers in January. The figures are for 30-year, fixed-rate, conventional mortgages of less than $417,000. Similar patterns held for loans for both new and previously occupied homes by all major lenders.
Long-term mortgage interest rates, meanwhile, stayed relatively stable for most of 2008, despite a sharp drop in short-term rates. In December 2007, the target for short-term, Federal Funds rate stood at 4.25 percent. The Federal Open Market Committee (FOMC) lowered its target rate for the Federal Funds rate to between zero and one-quarter percent in mid-December 2008. Meanwhile, thirty-year, fixed rates for conventional mortgages by all major lenders rose from 5.96 percent in January to 6.42 percent in August, before falling to 5.52 percent in December. The data on interest rates reflects reporting by savings associations, mortgage companies, commercial banks, and mutual savings banks to the Federal Housing Finance Agency (FHFA). A further small drop in long-term, fixed rate, mortgage interest rates is expected in January.
Sources: Federal Housing Finance Agency, Federal Home Finance Board (http://www.fhfb.gov/).
U.S. Banks Tighten Loose Lending in 2008
The percentage of borrowers putting down payments of less than ten percent dropped dramatically in 2008.
Check out the original article at AC:
http://www.associatedcontent.com/article/1479348/banks_tighten_loose_lending.html
By David Andrews
Recently released data provided by the Federal Home Financing Board (FHFB) reveals that homeowners are putting large down payments to purchase a home. The percentage of all conventional mortgage loans with less than a ten percent down payment dropped dramatically in 2008. From 29 percent of all loans in January, the percentage of loans with low down payments fell to only nine percent in December 2008. (See Chart).
Low down payment loans accounted for one-third (33 percent) of all conventional loans in December 2007. This figure dropped to one-quarter (25 percent) of all loans in March 2008, the month when Bear Stearns, which was the first major casualty in the sub-prime mortgage crisis, collapsed. With the relatively high risk of falling home prices, mortgage lenders became more cautious over the summer. The percentage of loans financed by less than ten down payments fell to 13 percent in September 2008, the month when Lehman Brothers filed for bankruptcy.
Banks further tightened their lending standards during the autumn by requiring larger down payments by borrowers. In October, the U.S. Congress passed the $700 billion Emergency Economic Stabilization Act of 2008. The U.S. Treasury Department began buying stock in the nation’s largest banks. Using funds from the first half of the revised Troubled Asset Relief Program (TARP), the Treasury bought preferred stock and warrants and quickly capitalized lenders.
Many mortgage lenders had suffered unrealized losses because of the sub-prime mortgage crisis. By December 2008, only nine percent of all conventional home mortgages were made to borrowers who had put down less than ten percent toward the purchase price of their single-family homes.
As the percentage of mortgage borrowers who put low down payments fell during 2008, the percentage of single family home purchasers who put larger down payments increased. In December 2008, nearly half (49 percent) of all purchasers had a down payment of between 20 and 30 percent, up from the approximately one-third (35 percent) of all borrowers in January. The figures are for 30-year, fixed-rate, conventional mortgages of less than $417,000. Similar patterns held for loans for both new and previously occupied homes by all major lenders.
Long-term mortgage interest rates, meanwhile, stayed relatively stable for most of 2008, despite a sharp drop in short-term rates. In December 2007, the target for short-term, Federal Funds rate stood at 4.25 percent. The Federal Open Market Committee (FOMC) lowered its target rate for the Federal Funds rate to between zero and one-quarter percent in mid-December 2008. Meanwhile, thirty-year, fixed rates for conventional mortgages by all major lenders rose from 5.96 percent in January to 6.42 percent in August, before falling to 5.52 percent in December. The data on interest rates reflects reporting by savings associations, mortgage companies, commercial banks, and mutual savings banks to the Federal Housing Finance Agency (FHFA). A further small drop in long-term, fixed rate, mortgage interest rates is expected in January.
Sources: Federal Housing Finance Agency, Federal Home Finance Board (http://www.fhfb.gov/).
U.S. Banks Tighten Loose Lending in 2008
The percentage of borrowers putting down payments of less than ten percent dropped dramatically in 2008.
Check out the original article at AC:
http://www.associatedcontent.com/article/1479348/banks_tighten_loose_lending.html
U.S. Housing Inflation Slows in 2008
U.S. Housing Inflation Slows in 2008
By David Andrews
Two broad measures of housing inflation slowed in 2008. According to data released by the Bureau of Labor Statistics (BLS), the Rent component of the Consumer Price Index (CPI) slowed to 3.4 percent from 4.3 percent in 2007. Meanwhile, the larger and more important component of the CPI called the Owners’ Equivalent Rent of Primary Residence (OER) slowed to 2.4 percent in 2008, down from 3.4 percent in 2007. Overall consumer inflation as measured by the CPI grew by 3.8 percent in 2008, up from 2.8 percent in 2007, but this is largely due to the run-up in energy prices during the first half of last year.
The largest component in the overall Consumer Price Index is the Owners’ Equivalent Rent of Primary Residence. The OER accounts for nearly one-fourth (23.94 percent) of the total CPI. According to the BLS, OER measures the change in the implicit rent and is the amount a homeowner would pay to rent or would earn from renting his or her home in a competitive market. From December 2007 to December 2008, the 12-month OER measure of consumer inflation slowed to 2.1 percent.
Although housing costs as measured by the Owners' Equivalent Rent component of the Consumer Price Index slowed and showed only a modest increase during the fourth quarter of 2008, core inflation, as measured by the CPI excluding food and energy, grounded to a halt. On a seasonally adjusted basis, the CPI, excluding food and energy, fell at a compound annual rate of 0.3 percent during the last quarter of 2008. For the year as a whole, core inflation grew at 2.3 percent, the same as the previous year. (See chart)
Disinflation is the slowing of inflation, but deflation is an actual decline in prices. Since early last July, when oil prices peaked above $145 a barrel, energy prices have fallen precipitously. Lower oil prices dragged down overall inflation both at the wholesale and consumer levels. From December 2007 to December 2008, the overall CPI grew at just 0.1 percent in 2008, down from the 12-month rate of 4.1 percent measured during the previous year.
The risk of deflation in the broader economy in 2009 is real. Including food and energy, the overall CPI fell at an annual rate of 12.7 percent during the fourth quarter of 2008. If the overall CPI declines in 2009, it would be the first time that this has occurred in more than 50 years. In 1955, the overall Consumer Price Index fell by 0.4 percent.
Whether the decline in core consumer prices is a temporary phenomenon or the beginning of a long-term trend cannot yet be determined. In addition, the impact of the recently passed $787 billion American Recovery and Reinvestment Act of 2009 on inflation remains to be seen. The Congressional Budget Office report released earlier in February 2009 did not specifically address the inflationary impact of the bill. Economists disagree on both the short-term and long-term impact of the Recovery and Reinvestment Act of 2009, commonly referred to as the Economic Stimulus Plan of 2009.
Source: Bureau of Labor Statistics (http://www.bls.gov/).
Check out my original post at AC:
Two broad measures of housing inflation slowed during 2008.
http://www.associatedcontent.com/article/1479402/housing_inflation_slows.html
By David Andrews
Two broad measures of housing inflation slowed in 2008. According to data released by the Bureau of Labor Statistics (BLS), the Rent component of the Consumer Price Index (CPI) slowed to 3.4 percent from 4.3 percent in 2007. Meanwhile, the larger and more important component of the CPI called the Owners’ Equivalent Rent of Primary Residence (OER) slowed to 2.4 percent in 2008, down from 3.4 percent in 2007. Overall consumer inflation as measured by the CPI grew by 3.8 percent in 2008, up from 2.8 percent in 2007, but this is largely due to the run-up in energy prices during the first half of last year.
The largest component in the overall Consumer Price Index is the Owners’ Equivalent Rent of Primary Residence. The OER accounts for nearly one-fourth (23.94 percent) of the total CPI. According to the BLS, OER measures the change in the implicit rent and is the amount a homeowner would pay to rent or would earn from renting his or her home in a competitive market. From December 2007 to December 2008, the 12-month OER measure of consumer inflation slowed to 2.1 percent.
Although housing costs as measured by the Owners' Equivalent Rent component of the Consumer Price Index slowed and showed only a modest increase during the fourth quarter of 2008, core inflation, as measured by the CPI excluding food and energy, grounded to a halt. On a seasonally adjusted basis, the CPI, excluding food and energy, fell at a compound annual rate of 0.3 percent during the last quarter of 2008. For the year as a whole, core inflation grew at 2.3 percent, the same as the previous year. (See chart)
Disinflation is the slowing of inflation, but deflation is an actual decline in prices. Since early last July, when oil prices peaked above $145 a barrel, energy prices have fallen precipitously. Lower oil prices dragged down overall inflation both at the wholesale and consumer levels. From December 2007 to December 2008, the overall CPI grew at just 0.1 percent in 2008, down from the 12-month rate of 4.1 percent measured during the previous year.
The risk of deflation in the broader economy in 2009 is real. Including food and energy, the overall CPI fell at an annual rate of 12.7 percent during the fourth quarter of 2008. If the overall CPI declines in 2009, it would be the first time that this has occurred in more than 50 years. In 1955, the overall Consumer Price Index fell by 0.4 percent.
Whether the decline in core consumer prices is a temporary phenomenon or the beginning of a long-term trend cannot yet be determined. In addition, the impact of the recently passed $787 billion American Recovery and Reinvestment Act of 2009 on inflation remains to be seen. The Congressional Budget Office report released earlier in February 2009 did not specifically address the inflationary impact of the bill. Economists disagree on both the short-term and long-term impact of the Recovery and Reinvestment Act of 2009, commonly referred to as the Economic Stimulus Plan of 2009.
Source: Bureau of Labor Statistics (http://www.bls.gov/).
Check out my original post at AC:
Two broad measures of housing inflation slowed during 2008.
http://www.associatedcontent.com/article/1479402/housing_inflation_slows.html
Thursday, February 19, 2009
U.S. Home Prices Remained High in 2008
U.S. Home Prices Remained High in 2008By David Andrews
Nationwide, single family home prices remained high in 2008. According to data recently released by the Federal Housing Financing Board (FHFB), the purchase price for single family homes financed by conventional mortgages averaged $304,600 in 2008, up 1.4 percent from 2007. The average purchase price of single family homes financed by conventional mortgages in the United States reached an all time high of $306,400 in 2006.
The contract interest rate for 30-year, fixed-rate mortgages of $417,000 or less averaged 6.05 percent in 2008. In December, however, the contract interest rate fell to 5.52 percent. The Federal Open Market Committee lowered its target rate for Federal Funds to between zero and one-quarter percent on December 16th, so the contract interest rate for mortgages can be expected to fall further in January.
Even though nominal home prices rose 1.4 percent last year, real home prices fell 1.0 percent in 2008, the third consecutive year of decline. Earlier in January, the Bureau of Labor Statistics (BLS) reported that the Owners’ Equivalent Rent of Primary Residence (OER) component of the Consumer Price Index (CPI) rose 2.4 percent in 2008. Real home prices are calculated by dividing the average purchase price by the OER index. In constant 1982 dollars, single family home prices peaked in 2005. Real home prices are less than 10 percent lower than their 2005 peak, but remain 20 percent higher than 2000 levels.
In most years, the Owners' Equivalent Rent component of the Consumer Price Index correlates closely with what renters pay as measured by the rent component of the CPI. For the past 20 years, the difference in the annual rate of change in these two components has been less than 1.0 percent. In 2008, however, rent prices increased by 3.7 percent compared to the 2.4 percent rise in the OER. Anecdotal evidence suggests that some homeowners may have become renters over the last year, because of the increase in the number of foreclosures caused by the sub prime mortgage crisis.
The accompanying chart shows the nominal change in the purchase price of single family homes, the percent change in the Owners’ Equivalent Rent (OER), and the change in the real housing price from 2005 to 2008. At the height of the sub-prime lending boom in 2005, the average purchase price jumped by 14.4 to nearly $300,000. The Owners’ Equivalent Rent component of the CPI did not keep pace that year, accounting for the large spike in real home prices.
When real housing prices previously peaked in 1989, single family homes across the United States cost an average of $142,800. According to the FHFB, the nominal purchase price of homes financed by conventional mortgages fluctuated between $142,000 and $147,000 from 1989 through 1995. In real terms, however, housing prices fell by 25 percent during that six-year period. If a similar pattern occurs during this housing cycle, real housing prices can be expected to fall through the year 2011.
Sources: http://www.fhfb.gov/ and http://www.bls.gov/.
Check out the original post on AC:
http://www.associatedcontent.com/article/1471313/housing_prices_remain_high.html
The Takeaways from this article are:
- Home prices for single family homes financed by conventional mortgages remained high in 2008.
- Real home prices declined modestly for the third consecutive year, but remained high above 2000 levels.
- Conventional mortgage interest rates for 30-year, fixed-rate loans averaged 6.05 percent in 2008, but fell to 5.52 percent in December.
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