John T. Reed’s news blog

Interesting op-ed about how seniors are better off than ever financially in today’s WSJ: “Older Americans Are Better Off Than Ever.” . Part of the reason is the introduction of IRAs in 1974 and 401(k)s in 1978. The more recent opt in change in those is also good. . But I hasten to add that those are basically stock market index funds. In 1929 to 1932, the stock market fell 90%. So it is a disaster in deflation (depression). Houses also fell 90%. . Saving is important. Those programs greatly encouraged people to save. Good thing. . Social security benefits...

I recently said here that if you pay down a loan, the return you get on your payment is the interest rate you no longer pay on that amount. My wife and I got a reverse mortgage that is at 9.4%. She intends to pay it down from time to time from her mandatory 401(k). .I have also said that at any given time with regard to any interest rate whether you are buying, selling, borrowing, or lending that your real interest rate is the nominal rate written on the loan documents MINUS the inflation rate..What is the inflation rate?...

There is some kind of Ukraine armored/infantry breakthrough there. They are also effectively hitting various ships and infrastructure in Crimea and maybe all over the Black Sea..Furthermore, Biden has apparently agreed to increase aid and finally give them ATACMS—artillery rockets with 200-mile range as opposed to the max HIMARS range of 50 miles. The decision to give them F-16 fighter jets has already been made and though they need to train pilots and set up ability to maintain and get parts for them, the day when that will be in place is nearing..The members of the Dictators Association (Xi, Putin,...

More attempts to discourage home buyers in the Wall Sreet Journal today by their reporter Nicole Friedman..The usual nutty logic..Basically, principal residences are good investments because they appreciate in value, provide you with a place to live, and have two dozen structural advantages not available to owners of other assets, even an identical house across the street that is rented to a tenant.. .Nicole says "home sales have slumped this year.".Home prices?.No. .Home Sales. Unit sales. Realtors® got fewer commissions. Why is she telling us that? What the hell do people who are not collecting money at home settlements care...

Another WSJ article on the “chilled” home market today. Reporter Nicole Friedman is back to her mantra—using her usual borderline irrelevant data points like until sales of homes, mortgage interest rates (the market automatically adjusts to them) and seizing on tiny downward movements of Realtor®’s median existing home prices as proof of a bad housing market. The corporation that owns Realtor®dotcom also owns the WSJ. Realtor® home prices are the most misleading The Realtor® median existing home price figure is the most misleading one for various reasons. (only sales generating commissions, hardly any new homes, leaves out condos and townhouses...