Interest Rates

It is true that interest rates have jumped about 1% over the past couple of months.  But I don't think the Fed is going to risk rates moving up too rapidly due to the impact that would have on a recovering economy. 

New Banking Rules

As part of the 2010 Dodd-Frank Act, several major changes to the mortgage industry will take effect on Jan 1, 2014.  Efforts by the Consumer Financial Protection Bureau, the federal agency with rule-making authority under Dodd-Frank, to reform the mortgage lending industry from the gound up has resulted in an avalanche of new regulations, totaling nearly 4,000 pages.

While the goal of the nearly dozen new regulations is to prevent another housing crisis like the one that led to the worst recession in the U.S. since the Great Depression, the sheer volume of regulations may hurt consumers more than help them.  The pendulum has swung too far the other way.  Under some of these provisions, none of us would qualify for a mortgage loan.

What it all means for the consumer?  Fewer, more difficult to obtain loans, which are more costly and statistically less risky but also less helpful for consumers.  The intent of the rules is to help consumers, but the very people they're trying to protect will be hurt.

Diabetes Breakthrough

Some great news was recently released indicating a device to regulate insulin needs for diabetics while sleeping is now being used in Europe and being evaluated by the FDA here.  Diabetics are especially vulnerable to dangerous variations in their blood sugar levels during sleep leading to coma and even death.  My oldest grandchild was diagnosed with Type 1 diabetes at age 8.  He is now 23, but the disease is ever present.  It is because of this I do a 100 mile bicycle ride each year for him with my fund raising benefitting Juvenile Diabetes Research Foundation.

Interest Rates Again

As I think I have somewhat predicted, interest rates are on the move.  Good news for those on fixed incomes!  Even though they are higher for the borrower, they are still very good rates when one looks from the historical perspective.

Good Read

If you are interested in knowing more about what goes on in Washington when significant matters arise that involve Congress and the White House, read Bob Woodward's novel "The Price of Politics."  It is definitely the most insightful book on politics I have ever read.

Summer and Interest Rates

Is summer finally here?  What a beautiful day today!  Makes one forget the weather we've had so far this spring.  Remember, summer is officially still almost 2 weeks away.

Interest rates have started to move higher.  They are still at historic lows.  If a person is thinking about refinancing now is the time.  If your home loan has a remaining balance greater than $200,000, a half point reduction in your rate makes sense.  Under $200,000 a full point reduction makes sense.

Weather

This has been an interesting spring weather-wise.  Each day has been a different weather day.  But we kind of got spoiled last year.  So if you put last spring together with this spring and divide by 2, you get an average spring.  No?

Road Trips

Each year I offer off the beaten path Dane County day road trip maps.  They were published in 1996 and were written by then County Exec Rick Phelps.  There are six of them.  If you would like a set of them, call 608-250-5500 and leave either your e-mail address or your snail mail address on my voice mail.

Annual Shareholders' Meeting

Oak Bank held its annual shareholders' meeting last night at Promega's Biopharmaceutical Center.  Directors were elected and a minor by-law change was made.  After the meeting refreshments and food was provided.  I think the turnout was affected somewhat by the beautiful weather, but all in all, a very good meeting and excellent news from management about the Bank.

Change

There is nothing so so constant in our universe as change.  Yet, mankind seems to fear and fight change at every turn.  This is something that Henry Ford, founder of Ford Motor Co., knew all too well:

"Businessmen go down with their businesses because they like the old way so well they cannot bring themselves to change.  One sees them all about - men who do not know that yesterday is past and who woke up this morning with their last year's ideas."

Interest Rate Trends

It has been a while since I have weighed in on where I think interest rates are headed.  Much to the chagrin of those in fixed investments, I do not see rates changing for at least two years. 

Boston

I am somewhat surprised it took over 11 years for another terrorist attack on the U. S.  We are such an open and expansive country with so many heavy concentrations of people all over the place.  But if we become terrorized, they win.  We will win!!

Boston

The question of the day on radio station WIBA - AM this morning was whether I felt the tragedy in Boston yesterday was precipitated by international or domestic terrorist?  My response was domestic.  For some reason this seems an act of a domestic radical group.  Time will tell.

Election Day

Madison continues to amaze me with its political thinking.  Why do you reject the candidate for judge that was recommended by both sides of the aisle just because she was appointed by Governor Walker?  How selfish and shortsided can a person be?  We have way too many people in this town who have never created a job in their lifetime.  People who have lived off taxpayer money all their life, either at the university or in some form of government employment.  Oh well, it's still a great town.

Vote

Surprises from yesterday's election.  Longtime Madison alderman Tim Breur getting beat was the big shocker for me.  I was disappointed in the Fitchburg election results in two cases;  Dorothy Krause from District 1 is an example of why we have such bad leadership in our city.  And Steve Arnold getting reelected from District 4 was a disappointment.  His spending wishes only leads to higher taxes.  Just amazes me that so many people have no idea of what it takes to run a business and the risks you take.  It's like they think we have an endless pit filled with money.  They just don't get it as to how we have to fill that pit.

Economy

While I am not excited about the economic growth outlook, I do feel we have bottomed out.  I am also seeing signs that the housing market is beginning a turn around. 

Spring

Quite a winter!  But being from the U.P. I am used to longer winters.

UW men's basketball team had quite a run this year.  Most people I know who follow them would say they would not have expected them to have the season they have had.  Basketball is such a momentum game.  And they just could not get the momentum yesterday.

Coach of the Year

I know my posts to this blog often are sports oriented.  But that's Madison.  It is a very sports oriented town. 

Bo Ryan being named Coach of the Year in the Big 10 is well deserved.  I know of noone who thought they'd have the season they have had.  Granted, it is the guys who are out on the floor who execute  plays and fight as hard as they do.  But Bo's ability to get the maximum effort from his guys game after game is a true testament to his coaching and to his assistant coaches'. 

Daylight Savings

I was listening to WIBA this morning and the discussion very early was about the pros and cons of daylight savings time.  I like having more daylight later in the day.  So I guess that makes me in favor of it.  I find people tend to be in much better moods when the sun shines, too.  And for those who love to bike, it leaves more time to hit the roads and trails after work. 

Tired Yet

Are you tired of the snow yet?  Having grown up in the Upper Peninsula of Michigan, I find this winter reminescent of those I got used to.  The difference is that while we are approaching 60 inches of snow here, which I believe is above average, Marquette, Michigan has had over 130 inches, a normal year.

Get out and enjoy it.  Temperatures are great for it.