Comment of the Day
21st April 2023
Eoin Treacy
Apr 22
Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages
This article from The Washington Times may be of interest to subscribers. Here is a section:
Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.
The new fees will apply only to Americans buying houses or refinancing after May 1.
Lenders and real estate agents say the changes will frustrate homebuyers with high credit scores and homeowners seeking to refinance because the rule punishes them for their relatively strong financial positions.
“The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well,” Ian Wright, a senior loan officer at Bay Equity Home Loans in the San Francisco Bay Area, told The Washington Times in an email message. “It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing.”
Eoin Treacy's view
When I first saw this news item, I thought it was a joke. However, it does appear to be true that people with better credit will be penalised for doing better in life.
There is a significant subset of the investment community that believes governments will engage in massive building programs to revitalise infrastructure. Forgive me for scepticism. The “vision thing” is sadly lacking in most countries.
This section continues in the Subscriber's Area.
Top 25 Psychiatric Medications for 2020
This article from psychcentral.com may be of interest. Here is a section:
Psychiatric medications are a crucial part of treatment for many mental health conditions, helping to ease symptoms and boost mental well-being. But there are some more commonly prescribed.
Mental health conditions are complex. Just one medication will help in some cases. Other times, you might try a few different medications before finding the right one or even need more than one medication.
Psychiatric medications are an important part of many people’s treatment plans, including therapy and other strategies. While they can’t cure your mental health condition, they can help manage your symptoms.
Eoin Treacy's view
The pharmaceutical industry thrives on chronic conditions. That’s why some of the most successful companies cater to diabetes or why Viagra was such a big hit. The pandemic has seen an explosion in the number of people seeking mental health solutions. It is now much more socially acceptable to talk about mental health and to a certain extent is faddish on social media. That suggests a growth market. I took the list of medications in the above article and traced down the parent companies.
This section continues in the Subscriber's Area.
LVMH Is Shifting Out of Hong Kong as Chinese Shoppers Stay Home
This article from Bloomberg may be of interest to subscribers. Here is a section:
LVMH is shifting resources out of Hong Kong, reflecting waning interest in what used to be Asia’s premium shopping hub as mainland Chinese consumers switch to shopping at home.
The top global luxury conglomerate wants to focus more of its investment in burgeoning metropolises such as Shanghai, Chengdu, Guangzhou and Shenzhen as Hong Kong loses its relevance in the Greater China region, according to people familiar with the matter, who asked not to be identified discussing private deliberations.
To that end, it’s already moved the regional headquarters of some brands, including the group’s local head office, to Shanghai, and relocated some senior executives to the mainland, the people said.
Eoin Treacy's view
The question Hong Kong has to answer is why? The gateway to China rationale is wearing thin as the mainland deals easily with most of its counterparties and expertise is migrating to other cities. The fear of Hong Kong becoming “just” another Chinese city was at the centre of concern about the security law a couple of years ago and the reality is now coming to fruition. Greater geopolitical tension between China and the developed world is not good news for Hong Kong exceptionalism.
This section continues in the Subscriber's Area.
© 2023 Eoin Treacy
548 Market Street PMB 72296, San Francisco, CA 94104
Unsubscribe