Economic indicator drops sharply in November

The U.S. leading index, which is intended to gauge future economic activity, dove 0.4 percent in November following a 0.5 percent drop in October, the Conference Board reported today. The index score of 136.3 in November was the lowest since mid-2005.

This index has fallen in four of the past six months, and seven of the 10 indicators that make up the index fell in November.

Large declines in stock prices, initial claims for unemployment insurance, the index of consumer expectations, and real money supply pulled down the index in November, and the only positive results were for vendor performance, average weekly manufacturing hours, and manufacturers' new orders for nondefense capital goods.

The index rose 0.1 percent in September following a 0.9 percent drop in August. During the six-month span through November, the leading index fell 1.2 percent, with half of the index components showing decline.

A coincident index, which indicates the current state of the economy, rose 0.2 percent in November to 125.1, following a 0.1 percent drop in October and a 0.1 percent gain in September. This index rose 0.8 percent during the six-month period through November.

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source: lendinguniverse.com

Home-improvement tools make great gifts

Well, it's time once again to be thinking about what to get for the avid do-it-yourselfer on your holiday shopping list, so here are some great tool suggestions -- listed in order of price -- that are well worth considering. (Prices are MSRP, and the tools are commonly available through home centers, hardware stores, lumber yards and other retailers, as well as online).

And this year a big thanks to all of the manufacturers who are getting rid of those irritating and dangerous blister packs in favor of more user-friendly packaging!

* Fat Max Push Button Slip-Joint Pliers (Stanley, $9.99) and Groove-Joint Pliers (Stanley, $19.99): Stanley has improved adjustable pliers technology by adding a push-button lock that keeps the jaws where you set them, without slipping. The 8-inch slip-joint pliers have three jaw positions instead of the traditional two, and the 10-inch groove-joint pliers adjust to 17 different settings. Both have hardened teeth, multipurpose jaws and cushioned, slip-resistant handles.

* Gecko Level (Black & Decker, $24.99): Black & Decker's clever 24-inch aluminum box level has "Gecko Grip" friction pads that really help keep the level from slipping when marking lines. There's also a convenient 9-inch torpedo level tucked away in an on-board holder, and the torpedo level doubles as an accurate wood-stud finder.

* Rota-Driver (Black & Decker, $29.99): Here's a compact screwdriver with a head that rotates into four different positions to simplify reaching into even the tightest, most confined spaces. The compact 4.8 volt Rota-Driver is comfortable to hold, has a built-in work light, and accepts any 1/4-inch hex-drive tips. The price includes a plug-in charger and two tips.

* Carryalls 20-inch Large Mouth Tool Bag (Husky, $36.99): Made from tough, water-resistant material, this soft-sided tool bag has a big, zippered inside compartment for larger tools, and 22 inner and outer pockets for smaller stuff. It features comfortable reinforced carrying handles and a detachable padded shoulder strap. There is also a smaller, 14-inch model for $19.99.

* Digital Angle Finder (Skil, $59.99): For measuring inside or outside angles from 0 to 220 degrees, this digital tool has an easy-to-read screen that displays the angle in 1/2-degree increments, and then converts it to the proper miter-cutting angle at the push of a button. The Digital Angle Finder also doubles as a level, straightedge and ruler.

* Scrolling Orbital Jigsaw (Skil, $79.99): This powerful, 6-amp saw has a laser guide for accuracy, and a five-position cut control to adjust the cutting action from smooth to fast. There's a top-mounted scrolling handle that lets you turn the blade without turning the saw, a dust blower and a built-in work light. You can change the blades and adjust the foot without tools, and the blades are stored in an on-board holder. The package includes a fitted hard-shell case and a blade assortment.

* Black Chrome Socket Set (Stanley, $99.99): First of all, this socket set just looks cool. All of the corrosion-resistant wrenches and sockets are black, with contrasting laser-etched markings that let you quickly identify the sizes. The 99-piece set includes ¼-inch and 3/8 inch sockets in metric and SAE, 1/4- and 3/8-inch ratchets, 10 combination wrenches and more, all in a fitted hard-plastic carrying case.

* Motion-Activated Laser Compound Miter Saw (Skil, $179.99): The unique motion-activated laser beam projects dual red lines before the saw is turned on, allowing you to use both hands to align the cut. The saw angles and bevels to 45 degrees in each direction, and has built-in supports for longer boards and clamps for stable cutting. For crown moldings, there are built-in stops for the proper miter and bevel angles, as well as molding stops to hold the molding in an angled position if you prefer to cut it that way. Also included are a dust bag and a 10-inch, 40-tooth carbide-tipped blade. This is a saw that's really packed with features for the price.

* 18-Volt Lithium Ion Drill, Model 86006 (Ridgid, $189): This is an excellent cordless drill kit that offers the professional or the serious do-it-yourselfer everything he or she could want. The latest lithium ion technology makes the batteries lighter without sacrificing power, resulting in a drill that is light (under 4.5 pounds), very powerful and feels well balanced in your hand. It features a 1/2-inch keyless chuck, 24-position clutch, two-speed transmission for better power control, and trigger-controlled variable speed. The handle has a comfortable, overmolded grip; there's a built-in work light; and the high capacity, slide-in batteries recharge in just 30 minutes. Also included are a charger, two batteries and a soft-sided carrying bag.

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source: lendinguniverse.com

Paid off home, now how to get title?

Q: I live in Southern California and paid off my home. I received "Substitution of Trustee and full reconveyance" that was recorded in my county in June 2007. Is there some other document that I should receive indicating title, deed or ownership of my property? I received an ad from a private company indicating they would assist for a fee to obtain an official document. Would this be a something like the title of a car?

By the way, I very much enjoy your column in my local paper.

A: When you purchased your home, your seller delivered to you a legal document that may have stated that it was a "warranty deed," "special warranty deed," "trustee's deed," or even a "quitclaim deed."

Any one of these documents is the one and only document that shows the conveyance of title from your seller to you. That document could be considered the "title" to your home and would be recorded in the appropriate county office in which your home is located. Once recorded, it would become part of the public record. After being recorded, the county office will mail the original document back to you, the homeowner.

That public record gives title companies and others the ability to look at a particular property and determine who has owned the property over the years and who owns the property today.

Unlike when you own a car, the state does not issue a document that would show you as the owner of the property.

Once you receive a deed to the home and it is recorded, you are the official owner of that home. However, if you obtained financing when you bought the home or if you took out a loan that was secured by the home, that lender holds a lien on the title to the home. If you attempted to sell the home, a subsequent buyer would take that title subject to the loan. The sale of the home would not get rid of the lender's rights against the property.

In some states, lenders take a mortgage on the property. In others, lenders take a deed of trust. The deed of trust effectively is a lien on the property for the loan amount but also puts a hold on what an owner of that property can do to the title of the home.

For most buyers, a mortgage and a deed of trust will work the same way. An owner will buy the home, take out financing, give the lender a mortgage or deed of trust, and pay off the loan over time. When the loan is paid in full, the mortgage is released, or the deed of trust is cancelled, and the title is reconveyed to the owner.

If you have received a reconveyance document from your lender, and it has been properly recorded, you need do nothing more. If you have a copy of the deed to your home from when you purchased your home, you're all set.

For most people, having their original deed from when they purchased their property plus the release of mortgage or reconveyance document for the deed of trust will work in most situations.

If you ever need a copy of the deed to your home, you can always obtain a copy from the office that accepts documents for recording in the local county in which your property is located. You will generally be charged a fee for the copying the document.

In some cases, you can obtain a copy of the document from your county's Web site and pay a nominal fee. In some counties, the county office may charge one fee if you want a copy of the document and a much higher fee if you want that document certified by the county as an accurate copy of the original.

There are some companies that will assist homeowners in obtaining copies of documents for their records. These companies charge a fee for their services. Before you hire them, you should know what it would cost you to get a copy of these documents on your own and then what the service would charge you to determine whether you are better off getting the document yourself or having the service help you out.

Start with the Internet and use a search engine to see if your local office has a web site that allows you to view and print these documents. The best option would be to print them in the comfort of your own home.

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source: lendinguniverse.com

Fed's next move: Stop inflation or stop recession?

In as strange a stew of news as you'll ever see, mortgage rates have risen close to 6.25 percent, led by the 10-year T-note's leap from 3.85 percent to 4.25 percent.

Beginning two weeks ago, the financial markets began to trade on the prospects for government bailout of a fibrillating financial system. Then, yesterday, new economic data whiplashed them from preoccupation with financial failure to worry about inflation.

Last first. The data surprises: reasonably healthy retail sales for November; a full stop to the rise in new claims for unemployment insurance (i.e., no increase in layoffs); a modest 0.3 percent gain for industrial production; and awful inflation numbers. November CPI jumped 0.8 percent -- 4.3 percent year-over-year -- and the all-important "core" rate rose 0.3 percent, way out of the Fed's 2 percent annual range. $95 oil will have is effects.

"Trade on prospects for government bailouts ..." Wahazzat?!

Last week, when Treasury Secretary Henry Paulson announced his foreclosure workout plan, stocks soared in relief at salvation and interest rates rose from panic pit. The whole thing reversed in two days. The plan will save two families in Arizona, another three in California, nine in Florida, and Etta Mae Huntzinger in Topeka. Hank Paulson split for China and hasn't been heard from since.

Late last week through Tuesday morning, anticipation of rescue by the Fed set off another salvation rally. In minutes after the Fed's reasonable 0.25 percent rate cut but clueless-about-crisis statement, the Dow dove 300 points, rates back down.

Dawn Wednesday, big Fed hoo-ah: Global central banks will make bigger and longer loans to banks. Dow back up 270... for two hours, then down almost 400. Markets are learning that the authorities' idea of rescue does not match the need. Stocks finished the day back where they were before Paulson began these timid shows.

The inflation risk is hard to measure, but the consequence of risk is not. The Fed's cautious statement on Tuesday was not as clueless as it seemed: In a choice between preventing inflation and preventing recession, the economy is on its own.

The acute economic problem today is the functional bankruptcy of the Western banking system. Losses in trillions of dollars of weird assets have impaired systemic capital; central banks have kept the system liquid, and undoubtedly will continue to do so, but nobody has an idea how to get the system to make new loans. You have to have capital to do that, and we're fresh out.

So long as these unrecognized but very real losses impair the balance sheets of the system, new credit will fall below the economy's subsistence level. Many people think that stagflation will result; others think that Mr. Market will fix things; still more think that we'll muddle through; and stock market people are only dimly aware that something is wrong. I think they're all wrong: markets today are too interlocked and quick for us to go through the 10-year S&L stumble to bailout. We need another one, and soon.

The hostility to rescue is pervasive among American civilians, at center the blind fury at all participants in the housing run. The desire for blame and punishment is stronger than for self-preservation. Most Americans think the S&L bailout rescued the institutions, unaware that the officers, directors, stockholders, and borrowers lost everything, and only the depositors were saved.

A bailout now would not be hard, except politically: I'll describe the financial means in a hopeful holiday message next week.

The political path goes this way: before a recession unfolds, I think we'll have a financial accident -- a morning when a market cannot open, or a few large institutions fail, or a counter-party virus runs wild. Then Fed Chair Ben Bernanke and Treasury Secretary Paulson will visit the White House to tell the Duck in Chief, President Bush, what happened to the family car. In an election year. To ask for wise and bipartisan action from Congress and presidential candidates.

They'll only do it if you tell them the society is more important than your anger.

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source: lendinguniverse.com

Pros, cons of buying home in today's market

When the housing market slows down, buyers often wait on the sidelines for a clear sign that the market has recovered. The only problem with this strategy is that you can only know for sure that a market has turned through hindsight. In other words, you can't time the market.

A slow market is perceived as an opportunity by some buyers, as it takes longer for listings to sell. The inventory of unsold listings tends to grow, giving buyers more choice than is the case in a hot seller's market when listings sell quickly.

In a high-inventory market, there are usually fewer multiple offers so buyers can cut a better deal with the seller. However, it pays to be careful about what you buy and how you finance the purchase.

HOUSE HUNTING TIP: The least expensive home in an area may not be the best investment. Unless you are a contractor with years of experience fixing up properties, you should hire the best inspectors you can find to look carefully at the condition of a property before you buy.

Many home buyers, particular first-timers, don't give enough attention to the cost of maintaining a home. Home maintenance is a necessary part of home ownership. It can be expensive, particularly if you need to hire others to do the work.

Some homes require more maintenance than others. A good inspector should be able to give you a good indication about how much work a home needs now and how much it will need on an ongoing basis. Buying a well-maintained home that will also have relatively low ongoing maintenance is one way to keep your overall housing costs down.

Inexperienced home buyers should resist buying a fixer-upper just because it's offered at a cheap price for the neighborhood. It's difficult to get a firm grasp on renovation costs during the inspection contingency period, particularly if it's a big job.

Remodeling projects can run over budget because of unanticipated problems like faulty electrical or plumbing, or an old furnace that goes bad. Or the city inspector could require that you do additional work to correct non-code-complying improvements done by previous owners. These sorts of costs can mount up so that you end up with far more invested in the property than it's worth on the market.

Try to avoid buying a home that has an incurable defect. This is something that you can't change, like a location next to a freeway. These homes don't hold their value well when the housing market softens.

A risk of buying in a slow market is that the value of what you buy might drop before it rises. Or, prices could stay flat for some time, which means that you won't build equity unless you pay down principal on your mortgage. If you should have to move during a time when prices are soft, you might not be able to sell for the amount you paid. To decrease this risk factor, don't buy for the short term.

Give careful consideration to how you finance your purchase. Stay away from mortgages that have short due dates and balloon payments. If the market in your area stays soft for longer than anticipated, you don't want to be caught having to refinance at a time when your home might not appraise for the price you need to complete the transaction.

THE CLOSING: A benefit of buying in a soft market is that you have the opportunity to buy at a reasonable price, without having to compete with other buyers. But, it makes no sense if you put yourself at financial risk.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

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source: lendinguniverse.com