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Fannie Mae reportedly scraps title insurance pilot
Fannie Mae has quietly scrapped a plan that could have saved Americans thousands of dollars in housing costs, according to multiple reports. With the objective of making housing more affordable — especially for lower-income Americans — government-sponsored mortgage company Fannie Mae was reportedly considering a pilot program that would waive title insurance requirements for certain lenders. Lenders’ title insurance is one of the biggest fixed costs associated with closing on a mortgage. It protects mortgage lenders from any unexpected legal or financial issues that render the home title — the ownership rights for the property — invalid. Fannie Mae was going to cover the cost of insurance for select mortgage refinancings offered by seven or eight lenders. If successful, it planned to expand coverage to more lenders and other types of mortgages, as reported by the Wall Street Journal. A lenders’ insurance policy typically costs 0.5% of the loan amount. While this move could have saved homeowners a healthy sum of cash, the idea of such a program landed like a lead balloon with the title insurance industry and lawmakers as reports circulated of its development earlier in the year. During a House hearing in May, Rep. Andrew Garbarino (R-N.Y.), who has a background in real estate law, said it would “end up hurting consumers,” despite no official announcement of a pilot program. According to the Journal, after extensive backlash — mostly around Fannie Mae’s lack of experience with title insurance — the pilot program was scrapped in August at the request of the Federal Housing Finance Agency. But here’s why title insurance may just be worth the money (and what you can do to limit your costs).
Rich, young Americans are still ditching NY, CA
Young Americans earning six figures are still ditching New York and California for greener (more affordable) pastures in other states. Iconic hotspots California and New York saw the largest outflows of high-income young people in 2021, according to SmartAsset’s latest analysis of income and migration data from the Internal Revenue Service (IRS). The states with the highest amount of high-income earners moving to them have comparatively cheaper homes and lower taxes, highlighting how the cost of living is a top priority even for the richest Americans. If you’ve been considering a similar move, regardless of your tax bracket, here’s what you need to know about where these rich, young Americans are going and why.
US investors bet on Argentine stocks post-election
Argentina’s newly elected President Javier Milei has vowed to ditch the nation’s currency in favor of the U.S. dollar because the peso “isn’t even worth excrement.” The anarcho-capitalist and self-proclaimed “king of the jungle” won 56% of the vote with his radical plans to eradicate rampant inflation, which include a “moral obligation” to stop the nation’s central bank from printing money. However, resuscitating South America’s second-largest economy will be tricky. Inflation is currently roaring at 143%, the peso has lost 90% of its value in four years, the nation has almost no access to international capital and two out of five Argentines are living in poverty. “Today we begin the reconstruction of Argentina,” Milei said after his win on Sunday. “If we do not move quickly with the structural changes that Argentina needs, we are heading towards the worst crisis in our history.” The economist, author and former TV pundit famously revved a chainsaw during his electoral campaign as a symbol of his commitment to cutting government spending. Milei’s win sees the country move one step closer to dollarization — an idea the government has dabbled with and failed at in the past. In the short-term, it seems the new president’s promises to bring about dramatic changes have ignited the interest of investors. His win sparked a major rally in the U.S.-listed shares of Argentine companies and an exchange-traded fund (ETF) focused on the country’s economy.
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The IRS has postponed its '$600 rule' yet again
If you make a bit of extra money by selling goods or services online, you can breathe a little easier for the moment, now that the IRS has postponed a plan that would have set off a “tsunami of 1099-K” tax forms. For the second year in a row, Uncle Sam delayed a new tax rule that will lower the income threshold for Form 1099-K, which is used to report third-party business payments to the IRS. This means many small business owners, freelancers and gig workers are off the hook for now — but not everyone will be spared in the coming tax year. Here’s what the IRS is proposing and how casual sellers could still get dinged.
If you make a bit of extra money by selling goods or services online, you can breathe a little easier for the moment, now that the IRS has postponed a plan that would have set off a “tsunami of 1099-K” tax forms. For the second year in a row, Uncle Sam delayed a new tax rule that will lower the income threshold for Form 1099-K, which is used to report third-party business payments to the IRS. This means many small business owners, freelancers and gig workers are off the hook for now — but not everyone will be spared in the coming tax year. Here’s what the IRS is proposing and how casual sellers could still get dinged.
Mortgage rate trends this week
Thirty-year fixed mortgage rates have dropped from an average of 7.44% last week to 7.29%. “Mortgage rates continued to decrease heading into the Thanksgiving holiday,” says Sam Khater, chief economist at housing giant Freddie Mac. “In recent weeks, rates have dropped by half a percent, but potential homebuyers continue to hold out for lower rates and more inventory. This dynamic is reflected in the latest data showing that existing home sales have fallen to a thirteen-year low.”
Thirty-year fixed mortgage rates have dropped from an average of 7.44% last week to 7.29%. “Mortgage rates continued to decrease heading into the Thanksgiving holiday,” says Sam Khater, chief economist at housing giant Freddie Mac. “In recent weeks, rates have dropped by half a percent, but potential homebuyers continue to hold out for lower rates and more inventory. This dynamic is reflected in the latest data showing that existing home sales have fallen to a thirteen-year low.”
Musk says you shouldn't charge an EV to 100%
Of all the reasons why some Americans remain hesitant to adopt electric vehicles, one of the biggest is charging time. Unlike filling a gas tank, which takes a few minutes, charging an EV can take as long as an hour, even on the fastest available charging equipment, according to the Department of Transportation). But Tesla CEO Elon Musk says there’s a trick to speeding up the process: don’t charge your EV to 100%.
Of all the reasons why some Americans remain hesitant to adopt electric vehicles, one of the biggest is charging time. Unlike filling a gas tank, which takes a few minutes, charging an EV can take as long as an hour, even on the fastest available charging equipment, according to the Department of Transportation). But Tesla CEO Elon Musk says there’s a trick to speeding up the process: don’t charge your EV to 100%.
Many US millionaires now feel middle class
It turns out even millionaires aren’t rolling carefreely in the dough, considering how much of their income is getting diverted to everyday expenses and savings for the future. About 60% of investors with $1 million or more of investable assets categorize themselves as upper middle class, according to a recent Ameriprise Financial survey. And almost a third (31%) of this group consider themselves decidedly middle class. Don’t miss Commercial real estate has outperformed the S&P 500 over 25 years. Here's how to diversify your portfolio without the headache of being a landlord Rising prices are throwing off Americans' retirement plans — here's how to get your savings back on track 'A natural way to diversify': Janet Yellen now says Americans should expect a decline in the USD as the world's reserve currency — 3 ways you can prepare “There is no standard definition of what it means to be wealthy, but in general, investors associate it with having the means to live life on their terms,” said Marcy Keckler, senior vice president of financial advice strategy at Ameriprise, in a release. With costs racking up, many Americans are wondering whether a seven-figure income is enough to weather the current economic climate in comfort. Here’s how the country’s worried wealthy are adapting to that increased financial strain.
It turns out even millionaires aren’t rolling carefreely in the dough, considering how much of their income is getting diverted to everyday expenses and savings for the future. About 60% of investors with $1 million or more of investable assets categorize themselves as upper middle class, according to a recent Ameriprise Financial survey. And almost a third (31%) of this group consider themselves decidedly middle class. Don’t miss Commercial real estate has outperformed the S&P 500 over 25 years. Here's how to diversify your portfolio without the headache of being a landlord Rising prices are throwing off Americans' retirement plans — here's how to get your savings back on track 'A natural way to diversify': Janet Yellen now says Americans should expect a decline in the USD as the world's reserve currency — 3 ways you can prepare “There is no standard definition of what it means to be wealthy, but in general, investors associate it with having the means to live life on their terms,” said Marcy Keckler, senior vice president of financial advice strategy at Ameriprise, in a release. With costs racking up, many Americans are wondering whether a seven-figure income is enough to weather the current economic climate in comfort. Here’s how the country’s worried wealthy are adapting to that increased financial strain.
US beef industry struggles as cow numbers fall
If you're a fan of steaks and burgers, it might be time to adjust your budget (or your diet). The American beef industry is facing a pivotal moment, which is impacting the cost of your favorite meaty meals. Reuters recently reported that as the U.S. cattle herd shrinks to its lowest level in decades, the country is importing record amounts of beef while exporting less. This significant decline in cattle, driven by years of severe drought damaging grazing lands, has resulted in higher beef prices domestically. Consumers can already feel the impact. The latest Consumer Price Index report showed that the price of beef and veal in the U.S. was up 8.9% in October from a year ago.
If you're a fan of steaks and burgers, it might be time to adjust your budget (or your diet). The American beef industry is facing a pivotal moment, which is impacting the cost of your favorite meaty meals. Reuters recently reported that as the U.S. cattle herd shrinks to its lowest level in decades, the country is importing record amounts of beef while exporting less. This significant decline in cattle, driven by years of severe drought damaging grazing lands, has resulted in higher beef prices domestically. Consumers can already feel the impact. The latest Consumer Price Index report showed that the price of beef and veal in the U.S. was up 8.9% in October from a year ago.
Cardone: the 2 worst real estate markets right now
Prolific real estate investor Grant Cardone singled out two U.S. property markets he wouldn’t touch with a 10-foot pole: Austin and Seattle. Cardone shared this hot take — and many others — in a July 2023 interview with Moneywise after he prompted an AI chatbot to answer the question: “What are the 10 best markets for investing in rental real estate in America?” The AI Smith response started with: “The best markets for investing in real estate in America can vary depending on factors such as population growth, job opportunities, rental demand, affordability and potential rental income.” Up until that point, Cardone — who performed the task live on camera — was pretty happy with the response. But when the AI listed Austin, Texas, as the best market for investing in real estate, the investment guru blew up. “Austin, Texas is one of the worst markets to be in right now,” he exclaimed. “Of all the markets in America, it’s probably the most overbuilt.” Here’s why an overbuilt property market is bad for real estate investors — and how you can still invest without taking on all the risk yourself.
Prolific real estate investor Grant Cardone singled out two U.S. property markets he wouldn’t touch with a 10-foot pole: Austin and Seattle. Cardone shared this hot take — and many others — in a July 2023 interview with Moneywise after he prompted an AI chatbot to answer the question: “What are the 10 best markets for investing in rental real estate in America?” The AI Smith response started with: “The best markets for investing in real estate in America can vary depending on factors such as population growth, job opportunities, rental demand, affordability and potential rental income.” Up until that point, Cardone — who performed the task live on camera — was pretty happy with the response. But when the AI listed Austin, Texas, as the best market for investing in real estate, the investment guru blew up. “Austin, Texas is one of the worst markets to be in right now,” he exclaimed. “Of all the markets in America, it’s probably the most overbuilt.” Here’s why an overbuilt property market is bad for real estate investors — and how you can still invest without taking on all the risk yourself.
Spitznagel says the US credit bubble is set to pop
One of Wall Street’s biggest bears has delivered a scathing review of the Federal Reserve’s monetary policy — accusing central bankers of creating the “greatest credit bubble in human history.” Mark Spitznagel, chief investment officer of Universa Investments, believes the Fed has created a “tinderbox time bomb” that will explode into a mega inferno — in the shape of a major market crash — in the next few years. Known for his pessimistic stance on the economy, Spitznagel has voiced his concerns about the nation’s monetary policy time and time again. But in a recent interview with New York Magazine’s Intelligencer he went in hard on the Fed and global central banks in general for how they’ve rebuilt since the Great Recession. “Credit bubbles end. They pop. There's no way to stop them from popping,” he said, adding that the Fed has brought the economy to a place “where there’s no turning back.” If you share Spitznagel’s incredibly bearish view on the state of the U.S. economy, here’s how you can prepare your portfolio to minimize your risk if there is a “huge crash.”
One of Wall Street’s biggest bears has delivered a scathing review of the Federal Reserve’s monetary policy — accusing central bankers of creating the “greatest credit bubble in human history.” Mark Spitznagel, chief investment officer of Universa Investments, believes the Fed has created a “tinderbox time bomb” that will explode into a mega inferno — in the shape of a major market crash — in the next few years. Known for his pessimistic stance on the economy, Spitznagel has voiced his concerns about the nation’s monetary policy time and time again. But in a recent interview with New York Magazine’s Intelligencer he went in hard on the Fed and global central banks in general for how they’ve rebuilt since the Great Recession. “Credit bubbles end. They pop. There's no way to stop them from popping,” he said, adding that the Fed has brought the economy to a place “where there’s no turning back.” If you share Spitznagel’s incredibly bearish view on the state of the U.S. economy, here’s how you can prepare your portfolio to minimize your risk if there is a “huge crash.”
Economist Siegel predicts Fed's next move is cut
As the stock market enjoys a nice rally in November, the looming specter of future interest rate hikes casts an uneasy shadow over its newfound vitality. But a prominent economist doesn't think these fears will materialize. “I really think the next move is going to be a cut, even if there isn't a recession, just because of the slowdown. It could come as early, actually, as March of next year,” Jeremy Siegel, professor of finance at Wharton, University of Pennsylvania's business school, told [CNBC](https://www.youtube.com/watch?v=2YBv665zR540 this week. Siegel’s projection stands in contrast to the statements made by Federal Reserve Chair Jerome Powell earlier this month. “We understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal,” Powell said at a press conference on Nov. 1. In October, the U.S. consumer price index saw an annual increase of 3.2%. Core inflation, which excludes food and energy prices, rose 4% from a year ago.
As the stock market enjoys a nice rally in November, the looming specter of future interest rate hikes casts an uneasy shadow over its newfound vitality. But a prominent economist doesn't think these fears will materialize. “I really think the next move is going to be a cut, even if there isn't a recession, just because of the slowdown. It could come as early, actually, as March of next year,” Jeremy Siegel, professor of finance at Wharton, University of Pennsylvania's business school, told [CNBC](https://www.youtube.com/watch?v=2YBv665zR540 this week. Siegel’s projection stands in contrast to the statements made by Federal Reserve Chair Jerome Powell earlier this month. “We understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal,” Powell said at a press conference on Nov. 1. In October, the U.S. consumer price index saw an annual increase of 3.2%. Core inflation, which excludes food and energy prices, rose 4% from a year ago.
Cruz calls out 'woke-ification' of US corporations
Texas Sen. Ted Cruz has stepped up his war on the “woke” agenda in corporate America — calling on consumers to hold big businesses to account. Talking about his new book “Unwoke” on CNBC’s “Last Call,” the Republican politician waxed lyrical about major corporations being overly influenced by left-wing politics. “We’ve seen something that would have been hard to imagine a few years ago, which is major companies becoming the economic enforcement arm for the left-wing agenda,” he told “Last Call” host Brian Sullivan. “I don’t think the government should be forcing businesses to take political positions on one side or the other,” Cruz added during the interview — noting how his book examines his belief that the “radical left has seized major institutions” throughout U.S. society. Cruz is not the only U.S. politician or corporate leader to call out the so-called “woke” agenda. This ideological divide is proving to be a flashpoint in the U.S. economy — and it is having a big impact on how businesses operate and, ultimately, their bottom lines.
Texas Sen. Ted Cruz has stepped up his war on the “woke” agenda in corporate America — calling on consumers to hold big businesses to account. Talking about his new book “Unwoke” on CNBC’s “Last Call,” the Republican politician waxed lyrical about major corporations being overly influenced by left-wing politics. “We’ve seen something that would have been hard to imagine a few years ago, which is major companies becoming the economic enforcement arm for the left-wing agenda,” he told “Last Call” host Brian Sullivan. “I don’t think the government should be forcing businesses to take political positions on one side or the other,” Cruz added during the interview — noting how his book examines his belief that the “radical left has seized major institutions” throughout U.S. society. Cruz is not the only U.S. politician or corporate leader to call out the so-called “woke” agenda. This ideological divide is proving to be a flashpoint in the U.S. economy — and it is having a big impact on how businesses operate and, ultimately, their bottom lines.
Musk, Buffett on the danger of nuclear war
Billionaire Elon Musk, whose companies Tesla and SpaceX have made great strides in the technology sector, recently veered in a different direction and shared his insights on a separate matter: the possibility of nuclear war. “I think we shouldn’t discount the possibility of nuclear war. It is a civilizational threat,” Musk told Lex Fridman on the Lex Fridman Podcast. The two men discussed the idea of nuclear war amid current global conflicts. While Musk perceives the likelihood of nuclear war as “quite low,” he emphasizes that its occurrence could lead to catastrophic consequences. “Obviously, global thermonuclear warfare has high potential to end civilization, perhaps permanently, but certainly to severely wound and perhaps set back human progress to the Stone Age or something,” he said. The prospect of nuclear war can make all other problems seem trivial in comparison.
Billionaire Elon Musk, whose companies Tesla and SpaceX have made great strides in the technology sector, recently veered in a different direction and shared his insights on a separate matter: the possibility of nuclear war. “I think we shouldn’t discount the possibility of nuclear war. It is a civilizational threat,” Musk told Lex Fridman on the Lex Fridman Podcast. The two men discussed the idea of nuclear war amid current global conflicts. While Musk perceives the likelihood of nuclear war as “quite low,” he emphasizes that its occurrence could lead to catastrophic consequences. “Obviously, global thermonuclear warfare has high potential to end civilization, perhaps permanently, but certainly to severely wound and perhaps set back human progress to the Stone Age or something,” he said. The prospect of nuclear war can make all other problems seem trivial in comparison.