I’m flying out tonight to Charlotte, NC on business. I will return Wednesday night. We are taking possession of the new home sometime this weekend, too. It should be a very busy week, but I feel that the busiest times are usually the best.
Happy Easter!
March 23rd, 2008Cooking at Home
March 20th, 2008I saw a link to this article about consumer cost-cutting from a blog I read somewhat regularly, Consumerism Commentary. Here’s the tidbit I found interesting:
““Trading In” From Restaurants
In 2007, food-at-home share of the consumer’s overall food expenditures increased for the first time since 2001 to 53.2% (the highest share since 1997), representing a +210 basis points year-over-year increase (the highest year-over-year increase in food-at-home share since the 1940s). Most recently, January food-at-home share further expanded to 54.6%.”
What I find interesting about this is that cooking at home seems to increasingly be a matter of luxury rather than a necessity. From the start of time cooking has been something that had to be done at home, a necessary part of subsisting. The last fifty years in the United States have seen a general decline of cookery in favor of cheap and convenient processed foods. These pre-formed bite-sized calories now form much of America’s staple diet. In the United States cooking is no longer necessary, especially for a single individual who does not benefit from the economy of scale home cooking can provide. In fact, cooking for one (and sometimes two) is often more expensive than purchasing a processed food product. When something makes the transition from a “need” item to a “want” item, as cooking has started to, people are more likely to embrace it.
When you consider the huge popularity of the Food Network and specialty cooking products offered by companies such as Williams-Sonoma and Sur La Table it’s apparent that cooking is now viewed by many as a luxury experience. Cooking takes time and practice, especially for more impressive meals. Whole and organic foods are becoming more popular, too, as people start to take a look at the ingredients list on that bag of Chee-toes, not to mention their waistlines.
What do you think? Do you find yourself cooking more and enjoying it?
My Wife the Genius
March 20th, 2008I just want everyone to know that my wife could by nearly all standards be the most intelligent person I know. Tonight I witnessed, for the second time in our brief marriage, her taking something out of the oven and, seconds later, grab the pan in an attempt to move it barehanded.
I’m glad I’ve got plenty of life insurance on her, that’s all I’ve got to say.
The Cost of Moving in a Down Market
March 19th, 2008Mortgage rates are still near historic lows and with the housing market still slumped it seems like a great time to move up to a bigger house. That leaves people moving up (including me) with their old house still to sell - no small challenge in a down market. The people who are really suffering, though, are the people moving down.
For example, Bobby B. Yuppy (me) sells his condo at a loss (or minimal gain) from 2005 value, but gets a steal on the house he’s upgrading to. If he takes a 10% loss (from 2005 numbers) on the condo but gets a 10% gain (again, based on 2005 appraisal) from the new property it’s a net win because the new property is significantly bigger, better, and more expensive. Johnny A. Baby-Boomer (he and his wife combined last names on marriage - those crazy 60s feminists) is looking to move down from the big house where they raised their kids and into a smaller retirement nest. He’s also happy about unlocking some of that big equity in his house to help out their retirement. If he gets the same 10% gain on the purchase of his new retirement bungalo and a 10% loss on the sale of his big empty nest (the one with all the kids’ empty bedrooms) he’s taking a net loss. As an added bonus, he’ll also be really surprised about the loss of his expected retirement monies he thought he could count on in his equity. Sorry, Johnny, you don’t get to buy that boat or RV after all; you’ll have to settle for an off brand motorcycle.
Food for thought. No matter what the market’s doing, someone is always winning and someone is always losing. Always try to consider what you can do to put yourself in column A.
Fed Rate Cut
March 18th, 2008The Federal Reserve has announced a rate cut of 75 basis points today, or 3/4 of a percent. That’s an historic cut, but still below the 100 basis points many were predicting yesterday. For consumers this might not mean a lot. Mortgage rates are expected to stay comfortably in the 6% range for the next few months regardless of fed rates. What this does mean is banks may do a little curling out of the fetal position and start to loosen their purse strings. As usual, the rate cut will influence consumers indirectly rather than directly. The real question is how the banks will respond.
Right now lenders are more than a little gunshy, and for good reason. It’s difficult to argue that they haven’t brought their present woes upon themselves, much like the sub-prime borrowers who are in the same boat. No one can tell when we’ll return to a more rational sense of lending, but it’s certain we’ll be struggling with the echoes of the sub-prime debacle for months, if not years, to come.
First Post
March 18th, 2008And a good afternoon to you.