09.05.07

...More jobs heading out of the U.S. - this time in agriculture. Some U.S. farms have moved part of their operations to Mexico, where there is a ready labor force that doesn't have to worry about deportation, and also works for lower wages. But back here in the 'homeland', more middle class jobs that are indirectly dependent on agriculture are being lost.
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...Danger, Steep Drop Ahead, shouts the surprising headline on CNN Money's site this morning. Surprising because the article is appearing on a mainstream site. Author Jeremy Grantham gives another take on the housing situation. In recent years mortgage levels of four times income have been considered normal. But here in the U.S., they have risen to six times normal. That has created part of the unsustainable bubble, as the ability of homeowners to pay their mortgages was based on rosy projections that are now proving to be unrealistic. Markets tend to revert to the mean. That is a point that Mr. Grantham makes in the article. Folks tend to extrapolate returns out into the future as if they can expect those same returns to continue indefinitely. Historically, it doesn't work out that way.
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...The longer you keep your car, the better. If you could keep your car 15 years you could save about $31,000 compared to replacing it every five years. I read sometime ago that if you replace your car every ten years you will keep up with all the new innovations and features on cars, too.
...Fleck says central banks are stealing from average citizens. Bill Fleckenstein seems to be pretty much a permabear, which naturally makes him one of the writers I read on a regular basis. Interesting article, with some pertinent quotes and links to other articles in it.
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