draconian
(dray-KO-nee-uhn, druh-)
Unusually harsh.
After Draco (late 7th century BCE), Athenian
legislator, noted for the harshness of his code of laws.
Under Draco's laws even trivial offenses, such
as idleness, brought capital punishment. When asked why he had instituted the
death penalty for most offenses, he supposedly replied that the lesser crimes
deserved it and he knew of no greater punishment for more important ones. His laws were said to be written in blood
instead of ink.
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TIP OF THE WEEK
The draconian pummeling of commercial real estate is over.
TIP OF THE WEEK
The draconian pummeling of commercial real estate is over.
According to CoStar, prices for commercial real estate are
posting significant gains.
The CoStar Commercial Repeat Sale Indices reached its highest
level since early 2009. It has now improved by a cumulative 34.1% since the
start of 2010.
If you would like a copy of CoStar’s most recent report, let me
know.
SBA loans can finance the purchase or refinance of commercial
real estate.
______________________________________
Indices:
PRIME RATE= 3.25%
Indices:
PRIME RATE= 3.25%
SBA LIBOR Base Rate October 2012 = 3.21%
SBA
Fixed Base Rate October 2012 = 4.47%
________________________________________
Debenture Rate for October
________________________________________
Debenture Rate for October
The
debenture rate is 2.18% but note rate is 2.219% and effective yield is only
4.262%.
________________________________________________
AHEAD OF THE YIELD CURVE
AHEAD OF THE YIELD CURVE
The Federal Reserve
met last week and they said that “without sufficient policy accommodation,
economic growth might not be strong enough to generate sustained improvement in
labor market conditions.”
Labor market
conditions are atrocious.
Last month, the
economy added only 114,000 workers. That
is not even keeping up with growth in population.
On Friday, the
Department of Labor will provide its last report on employment before the election.
Here is a summary of
net monthly payroll employment and this week’s interesting little table of
data:
September 114,000
August 142,000
July 181,000
June 45,000
May 77,000
April 68,000
March 143,000
February 240,000
January 243,000
2011
December 203,000
November 157,000
October 112,000
September 158,000
August 104,000
July 127,000
June 20,000
May 25,000
April 232,000
March 194,000
February 235,000
January 68,000
2010
December 121,000
November 93,000
October 210,000
September (41,000)
August (1,000)
July (66,000)
June (175,000)
May 431,000
April 218,000
March 230,000
February (36,000)
January (26,000)
2009
December (150,000)
November (11,000)
October (111,000)
September (215,000)
August (201,000)
July (304,000)
June (443,000)
May (322,000)
April (504,000)
March (699,000)
February (651,000)
January (655,000)
2008
December (681,000)
November (597,000)
October (423,000)
September (403,000)
August (127,000)
July (67,000)
June (100,000)
May (47,000)
April (67,000)
March (88,000)
February- (83,000)
January- (76,000)
What does all this
mean?
I don’t know.
Only one president,
Ronald Reagan, has been re-elected since World War II with unemployment above 6
percent. On Election Day 1984, the rate was at 7.2 percent, having fallen
almost THREE percentage points in the previous 18 months.
The unemployment
rate now is at 7.8 percent. It has
fallen only 1.2 percentage points in the last eighteen months.
The Federal Reserve
will have to keep interest rates low, as they have stated, until at least the
middle of 2015.
The Federal Reserve will
also need to decide by the end of December whether to continue with Treasury
purchases after the expiration that month of so-called Operation Twist. Under that
program, the central bank swaps about $45 billion each month of short-term debt
and buys the same amount of longer-term Treasuries. Operation Twist has kept longer term interest
rates lower. The Fed by the end of
December will have largely exhausted its supply of short-term debt.
Something draconian
needs to be done.
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OFF BASE
OFF BASE
Making the wrong choice can have
draconian consequences.
For example, let’s say you win the
coin toss before a college football game.
What do you pick? Kickoff or
receive?
Turns out you actually have more
than just two choices.
The visiting team calls the toss.
The winner of the toss may defer their choice to the start of the second half,
or they may take first choice of:
-Receiving the kickoff to start
the game, or kicking off to start the game
-Choosing an end of the field to
defend in the first quarter
The loser of the toss gets the
remaining option.
At the start of the second half,
the team that did not choose first (either because they deferred their choice
or because they lost the toss) gets the first choice of options.
A
mistake before their game against Arizona
State
UCLA won the toss, but Locke chose to kick off -- instead of deferring the ability to receive until the second half. That meantArizona State
UCLA won the toss, but Locke chose to kick off -- instead of deferring the ability to receive until the second half. That meant
UCLA freshman
Ka'imi Fairbairn had to then kick a 33-yard field goal as time expired to give
the visiting Bruins a 45-43 road victory over the Arizona State Sun Devils. Ka”imi was 0 for 5 on field goals beyond 36
yards.
Ka’imi,
by the way, is short for Ka iminoeauloameka ikeokekumupa a.
If
you feel like you are in the dark now, you really will be next week. Daylight Saving Time ends November 4th. A few
days later is Election day. Hopefully
you won’t be using a coin toss to help you decide. Fortunately a three day weekend follows with the
Veterans Day holiday (It is Daylight Saving not savingS and it is Veterans Day
without the apostrophe).
