Entries by Charlie Christensen

 DISAGREEMENT – 10/12/19

The Federal Reserve Board consists of the 7 members of the Fed’s Board of Governors (which has 2 vacancies currently) and the presidents of the 12 regional Federal Reserve banks, i.e., there are 17 current members of the Federal Reserve Board.  At the 9/18/19 Fed meeting where an interest rate cut was approved, 7 of the […]


New residential construction in the US totaled 121,100 housing units in August 2019, its highest total recorded since August 2007.  The total includes 82,600 single family homes, 1,800 apartment buildings with 2-4 units and 36,700 apartment buildings with 5 or more units (source: Census Bureau). *The views, articles, postings and other information listed on this […]


When banks and investors need to borrow cash on a short-term basis (e.g., overnight), other banks make their “excess” reserves available in multi-billion-dollar electronic transactions that take place late in the trading day.  In today’s interest rate world, the borrower would pay approximately 0.005% per day ($50,000 per day per $1 billion borrowed).  When the regular flow […]


The People’s Bank of China, aka the Fed of China, has reduced the reserve requirements for banks 7 separate times since 1/01/18, most recently on 9/06/19.  By reducing the amount of reserves that banks are required to hold, the Chinese banks are able to make new loans (source: PBOC) *The views, articles, postings and other […]

MOST OF THEM – 10/4/19

The sales of existing homes account for 90% of all homes sales in the United States (source: Treasury Department). *The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

HOW DID YOU DO? – 10/3/19

An average single-family home in America increased in value by +5.0% over the 1-year period from 6/30/18 to 6/30/19, by +5.9% per year over the last 5 years from 6/30/14 to 6/30/19, and by +3.6% per year over the last 10 years from 6/30/09 to 6/30/19 (source: Federal Housing Finance Agency). *The views, articles, postings […]


 Treasury Secretary Hank Paulson announced on 9/07/08 (i.e., 11 years ago) the government’s plan to take control of mortgage giants Fannie Mae and Freddie Mac.  Fannie and Freddie received $191 billion of taxpayer aid but have paid back $297 billion (source: Treasury Department). *The views, articles, postings and other information listed on this website are personal […]

COULD IT HAPPEN? – 9/24/19

The wealthiest one-tenth of 1% of US households (top 122,000 households) are estimated to own 20% of total US wealth, i.e., 20% of $109 trillion.  An annual 1% “wealth tax” levied on this group would generate $218 billion per year in tax revenue (source: The Brookings Institute). *The views, articles, postings and other information listed […]


The Congressional Budget Office estimated on 8/21/19 that over the next 10 fiscal years(2020-2029), the US government will take in $45.6 trillion of tax receipts versus $57.8 trillion of outlays, resulting in a $12.2 trillion deficit, or an average annual deficit of $1.22 trillion.  The United States has produced annual deficits of at least $1.22 trillion […]

 WHERE WE LIVE – 9/17/19

40% of American homeowners, i.e., 31.4 million out of 78.5 million, own their primary residence free and clear of any debt, i.e., no outstanding mortgage debt or home equity loan.  The 31.4 million homeowners with zero housing debt represent 26% of the 122.4 million households in the United States today, the latter total including 43.9 million […]