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February 13, 2012
Binyamin Rose: Back to the Bunker: How a life-risking act by a Christian family during the Holocaust saved a family and built a thriving community a world away
Menachem Wecker: Business Schools Teach Real Estate Despite Troubled Housing Market
February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
June 7, 2005
/ 29 Iyar, 5765
Is there really gold in them thar living rooms?
By
Mitch Albom
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http://www.JewishWorldReview.com |
Everyone I know is getting rich.
They are not actually making money. No one is raising their salary. But everyone I know is getting rich as long as they own a home.
Their kitchen is earning big bucks. Their deck is raking it in. Their driveway should be renamed "Easy Street."
Once upon a time, prospectors cried, "There's gold in them thar hills!" Today, there's gold in them thar living rooms and master suites.
In a rise that has experts befuddled and banks overjoyed, people keep buying houses in America, even though the price of those houses goes up and up. That, it seems, is part of the appeal. You buy now, you sell soon. You get more money with each new sale, and you upgrade with each new buy.
How many times in the last few years have you heard a friend say, "We bought our place for (fill in a price) and in six months it's worth (fill in a price)!"
It's the new American mantra. You want to start a cocktail party conversation? Just utter the words, "Did you hear what so-and-so got for his house? . . . ."
REMEMBER THE STOCK MARKET
The problem is, like any hot air balloon, when too many people jump in the basket, it soon comes crashing down. No one wants to hear this. Despite a stock market collapse a few years ago that mimicked this very behavior, people insist they are safe with a home. It is not a stock. It is not some piece of paper. There is no Kenneth Lay from Enron doing dastardly things with your walk-in closet.
Americans think if you can see it or touch it, then value is ensured. A house can't go belly-up like a company, right?
Wrong. What homeowners fail to accept or simply don't want to is that a house is worth only what someone actually will pay for it. Not what a neighbor got. Not what a statistic shows. What someone will shell out of his pocket.
You know, "real" money?
That's a downer. People would rather pull up charts that show a 40 percent increase in home prices last year in California's Orange County. Forty percent! You buy a place for $100,000, you can get $140,000 a year later! (This assumes you are not on a hillside in Laguna Beach, where houses last week collapsed in mud slides. Those places, I imagine, will only be worth 20 percent more than last year.)'
REMEMBER THE FED CHIEF'S ANALYSIS
Have you seen those commercials claiming you can go on vacation thanks to your living room, or buy a new car thanks to your den? They are part of this same silly cycle that says since your house is, on paper, worth more now, you can borrow against that and buy everything you want.
But once you own the car or the boat you are on the hook for that money. And if the value of your house drops enough, your collateral against the loan is gone.
Which is the Judgment Day no one wants to know about. Warning signs are everywhere. Mortgage rates are staying low while other interest rates are inching higher.
Even Federal Reserve chairman Alan Greenspan has called interest rate behavior "a conundrum."
And if he's confused, I'm scared.
At some point, everyone else will be, too. There are only so many buyers with only so much money. It's not like jobs or businesses are in a boom mode, is it?
And once the big, expensive house has to lower its price to sell, the ones behind it will get frightened. People will dump the way they did with stocks, and many will be left holding the bag. Remember, buying doesn't make you rich, selling does. And selling requires customers. Always has.
So the next time someone says, "We bought our place six months ago and today it's worth (fill in price)," ask this question: "Really? Do you have a check in that amount?"
Because if they don't, it's still a risk. The risk is gravity; what goes up comes down. And gravity, I'm afraid, is every bit as real as a breakfast nook.
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© 2005, THE DETROIT FREE PRESS
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