Tag Archive for return on investment

Will Paul Ryan Offer Strong Returns Romney Camp Hopes For?

Few U.S. businessmen understand the power of a good investment better than Mitt Romney. The man who made $20 million in 2010 alone, rescued Staples from bankruptcy and saved the 2002 Olympics from disaster has made his career on making the right choices at the right times. But his most recent investment—the choice of Wisconsin Representative Paul Ryan as his Vice Presidential running mate—has raised some eyebrows among conservatives as to the potential return on investment that Ryan can bring to the GOP ticket this fall.

Ryan’s positives are clearly apparent. For a candidate that has run his entire campaign focused on the economy, Romney chose the man who, as he said in a speech introducing Ryan, is the intellectual leader of the Republican party. Originally called the Path to Prosperity, Ryan’s budget proposal tackles not only government spending but entitlement reform, including cuts to Medicaid and making Medicare into a voucher system. As a massive driver of federal deficit spending, entitlement programs must be addressed, according to many fiscal conservatives, even though doing so has been historically unpopular among voters.

The tough, unpopular cuts that Ryan has proposed are already proving a liability for the Romney campaign. A USA Today Gallup Poll shows that 42% of registered voters surveyed think that Ryan would be a “fair or poor” choice for VP, while 39% think he would be a good choice.

But while these numbers are believed to be because Ryan is not well known to many voters, Ryan will have to work harder to correct his lack of popularity in swing states. While Tuesday was election day in many state-wide races, every major Florida newspaper ran reactions to Paul Ryan’s Medicare proposals on the front page. With large senior citizen populations, Florida voters are concerned about Medicare becoming a voucher system that may leave seniors searching for health insurance on the private market.

One place where Ryan may help the Romney campaign is in Wisconsin. Ryan is a 6-time winner in a district that helped elect Bill Clinton and Barack Obama. Before the pick of Paul Ryan for VP, the Romney campaign had virtually given up on Wisconsin, a state that had been thought to be going blue, despite the re-election of Scott Walker there this summer. But with hometown boy Paul Ryan on the ticket, the Romney camp believes they have a shot to take Wisconsin, turning Ryan’s home district red and capturing a major swing state.

Analysts from MSNBC to CNN to Politico all report that, while many conservatives believe Ryan can be a liability because of his unpopular proposals, the main goal of the Romney camp should be to get on the same page. While Ryan has a budget proposal, Mitt Romney claims he has his own budget proposal that he will groom with the help of Ryan. So far, the pair has failed to articulate a unified proposal. One thing is clear: they will have nothing but chances to do so, as the announcement is still dominating the airwaves across the country.


Should I Buy A House Or A Car?

You don’t have to be a journalist or real estate professional to know that home prices around the country have plummeted. Ever since the mortgage crisis in 2008, a number of state economies like Nevada, Arizona and Michigan have struggled to return home prices back to sustainable levels. But as the housing market begins to turn around, some striking figures have emerged. Financial reporters noted one especially egregious price disparity that showcases this struggle. According to online publication 24/7 Wall Street, there are now 10 US cities where it is cheaper to buy a house than to buy a car.

By comparing median home prices with moderately priced automobiles, the analysts at 24/7 have showed that even though home prices are on their way back up, the housing markets for some states still have a long way to go.

The list showcased the seriousness of housing markets across the state of Michigan. The Great Lakes State has the dubious distinction of five cities where a house is cheaper than a car, including the top two cities on the list, Detroit and Flint. In Detroit, the median home price has plummeted to $21,000, the same price as a base-level Chevy Malibu.

While the 24/7 list outlines the low price of real estate in today’s market, there is more to buying a home than raw price. The reason that many homes across Michigan have dropped in price is because of the departure of many industries and small businesses. Lowered property taxes means less successful schools and, without nearby jobs, a home purchase may not be the best commitment to make. While buying a home at a low price may be hard for many potential buyers to resist, buyers should have reason to believe they will see a strong return on investment. In short, while a car may depreciate from the moment you drive it off the lot, the depreciation is slower and more controlled than a home in a declining part of town.

For home buyers desperate for home ownership, however, the time may be just right. With home prices at record lows in some parts of the country, interest rates have also hit historic lows. The U.S. Commerce Department announced earlier this month that national average interest rates hit their lowest levels since records began in the 1950′s. If your credit is in order and you have a home picked out, affording a home has never been easier. Just be sure your property will continue to be worth the asking price one year, two years or five years from now.