Green” Housing Initiative Goes National

CMHC’s EQuilibrium™ Sustainable Housing Demonstration Initiative Expands into B.C. and Atlantic Canada

The Green Dream Home, by the Canadian Home Builders’ Association (CHBA) Central Interior and Thompson Rivers University, is one of the winning projects in phase two of the EQuilibrium™ Sustainable Housing Demonstration Initiative.
Canada Mortgage and Housing Corporation (CMHC) launched the EQuilibrium™ Sustainable Housing Demonstration Initiative in May 2006 to support the construction of homes that balance the needs of our built and natural environments. EQuilibrium™ homes bring together, under one roof, the principles of occupant health and comfort, energy efficiency, renewable energy production, resource conservation, reduced environmental impact and affordability.
Now, three new builder and developer teams in British Columbia and Atlantic Canada have been chosen to take part in the EQuilibrium™ initiative, bringing their visions for an energy-efficient, eco-friendly future to reality. The winning projects include:
• The Green Dream Home (Kamloops, B.C.) — a solar-powered home that is designed by the Canadian Home Builders’ Association (CHBA) Central Interior, and Thompson Rivers University (TRU) to take advantage of one of Canada’s sunniest cities;
• Harmony House (Burnaby, B.C.) — a two-storey ultra-efficient house with in-law suite that is created by Habitat Design + Consulting Ltd. and Insightful Healthy Homes Inc. to suit the Lower Mainland’s unique climate; and
• The Moncton VISION Home (Moncton, N.B.) — a highly-efficient home designed by AlternaHome Solutions Inc. and VISION Land Developments Ltd. This home is part of downtown Moncton’s “VISION Lands” development project.
When they are complete, these three projects will join the 12 other demonstration homes that are currently being planned, built or that are already open for visitors across the country, making the EQuilibrium™ initiative truly national in scope. Together, these homes offer Canadians a chance to see and learn first-hand about the objectives of EQuilibrium™ sustainable homes, including:
• Lower monthly utility bills in every season.
• A clean supply of renewable energy.
• Healthier, more comfortable living environments for occupants.
• Reduced waste, greenhouse gas emissions and energy consumption.
• A resource-efficient housing alternative that protects and preserves the environment for future generations.
For more information on the CMHC EQuilibrium™ Sustainable Housing Demonstration Initiative or to find a demonstration home near you, call CMHC at 1-800-668-2642 or visit www.cmhc.ca and type in the search keyword “EQuilibrium”. For more than 60 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency and a source of objective, reliable housing expertise.

The Secret History of the Credit Card

Philippe Daigle – Worthwhile Canadian Initiative

Canadian banks are typically leveraged at 18 to 1–compared with U.S. banks at 26 to 1.

Fareed Zakaria
NEWSWEEK
From the magazine issue dated Feb 16, 2009

The legendary editor of The New Republic, Michael Kinsley, once held a “Boring Headline Contest” and decided that the winner was “Worthwhile Canadian Initiative.” Twenty-two years later, the magazine was rescued from its economic troubles by a Canadian media company, which should have taught us Americans to be a bit more humble. Now there is even more striking evidence of Canada’s virtues. Guess which country, alone in the industrialized world, has not faced a single bank failure, calls for bailouts or government intervention in the financial or mortgage sectors. Yup, it’s Canada. In 2008, the World Economic Forum ranked Canada’s banking system the healthiest in the world. America’s ranked 40th, Britain’s 44th.
Canada has done more than survive this financial crisis. The country is positively thriving in it. Canadian banks are well capitalized and poised to take advantage of opportunities that American and European banks cannot seize. The Toronto Dominion Bank, for example, was the 15th-largest bank in North America one year ago. Now it is the fifth-largest. It hasn’t grown in size; the others have all shrunk.
So what accounts for the genius of the Canadians? Common sense. Over the past 15 years, as the United States and Europe loosened regulations on their financial industries, the Canadians refused to follow suit, seeing the old rules as useful shock absorbers. Canadian banks are typically leveraged at 18 to 1—compared with U.S. banks at 26 to 1 and European banks at a frightening 61 to 1. Partly this reflects Canada’s more risk-averse business culture, but it is also a product of old-fashioned rules on banking.
Canada has also been shielded from the worst aspects of this crisis because its housing prices have not fluctuated as wildly as those in the United States. Home prices are down 25 percent in the United States, but only half as much in Canada. Why? Well, the Canadian tax code does not provide the massive incentive for overconsumption that the U.S. code does: interest on your mortgage isn’t deductible up north. In addition, home loans in the United States are “non-recourse,” which basically means that if you go belly up on a bad mortgage, it’s mostly the bank’s problem. In Canada, it’s yours. Ah, but you’ve heard American politicians wax eloquent on the need for these expensive programs—interest deductibility alone costs the federal government $100 billion a year—because they allow the average Joe to fulfill the American Dream of owning a home. Sixty-eight percent of Americans own their own homes. And the rate of Canadian homeownership? It’s 68.4 percent.
Canada has been remarkably responsible over the past decade or so. It has had 12 years of budget surpluses, and can now spend money to fuel a recovery from a strong position. The government has restructured the national pension system, placing it on a firm fiscal footing, unlike our own insolvent Social Security. Its health-care system is cheaper than America’s by far (accounting for 9.7 percent of GDP, versus 15.2 percent here), and yet does better on all major indexes. Life expectancy in Canada is 81 years, versus 78 in the United States; “healthy life expectancy” is 72 years, versus 69. American car companies have moved so many jobs to Canada to take advantage of lower health-care costs that since 2004, Ontario and not Michigan has been North America’s largest car-producing region.
I could go on. The U.S. currently has a brain-dead immigration system. We issue a small number of work visas and green cards, turning away from our shores thousands of talented students who want to stay and work here. Canada, by contrast, has no limit on the number of skilled migrants who can move to the country. They can apply on their own for a Canadian Skilled Worker Visa, which allows them to become perfectly legal “permanent residents” in Canada—no need for a sponsoring employer, or even a job. Visas are awarded based on education level, work experience, age and language abilities. If a prospective immigrant earns 67 points out of 100 total (holding a Ph.D. is worth 25 points, for instance), he or she can become a full-time, legal resident of Canada.
Companies are noticing. In 2007 Microsoft, frustrated by its inability to hire foreign graduate students in the United States, decided to open a research center in Vancouver. The company’s announcement noted that it would staff the center with “highly skilled people affected by immigration issues in the U.S.” So the brightest Chinese and Indian software engineers are attracted to the United States, trained by American universities, then thrown out of the country and picked up by Canada—where most of them will work, innovate and pay taxes for the rest of their lives.
If President Obama is looking for smart government, there is much he, and all of us, could learn from our quiet—OK, sometimes boring—neighbor to the north. Meanwhile, in the councils of the financial world, Canada is pushing for new rules for financial institutions that would reflect its approach. This strikes me as, well, a worthwhile Canadian initiative.

FREE Ladies Self Defence Class – Philippe Daigle

Imagine your walking down the street and you get the feeling you are being followed. You look back and someone is crossing the street with his or her eyes locked on you. As they get closer they being to ask you a question, “Excuse me, do you have the time?” As you look down at your watch they have closed the distance and are right beside you. Someone with bad intentions has just interviewed you, and what happens next is up to you.

Kelowna Martial Arts will be hosting a
FREE Ladies Self Defence Class

on Saturday July 4th at 10:30 am

at Quest Academy Located at 2280A Leckie Road

Please call 250-869-0111 to register.

Visit KelownaMartialarts.com or e-mail: chris.rowe@kelwonamartialarts.com for more information

Canadian Home Purchasers Savvy and Optimistic: CMHC – Philippe Daigle

Nearly 90 per cent of recent home purchasers across the country believe that home ownership is a good long-term investment and that almost 70 per cent think that now is a good time to purchase a home in their community. That’s according to the 2009 Mortgage Consumer Survey by the Canada Mortgage and Housing Corporation (CMHC).

The survey results also indicate that recent purchasers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86 per cent are of the view that the level of total housing and other monthly payments should generally not exceed 40 per cent of gross household income, which is in line with generally accepted mortgage lending practices.

The survey shows that recent purchasers are prudent mortgage managers. According to the survey, 75 per cent of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20 per cent of recent purchasers report having made a lump sum payment to their mortgage.

Similar to CMHC’s last Mortgage Consumer Survey, the 2009 survey also indicates that Canadians continue to be well served by the mortgage industry, with 77 per cent of recent mortgage purchasers expressing satisfaction with the service received from their lender or broker.

Pulled Pork- Philippe Daigle

How to make pulled pork

A few years ago I discover the pleasure of pulled pork. In his book “How to grill” Steven Raichlen describes pulled pork as one key part of the Holy Trinity of American barbecue culture. He traces the origin to the Carolinas, where smoking pork shoulder is considered soulful. The hallmark of smoked pork is the reddish layer created just below the surface of the meat. Steven Raichlen describes this smoke ring as the signature of a “master pit boss”. The recipe described below is from his book “How to grill”. Do not be deterred by how long it takes to cook the meat, the process requires little supervision

North Carolina Pulled Pork

Ingredients:

· 5 to 7 pounds pork shoulder, bone-in preferably. The shoulder has the right amount of fat to achieve the desire result, not compromise allowed here.

· 3 to 4 tablespoons of Basic Barbecue Rub (see below).

For the mop sauce:

· 1 cup of cider vinegar

· 1 small onion, thinly sliced

· 1 to 2 jalapeno pepper, thinly sliced

· 1 tablespoon of coarse salt

· 1 tablespoon of brown sugar

· 1 teaspoon of black pepper

· 1 teaspoon of hot red pepper flake

For serving:

· 3 cups of North Carolina Vinegar Sauce (see below)

· 10 to 12 hamburger buns ( my next posting will feature a homemade recipe, well worth the effort)

· Coleslaw.

North Carolina Vinegar Sauce:

· 2 cups of cider vinegar

· 3 tablespoons of ketchup

· 2 tablespoons of brown sugar

· 4 teaspoons of coarse salt

· 1 tablespoon Tabasco or other hot sauce

· 1 to 2 teaspoon of hot red pepper flakes, or more to taste

· 1 to 2 teaspoons of black pepper.

Combine all the ingredients in a nonreactive mixing bowl and wisk until the salt and brown sugar have dissolved. Taste for seasoning, adding hot pepper flakes as necessary. Sauce will keep in refrigerator for months.

Basic Barbecue Rub

· 1/4 cup firmly packed brown sugar

· ¼ cup sweet paprika

· 3 tablespoons black pepper

· 3 tablespoons of coarse salt

· 1 tablespoon hickory-smoked salt or more coarse salt

· 2 teaspoons of garlic powder

· 2 teaspoons of onion powder

· 2 teaspoon of celery seeds

· 1 teaspoon of cayenne pepper

Combine all the ingredients in a mixing bowl and stir to mix. Store the rub in an airtight jar away from heat or light; it will keep of at least 6 months.

Setting up the grill

1. To set up a charcoal grill for smoking, first light the coal in a chimney starter

2. Place a drip pan in the center of the grill and divide the coals evenly on either side of it.

3. Place 1/3 of drained wood chips on each mound of coals (wood chips should be soaked for 30 minutes in warm water).

I personally use a gas grill and it works very well. The only challenge is to light up the wood chips. I found what works best to use foil pouch poked heavily with hole. Put the chips as close to the flame as possible. If you are lucky you may have a smoke drawer on your unit.

Preparing the meat

Sprinkle the rub over the pork and massage it into the meat with your fingers. Place is on the grill now or let it cure for up to 24 hours. Place the meat of the grill, bear in mind that we are trying to achieve indirect heat.

Cooking the meat:

The meat will take from 4 to 6 hours. The meat is ready when the internal temperature reaches 195 °, no compromise here. Cook the meat covered, maintain the grill’s temperature at no more than 275°. The meat will develop a dark crusty exterior. During cooking “Mop” (baste) the pork with the mop sauce every hour, this will help preserve moisture and flavor the meat. The more you baste the most it tastes. Let me stress again to use indirect heat while cooking.

“Pulling the pork”

“Pulling” the pork is best and easiest when still hot, use gloves if needed. I made it this weekend and the meat was so tender that I simply used the flat side of a chef’s knife. I couldn’t believe how easily it came apart. When “pulling” is completed, spoon some of the vinegar sauce over it and spoon some of the mixture. To serve mound pork on a bun and top with coleslaw, serve any remaining vinegar sauce on the side.

Painting: Walls, Ceilings and Floors-Philippe Daigle

The following article comes courtesy of the Canadian Mortgage and Housing Corporation.

Painting is not the chore it used to be. A professional look is now easier to achieve. Whatever your project, talk to the paint experts where you purchase your paint. They are a valuable resource.

If you are having a hard time visualizing the color, inexpensive computer software programs can allow you to try out different colors. Or, there may be a decorating service where you buy your paint.

Selecting paints

There are two main types of paint depending on the thinners and binders used; water-based (or latex) and oil-based (or alkyd). Water-based paints use water as a thinner. They are often called latex paints even though they don’t use real latex, since rubber is not used as a binder any more. Today synthetic latexes are used, most commonly acrylic or polyvinyl acetate. Paints with a high acrylic content tend to have a tougher skin and can perform almost as well as oil-based paints. Latex paints can be easily cleaned up with soap and water.

Oil-based paints use a solvent thinner. Despite the name, oil-based paints are usually not made with oil. Instead, most use polyester resins, called alkyds. Although alkyds may be more durable and achieve a higher gloss finish, they are usually a less healthy choice than latex. Alkyd paints require mineral spirits for cleaning up.

Because paints are applied wet, and because they cover such a large area, paints can create a significant health problem during a renovation project. The problem is mainly caused by alkyd or solvent-based paints. They give off a number of volatile organic compounds (VOCs) as the solvent evaporates after painting.

These VOCs can be a strong irritant and can add to air pollution. Once the paint has completely dried and formed a tough skin, the emission levels drop. However, some paints can emit odors at low levels for a long time.

Exposure to VOCs varies from person to person. Effects include coughing, headaches, dizziness, or more serious conditions. It is especially important for respiratory sufferers, those with allergies, asthma, and households with young children or pregnant women to avoid paints with VOCs.

Comparing the VOCs of one paint to another is not an easy task. Material Safety Data Sheets (MSDS) are helpful, but manufacturers don’t have to list components which make up one per cent or less of their product’s weight. This means that some toxic components may not show up on the MSDS. The only sure way to know what the paint contains is by asking the manufacturer to list trace compounds.

There are some paints on the market that are solvent and VOC free. Look for the key words: Low VOC, or better yet. No VOC.

Painting myth

Contrary to popular belief, you can paint over oil or alkyd paint with latex paint. To do so the walls should be cleaned, painted with a super adherent acrylic primer, then latex paint can be applied. To test if the paint on the walls is oil or alkyd some stores carry inexpensive test kits, or you can use methyl hydrate (gas line anti-freeze) or non acetone based nail polish remover.

Apply a small quantity of one of these products to a pad and rub vigorously on the painted surface. If the surface remains shiny it is oil/alkyd; if the paint is stripped it is latex.

Types of paint

It can be confusing when selecting the sheen of paint you want, since the term used for the sheen varies by manufacturer. Low-sheen (low-gloss) paints have none to little observable sheen. The amount varies slightly by manufacturer. Low-sheen paints can be called: flat, matt, eggshell, satin and velvet. Higher sheen paints are semi-gloss, gloss and enamel. They have the most visible shine to them. Low-sheen paints can be washed, but with care, higher sheen paints are the most washable and have the most durable finishes. Most people select semi-gloss or high-gloss paints for rooms with high moisture levels such as kitchens and bathrooms, and high traffic areas such as main stairways and halls. Most people prefer to use semi-gloss or high-gloss paint on windows, trim and doors. Bedrooms, dining and living rooms are more commonly painted with lower sheen paints.

Years ago, enamel meant oil-based paints. Today the term enamel can also mean durable latex paint. Sealers are primarily used on new wood or masonry surfaces. They seal the surface of the material, forming a base coat which keeps the topcoat from being absorbed unevenly. They can be used to encapsulate materials to seal in gases thus preventing them from off-gassing.

Primers are used to make the substrate more uniform, and to create a tight bond between the topcoat and the surface to be painted. Cementious or masonry paints are used on concrete walls and floors. Ceiling paints are designed not to drip. Melamine paints are used for cabinets and shelves, and are very durable and washable.

Choosing paint by the brand is not enough. Many brand manufacturers make higher and lower quality lines of paint. As you move up in quality so does the price. Each grade is usually a few dollars more expensive than the previous grade. Avoid mixing the brands by using the primer of one brand with the finish paint of another. Paint will adhere better if you use the same brand for both applications. If you buy all the paint you need at one time you have a better chance of getting a uniform color.

Brushes and other tools

Ensure the rollers and paint brushes you buy are rated for the type of paint you are using. Better quality brushes help ensure that the paint strokes are less visible.

Estimating how much paint you will need

Measure the height and width of each wall to be painted then multiply to obtain the square footage. For rooms with lots of windows and doors deduct the square footage of the windows and doors. A 4-litre (1 gallon) pail of paint will usually cover 37 square meters (400 square feet). When calculating how much paint to buy, check how well it is expected to cover the surface to be painted. This is called hiding quality. Painting over very dark colors may require using primer as the first coat or more coats of paint.

Having the primer tinted the same color as the finish coat can provide better hiding qualities. Latex based paints should not be stored for extended periods of time as they can go bad. When buying paint look for the most current date of manufacture on the container.

Getting ready

Preparation is the most important and most time consuming part of painting. Usually at least 80 per cent of the time spent on a painting project is spent getting ready and cleaning up.

1. Assess the surface that requires painting for needed repairs. Popped nails in the drywall or wallboard can be corrected by screwing a new screw into the stud either two inches above, or below the popped nail. The popped nail can then be nailed in and the holes filled with wallboard or spackling compound. Make the patch on the hole as smooth as possible to minimize sanding. Wear a mask while sanding using no. 100 or no. 120 grit sandpaper if using wall repair compound and no. 220 grit for spackling compound.

2. For larger holes the compound may need to be applied in layers. Each layer should dry before the next one is applied. To help the compound bond to the drywall, apply a layer of glass fiber (mesh) tape. It comes in a roll similar to cellophane tape.

3. Vacuum the whole room and damp mop the floor if possible. Wash the surface to be painted with mild detergent and water. If there are grease marks on the walls, or if someone in the household smokes, you may first need to clean with TSP (tri-sodium phosphate). If using TSP, be aware that it is not a benign product, and should only be used while wearing rubber gloves and eye protection. Rinse well with clean water.

4. For very textured walls or ceilings, vacuuming may be the only pre-cleaning option.

Painting new drywall or wood

Previously unpainted drywall or plaster must be primed. Previously unpainted wood can be stained, painted or urethaned.

Special considerations, Lead in paint

Lead in interior paint was taken off the market in 1979. Paint in houses or apartments built before that date almost certainly contain small amounts of lead paint. Exposure to large amounts of lead can cause serious illness. Infants and children are especially vulnerable to lead. However, lead paint is not generally a problem if it is not flaking, peeling or blistering. To check if the walls contain lead, you can obtain a lead paint test kit at most major hardware and some health food stores. Sanding or heat stripping lead paint requires safety precautions, including protective clothing, a mask, goggles and gloves. Lead paint in the form of sanded particles are a health hazard.

Pregnant women and children should never be exposed to dust or fumes caused during lead paint removal.

For further information on lead, order the free booklet Lead In Your Home from CMHC.

Covering water stains, marks and knot holes

Water stains on ceilings, wax crayon marks on walls and previously unpainted knot holes will bleed through most water based paints. A special stain blocking sealer should first be applied sparingly on the knots, stains or marks before applying the paint. For these special situations you may need to use shellac, alkyd or a polyvinyl acetate primer. These products have an odor and therefore should be used only on the affected areas. When using these products ventilate well, preferably by running a fan. Place the fan in an open window and have the fan facing out.

Severely damaged walls

If walls are badly damaged, it may be quicker and cheaper to install an additional layer of new drywall.

Peeling paint

Peeling is usually a result of moisture under the paint, or of using the wrong type of paint. If moisture is the cause, it must first be corrected, then the surface can be scraped and sanded before painting.

Covering mold and water stains

Mold which appears as dark spots on the painted surface must be washed with soap and water, rinsed and dried before repainting. The cause of the moisture which resulted in mold, if not corrected, will allow the mold to come back.

Painting tips

• Do not excessively thin paints as this decreases their wear resistance and washability.

• If you use solvents of any kind, store the used solvents in an old paint container with a seal and take them to the toxic waste centre in your community. Do not pour solvents down the drain.

• Always paint with a window open and when the temperature is above 10°C (50°F).

• You can remove solvent based paint from your skin by using vegetable oil.

• Smooth evenly painted walls are more readily achievable if you:

§ Sand really well after patching.

§ Use a roller which you have taken a lint brush to, before using.

§ Use a roller designated for the type of paint you are using.

§ Clean the surface to be painted thoroughly after sanding.

Clay Shirky: How cell phones, Twitter, Facebook can make history

Facebook Real Estate Marketing

Facebook Real Estate Marketing

Posted at Real Estate Technology, Marketing and SEO by Robert Dawson
Nov. 11, 2008
Tagged with: Facebook real estate marketing
Facebook Marketing for The Real Estate Industry

The advent of technology has introduced new ways of socializing between humans. Facebook has been one of these successful developments and it has fallen into what is referred to as social networking. This can open up a new source of promotion for real estate if used intelligently.
Using social networking sites like Facebook to market your real estate business can be a tricky procedure. Think about it this way. If you were in a room with all your friends, you wouldn’t constantly be promoting your business, trying to sell them things. If you did, you would soon find that you would have no friends left.
The social networking world is the same, just that they are your online friends and acquaintances. You must tread lightly when promoting your business. But if you are friendly, well liked and respected you will naturally gain real estate business from your online friends as you would your offline friends.
So how can you use Facebook to your marketing advantage? Well Facebook is a good way to remind your friends and acquaintances that real estate is how you make your living. Your job or business is a very big part of your personal life and should not be absent from your online profile. Make sure you profile information is up to date with your company information and website details. You should have listed as much about your business as possible in your information tab. This is just more of a subtle type of “advertisement” but it can be very effective. Remember in the end Facebook should be personal so don’t overdue your business information.
The following advice assumes you have knowledge on how to use Facebook. If not, bookmark this article, sign up and then come back when you’re comfortable with the system.
Facebook Real Estate Status
One of the most basic features of Facebook is the status update. Here are some Facebook status updates worth considering for real estate agents:

1. Heading to my open house at ……..
2. Frustrated with seller’s agent, he won’t return my calls!!!!!
3 Lighthouse point development has remarkable views of the water.
4. Just listed 60 Hutchinson Court, great for young families.
5. Just got an offer from a client. Looks good!
“Messages like this remind your friends and family that you’re out there working on behalf of clients every day. You’re not selling but reminding them that you work in real estate so when it comes time for them to make their next real estate transaction you’ll come to mind. And, of course, it has the potential to lead to more referrals from your friends and family members. “ – Technology Evangelist.
Actively Market Yourself on Facebook
Of course, few friends will want to hear about your work life 24-7 so try to figure out an appropriate balance of work and non-work related updates and a post volume that your network will find reasonable.
If you want to actively promote you business on Facebook there are three ways of doing so.

1) Group – Groups are good places to have general information about your real estate business but they are limited mostly due to privacy concerns. Only Facebook members can see these groups and they are therefore blocked by the search engines.
2) Pages –Allow for people to become fans of your business and can be seen by everyone in the World Wide Web. You would never see a Facebook group show up in Google search engine but you will find that the Facebook pages will. In summary why pages are better than groups on Facebook:
• Facebook groups cannot be found through Google.
• Because of the URL structure, a Facebook page shows up high in the Google rankings when people search for your organization or business name.
Now the last thing you need is to constantly keep updating this page. Set up your notes section to pull off the RSS feed from your own blog. That way the content will be refreshed without you having to go through the work of actually creating new content. This is what I set up for my Vancouver and PEI real estate clients.
You can also use Facebook pages as your fan list as a way to stay in touch by using it as a type of newsletter list. Send your real estate contests and promotions out to your fans when appropriate.
Price: Free to create, can cost money if you decide to promote.

3) PPC Advertising – these can be ads that take you right to products/website or they can be promotions for your Facebook pages in general. The prices for these clicks are similar to what you would be paying for Google Adwords. The main difference with Facebook ads is the amount of targeting you can have as who the ads are shown to. For example you can narrow down: sex, age, locations and Facebook will even scan for keywords that are in people’s profiles. There are many ways in which you could use targeting criteria to your advantage.
Have a house that is perfect for a certain age group in your city? Advertise it. Of course keep in mind that not all people are going to be on Facebook where as pretty much everyone on the net uses search engines. Adwords would have a greater reach. Condos designed for young professional males? Target area, profession, age, the possibilities are endless. They here no need to use the shotgun approach.

Rising Interest on Federal Debt May Sap Growth

This article on global public come finance comes courtesy of the New York Times..

By NELSON D. SCHWARTZ
Published: June 3, 2009
New York Times

As governments worldwide try to spend their way out of recession, many countries are finding themselves in the same situation as embattled consumers: paying higher interest rates on their rapidly expanding debt.
Increased rates could translate into hundreds of billions of dollars more in government spending for countries like the United States, Britain and Germany.
Even a single percentage point increase could cost the Treasury an additional $50 billion annually over a few years — and, eventually, an additional $170 billion annually.
This could put unprecedented pressure on other government spending, including social programs and military spending, while also sapping economic growth by forcing up rates on debt held by companies, homeowners and consumers.
“It will be more expensive for everybody,” said Olivier J. Blanchard, chief economist of the International Monetary Fund in Washington. “As government borrowing in the world increases, interest rates will go up. We’re already starting to see it.”
Since the end of 2008, the yield on the benchmark 10-year Treasury note has increased by one and a half percentage points, rising to 3.54 percent from 2 percent, the sharpest upward move in 15 years. Over the same period, the yield on German 10-year bonds has risen to 3.57 percent, from 2.93 percent. And British bond yields have increased to 3.78 percent, from 3.41 percent.
Concern over the long-term effect of greater debt prompted Ben S. Bernanke, the Federal Reserve chairman, to say in testimony before Congress on Wednesday, “Even as we take steps to address the recession and threats to financial stability, maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance.”
For now, the cost of more debt is the price government is willing to pay to spend its way out of recession, hoping that a return to fiscal health will increase tax revenue and repay the debt.
But in the last three weeks, the pace of the increase in the 10-year Treasury note has quickened, spurred by a Congressional Budget Office estimate that net government debt will rise to 65 percent of the gross domestic product at the end of fiscal 2010, from 41 percent at the end of fiscal 2008.
In 2009 and 2010, Washington will sell more than $5 trillion in new debt, according to Citigroup. A decade from now, according to the Congressional Budget office, Washington’s outstanding debt could equal 82 percent of G.D.P., or just over $17 trillion.
Governments borrow money in part by getting investors to buy their bonds, which are essentially i.o.u.’s. To lure investors for all the new debt, governments will have to compete with stock and corporate bond markets for investors’ money, hence the rising yields.
Although interest rates remain low by historical standards, the recent spike in rates comes at a critical juncture, threatening to damp the positive effects of new stimulus spending by governments around the world.
Under President Obama’s 2010 budget, total interest payments by the federal government could rise to $806 billion in 2019, from $170 billion this year, according to the Congressional Budget Office. Much of that projected increase is a result of higher government borrowing, but the forecast also assumes that the average 10-year note yield will increase to 4.7 percent.
Some of the increase in rates earlier this year actually stems from rising confidence in an economic recovery and growing tolerance for risk, as investors abandon government bonds for higher-yielding but riskier corporate bonds and stocks.
Now the risk posed by long-term debt is getting increasing attention from investors and traders.
“It’s a gigantic issue,” said Kenneth Rogoff, a Harvard professor and the co-author of a forthcoming book, “This Time is Different: Eight Centuries of Financial Folly” “It leaves us very vulnerable to a global rise in interest rates that might be substantially beyond our control.”
Mr. Rogoff estimates that if the budget office’s debt estimate proves correct, every one percentage point increase in rates could eventually cost Washington an added $170 billion a year.
The long-term situation is particularly perilous, because the added interest costs will worsen what have become record deficits as Washington has rushed to bail out industries and stimulate the economy.
A year ago, under old budget and policy assumptions and before the financial crisis escalated, the Congressional Budget Office projected that outstanding federal debt would hit $5.3 trillion in 10 years.
“It’s an exaggeration of course, but it’s a little like what happened to the subprime borrowers,” Mr. Rogoff said. “People are just assuming the funding will always be there.”
These assumptions may not hold over time. Spending could be reduced, economic growth could be greater than predicted or interest rates could be affected by other factors.
In the meantime, Europe is also turning to the markets to replenish overstretched coffers. In 2009 and 2010, according to Citigroup, the 16-nation euro zone will sell nearly 1.6 trillion euros ($2.6 trillion) in new debt, while Britain plans to offer £490 billion ($799 billion) in new debt.
Britain’s debt sales might seem less alarming than the multitrillion-dollar offerings from the euro zone and the United States. But Mark D. Schofield, global head of interest rate strategy at Citigroup in London, said, “It’s a huge increase in percentage terms, and it dwarfs anything else.”
Standard & Poor’s caught some traders and investors off-guard last month when it warned that Britain’s sovereign debt was in danger of losing its AAA rating, lowering the outlook to negative from stable. It was the first time since Standard & Poor’s initiated coverage of British debt in 1978 that the country received a negative outlook.
Britain’s government debt now equals 55 percent of G.D.P., but Standard and Poor’s estimates it could approach 100 percent by 2013.
“It wasn’t just a message for the U.K., but they were the easiest of the G-7 to target,” said Mark Wall, chief euro-area economist at Deutsche Bank in London, referring to the seven largest industrial nations. “The global financial markets took this as a message as much for the U.S. as the U.K.”
While still worrisome, the short-term debt picture within the euro zone is better than that in either Britain or the United States, Mr. Schofield said.
Over the long term, however, he said that higher rates could compound Europe’s larger problem of prolonged economic weakness and slow its recovery from the current recession.
Even regions that are unlikely to issue substantial amounts of new debt — like South America and Eastern Europe — will be affected by rising rates as they refinance their existing debt.
Asian economies have the least to fear from the prospect of increased rates. “Asia is in much better shape with lower levels of debt and they can afford larger deficits without the market penalizing them,” Mr. Blanchard of the I.M.F. said. “China, for example, is in a very strong position to pay for its stimulus.”