12. July 2009 by Dan Walkow, CFA, CMT.

The new rules do not go far enough. Charity fund-raising has had a bad smell for some time now where fund-raisers get the bulk of the take with little actually getting to the underlying charitable cause.

A targeted maximum rate of 35 cents on the dollar to go to the fundraiser for fundraising costs is ok but as the rule states, a charity can exceed the 35% up to 70% but must explain why on an audit. Over 70% the charity will be hauled before the watchdog.

The increase in scams has been a result of the more favourable tax treatment given charitable donations a couple of years ago. Are we surprised at the abuse? No, it would seem anytime “tax loopholes are created” scummy operators come out of the woodwork offering deals.

Bottom line is check out the charity you want to support carefully.

More here.

Posted in Investment Industry, Economics | No Comments »

12. July 2009 by Dan Walkow, CFA, CMT.

Hotel room rates have plummeted and perhaps it time to spend a few nights at that swanky resort hotel you always wanted to go to.

One issue for Canadian hoteliers is American tourist traffic and the new passport rules.

Hoteliers say one problem that needs immediate attention is the passport issue. As of his month, Americans needed a passport to re-enter the United States by car. With only about 30% of Americans holding a passport (compared with 54% of Canadians), the U.S. government is pushing its citizens to get the documents. But many have balked at the US$75-to-US$100 fee, which covers U.S. citizens for a decade.

Get the full story here.

Posted in Economics | No Comments »

12. July 2009 by Dan Walkow, CFA, CMT.

Due to the stricter lender rules good quality home-buyers are being denied mortgages. This is so typical and another case of “closing the barn door after the cows are long gone.”

Here is an example of what is going on. Fannie Mae recently toughened its policies, saying it would count only 70 percent of the value of stocks and mutual funds when calculating a buyer’s assets. Previously, that figure was 100 percent.

That is a “real smart move” after the markets have declined 40%. Where were these guys at the top of the market?

Short term and new rules notwithstanding I view this data point as positive and bullish as it indicates that there is pent up buying demand. Smart lenders and progressive banks will make a pot-full of money here taking advantage of good quality credits on which they can bump their fees and margins a bit.

For more at the New York Times go here.

Posted in Real Estate | No Comments »