FED CONTINUES TO DEBATE INFLATION TARGET

This week marks one year since Ben Bernanke took over as chairman of the Federal Reserve Board, but the Fed has yet to act on his main proposal: "an explicit target for inflation."

Mr. Bernanke argues that a public commitment to an inflation target of 1 to 2 percent a year would be helpful to investors and boost consumer confidence.

His opponents, however, are wary of making changes while things are going well: despite a slight economic slowdown over the last year, wages have increased and unemployment continues to be low. There is also a concern that Mr. Bernanke's policy is too rigid and that a focus on inflation will overshadow the issue of unemployment.

Based on the cautious attitudes of the Fed's governors and staff, and the objections of Congress, Edmund Andrews of the New York Times predicts that "the Fed is unlikely to change gears this year."

To read the full article, go to: Fed Has Yet to Set Target on Inflation

MORTGAGE DEFAULTS RISE IN SANTA CRUZ COUNTY

According to Santa Cruz Sentinel staff writer Jondi Gumz, "mortgage defaults have been on the rise statewide since Fall 2005." Santa Cruz County is no exception. And as home appreciation slows down, homeowners in default will find it difficult to sell.

Gumz includes some interesting statistics:

• 452 default notices were sent to homeowners in Santa Cruz County in 2006, compared to 333 in 2005.
• 29 default notices have been mailed out to Santa Cruz County homeowners already this year, compared to 20 at this time in 2006.
• In 2006, 151 foreclosure sales took place in Santa Cruz and Monterey Counties. In 2005, the number was 39.
• 16 foreclosures have already taken place in Santa Cruz and Monterey Counties during the first two weeks of 2007

To read the full article, go to: "Mortgage Defaults Spike"

Some analysts predict that the large number of adjustable rate mortgages with artificially low introductory rates issued in the past few years will add significant numbers to the default rolls. Some borrowers will need to refinance to protect their property. Some will need to sell. If you are considering a sale to protect your equity or your credit, contact me at Frank@FrankMurphy.net for help with the selling process.

YOUR CELLPHONE'S SUPER SECRET POWERS

Most cellphone users have experienced the harsh reality of "you get what you pay for." The excitement of receiving your dirt-cheap, or even free, phone when you sign up for service wears off when you see the person sitting next to you at the meeting taking notes or checking e-mail on their new BlackBerry or Treo. Well, it turns out your little flip phone may be capable of more than meets the eye.

As Larry Magid of the New York Times discovered, the average cellphone user doesn't need to shell out hundreds of dollars in order to enjoy the benefits of a smartphone. Many inexpensive cellphones come with exciting built-in features such as note-taking applications, instant messaging and MP3 players. Make sure to ask your cellular carrier about the additional programs and services they can provide for your phone.

Your options go beyond your cellular carrier, too. It's now possible to access Gmail, get GPS navigation tools and even subscribe to blog feeds--all through your very own cellphone!

For more detailed information on these specialized (and often free) cellphone services, read the full article: Plain Cellphones Can Overachieve, With A Little Help