Even though I don’t use American Express, this commercial featuring Wes Anderson made me laugh.

Happy Friday!

Last night, President Barack Obama delivered the first State of the Union Address of his presidency. The centerpiece of the speech was the emphasis on job creation. Acknowledging that the economy still needs help, the President laid out plans designed to help encourage more jobs. In addition to highlighting some of the projects in the pipeline, he also pointed out that he plans to offer tax breaks to companies that hire more workers. Employment is a big deal, since it affects many other aspects of the economy.

Employment wasn’t the only focus of the State of the Union last night; President Obama also accepted responsibility for some of the mistakes he made his first year. He also reminded us that fixing two wars and a financial catastrophe is not something that can be done in only one year.

Other plans Obama offered included thoughts on developing alternative energy technology, education reform, health care reform and financial reform. It’s an ambitious list, but the President is in it for the long haul — however long the American people let him stay in for.

The housing market continues to struggle as home prices fall and mortgage applications drop. The Market Composite Index, which measures the volume of mortgage applications each week, dropped this past week. One of the biggest reasons is the fact that the refinancing portion of the index dropped.

Apparently, even though mortgage rates are low, people are reluctant to refinance their homes. This is causing mortgage applications to drop. Perhaps some are waiting to see if mortgage interest rates will drop back below 5%, since mortgage rates rose last week. Another issue is that home values have not been rising, and do get the 80% loan to value ration that many mortgage lenders are asking for is difficult.

Those with mortgages serviced by Fannie Mae or Freddie Mac, though, can take advantage of a refinance program from the government that allows a 125% LTV.

When it comes to preparing your taxes, you want to be careful. It’s not just about avoiding a tax audit. In fact, you might need to overcome some assumptions when you are ready to file. And, whether you file yourself, or have a tax professional take care of it, there are a few things to keep in mind. Roni Deutch, “The Tax Lady” offers some insight into items that you might overlook when preparing your taxes. As you get your 2009 tax return together, and as you plan for taxes in 2010, consider The Tax Lady, and keep these 5 things in mind:

1. Changes to your family: Childbirth, college, having your parents move in, marriage and divorce can all affect the tax breaks you are eligible for.

2. Home changes: When you move, there are deductions associated with your situation. And don’t forget the homebuyer tax credit.

3. Job changes: All things related to the job search can affect your tax return, especially with rules for unemployment benefits.

4. Major purchases: If you made a large purchase, let your tax preparer know. It may be nothing, but it may also impact your situation.

5. Bankruptcy: Your taxes are filed differently, depending on the kind of the bankruptcy you have. Be sure to have someone knowledgeable help you this.

Ever since the financial crisis, Fannie Mae and Freddie Mac have been wards of the federal government, under direct control. This happened when the companies appeared to be on the verge of collapse, and ready to take down a large portion of the mortgage market. With the two GSEs accounting for about 70% of loan originations due to FHA loans, a collapse would have been devastating. Fannie and Freddie are the biggest mortgage lenders in the country, between originations and servicing.

But Barney Frank doesn’t want Fannie Me and Freddie Mac to go back to the way they were before. National Mortgage News Online reports on his opposition:

Chairman Frank said he plans to hold hearings on restructuring the U.S. housing finance system and he has no desire to see Fannie and Freddie return to the former “hybrid” status as a private companies with a public mission.

It is unclear about what might happen going forward, but if Fannie and Freddie are no longer GSEs, they would end up either being completely private, or they would be turned into government home financing programs.

The E*Trade baby strikes again, this time reminding us all that the lottery isn’t, in fact, a retirement plan.

Happy Friday!

Goldman Sachs has managed pull in profits as revenues jump. So far, the earnings season for financial companies has been somewhat mixed, with some companies reporting profits (like JP Morgan Chase and Morgan Stanley), while others, like Citi, post losses.

But with Goldman in the profit category, it seems as though things are probably looking better overall for the big banks that seemed on the verge of collapse toward the end of 2008. MarketWatch reports on the Goldman Sachs response to their profits:

“Despite significant economic headwinds, we are seeing signs of growth and remain focused on supporting that growth by helping companies raise capital and manage their risks, by providing liquidity to markets and investing for our clients,” Chief Executive Lloyd Blankfein said in a press release.

Some of the biggest helps to Goldman include underwriting fees it earned, as well as the fact that there were pay cuts. Compensation and benefits were cut in response to public outrage, and Goldman appears to have reaped some benefits.

The last of the housing market data is being tallied from 2009, and it looks like things have ended on something of a weak note. Housing starts dropped 4% in December. Multi-family housing starts gained, but that small victory was completely overwhelmed by the fact that single-family housing starts were down so much.

In my mind, it appears that the news illustrates continued stress on families. Demand for multi-family units indicates that there are plenty of families in financial trouble, and even suffering through foreclosure, looking for less expensive housing. Single-family housing starts are above the bottom seen in 2009, but they are far from showing strength. Improvement in this area is likely to be slow, depending on a change in the employment situation.

Until families can afford single housing units gain, housing starts are likely to continue to struggle.

Even as we hear about a recovering economy, the fact of the matter is that there are some places that have higher rates of foreclosure than others. Here is a chart on foreclosure distribution from 2005 to 2009 found at The Mortgage Reports.

You can see the large spike after the financial crisis toward the end of 2008. And it does appear that foreclosures are declining right now. As long as we see something of an improvement in terms of employment and the overall economy, there should be continued declines in the rate of foreclosure.

2010 is going to be an interesting year for taxes. There are a number of tax breaks available that haven’t been available before. Here are two home-related tax moves for you to consider in 2010:

1. Buy a Home

The first time home buyer tax credit has been expanded and extended so that you can get the $8,000 first time tax credit until the end of April. Additionally, if you already own, you can get up to $6,500 when you buy. If you are planning to buy in the next couple of years, this might be the year to do.

2. Green Home Improvements

If you are thinking of making your home more energy efficient, 2010 is your year. There are tax credits available for putting in solar home heating systems, replacing your windows, adding insulation, and more.

Plan out the year ahead so that you can do your best to reduce your tax liability. Figure out what you want, and then decide how you can make it work within your budget.