The American Way?

Believe me when I say how sorry I am for all the people that are having financial difficulties at this time. Those folks that lost jobs, hours, reduced pay, etc. There is a story for all occasions. House values are upside down. Meaning the house is not currently worth what is owed on the mortgage. However in many cases that does not mean the house is not worth what the owner originally paid for the house. How many people have remortgaged and added debt to their house in the form of college loans, cars, credit card balances, trips and other short term debts. This is what the public was told to do. Borrow against your main long term investment because it had a lower rate and you could then afford the payments. Heck the value of your house was increasing at such a fast pace, many people refinanced numerous times adding mega debt. Then the marketplace has a ‘correction’ and lo and behold there is not enough equity to support the value. (This is not the case in most problem loans), but I would be interested to know what is that ratio? How many people have over financed their original debt and walked away with all the toys? The cars were ‘paid for’ in the house loan, so were the credit cards and all those purchases, except the final loan was never paid off. So not only, did the banks have to absorb the financial down turn but had to absorb the extras.
Now let’s look at this, the American government operates in a terrible deficit based upon unsound borrowing practices. They encouraged the banks to lend money in such a way as to promote indebtedness. We are short of jobs in the U.S., so let’s send more jobs over seas. We use energy at an alarming rate, but we buy the oil from overseas. We needed to bail out Wall Street so we borrowed the funds from our future; based upon future growth and the ability to repay at a later date. As the song goes; ‘When Will We Ever Learn?’
There needs to be a real shake up in our society. One that not only means we have to live within our means, but one that goes farther and says ‘we must live as if the future depends on the actions of the present.’ Our debts must be controlled; we must keep our jobs in the U.S. With out employment we can not get out of the fix we created. Health care needs to be corrected to allow growth. Taxes cuts need to be implemented to keep and grow the job market. Incentives packages need to be extended to employers to keep jobs from going abroad in exchange for guarantees of goods and services and future employment to those in the communities.
We need to change the American way back to the days of our parents, and their parents. Learn from the past, Pride in American goods and services. Growth of the economy through manufacturing, and industrial growth is essential. New business strategies, and techniques need to be established, growth of sound energy practices, expansion of natural gas, solar, nuclear power and finally business loyalty are imperative to sustaining growth and eliminating the debt. Lastly, I call on the government to stop the political wrangling and holding the American public at bay with all the earmarks and sloppy backroom government deals. They need to work together to pull us out of this hole that we are in. How we got there is not the point, the fact we are in this mess is the important issue. Let’s work as we did after the last crisis in 9/11, face this crisis head on and getter done!

Don’t Throw the Money Out With The Wash!

If you are a prospective home purchaser remember that the current drop dead date for an accepted contract is April 30, 2010 and that you must close by June 30, 2010. If there is no extension to this date, a delayal potentially could cost you between $6500 - $8000. (Depending on which program and how much money you spend.) Regardless, this delay could be very expensive indeed.
Now if you are waiting for the “Spring Market”; Stop waiting! With the buyer incentives soon coming to an end, NOW is the time to get your house on the market. Price it correctly and get an offer, then you may have still have time (if you qualify) to take advantage of the current owner buyer credit of $6500. (Call me to find out if you qualify, there are a few rules and regulations) I am sure that every one could use this tax credit. Don’t throw this opportunity away. Even if the Fed extends the program (which I doubt), you will have made a quality transaction based on current inventory, great mortgage rates and a known immediate return.

Let Them Eat Cake!

‘Let Them Eat Cake !!’

Well, I still am on a campaign for the banking industry, PMI companies, AIG, the Federal Government, Fannie Mae, Freddie Mac, FHA, and any other lien holders to finally “get it”!! These incredible bonuses for AIG employees that are coming out of the government bailout funds because of some contractual obligations is ridiculous! How could that not have been negotiated out of existence as part of the bail out? Those folks should be happy to have a good paying job, let alone having the thought of suing because the bonus was not big enough! How absurd! How egotistical! How vulgar to think they deserve, or entitled to such grotesque ‘bonuses’ for work that was not over and above the bar.
These funds would be better spent on repaying, or investing in the future economy. The TARP funds had very specific uses… BONUSES are not included! Take that money and the $30 Billion that seems to be floating around that no one knows what to do with and put it into circulation. Hire contractors to repair the houses that are currently in need of repair. Stop the downward cycle that is affecting many neighborhoods. Sell these rehabbed houses to the general public. Through the sale repay the Tarp funds so it can continue to be utilized to address similar needs in other neighborhoods. With the profits the institutions can become more fiscally sound, community minded and create a repayment program, as well as invest in housing that has greater and more stable values.
(This is not brain surgery! If the Fed thinks it can handle health care, this should not be that tough)
There would be many benefits to the communities from this type of program. Local contractors would be put to work. Supply houses would be active selling products. Buyers would be able to easily finance these homes. Many businesses rely on a strong housing market, the economy would start to trend upward. Attitudes would change because people would be working again.
Instead of looking for these sensible solutions, our Government has decided to allow the shoddy leadership of companies like AIG and others with outlandish Bonuses. They seem to take that same stance as Marie Antoinette when she stated… ‘Let them eat cake !’ as the nation continued to suffer. Just remember the fate of Marie Antoinette !