Exciting Times

Here we are with an incredibly huge stimulus (SPENDING) package that made it through the House with every piece of pork that Pelosi could find, currently undergoing Senate scrutiny and likely to pass in some form. Enlarging government didn't work in 1933 and won't this time either. Dems vowed to end the recession, and they will. It will now be a depression. Of the projected cabinet appointments, Geithner made it in spite of his tax evasion, Richardson didn't on ethical grounds, Daschle didn't on tax evasion, and the new czar of efficiency failed the tax test. So much for cleaning up government and transparency in politics. We have a new administration that's in way over their head and business, taxpayers, the economy are going to take a severe battering, and it's not going away any time soon. We have executive orders that order the types of cars to build, the pay scales of executives in industry, the protectionist orders for steel suppliers (no foreign supply). The so-called stimulus bill calls for 5 Billion for Acorn, (Remember them and voter fraud?, several million for contraceptives,(that's a different form of stimulus), although we perhaps should applaud that provision. If Congress is going to be doing it to us we should have some kind of protection. The arrogance of politicians is boundless, and how nice it would be if we could start over tomorrow with every seat in the House and Senate with a new occupant, no personal agendas, beholden to none.
To the local scene: January sales of SFR in greater Chico totaled 39 homes, 12 of them foreclosed properties, 6 short sales, or 46% of total sales were distress circumstances. Glenn County had 27 sales, 19 foreclosed and 2 short sales for 78% distress rate. Not good at all. The conventional wisdom is that prices are still dropping, foreclosures are up and increasing and while mortgage rates are favorable, the uncertainty of the market place is severely restricting activity. The Senate is pushing for some legislation to provide government backed mortgages at 4 or 4.5% for purchase and refinance. That should effectively stop any activity of any kind until there is some resolution. Why would anyone sign a contract today? Answer is they won't.
Just finished reading Ferguson's "The Ascent Of Money", now re-reading Friedman"s "Free To Choose". It's fascinating to see how often we have to repeat mistakes in matters of money and economics. Policies which have clearly failed in the past, some of which have never had any degree of success, are now on the agenda for handling this current crisis. The lessons of history are once more being ignored, and we are going to pay a substantial price. Best we can do individually is preserve the human values, care for each other and maintain tight bonds with family and friends. On that note: Everywhere we turn we are inundated with opportunities to make money by referring troubled homeowners to loan modification "companies", or we see the direct appeals by these people to homeowners to solve their mortgage problems through loan modifications for a fee. Let me keep repeating-If you have a problem with your loan, YOU talk to your lender, they have a loan modification department. If they don't have a satisfactory solution for you, or if they offer you something you don't fully understand, then call and make an appointment with a local attorney, one with real estate experience, ask the hourly rate and the likely total fee, and follow the advice you pay for. If your real estate agent refers you to a loan modification company he or she is most likely being paid a fee for the referral. Run, and change agents. Your mortgage is a legal contract between you and your lender. They have attorneys, you should have your own, not some outfit that claims to have some on staff. If you want this advice repeated, newagerealty@sbcglobal.net will get you a response.
As usual-
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