Mortgage Primer 101

President Obama has just released his latest plan to keep people in their homes. I have a flash for his cast at Treasury.
PEOPLE WANT TO SELL THEIR HOMES! We went down this road of 0% down 125% financing thanks to Bill Clinton, Chris Dodd and Barney Frank. We had to close the housing gap! There were people out there who could not afford to buy a house! Of course more affluent people used the plan to buy a $730,000 dollar home when they could only afford maybe a modest little $600,000 dollar home.
The point is that three or four years down the road, they still have no equity and are still upside down on the mortgage. They are upside down because they took that extra 25% and paid off credit card debt or other personal debt or maybe added a pool to their new digs that they couldn’t afford in the first place.
Now, in order to sell, they have to find someone willing to take on that extra mortgage amount. Even if we were in the housing market of the last decade, the homes value would not have appreciated enough to make up that 25%. We do not need a plan to re-write these mortgages and “keep people in their homes”. We need a plan to bring liquidity and mobility back in the market. That will only happen if we return to the basic premise that equity builds value. Let’s get the intellectuals and social engineers out of business.

Geithner's choice for deputy secretary withdraws

International Herald Tribune - ?12 hours ago? AP WASHINGTON: Treasury Secretary Timothy Geithner's top pick to be his deputy has withdrawn from consideration. Annette Nazareth, a former senior staffer and commissioner with the Securities and Exchange Commission, withdrew after several interviews ...

At the SEC, Nazareth was a driving force in urging a merger of the NASD, an industry-funded regulator of U.S. brokerages, with most of the New York Stock Exchange’s regulatory arm. The SEC approved the consolidation, which formed the Financial Industry Regulatory Authority, in July 2007. That group has come under fire on Capitol Hill for not spotting the $50 billion Ponzi scheme allegedly masterminded by Bernard Madoff.

Before becoming a commissioner in 2005, Nazareth was the staff member in charge of overseeing brokerage firms, market surveillance and stock exchanges. She led the division in 2004 when it designed a program to monitor whether Wall Street’s biggest securities firms had adequate capital and liquidity.
SEC Inspector General David Kotz faulted the program in a September report, saying the SEC failed to respond to “numerous, potential red flags” at Bear Stearns Cos., which collapsed a year ago. Lehman Brothers Holdings Inc. went bust in September.

Prior to joining the Commission staff, Ms. Nazareth held several positions in the financial services industry. As a Managing Director of Smith Barney from 1997 to 1998, she was deputy head of the capital markets legal group. As a Senior Vice President and Senior Counsel of Lehman Brothers, Ms. Nazareth was the chief legal advisor to the fixed income division from 1994 to 1997. From 1986 to 1994, she served as Managing Director and General Counsel of Mabon Securities Corp. and its predecessor business, Mabon, Nugent & Co.
Some might remember that Mabon, Nugent & Company invested 40 million dollars in the failing Global Motors that had brought us the famed Yugo.

Remember that catchy phrase?

Yugo, I go, we all go!

LAYOFFS AND DOWNSIZING....

Has anyone out there ever been laid-off or downsized?

I can tell you one group that never has suffered this indignity. Our ELECTED REPRESENTATIVES!!

When a company falls on difficult times, one of the things that seems to happen is they reduce their staff and workers. The remaining workers need to find ways to continue to do a good job or risk that their job would be eliminated as well. Wall street, and the media normally congratulate the CEO for making this type of "tough decision", and his board of directors gives him a big bonus.

Our government should not be immune from similar risks.

Therefore: Reduce the House of Representatives from the current 435 members to 218 members and Senate members from 100 to 50 (one per State). Also reduce remaining staff by 25%.

Accomplish this over the next 8 years. (two steps / two elections) and of course this would require some redistricting.

Some Yearly Monetary Gains Include:

$44,108,400 for elimination of base pay for congress. (267 members X $165,200 pay / member / yr.)

$97,175,000 for elimination of the above people's staff. (estimate $1.3 Million in staff per each member of the House, and $3 Million in staff per each member of the Senate every year)

$240,294 for the reduction in remaining staff by 25%.

$7,500,000,000 reduction in pork barrel ear-marks each year. (those members whose jobs are gone. Current estimates for total government pork earmarks are at $15 Billion / yr)

The remaining representatives would need to work smarter and would need to improve efficiencies. It might even be in their best interests to work together for the good of our country?

We may also expect that smaller committees might lead to a more efficient resolution of issues as well. It might even be easier to keep track of what your representative is doing.

Congress has more tools available to do their jobs than it had back in 1911 when the current number of representatives was established. (telephone, computers, cell phones to name a few)

Note:
Congress did not hesitate to head home when it was a holiday, when the nation needed a real fix to the economic problems. Also, there were 3 senators that were not doing their jobs while on the campaign trail for 18+ months) but were still accepting full pay. These facts alone support a reduction in senators & congress.

Summary of opportunity:

$ 44,108,400 reduction of congress members.

$282,100, 000 for elimination of the reduced house member staff.

$150,000,000 for elimination of reduced senate member staff.

$59,675,000 for 25% reduction of staff for remaining house members.

$37,500,000 for 25% reduction of staff for remaining senate members.

$7,500,000,000 reduction in pork added to bills by the reduction of congress members.

$8,073,383,400.00 per year, estimated total savings. (that's 8-BILLION just to start!)

Big business does these types of cuts all the time.

If Congresspersons were required to serve 20, 25 or 30 years (like everyone else) in order to collect retirement benefits there is no telling how much we would save. Now they get full retirement after serving only ONE term.

IF you are happy how the Congress spends our taxes, then just ignore this post. IF you are NOT at all happy, then I assume you know what to do.

Next Week: The Administration! What we might call the CEO and Staff!

A.M.

YOU'RE FIRED!

CONSERVATISM vs. LIBERALISIM

History 101 (Crash course)

For those that don't know about history ... Here is a condensed version:

Humans originally existed as members of small bands of nomadic hunters/gatherers. They lived on deer in the mountains during the summer and would go to the coast and live on fish and lobster in the winter.

The two most important events in all of history were the invention of beer and the invention of the wheel. The wheel was invented to get man to the beer. These were the foundations of modern civilization and together were the catalyst for the splitting of humanity into two distinct subgroups:

1. Liberals (the gatherers)
2. Conservatives. (the hunters)

Once beer was discovered, it required grain and that was the beginning of agriculture. Neither the glass bottle nor aluminum can were invented yet, so while our early humans were sitting around waiting for them to be invented, they just stayed close to the brewery. That's how villages were formed.

Some men spent their days tracking and killing animals to B-B-Q at night while they were drinking beer. This was the beginning of what is known as the Conservative movement.

Other men who were weaker and less skilled at hunting learned to live off the Conservatives by showing up for the nightly B-B-Q's and doing the sewing, fetching, and hair dressing. This was the beginning of the Liberal movement.

Some of these liberal men eventually became known as girlie-men. Some noteworthy liberal achievements include the domestication of cats, the invention of group therapy, group hugs, and the concept of democratic voting to decide how to divide the meat and beer that conservatives provided.

Over the years Conservatives came to be symbolized by the largest, most powerful land animal on earth, the elephant. Liberals are symbolized by the jackass.

Modern liberals like imported beer (with lime added), but most prefer white wine or imported bottled water. They eat raw fish but like their beef well done. Sushi, tofu, and French food are standard liberal fare. Another interesting evolutionary side note: most of their women have higher testosterone levels than their men. Most government social workers, and employee's, personal injury lawyer's, journalists, dreamers in Hollywood and group therapists are liberals. Liberals invented the designated hitter rule because it wasn't fair to make the pitcher also bat.

Conservatives drink domestic beer, mostly Bud. They eat red meat and provide for their family & community. Conservatives are big-game hunters, rodeo cowboys, lumberjacks, construction workers, firemen, medical doctors, police officers, corporate executives, attorney’s, athletes, members of the military, airline pilots, teachers who believe in our founding fathers, and generally anyone who works productively. Conservatives who own companies hire other conservatives who want to work for a living.

Liberals produce little or nothing. They like to govern the producers and decide what to do with the production. Liberals believe Europeans are more enlightened than Americans. That is why most of the liberals remained in Europe when conservatives were coming to America . They crept in after the Wild West was tamed and created a business of trying to get something for nothing.

When a fishing boat comes to the dock, Liberals want to confiscate some of the fish to feed those who cannot fish. Conservatives want to hire people to fish and let them learn how to buy their own boat.

Here ends today's lesson in world history:

It should be noted that a Liberal may have a momentary urge to angrily respond to the above.

A Conservative will simply laugh and be so convinced of the absolute truth of this history that it will be forwarded immediately to other true believers and to more liberals just to tick them off.

And there you have it. Let your next action reveal your true self.

WE LIVE IN THE LAND OF THE FREE, ONLY BECAUSE OF THE BRAVE

Thanks to Ron V.

Note: This is NOT about Republicans and Democrats. It’s a distinction as to what you believe about the Constitution, National Defense, Personal Responsibility, Fiscal Responsibility, and most importantly Freedom!
Moderates are a melding of Republicans, Democrats, Libertarians, and all others that believe in the above ideas.

War was declared on the United States of America
2,724 days, 9 hours, 24 minutes and 12 seconds ago.

Conservatives want to end the war in victory for the people of Iraq, so they may also have personal and economic freedom.
Liberals choose to walk away, because it has just ‘taken too long”, AND there would be more money to spend on people in this country who want more hand-outs.

DIPLOMACY Or CAPITULATION??

China expresses relief over Clinton visit:
1 hour ago

BEIJING (AFP) — Hillary Clinton's trip to Beijing has come as a relief to China after the US secretary of state steered clear of human rights and other sensitive issues to focus on cooperation between the world powers.

Just before arriving in the Chinese capital, Clinton told reporters that while she would press concerns over human rights: “Those issues can’t interfere on the global economic crisis, the global climate change crisis and the security crisis.”

Hillary Clinton is redefining herself to some extent (again?). After going to Beijing in 1995 as first lady to deliver an impassioned speech on women’s rights, Mrs. Clinton has sidelined human rights on this trip, saying she does not want the topic to interfere with central issues like climate change or the economic crisis.

Here are the words of U.S. Secretary Of State Hillary Clinton in April of 2008 less than one year ago. "These events underscore why I believe the Bush administration has been wrong to downplay human rights in its policy towards China. ...

But this year we get this:

Clinton: Chinese 'human rights can't interfere' with other crises

Dissidents held during Clinton Beijing visit

Clinton focusses on selling US treasury bills to China

China still sure of US bonds: Clinton

Clinton says America and China must work together

Clinton: US to 'deepen and broaden relationship' with China


Ahhh, the Fresh Face of Diplomacy!

REGONOMICS vs OBAMANOMICS

With regards to:

Peter Ferrara
Director, Entitlement and Budget Policy, Institute for Policy Innovation

President Reagan’s economic recovery plan included four specific components on which he explicitly campaigned over and over and then implemented once elected.

These were:
1. Reductions in tax rates to restore incentives for economic growth. This consisted of, first, a reduction in the top income tax rate of 70% down to 50%, and then a 25% across the board reduction in income tax rates for everyone. The 1986 tax reform then reduced tax rates further, leaving just two rates, 28% and 15%. Reagan also cut corporate income tax rates and capital gains tax rates
2. Spending Reductions. The reductions included a $31 billion cut in spending in 1981, close to 5% of the federal budget then, or the equivalent of about $150 billion in spending cuts for the year in 2008. In constant dollars, non-defense discretionary spending declined by 14.4% from 1981 to 1982, and by 16.8% from 1981 to 1983. Moreover, in constant dollars, this non-defense discretionary spending never returned to its 1981 level for the rest of Reagan’s two terms! By 1988, this spending was still down 14.4% from its 1981 level in constant dollars. Even with the Reagan defense buildup, total federal spending declined from a high of 23.5% of GDP in 1983 to 21.3% in 1988 and 21.2% in 1989. That’s a real reduction in the size of government relative to the economy of 10%
3. Anti-inflation monetary policy to restrain money supply growth.
4. Deregulation. Reagan’s deregulation plan has now saved consumers an estimated $100 billion per year in lower prices. Reagan’s first executive order, in fact, eliminated price controls on oil and natural gas. Production soared, and the price of oil declined by over 50%.
The results were spectacular. These four components produced a 25-year economic boom from 1982 to 2007. In their new book, “The End of Prosperity,” Art Laffer and Steve Moore call the these years “the greatest period of wealth creation in the history of the planet.” They note that — adjusted for inflation– more wealth and income was created during this Reagan boom than in any other prior period in U.S. history. That’s right, than any other entire period dating from President George Washington all the way up to Ronald Reagan.
But Barack Obama is doing exactly the opposite on each of these four points:
–He is still promising tax rate increases, at least by letting the Bush tax cuts expire.
–He just passed the greatest increase in government spending in the history of the planet.
–He is promising massive increases in regulatory burdens, including global warming cap and trade regulation that would cost the economy another trillion dollars a year.
–The Fed is already furiously reinflating the money supply, sowing seeds of further havoc in the future.
Even the Obama tax cuts do not follow the Reagan economic recovery plan because they are not reductions in tax rates, which is what drives the incentives that govern the economy.
A reduction in tax rates increases incentives by allowing people to keep a higher percentage of what they earn from productive activity. But Obama’s tax cuts are all based on tax credits, which do nothing to improve incentives. They are really just the same as his government spending in terms of their effect on the economy, just like sending more welfare checks out to everyone.
At AmericanSolutions.com, former House Speaker Newt Gingrich has proposed an updated version of the Reagan economic recovery program for today. It includes, among other items, a reduction in the federal corporate income tax rate from 35% to the 12.5% rate that over the past 20 years has lifted the standard of living in Ireland from the bottom of the EU to the top. It would eliminate the capital gains tax to match rates in China, Singapore, and other international competitors — a move that would entice capital investment from the world over to America. It would provide middle class tax relief by reducing the 25% income tax bracket to 15%, establishing a flat rate tax of 15% for close to 90% of American workers. Gingrich also proposes that a cut in the payroll tax by 50% for 2 years. He also proposes that our government work to control government spending to balance the budget, something Gingrich himself achieved when he was Speaker of the House. Under his plan, the United States would also adopt a real, comprehensive energy program that would allow production of domestic U.S. oil and natural gas, as well as nuclear power, clean coal, ethanol, and renewable fuels.
Obama keeps saying he is only interested in what works, not ideology. So why doesn’t he include any of the above components that have a proven track record of effectiveness? Why is our president ignoring what works and insisting on embracing an ideology that will simply expand big government?

Why indeed?

A SHOUT IN THE WILDERNESS

One Sunday as I was napping on the back porch, I heard a bunch of
screaming out in the woods behind the house. Hmm. What could that
be about I wonder? Stepping into the kitchen I picked up my .22 rifle
and headed out to investigate. About two miles into the trees I came to the little pond where I sometimes go to catch bream and catfish.
There was a man walking back and forth with two buckets of water, dipping out of the deep end, walking the length of the pond and pouring into the shallow end of the small pond. Each time he poured in a bucket of water he would cuss, yell and throw the buckets down
In frustration.
“Excuse me sir, what are you doing out here and why all the noise on beautiful day like this”?
The stranger looked at me as if I were crazy and said “I am here to fix this pond".
“But sir, there is nothing wrong with the pond! It’s perfect, it’s full of catfish, bream and is spring fed by the aquifer”.
“Nothing wrong with it? Nothing wrong with it? Are you blind mister”? “Sure, this is end is nice, but look at the other end, it’s shallow and muddy and has no vegetation like this end. This pond is out of balance and I am here to make it nice on both ends and in the middle as well”! “But, every time I take water out of the deep end and pour it into the shallow end, it all just levels out again, I’m stumped, but I know I can come up with the solution, I just know it”!
“But sir, you are tramping all over the frog habitat on the shallow end of the pond! If you keep this up, the frogs will die, the fish will die and the pond will stagnate”!
“Now look fellow! I know it may not be a perfect plan, but it’s the one I came up with. I happen to be in charge here. I’m from the government and I’m here to help you”! By the way mister, is that gun loaded? Do you have a permit for it? I can’t believe we have people walking around in the woods with a loaded gun! What is your name”?
"This is another problem we are going to have to fix, just as soon as I get done with this pond"!

Air Force One to Williamsburg??

Obama takes first Air Force One trip to Williamsburg

Let me see if I have this correct. Obama takes his first Air Force One trip to Williamsburg?
Williamsburg, Virginia? The town that is 152 miles from Washington, DC?
Did he just need to take a ride and try out his new 'wheels'?

Are you kidding me?

Has anyone thought to calculate what it cost to fly Marine Corp One to Andrews Air Force Base?
Then load up on a 4,000 square foot flying office and travel to Virginia? (152 miles)
How many military people and staff did this require?
Did the C-141 cargo jet that carries the Presidential Limo and staff cars make the trip as well?
Was the Air Force AWACS plane flying overhead?
Was the military and air traffic control on special alert because the President was in the air?
How many millions did this cost?

Are you kidding me?

Is this the same person who criticized the ‘Big Three’ CEO’s for taking a corporate jet to Washington from Detroit?
Is this the President that is calling for personal responsibility and a ‘new way’ of doing business?
Is this the President who has promised accountability and transparency?

Is this the President who is asking for a Trillion dollar spending plan?

Are you kidding me?

Are you kidding me?

Lets just hope he doesn’t take it to Camp David next week!

...Bill

A plea to Congress and a Fractured Fable

THE SILVER SCREW

Once upon a time, a young lad was born without a belly button. In its place was a silver screw. All the doctors told his mother that there was nothing they could do.
Like it or not, he was stuck with it . . . He was screwed.
All the years of growing up were real tough on him, as all who saw the screw made fun of him. He avoided leaving his house . . . And thus, never mde any friends.
One day, a mysterious stranger saw his belly and told him of a swami in Tibet who could get rid of the screw for him. He was thrilled. The next day, he took all of his life's savings and bought a ticket to Nepal .
After several days of climbing up steep cliffs, he came upon a giant monastery. The swami knew exactly why he had come. The screwy guy was told to sleep in the highest tower of the monastery and the following day when he awoke, the screw would have been removed. The man immediately went to the room and fell asleep.
During the night while he slept, a purple fog floated in an open window. In the mist floated a solid silver screwdriver. In just moments, the screwdriver removed the screw and disappeared out the window.
The next morning when the man awoke, he saw the silver screw laying on the pillow next to him. Reaching down, he felt his navel, and there was no screw there! Jubilant, he leaped out of bed . . . . And his butt fell off.
The moral to this is:
'Don't screw around with things you don't understand -- You could lose your ass.'
---- Congress is noted for screwing around with things they don't understand - like the economy. That's why we are all losing our asses!

....Padroo

Personal Tax Stimulus Plan

2009 STIMULUS PLAN

(FAX OR MAIL TO YOUR CONGRESSMAN)


The Honorable ______________________
https://writerep.house.gov/writerep/welcome.shtml

Dear Sir/Madam

As an American tax payer of long standing, I would like to apply for
my own personal bail out program.

I request $1,000,000.00 to be spent over the next 10 years to bring
our economy back to life.

I pledge to use this money exclusively in the following manner.

1. Paying off my home mortgage and all personal bills.

2. Buying new cars, and boats as needed.

3. Travel at will to all possible vacation spots in the United States, only.

4. Diner, dancing, generous tipping and events at the above locations.

5. Golfing, fishing and other recreational passtimes as suits me.

6. Investing 10% up front in a long term mutual fund.

If we can do this for every taxpayer in the U.S. we will all retire and let
others who have not been able to find jobs in their lives take over the
work load.

The purchases and investments will get our troubled economy back on
track and solve the unemployment crisis.


ECONOMIC PROBLEMS SOLVED!!

SIMPLE!