What We Need is a Team Called Operation Restore Hope for this Country - Just another day in the mortgage mess

What if President Obama were to consider establishing a team called "Operation Restore Hope" for the entire United States, therefore, establishing a secure environment for banks to operate effectively and most importantly without the threat of tight regulatory reform. While at the same time, this team focuses on the humanitarian side of this economy by providing relief operations creating jobs in this country.

It seems as if the stock market is reflecting a lack of hope amongst Wall Street and Main Street, by dropping lower. For example, for one day, I wished Congress had united unanimously and all voted for Chairman Bernanke, showing this country we are united once again. Just once. It is so frustrating, watching Congress combat one another, while the rest of us suffer at their expense. It is demoralizing.

We need these banks to operate freely, and without regulatory constraints. We need these banks in order for us all to recover. Regulatory threats only seem to be wiping out the hope in this country. Talking to people on the street, it seems so bleak when it should not be this way; we should have hope right now. Compared to 2008, we are in a stronger period today; therefore, it seems the missing component here is HOPE.

What people do not seem to understand is the foundation of this economy is now a rock. A year ago, it was sand sitting under an ocean filled with a major oil spill on top of it, which was due to bank failures. President Bush, Chairman Bernanke, Treasury, and President Obama came in with a team to clean up the oil spill by spending billions of dollars. What other solution was there when you have a major oil spill, none. Foreclosed homes with troubled homeowners were equivalent to an oil covered duck. Some wildlife dies from an oil spill, but some survive due to intervention. For the past year, this Administration along with Congress, Chairman Bernanke, Treasury Secretary Geithner, and Chairwoman Sheila Bair have been the ones cleaning up the ocean of its oil, while the taxpayers have been paying for it, who have made somewhat of a profit year to date it seems. This team cleaned the ocean of its oil; we made it through this crisis. Now, it is time to get the clean ducks back into their habitat, so they are able to survive and rebuild once again.

It seems as if this Administration needs to establish a team called Operation Restore Hope. This team will only focus on delivering positive, accurate, unified, and clear information to the public about the economy, Congress, the Federal Reserve, the media, the regulators, anyone who has a finger in this economy has to work through this team before speaking to the public, in hopes of rebuilding hope nationwide. We need hope, no more lies. Moreover, this team is only a temporary team. Its purpose is only to restore hope for families and companies (big and small), so they can begin surviving and rebuilding once again, just as the clean duck would, therefore, leading us to prosperity.

Operation Restore Hope is what we, the people, need it seems. One can hope!

Stay tuned...I have more to share. Just another day in the mortgage mess!

We Need the Spirit of Ronald Reagan - Just another day in the mortgage mess

Former President Reagan would be rolling in his grave if he knew what we, the people, were experiencing right now. We need the spirit of Reagan in our government.

"To paraphrase Winston Churchill, I did not take the oath I have just taken with the intention of presiding over the dissolution of the world's strongest economy." Ronald Reagan

"Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States." Ronald Reagan

"Facts are stubborn things." Ronald Reagan

We, the people, do not have to be stubborn, especially when it comes to uniting Wall Street, the banks, the people, and our Congress. This stubbornness is a choice, and one that is hurting us all.

"Today we did what we had to do. They counted on America to be passive. They counted wrong." Ronald Reagan

"Government does not solve problems; it subsidizes them." Ronald Reagan

"Unemployment insurance is a pre-paid vacation for freeloaders." Ronald Reagan

"We might come closer to balancing the Budget if all of us lived closer to the Commandments and the Golden Rule." Ronald Reagan

"We must reject the idea that every time a law's broken, society is guilty rather than the lawbreaker. It is time to restore the American precept that each individual is accountable for his actions." Ronald Reagan

"We should measure welfare's success by how many people leave welfare, not by how many are added." Ronald Reagan


"Government exists to protect us from each other. Where government has gone beyond its limits is in deciding to protect us from ourselves.
Ronald Reagan

"Government is like a baby. An alimentary canal with a big appetite at one end and no sense of responsibility at the other."
Ronald Reagan

"No mother would ever willingly sacrifice her sons for territorial gain, for economic advantage, for ideology."
Ronald Reagan

"Peace is not the absence of conflict, it is the ability to handle conflict by peaceful means."
Ronald Reagan

"Politics is not a bad profession. If you succeed there are many rewards, if you disgrace yourself you can always write a book."
Ronald Reagan

"Recession is when a neighbor loses his job. Depression is when you lose yours."
Ronald Reagan

"One way to make sure crime doesn't pay would be to let the government run it."
Ronald Reagan

"Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15."
Ronald Reagan

"The best minds are not in government. If any were, business would steal them away."
Ronald Reagan

"The problem is not that people are taxed too little, the problem is that government spends too much."
Ronald Reagan

"No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!"
Ronald Reagan

"Governments tend not to solve problems, only to rearrange them."
Ronald Reagan

"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."
Ronald Reagan

"How do you tell a communist? Well, it's someone who reads Marx and Lenin. And how do you tell an anti-Communist? It's someone who understands Marx and Lenin."
Ronald Reagan

"I know in my heart that man is good. That what is right will always eventually triumph. And there's purpose and worth to each and every life."
Ronald Reagan

"I've never been able to understand why a Republican contributor is a 'fat cat' and a Democratic contributor of the same amount of money is a 'public-spirited philanthropist'."
Ronald Reagan

"If we love our country, we should also love our countrymen."
Ronald Reagan

"Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man."
Ronald Reagan

On that note, I will end this post with this quote, "Man is not free unless government is limited." Ronald Reagan

Stay tuned...I have more to share. Just another day in the mortgage mess!

See Beyond the Trees - Just another day in the mortgage mess

According to an article on CNBC, "Home Refinancing Demand Soars First Week of 2010", http://www.cnbc.com/id/34837629

I wish the media would stop focusing on demand and, instead, focus on "Pull Through"! I can take $20,000,000 in loan applications, however, how many get approved and actually fund is the question. Who cares about demand if the pull through is not happening. The demand, for homeowners to refinance, has been there for nearly two years now. The story I wish would run, is what is getting approved and funding, "pull through".

Pull Through for refinances is far more important in this housing crisis, than demand for refinances! The need in this crisis is to refinance/borrow, which is not being fulfilled if the "pull through" is not there. "Pull through" is what we need to know, not demand.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Those Who Study History, Can Predict - Just another day in the mortgage mess

Housing stinks and will continue to stink for quite some time it seems or feels, in my opinion. Banks are tight with their lending guidelines, and will be tight for some time because brilliantly this seems to be holding down inflation, in my opinion.

Furthermore, I knew the Federal Reserve would prosper off this crisis. Chairman Bernanke studied the Great Depression and during that period, the taxpayers made a profit off the crisis, therefore, the Federal Reserve making a profit from this crisis is no surprise. It was to be expected as I had said on my blog over a year ago, a profit would be made if done correctly.

Here is a article, “Fed Posts Record Earnings From Fighting Financial Crisis” http://www.cnbc.com/id/34818508

In my opinion, Chairman Bernanke is brilliant, even if he may have been behind the eight-ball in the very beginning of this crisis, I do not believe it was by choice. I honestly believe Congress blocked him from getting stimulus into the marketplace back in 2007, when Congressman Dodd told him in a testimony, that he refused to give out billions of dollars as they (Congress) did back in the Savings and Loan Crisis. I truly believe if Congress/former President Bush had provided stimulus to these banks in 2007, this crisis would not have escalated to the levels it did. There was not a pro-active bone in anyone, back in March 2007, it seemed.

I believe the banks have to run freely, as they always have in capital markets. If they are making profits, paying out bonuses, then the economy should continue to grow. Politicizing this process is only going to hurt all of us in my opinion. I do not believe Christine Romer when she says she believes job growth will begin this spring. If small businesses are not growing, then how is job creation going to start? If banks are not lending, then how is job creation going to start? Banks have to lend and the only way this is going to happen is if Obama's Administration stops trying to politicize this industry. It seems as if it will hurt us all.

Let banks lend; and yes, inflation might spur up a little, but even a little is better then nothing at all. We deserve a prosperous country. We deserve jobs. If banks lend, consumers buy homes, small businesses operate and grow, and then naturally job creation should start. However, to only give stimulus dollars to the green sector seems rather narrow minded in my opinion. All small businesses need tax cuts, payroll tax cuts, loans, and stimulus. The government was too far behind the eight-ball this past year with small businesses, just as FDR proved he was too.

I am not an expert; I am just living in this mess.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Absolution #1 - Just another day in the mortgage mess

My absolution #1 for 2010, was the announcement of Congressman Dodd's retirement today. This is "change", this country deserves in my opinion.

Furthermore, it is my opinion, the consumer is not overly optimistic right now because there is still a lot of caution in the air and, as long as this caution exists, prosperity should be on the horizon. 2010, to me, is the year we lay the foundation. The ground was broken last year to begin building the house. Now, it is time to lay the foundation for this new house. We must continue to look forward and be hopeful. Hope is all we have in an economy with 10%> unemployment.

Speaking of hope, a "private" lender in California is supposedly introducing a stated income loan program with 40% down payment, in the jumbo market, for those who have 729 ficos with 12 months PITI in reserves. With this type of competition coming back, capitalism may return to the banking industry after all. One can hope! We need the banks and we need them strong.

Stay tuned...I have more to share. Just another day in the mortgage mess!

The End of a Fraudulent Decade - Just another day in the mortgage mess

Years ago, when I had tried to set-up my non-profit, I had created colors associated to it. One of the colors was blue because its meaning is puritanical. Therefore, tonight is a puritanical evening with its blue moon; and according to the Oxford English Dictionary, the first reference to a blue moon comes from a proverb recorded in 1528:

“If they say the moon is blue,
We must believe that it is true.”

We must believe 2010 will be a year of absolution bringing much truth, joy, and prosperity to all. So, look up at the sky and make a wish tonight. If you cannot see the sky, imagine the sky and make your wish. I will wish for all of you tonight as well.

Happy New Year!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Growth is Here, but is it at the Cost of Consumers? - Just another day in the mortgage mess

As it appears, applying Bernanke's theory to this crisis seemed to prove true. I am glad I read the books I did, in 2007/2008, because it gave me the needed yellow brick road to follow, during what seemed to be the worst financial crisis in US history. I knew eighteen months ago, in my gut, I could apply history and Chairman Bernanke's theory to guide me through this crisis accordingly. Based on Bernanke's theory, twelve months from the peak of a banking crisis would be the start of a recovery, which was the end of October/beginning of November of this year. Thus far, it is correct.

It appears the recovery started right on time, as I had predicted using his theory and history books; and thank goodness because I had bought a stock last year based on my prediction and this information, and it paid off. The lesson I learned these past two years, was the only thing you have to rely in life, is your own knowledge. Knowledge is power; and no one is going to protect your financial well-being except for you.

- I wanted to sell my stocks in October 2007, but I let my stockbroker convince me otherwise, and I lost thousands.
- I wanted to quit my job with Primary Mortgage Group in August 2004, but I let them convince me to stay on board, only to lose thousands after the FBI arrested the owner for mortgage fraud.

Think about it, how many people went against their gut during the telecom bust, the Maddoff scandal only to lose thousands.

It is the lessons in life that make us much wiser in life. Always educate yourself and listen to your gut, it is worth more than the heartache caused by the loss.

I think this might be the end of my blog, not quite sure, but my whole point was to apply what I had read in Chairman Bernanke's book amongst other books on history, and see how effective it was in predicting the outcome. It was an amazing journey; and one I hope to never experience again.

Chairman Bernanke is the winner of this financial crisis, in my opinion! Chairman Dodd I truly believe prevented the needed stimulus in 2007, when this country so desperately needed it. This is only my opinion.

I hope the economy continues to grow; and Americans become employed again. This is my Christmas wish!

On the contrary, housing will continue to have its challenges, as you will see in the attached article below. Government involvement will have impeded a strong recovery in housing. An example, I had a borrower today, that we were ready for docs; however, the lender was not going to draw our docs because the date of his application did not match his good faith estimate. He had signed the application first, and then wanted a couple of days to review the good faith estimate; and then he signed the documents with different dates. The lender was not going to draw the docs because of what the borrower had done here. He almost lost his locked rate because of a government change in the law this past year. Government never seems to learn from history, which is sad to me because we could be even stronger as a country had they learned a few lessons from the past.

Another lending nightmare, example, I lost another purchase today because if a borrower wants to buy a new home and rent out his current home, he/she has to have 25-30% equity in their rental property in order to get approved for a new property. Even if they more than qualify to buy the home using documented income. How many homeowners in this declining market have 25-30% equity left in their homes? Serious!

If people had this much equity, we would not be in this mess. Think about it. We would not need Obama's home loan program if borrowers had this kind of equity. It seems this housing market could hurt a recovery, so I hope Congress and this Administration stop with the regulations and massive reforms, and wake-up. Furthermore, I don't know how many of us have been hurt by the credit card reform? That reform seems to have said so long to nice low rates and hello to 30% or higher.

http://www.cnbc.com/id/34520977

Stay tuned...I have more to share. Just another day in the mortgage mess!

People in Candy Land Finally Woke-Up - Just another day in the mortgage mess

It appears this Administration woke-up and realized, it will take bold and innovative action on both their part and Congress's part to create jobs in the private sector; something they should have realized ten months ago, in my opinion.

I pray this Administration takes action now because I do want to see them succeed. If they succeed, we all succeed. This action needs to be put into place now and acted upon by the end of this year; therefore, preventing a "so called" black out in the small business sector next year. I do not want 2010 to be remembered as the year the lights went out because of a failure in communication and lack of action by this Administration. 2010 should be the establishment of a strong foundation, therefore boomeranging us into prosperity in years to come. 2010 should be the year to plan and prepare for success. This is just my personal opinion because after these past two years, I want hope. We deserve hope.

I hope this Administration will seriously get small businesses the aide they need today, not in months to come. This Administration is already ten months behind the eight ball when it comes to small businesses, just as FDR was twelve months behind the eight-ball in his first term. Those who study history, do not repeat history.

I am glad this Administration is finally seeing the light. I just wished they had seen it ten months ago, but that is now water under the bridge; we have to keep looking forward.

I am hopeful a recovery is happening now. I have waited two years for this recovery; therefore, I pray this Administration acts fast with bold and innnovative action to restart the heart of this country once again, SMALL BUSINESSES.

Note: This country suffered a severe heart attack in 2008, and the prior Administration, along with this Administration, failed to fix the heart of this country "small businesses" because they misread the economic data in my opinion; therefore, the risk of a second heart attack and/or heart failure is where we stand now. They have to act now, in order to steer off a second heart attack. I am more hopeful they will act accordingly now. Please.

Stay tuned...I have more to share. Just another day in the mortgage mess!

GDP Better than Expected - Just another day in the mortgage mess

GDP came out better than expected. Gross Domestic Product report grew at 3.5% annual rate.

I hope this recovery continues. It seems as if the stock market and the economy are more in tuned than they have been over the past two years. I am hoping the boomerang effect of this financial crisis is over. I hope the banks established a strong enough base using TARP to steer of any future losses, if they do occur. I hope this recovery is real. I hope the economy and businesses are back on track to prosperity. I hope President Obama's Administration gets more aggressive when it comes to helping small businesses and driving them to prosperity once again. One can hope.

Stay tuned...I have more to share. Just another day in the mortgage mess!

We are Entering into the Recovery Phase - Just another day in the mortgage mess!

When I read Chairman Bernanke's book eighteen months ago, along with two others, I knew I could apply his theory to this financial crisis. I knew in my heart of cards a recovery would begin this month, a year ago. As to how or why, I did not have to know this, I believed wholeheartedly in Chairman Bernanke's book. What I had done was taken his book and applied it to this mess and everything was coming true, so I knew his theory would be proven. It had to be true in my eyes. His theory was my yellow brick road. I knew we had to have the courage to face this crisis. I knew we had to have hope. I knew we had to stay focused on the end result - a recovery!

However, my only major disappointment: I wished this Administration would have pushed for small business assistance sooner and faster, rather than announcing yesterday more assistance. This was the same mistake FDR made during the Great Depression, which caused unemployment to rise to double digits. President Obama's Administration has apparently made the same mistake. We need to get small businesses assistance as in yesterday it seems. This is just my opinion.

Here are Christina Romer's words today:

"A recession that showed no signs of ending last January appears to be firmly entering the recovery phase," Christina Romer, chairwoman of the White House Council of Economic Advisers, said in remarks prepared for delivery to the congressional Joint Economic Committee.

http://www.cnbc.com/id/33431354#

Stay tuned...I have more to share. Just another day in the mortgage mess!

DOW HITS 10,000! - It's just another day in the mortgage mess

Dow hit 10,000 for the first time in over a year, today!

I realize it has been a while since I have written on my blog, but I had to watch to see if Ben Bernanke's theory was coming to fruition this month, because it was something I wholeheartedly believed in for the past eighteen months. I was not going to let anyone or anything steer me away from his theory, I could not, it was the only hope I had of making it through the financial crisis last year.

The Dow hitting 10,000 today was a huge benchmark in my opinion. It symbolizes the start of a possible recovery and, at the same time, it also symbolizes the strength and resiliency America will always have no matter how cumbersome the obstacles may seem to us. We will always survive a crisis!

I hope we are on our way to the beginning of a new economy that brings much prosperity to us all. I hope this is the start of a recovery that we all deserve. I hope this recovery is stronger than we ever expected. All I can do is hope because hope is all we have in life.

Now, if this Administration can just wake-up and fix this housing crisis, then I can stop writing my blog. This housing/mortgage industry needs more help and fast, in my opinion. All we can do is hope!!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Testimony - Ben Bernanke on Financial Reform

Chairman Ben S. Bernanke
Regulatory reform
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
October 1, 2009

http://www.federalreserve.gov/newsevents/testimony/bernanke20091001a.htm

"...Second, an oversight council made up of the agencies involved in financial supervision and regulation should be established, with a mandate to monitor and identify emerging risks to financial stability across the entire financial system, to identify regulatory gaps, and to coordinate the agencies' responses to potential systemic risks. To further encourage a more comprehensive and holistic approach to financial oversight, all federal financial supervisors and regulators--not just the Federal Reserve--should be directed and empowered to take account of risks to the broader financial system as part of their normal oversight responsibilities..."

Stay tuned...I have more to share. Just another day in the mortgage mess!

Chairman Bernanke said the Recession Most Likely Over - Just another day in the mortgage mess!

I knew I was right a few months ago. When President Obama said we were in the beginning of the of the recession, I knew he was wrong. I have watched this crisis from the very beginning. I have lived this mess firsthand. I have seen the damage mortgage fraud has caused over the years. I knew this government was behind the eight-ball back in 2007. In 2008, I clung to Chairman Bernanke's theory after reading it, and I knew this was my HOPE. I knew the recession was not just beginning a few months ago; and I knew the recovery had months before starting. I was sticking with Chairman Bernanke.

I am convinced Chairman Bernanke's theory is true. I believe a recovery is going to begin soon. I have stayed true to his theory, it was the only yellow brick road throughout this entire financial mess. I have learned, we have to have the courage to believe in the power of this country. We have to have the courage to believe in the future of America. Corporate America has to believe in the future of this country. Banks have to believe in the future of this country, and start lending.

We have to believe in America collectively! We have to believe in ourselves and fight through this crisis united, as we do with every catastrophe. This is the American way. We have to get over the anger and stop blaming, no matter how easy this may be. We have to believe again!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Finally! - Just another day in the mortgage mess

"The Federal Reserve, under a policy announced Tuesday, will implement a consumer compliance supervision program in nonbank subsidiaries of bank holding companies (BHCs)..." http://www.federalreserve.gov/newsevents/press/bcreg/20090915a.htm

Stay tuned...I have more to share. Just another day in the mortgage mess!

FRB: Beige Book - Just another day in the mortgage mess

Stabilization seems to be used quite a bit in the Federal Reserves Summary of the economy. I hope we are on our way to a recovery. Obviously, there is still mixed data out there, but this should not be any surprise after the horrific turbulence this economy hit last year. The Federal Reserve came to the rescue. No matter who is to blame for this mess, it had no choice but to fix this mess. The magnitude of this financial crisis was so great that it touched nearly everything turning it to mush. As I said a long time ago, this recovery was going to be a step-by-step recovery because subprime had a spider web effect, it wrapped itself around nearly everything worldwide, nearly collapsing the entire global economy. We were all slimed by subprime it seemed.

Therefore, to think this recovery would have happened over night, without any hiccups or mixed data, would have been highly unrealistic it seemed. However, I have to believe we are on the right path to a recovery. I have to believe we are going to be stronger than we were before this crisis. I have to believe we cleaned house. I am not an expert, but having lived through this mess, the air is different. It is getting cleaned up. No matter how painful this mess is, it is cleaner and hopefully soon banks will begin to loosen up credit by making "make sense deals" again with underwriting. It is cyclical. We will survive. One has to hope!

http://www.federalreserve.gov/fomc/beigebook/2009/20090909/default.htm

Stay tuned...I have more to share. Just another day in the mortgage mess!

Big Picture for a Super Regulator - Just another day in the mortgage mess

I sent this letter to the Federal Reserve this morning. Instead of having a super regulator, maybe they could create a separate agency overseeing all of the regulators, US Banking Committee, and US Finance Committee; therefore, protecting us all and rebuilding confidence. No more fighting over turfs, problem solved.

Dear Chairman Bernanke and Board Members,

I had sent an email months ago suggesting a solution for a super regulator, however, there is a better solution using my idea. Is it possible to look at the big picture and consider my idea in a different way?

Idea: Keep all current regulators in place. Take a collective approach by creating one agency overseeing regulators, the US Banking Committee, and the Finance Committee. Its main members would include members from Congress, the US Treasury, the Federal Reserve, the FDIC, and SEC; therefore, ensuring regulators and Congress never fail us again. The acronym "CUFFS". The failed actions these past 8 years hurt the integrity of this country and the financial backbone of this country. Both regulators and Congress let the kids play. Whose fault is that? The Executives were the kids. The parents were the regulators, the US Senate Banking Committee, and the Finance Committee. I have lost thousands because of this mess. This country has lost trillions. To put the blame and responsibility on the kids who found a loophole seems absurd.

Therefore, will you please create an Agency CUFFS to oversee all the regulators, the US Banking Committee, and the House Finance Committee, therefore ensuring they do their jobs? Think about, how many times has a Member of Congress asked a question that was so scary that they did not know the answer to? The one way to avoid this is through a body that consists of collective members. Had an agency such as CUFFS been in place, then it would have known the SEC was not responding to complaints about Madoff. It would have known the OTS failed when it came to WAMU. It would have known the fraud happening in my industry.

This Agency CUFFS can also monitor the housing market and lending patterns, therefore, alerting banks with my flag idea I sent to you months ago as well. This will alert banks to pull back with their underwriting practices to prevent a systemic threat.

CUFFS is a necessity to the lifeblood of this country. You have to rebuild the confidence amongst Americans "consumers" and investors. I truly believe if you were to announce a new overseeing agency that will babysit our regulators, members of Congress, and protect us from irresponsible activity, then confidence should return; and anger might subside.

The actions of CUFFS should roll down to all regulators and Congress. CUFFS efforts should pass down to Wall Street and consumers through a natural process. The regulators should be in charge of what a bank is doing with pay, not this President.

CUFFS - Agency overseeing below regulators and Congress (Independent, not run by Obama)

the US Senate Banking Committee, the Finance Committee, the US Treasury Dept, the Federal Reserve, the FDIC, the SEC, and the remaining regulators. I also think members should be from Homeland Security as well because what happened here was a form of financial terrorism in my opinion.

I hope this convinces you this might work.

Just a thought. Think about it.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Fed Officials Seem More Confident the Recession is Nearing the End - Just another day in the mortgage mess

If I were to compare Chairman Bernanke and former Chairman Greenspan, I would say Chairman Bernanke is the "real" thing. I have followed Chairman Bernanke closely along with his book. I knew we were not in the beginning of the recession a couple of months ago, when Vice President Biden came out saying this Administration misread the economy and President Obama stated we were in the beginning of the recession. I knew this could not be right.

Moreover, more importantly, who cares when the end of the recession happens. I would rather focus on when a recovery is going to begin, that is forward looking. Focusing on when the end of the recession is going to happen seems so "old school" and backward looking. We need to be forward looking and focus on when a recovery is going to begin. The end of a recession does not justify the means. Think about it, just because a recession ends does not mean a recovery starts at that point. Therefore, the start of a recovery seems more important than trying to time the end of the recession. I care about people having prosperity and growth in their lives; and the only way this is going to happen is if a recovery begins, not the "end of a recession". Just my opinion.

http://www.federalreserve.gov/newsevents/press/monetary/fomcminutes20090812.pdf

Stay tuned...I have more to share. Just another day in the mortgage mess!

How Many Days to the Start of Our Recovery - Just another day in the mortgage mess

I am sticking with Chairman Bernanke's theory, therefore, I have to believe the start of a recovery will begin in roughly 2 more months. The end of October/November.

I want Chairman Bernanke's theory to be proven. It is just exciting to think that someone could spend their entire career researching the Great Depression and theorizing it, only to have one of their own theories proven. It is an astounding accomplishment. It just seems like a huge accomplishment; and if Chairman Bernanke is successful then we are all successful because then this means this country is on the path of recovery.

I sent an email to the White House last week, that I am not sure will get read, but I think they should have some sort of pep rally for all Americans in October, marking the peak of the banking crisis. October of last year, was so horrifying to most of us that I thought having the President, Chairman Bernanke, Chairwoman Bair, Treasury Secretary Geithner, Paulson, Americans who voted for President Obama, Americans who did not vote for him, small business owners, big corporations, Congressmen and Women both Democrat and Republican united for the same cause - Recovery and Unity! America needs to go into the new year with a fresh attitude and a new start. We need to unite as one and recover as one; and play this game of basketball as one team.

We deserve a recovery. We deserve to spend and shop. An American without shopping privileges is a depressed American. No more depression!! Banks need to lend. We need banks to believe in the consumer, just as the Federal Reserve and Congress believed in the banks. We need revision. We need hope. We need the hope this President promised his voters. We need a new vision for 2010.

The banks are the backbone of this country, but the consumer is the blood supply to that backbone. Banks have to start lending more, it is their lifeline. We have to have hope. Some of the brightest people run banks. We cannot demonize the banks and the banks cannot demonize small business owners and consumers. This is America.

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Post Traumatic Stress - Just another day in the mortgage mess

Is it possible this market could be experiencing some sort of post traumatic stress after what happened last September/October? Last year, nearly everyone had some sort of a financial meltdown it seemed, leading to one of the greatest panics of all time last September/October. Therefore, it seems this market is suffering from what appears to be low volume before the month of September, therefore, the only logical reason to me is it is experiencing some sort of post traumatic stress. I heard one analyst say the market is tired, which I agree with. I am even exhausted with this overall market and the mortgage mess. Think about it, many of these banks received billions of dollars in bailout money without anyone ripping apart their profit and loss statements and, yet, these banks want to rip apart borrowers income who are trying to make their payments. The hypocrisy in this industry and our government right now is overbearing it seems. I always believed if hypocrisy existed in a system, then it lacked morality. Maybe I am wrong, but the exhaustion many of us are feeling does not seem right. We cannot let the system defeat us. Both banks and consumers have to work together, our economy needs both. We have to keep forging ahead. A recovery has to begin soon. We have to believe and hope!

Like I said weeks ago, this economy needs a jolt of some sort.

We have to keep fighting through this. Just as we would when we start a new workout routine. We fight through the exhaustion. However, it seems as if we need a cheerleader and/or even a fitness trainer to keep us moving in this market right now. We need a Leader. We need President Obama to do a pep talk for Wall Street and America as a whole. We need action in the lending industry, especially the jumbo market. We need him to stop being against Wall Street and just cheer everyone up, as he did so well during his campaign. We need a Leader just about now.

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Follow the Yellow Brick Road - Just another day in the mortgage mess

After reading Chairman Bernanke's book last February, I was determined to follow his theory to the end. No matter how intense my own fear was last year, I had to have faith in our future. I had to believe we would recover from this crisis. I had to let the chaos exist around me, while trying to stay focused on his theory to keep myself from having a complete meltdown. No matter how great my panic was, I had to try to pin point the peak of the crisis last year because if I could do this, then I could follow his theory from that point on, which I did. I did not steer from his theory. His theory was my yellow brick road in a time of great panic last year. Who better to follow than an expert on the Great Depression.

I have to believe we are on our way to a recovery. This for me is exciting because Bernanke is this generation's Einstein, in my opinion. No matter the mistakes, he delivered! I pray President Obama and his Administration succeed because I want us all to prevail. We deserve it!

Sale of big-ticket items soar, bolstering economy

http://hosted.ap.org/dynamic/stories/U/US_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2009-08-26-23-22-24

Stay tuned...I have more to share. Just another day in the mortgage mess!

P.S. - Chairman Bernanke Prevailed - Just another day in the mortgage mess

When I saw Chairman Bernanke and President Obama standing together this morning, I was jumping for joy inside. I was so happy that Chairman Bernanke was re-appointed. He deserves it! No matter if the two of them dressed alike this morning, I did not pay attention to the lack of ties as some in the media did. I saw their attire as a symbol of "unity". One can hope for unity!

Let's hope we are on the way to a recovery, no matter the obstacles in the road, it will be the strongest recovery this country has ever seen in my opinion; if everything was done correctly. I am hoping for the best!

Stay tuned...I have more to share. Just another day in the mortgage mess!

The Value of Contrarian Thinking - Just another day in the mortgage mess

Today, I read on CNBC, "This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter," Romer said.

http://www.cnbc.com/id/32551478

After reading this article today, it is my opinion that President Obama and his Administration should have followed Warren Buffet's advice months ago, which was to focus on the Economic war. If this Administration misread the figures last fall and early winter, then what else have they misread? This is the question I ask myself. To instill this kind of doubt seems rather irresponsible as Leaders, in my opinion. Therefore, as Jim Cramer once said, "Do not let the media confuse you". Now, I am going to say, "Do not let this Administration confuse you".

This Administration has proven one thing thus far. They are "consistent" with misreading economic data, which might explain why the markets are not responding to its news negatively, today. I do not think Chairman Bernanke's reappointment was that powerful to steer us away from the truth. Here is the ugly truth: This Administration has become predictable in the sense they seem to consistently misread economic data; therefore, if the markets expect this from our Administration, then it may not respond negatively to the news anymore. Conclusion: It has become predictable. No matter how sad that may seem, it might actually work to one's benefit. The one thing this Administration underestimates, in my opinion, is the contrarian thinker out there. Thank goodness! If I had listened to this Administration and the past one, I would not have bought stock last December and earlier this year. I knew they were misreading the economy; therefore, I bought a stock based on a book I read instead, and it has gone up 50% year to date.

Furthermore, if this Administration misread the economic data, then was this their Achilles heal? Think about it, this Administration moved forward forcing energy, education, healthcare, and reform onto a public faced with chaos, fear, panic, concern, and distress. This Administration overwhelmed the public with all its changes, further scaring many Americans. I really believe the anger at these town hall meetings has nothing to do with anger; it has to do with feelings of fear, hurt, and disregard. Maybe I am naive. However, if a person is scared and they know their family’s livelihood is at stake, how would you react? If your pain has gone unheard, how would you react? If your needs have gone unmet, how would you react? If you have been unemployed for a year, how would you react? People are overwhelmed and scared, which I blame the Chief of Staff for this mistake, who apparently wanted to do everything at once, according to that New York Time’s article. It was unkind to throw everything at once to the American people, in my opinion. I do not think President Obama is unkind. However, I do believe this Administration failed in "Mastering the Art of Timing". Therefore, I wished this Administration would redefine itself immediately. If it could do this, then maybe the polls might go back up; economic confidence might thrive; and they will regain the power they so desperately want in the right way.

The one thing I learned in life is there is a difference between arrogance and confidence. Arrogance is someone who thinks they have it, but cannot walk the talk. Confidence is someone who has it, and his or her walk displays this. He or she walks the talk.

Therefore, my eyes and ears are staying focused on the Federal Reserve. I refuse to let this Administration confuse me. I want to support the efforts of this Administration but as long as they continue to misread the facts, I cannot. Moreover, how do you misread the facts from last fall/winter, when this country’s financial backbone was near complete failure?

Consider this analogy: Basketball entails two teams in order to play. It seems as if the two current teams playing basketball are as follows:

Team #1: Federal Reserve and the public

Team #2: President Obama, his Administration, and Congress

Right now, this country does not seem united. Team #1 should consist of the Federal Reserve, the public, the President, his Administration, and Congress. Team 2: Our competitors (China, India, etc.)

As long as this country is playing basketball against itself, it will never thrive to levels it should. We need Team #1 to consist of all of us. How do we get there? We need President Obama to succeed. He has to succeed, no matter if you voted for him or not. If he fails, we all fail. This financial crisis was so massive that there is no room for anyone’s failure, in my opinion.

Just a thought…

Stay tuned…I have more to share. Just another day in the mortgage mess!

"Reflection on a Year of Crisis" - Just another day in the mortgage mess

I knew in February 2008, after reading Chairman Bernanke's book, the demise our future held, which was why I had created my petition in April 2008; which is on my blog. I faced my fears in September 2008; and being someone on Main Street there was not a thing any of us could do, except watch and pray. It was a true sense of helplessness, panic, and fear that swept the globe. Who knew the true depths of this crisis? Who knew what institutions were involved at the time? Who knew what bank was going to fail the following day? Who knew? We, on Main Street, had no clue.

All I knew last year, was our future recovery was going to be a step-by-step recovery, once the panic was over, because most of us fell off a cliff long before anyone realized it; and the only thing I had to guide me through that mess was Chairman Bernanke's panic theory. That was such a terrifying moment. Who would have thought? There was nothing for me to grab onto except his book, his theory, what Joe Kern had said on CNBC, and history. I had not felt fear like this, since 9/11. In my opinion, this financial crisis was the truest form of financial terroism that ripped the financial backbone of not only our country, but countries around the world, to shreds.

Furthermore, I knew based on Chairman Bernanke's book, when the banking crisis peaked, I could apply his theory to this crisis, and know a recovery would happen 12 months from the peak; putting the start of a recovery at the end of October/November of this year. I am not an expert on this stuff, but I knew I interpretted as much as I could, correctly, from Chairman Bernanke's book. I truly believed Congress should have intervened in 2007, not 2008. Had they done this, would it have saved these failed banks from their own demise, by providing them with the necessary reserves/capital; therefore, steering off a panic? We may never know.

As stated in Chairman Bernanke's speech below, "...As severe as the economic impact has been, however, the outcome could have been decidedly worse. Unlike in the 1930s, when policy was largely passive and political divisions made international economic and financial cooperation difficult, during the past year monetary, fiscal, and financial policies around the world have been aggressive and complementary. Without these speedy and forceful actions, last October's panic would likely have continued to intensify, more major financial firms would have failed, and the entire global financial system would have been at serious risk. We cannot know for sure what the economic effects of these events would have been, but what we know about the effects of financial crises suggests that the resulting global downturn could have been extraordinarily deep and protracted..."

No matter how late to the game everyone was in 2007, I still believe Chairman Bernanke had game. He responded to the public with kindness, concern, respect, and consistency. He delivered.

Ben Bernanke's initials are BB, basketball. Knowing this, I have to say he was the captain of the team. He was the point guard of the team. He directed the team to a near victory. I had a dream I was playing basketball, which I did play for many years as a kid, and we won. I have to believe we are winning the fight against this economic war. It is going to take a collective effort on everyone's part to win this game. We have to win!

Chairman Ben S. Bernanke
At the Federal Reserve Bank of Kansas City's Annual Economic Symposium, Jackson Hole, Wyoming
August 21, 2009
Reflections on a Year of Crisis

http://www.federalreserve.gov/newsevents/speech/bernanke20090821a.htm

Here is a quote from Chairman Bernanke's speech, "...One very clear lesson of the past year--no surprise, of course, to any student of economic history, but worth noting nonetheless--is that a full-blown financial crisis can exact an enormous toll in both human and economic terms. A second lesson--once again, familiar to economic historians--is that financial disruptions do not respect borders. The crisis has been global, with no major country having been immune..."

P.S. - My P.S. to this blog entry. You did not have to be a student of economic history to understand the devastion a full-blown financial crisis can exact on humanity and economies throughout the world. I am not a student of economic history, my degree was in Behavioral Science. I learned what I know from books, watching Joe Kern on CNBC years ago, and reading history, etc. I knew when the financial sector lost more jobs in the second half of 2007, than the airline industry after 9/11, we were in trouble. The job losses in my industry started falling left and right, back in March 2007. This to me, is the predicator of a looming financial disaster in the future, for generations to come. No one seemed to pay attention to the job losses in my industry, at the onset of the subprime crisis. Just a thought for future generations.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Obama to Announce the Re-Appointment of Chairman Bernanke Tuesday - Just another day in the mortgage mess

I just read on Washington Post, that President Obama is announcing Tuesday, Chairman Bernanke's reappointment. If this is in fact true, I am going to be jumping up for joy. Chairman Bernanke has given the American people a reason to hope this year. He is the American hero!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Roubinis says Risk of Second Dip Rising - Just another day in the mortgage mess

I heard on CNBC that Professor Roubini believes the risks are rising for a second dip.

On the contrary, as a person living on Main Street, I ask myself if it could be possible this financial crisis began its legs back in 2002, when the first recession hit us? Remember, after 9/11, Greenspan cut the rates instead of letting the free markets run themselves. Businesses were not strong enough to carry the economy, so this country turned to the consumer and homes. Homes became a commodity you could say, where values and risk taking rose to levels we had never seen in our lifetime and, yet, the government never intervened to stop the irrational exuberance from taking place. Why? This is the only question I ask myself regularly. Why?

In knowing this, someone at the top had to know what our future held before 2007. The consumer and home prices hit all time highs, before everything came falling down on all of us. The recovery that began after the recession in 2002, was never a true recovery, as we all have learned. It was just a fallacy; a figment of our imagination it seemed. Once stripped of that flying red carpet, many of us lost nearly everything and/or hung on for dear life. I believe the "so called" W began forming back in 2001, shortly after 9/11, leading us into a recession in 2002. Thereafter, a fake recovery began in 2003, only to crash on us in 2007, forming the third leg of the W. In conclusion, this upcoming recovery is the start of the last leg of the “so called” W, in my opinion. It is the upward leg that is going to have zig zags in it creating a zig zagged line, rather than a straight line upward. It could be a bumpy ride up, but it seems as if the last leg of the "so called" W is going to form, finally.

In conclusion: This is my observation and opinion of the past eight years. I believe the “so called” W is forming as we speak. I believe the last leg of the “so called” W is going to start moving upward this coming October/November. However, this leg may be a zig zagged leg rather than a straight leg. I think the prediction of a second dip is from the viewpoint of someone who truly did not understand the make-up of this crisis, after it hit us. This is just my opinion, from here on Main Street. I am hopeful of the future, more than I have been these past twenty-nine months. I have to believe in Chairman Bernanke.

Just a thought from someone on Main Street!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Bernanke is Brilliant! - Just another day in the mortgage mess

Chairman Bernanke deserves to be re-appointed in my opinion. He has not only the brains for this position, but he has the charm the American people need right now. Chairman Bernanke knows how to lead the horses to water while, at the same time, empowering them to trust the water is not poison; therefore, the horse knows it could drink if it chooses to do so. It sounds silly, but Chairman Bernanke's consistency seems to have built trust amongst the American people. His efforts in creating transparency allowed Americans to follow and believe a recovery was near. Where as Larry Summers, I think is brilliant but he lacks consistency and charm; which cannot be allowed when human behavior is at risk in my opinion. I have listened to Larry Summers and I like what he says a lot, but his lack of charm could hurt the efforts Chairman Bernanke, Tim Geithner, and Sheila Bair built last year. If it hadn't been for the three musketeers, I do not think we would be seeing the start of a possible recovery in months to come. They led the American people to the water; and if Americans know they can trust the water is not poison, then they will drink it. History proves this time and time again.

I am a fan of Chairman Bernanke. I truly believe the heart patient is on the treadmill; however, the patient will not be running a marathon any time soon after heart surgery. A heart patient will begin by walking and may experience some exhaustion the next day, only to recover the following day to begin walking again. The stock market appears to be doing the same thing. It experiences up days, but then runs out of fuel only to regain its fuel. I have to believe the stock market is acting as it should. I know I am not an expert, but I have to use my own logic to guide me because I have learned these past two years, there is no one I can rely on but myself, when it comes to my money and my career.

I think Chairman Bernanke deserves the nobel peace prize for his efforts last year, along with his studies on the Great Depression. He not only understood the panic last year, but he understood the importance of human behavior and the consequences should they negate this aspect. This is all just my own personal opinion, not that of an expert. Just an American living on Main Street.

Chairman Bernanke is the American hero!

Stay tuned...I have more to share. Just another day in the mortgage mess.

Vouchers for Appliances - Just another day in the mortgage mess

I heard on CNBC this morning, that President Obama had allocated $300 million for appliance vouchers. As I heard this, I began to think that President Obama spread out this stimulus package in a very methodical manner. Think about it, our economy was seriously deprived of stimulus in 2008, that slamming it with dollars might have risked inflation. Therefore, what if President Obama, Treasury Secretary Geithner, Chairman Bernanke, Larry summers along with many others did this intentionally to try to avoid over inflating the markets? It makes sense.

I heard another comment on the news today, about how some stocks shot straight up these past six months. Well, if it is true that the stock market is a good predicator of the future, then is it possible this economy could take off when it is well and ready to? What if President Obama laid down a very strong foundation, different than any past President, therefore, giving the economy enough gas to speed up the car? What if President Obama is the throttle to the car. Chairman Bernanke provided the gas and drives the car "the economy".

If this were the case, then Chairman Bernanke's theory may become reality in October/November, giving us the start of a recovery. I can always hope. I have to believe brighter days are near. I have to believe America will shine again and much brighter this time.

Stay tuned...I have more to share. Just another day in the mortgage mess!

New York Times article regarding Appraisal Management Companies - Just another day in the mortgage mess

Incredible article, must read.

http://www.cnbc.com/id/32476258

Stay tuned...I have more to share. Just another day in the mortgage mess!

People's Good Will Nature - Just another day in the mortgage mess

I purchased some school supplies this afternoon and, while checking out, this woman stopped and stated, "Wow". I let her know I was donating to a local school. She looked at me and said, "that's a great idea". She let me know she was going to do the same and make a donation. I talked to a couple of my clients today, who said they were going to purchase some school supplies and make a donation as well. My contribution to consumer spending might not be much, but if we unite and work together then all of our contributions might make a difference.

I donated my supplies to a local elementary school this afternoon. I know it is a big hope to rely on just one sector for consumer spending, but it is an effort.

Stay tuned...I have more to share. Just another day in the mortgage mess.

Did We Fail to Listen to Mom and Dad? - Just another day in the mortgage mess

I heard a Reporter state on the news today, that Americans should save their money. As Jim Cramer stated the other day, "Do not let the media confuse you."

Here is a history lesson: The former Chairman of JP Morgan, during the Great Depression, stated something similar to what this Reporter stated today, but Mr. Leffingwell was more animated. He stated, "The remedy is for people to stop watching the ticker, listening to the radio, drinking bootleg gin, and dancing to jazz...and return to the old economics and prosperity based upon saving and working." (from the book, "House of Morgan")

On the contrary, John Maynard Keynes, who was the leading British economist inspired by the unemployment crisis during the late 1920s, stated something brilliantly, in my opinion. Mr. Keynes, "warned that such austerity would only deepen the Depression". (from the book, "House of Morgan")

America, remember as children, the saying our parents embedded in our heads? "Always save for rainy days". Never once did our parents warn us to save during a crisis. Maybe that’s because our parents knew better. Think about it, a lack of consumer spending is potentially the biggest threat to an economy's recovery. Example: Japan. The citizens of Japan have the highest savings rate, but their country has had one of the worst economies for over a decade.

America, many of our parents warned us of rainy days, but never did they warn us to save it on the day it rained.

Therefore, my message to America: If you can buy school supplies, will you please buy them for your kids and/or donate them to a local school this coming weekend? If you have the affordability, will you please purchase school supplies for a local school? If your neighbor cannot afford to purchase school supplies, is it possible for you to purchase the supplies for their children? Goldman Sachs employees, who received bonuses, will you please purchase school supplies this weekend, for a local school? All Executives, will you please use a percentage of your bonuses to purchase school supplies, please?

I do not have kids; however, I am going to purchase school supplies for a local school this week.

My message to America including corporate America, bank Executives, Senators, Congressmen/Congresswomen, and/or all Executives, will all of you please purchase school supplies so our recovery can possibly become a reality? We have to unite to protect the integrity of our economy; it is the right thing to do. We have to share. Hoarding during a crisis does not seem to be the answer. It seems as if hoarding could possibly hurt us even more, by potentially impeding a recovery. We need a recovery. We need jobs.

If you received a tax-rebate in the amount for $18/week, for the past six months, will you please use a percentage for school supplies? $36 x 6 months = $216. If you are not comfortable using all of the $218 towards the growth of our economy, then will you consider using $50-$75 for school supplies?

We, consumers and corporate America, have to work collectively to rebuild our economy. Our government failed us these past eight years, but we cannot fail each other. When the fires happened here in San Diego, my friends and I went to the grocery store and bought food and supplies for the victims, at Qualcomm Stadium. America, we have been ravaged by the perfect storm, we cannot quit on one another. Will you please unite and buy school supplies this weekend, if you have the affordability? Will you please unite and buy school supplies and donate them, if you have the affordability? Even if you do not have kids, will you please buy school supplies and donate them, if you have the affordability?

Will you unite with me, and purchase school supplies this weekend?


Stay tuned...I have more to share. Just another day in the mortgage mess!

Mortgage Brokers Lobby Government - Just another day in the mortgage mess

The National Association of Mortgage Brokers lobbying on regulations for home appraisals as well as the laws governing information disclosed when borrowers apply for a loan. I hope the National Association of Mortgage Brokers prevails. If they prevail, then borrowers should prevail.

http://www.cnbc.com/id/32449408

It is my opinion, banks need to always encourage potential borrowers to self-select in a favorable way.

On the contrary, President Obama does not seem to understand that borrowers always had the freedom to self-select in a favorable way. It was called "shopping for a loan". Free-will always existed; however, making smart decisions did not seem to exist, as we know today. Therefore, the subprime mess was a self-inflicted wound where ignorance should not be allowed to prevail! Subprime should have been the most profitable sector for the financial markets, at 60% loan to value not 100% loan to value. What were these Executives thinking? In knowing this, why penalize the private market for the stupidity that this government failed to monitor?

Instead, President Obama should consider a protection agency that regulates the regulators and federal agencies overseeing the financial sector of this country. If he were to do this, then consumer protection will naturally fall into place, therefore allowing the free-markets to continue to work themselves out, as they always do. President Obama should collectively unite members from Congress, US Treasury, the Federal Reserve, the FDIC, and the SEC, therefore, creating a Regulatory Protection Agency that President Obama is seeking. This Agency will ensure that regulators and federal agencies do their jobs and never fall asleep again. Had these Agencies done their jobs, as they did back in 1991 with Citi's subprime issue, then it seems we would not be in this financial mess today.

Regulate the regulators and federal agencies, not the private market. This is common sense and logical. Think about it, had there been an overseeing agency of our regulators and federal agencies these past eight years, then someone would have seen people were asleep at the wheel. CUFFS should be the regulating agency overseeing the regulatory and federal agencies; therefore, never allowing our Leaders to fall asleep at the wheel ever again. The regulatory agencies let the children run amok. Whose fault is this?

In conclusion, if CUFFS does its job with the regulatory and federal agencies then it seems both consumers and the financial backbone of this country is protected; and President Obama comes out the hero because this is the common sense he promised his voters.

A consumer protection agency is a narrow minded solution to a gargantuan problem, which will fail future generations because the bigger picture will always haunt future generations if this is not done correctly now. CUFFS is a new era solution in my opinion.

Stay tuned...I have more to share. Just another day in the mortgage mess!

"Do-Everything-at-Once Strategy" - Just another day in the mortgage mess

I was reading an article in the New York Times tonight, regarding Rahm Emanuel, President Obama's Chief of Staff. Apparently, Mr. Emanuel's philosophy is to do everything at once. Full story... http://www.nytimes.com/2009/08/16/us/politics/16emanuel.html?pagewanted=1&_r=1

My first question after reading this article: Is Mr. Emanuel going to be President Obama's achilles heal? Here is the definition of achille's heal:

An Achilles’ heel is a fatal weakness in spite of overall strength, actually or potentially leading to downfall

Do you think someone who had included psychological in his strategic plan, would have overwhelmed an entire society with a supposed "do everything at once" mentality? Doubtful. If you have a rape victim, do you overwhelm her with a do everything at once attitude? No. What moron would do this to a country where its citizens were raped of their jobs, life savings, 401ks, and so forth? Who would be this insensitive by overwhelming us with regulations, change, reform all at once? How is this an effective strategy? Reading people is key to someone's success as well as timing. Think about it, when a bank takes over a failed bank, do you see the new CEO doing everything at once, when it comes to the take over? Of course not. It is a step-by-step transition. When the FDIC takes over a failed bank, it is strategically thought out and planned. How is "doing everything at once" a strategic plan in an economy that is in serious crisis mode and trying to recover? If Sheila Bair had been the Chief of Staff, she would not have overwhelmed the employees and customers with a "do everything at once" strategy, in my opinion. The operations of the bank are handled, while the employees and customers are handled with care and respect. Chairwoman Bair should be the Chief of Staff in my opinion; not Mr. Emanuel.

Chairwoman Bair defines a Leader. She is someone who seems to have values that are life-giving to our country; not life-giving to one. Chairwoman Bair seems to be a leader who has respect and care for others as a whole. Chairwoman Bair does not manipulate the public by overwhelming the people with change by doing everything at once, when it comes to handling failed banks. She seems to have an inate nature that knows if you overwhelm a society with change, you will instill fear; which can create chaos.

We are in an economic war where our strategic plan does not seem to include "psychological".

The definition of strategy: the science and art of employing the political, economic, psychological, and military forces of a nation or group of nations to afford the maximum support to adopted policies in peace or war

Sheila Bair seems to be the missing link to a strong recovery, in my opinion. Chairwoman Bair as Chief of Staff, while overseeing the FDIC, would be the truest form of power this country so desperately needs right now. She would give citizens the respect and care we so desperately need and deserve, especially during this financial crisis, while taking care of business at the same time. She seems to know how to handle people with caress and get business done. Chairwoman Bair walks the talk in my opinion.

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Shattered Confidence - Just another day in the mortgage mess

After the election, President Obama had stated the stock market was like a casino. I almost agree with him. Think about it, if "so called" experts appear on the news, giving their views on where this economy is going when, in fact, none of us truly knows. Are we gambling on speculation? If so, why? None of us has a crystal ball.

Today, some experts came out stating there is too much optimism in the stock market, and vice versa. Some experts have stated in the past, we are going to experience a V-shaped recovery, a W-shaped recovery, and/or an L-shape recovery. No one seems to have the same conclusion. Therefore, as a consumer/investor, why would I spend money? Why would I invest in an economy where "so called" experts cannot even be on the same page? Therefore, leaving many of us, who are not experts, in a state of uncertainty?

From my standpoint, some “so called” experts seem self-serving because how do we know if this "so called" expert has something to gain if the market declines? We would never know as consumers.

Trust was shattered these past twenty-four months.

Without knowledge, there is fear. Without education, there is fear. Knowledge is power. If this is the case, then many consumers are feeling powerless because we do not know and understand. This financial crisis hit hard, therefore, leaving many scattering for shelter that did not exist, at this time, last year. This government failed us all, in my opinion. This is why I have such a hard time believing anyone when it comes to this market, except for what the NBER "National Bureau of Economics" and the Federal Reserve says. Jim Cramer said it brilliantly yesterday, "Do not let the media confuse you."

It seems as if confusion drove this economy off a cliff. It seems as if confusion drove many consumers to fear. It seems as if confusion drove many banks to the brinks of failure. Last year was traumatic for many, including myself. This was why I turned to Chairman Bernanke’s book last year. I had to try to put the pieces of a shattered puzzle back together, so I could create a path for me to follow. Chairman Bernanke’s book offered me the truth and guided me as well, thus far.

Trust was shattered for many of us, here on Main Street. Think about it, how many of us wanted to sell our stocks back in October 2007, but had a stockbroker who said, “No, hang on for the long-term”, only to lose 40-50% if not all of your money? Where is the accountability? How many had a stockbroker who recommended a stock, only to have it fail completely? I understand freedom of speech, but when someone is an expert; the rules are different it seems.

If consumer confidence were psychological, then why would these "so called" experts not do something to protect the integrity of the consumer? Who is working for the consumer's best interest right now? A consumer protection agency does not seem as if it will be in the best interest of consumers and/or our economy, if it is politicized. However, Sheila Bair is a power-player, in my opinion. http://www.cnbc.com/id/32418884

Furthermore, to politicize a consumer protection agency, does not seem in the best interest of consumers, in my opinion. What seems to be in the best interest of consumers, is having trustworthy leaders. Having trustworthy experts, is in our best interest. Having trustworthy CEOs and Executives in a system that is supposed to protect our lifesavings and shareholders, is in our best interest. Have a trustworthy Congress is in our best interest. I could go on, but this is too long.

In conclusion, if consumers are 70% of our economy, then it seems the consumer is more of a systemic threat to the U.S. economy right now; therefore, it has been my opinion that shopping vouchers are just as important as spending billions of dollars on bailing out banks. Think about it, if shopping vouchers were availabe right now, no one would be concerned about "back to school" shopping. It would calm the markets, and the markets would have a year before the next back to school season.

Shopping vouchers is not just about giving cash to consumers, as some have reported. It is about protecting our economy from a potential systemic threat. When are those in power going to wake-up?

We need consumers spending, however, if someone does not understand stocks, the economy, money, and/or what happened last year, then one's instinct will be to save and protect their families/livelihoods’. It seems obvious, consumers are going to take an approach similar to a fascist society; they are going to do what is good for them, not society as a whole. If consumers get their information from the news/media, then predictability may not be there for consumers to spend. Could the media threaten a recovery without being aware of it? I love the news/media. I am the #1 news junky, but I have a basic understanding of the market where as many of us do not. Fear seems to be the driving force amongst many consumers, which seems they could do what is in their best interest and not in the best interest of society. Consumers are going to save their money, which is the most logical thing to do, smart! However, for an economy driven by consumer spending, it seems this mentality could possibly be a systemic threat to our recovery.

I asked myself these questions today, after I heard some experts state the stock market is too optimistic. If businesses are making sound decisions when it comes to their bottom line, then why is the stock market too optimistic? If businesses made it thus far, even when the economy hit ground zero, then why is the stock market too optimistic? If housing is beginning to stabilize, then why is the stock market too optimistic? If a recovery is on the horizon, then why is the stock market too optimistic? If subprime is out of the mortgage industry, and banks are beginning to make profits, then why is the stock market too optimistic? If extended unemployment claims are declining, then why is the stock market too optimistic? If some businesses are giving back pay cuts, by raising the employee's income back to normal, then why is the stock market too optimistic? If the Federal Reserve is doing everything in its power to get us to a recovery, then why is the stock market too optimistic? We need shopping vouchers, in my opinion.

Just a thought.

Stay tuned…I have more to share. Just another day in the mortgage mess!

What's Wrong with this Picture? - Just another day in the mortgage mess

Valuable lesson from Dad:

I learned from my Dad, a long time ago, that real estate and stocks always move opposite of one another. Never do they move together. In other words, our red flag these past few years should have been when stocks and real estate were going up at the same time. This was not a normal market.

Today, stocks are going up, while housing is declining; which to me is what my Dad would have called a “traditional market”. There is not enough land in our country, so housing cannot continue to deflate forever. Let housing do its correction.

Let the bull run in stocks. This is the capital markets doing its job. We seem to be back in a traditional market, as my Dad would have said.

P.S. - Furthermore, as to how retail sales disappointed anyone in this economy, seems shocking to me. It should have disappointed, especially with 9.4% unemployment and possibly growing. Get real.

Stay tuned...I have more to share. Just another day in the mortgage mess!

The FOMC Minutes - Just another day in the mortgage mess

"...the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability..."

Read the entire statement:

http://www.federalreserve.gov/newsevents/press/monetary/20090812a.htm

Stay tuned...I have more to share. Just another day in the mortgage mess!

Where is our Golden Nugget? - Just another day in the mortgage mess

This morning, I was thinking about how I felt yesterday regarding this market, and my feeling was uncertainty. I was not quite sure why I felt this way, so I began thinking about a concern I had expressed earlier this year, on my blog; which was whether President Obama opened a Pandora Box with his stimulus package "so called" Recovery Act. The reason I thought about this today, was because of what appeared to be uncertainty in the stock market yesterday. If I was asked the question of how the "air" felt today, I would say better than yesterday. If I look for the results of President Obama and former President Bush's combined stimulus packages in my pocketbook, I find disappointment.

As I was thinking about this, I began to think of what had guided me through this crisis for the past year. My answer, Chairman Bernanke. As long as my focus stays on Chairman Bernanke and the words/actions of the Federal Reserve, I feel certainty. I trust that Chairman Bernanke and the Federal Reserve will fix this economy and steer us to a recovery. This is my compass, and has always been my compass for more than a decade now.

Therefore, my focus remains on the words and actions of Chairman Bernanke and the Federal Reserve. I am not letting go of my hope that a recovery will happen this coming Oct/Nov because when I look into my pocketbook and think of Chairman Bernanke, I see hope. There is no doubt in my mind this economy will reach a full recovery in the future.

My compass has always been the Federal Reserve, and will remain the Federal Reserve, not the words and actions of a President. The President's role in my opinion, is to lead and guide us through tumultuous times, where as the Chairman's role is to provide the gas and drive the car. The gas is in the car and Chairman Bernanke is driving this car, not President Obama. President's do not drive the car when it comes to the economy.

In conclusion, Predictability in times of uncertainty is a golden nugget. Chairman Berannke is predictable in the sense he has always been consistent. Therefore, it is my opinion, Chairman Bernanke holds the golden nugget. This financial mess took years to make, and it is going to take a collective effort on all of our parts to fix the economy. We are in hard times, and just because someone says the recession is over does not necessarily mean a recovery has started in my opinion. Millions of Americans are still unemployed; our 401ks/retirement accounts/investment accounts are still under water; consumers are not spending; small businesses are still suffering. Unemployment dropped last week for the first time in what seemed like an eternity; investments are up nearly 50%, but for the average American who did not have money to replenish their accounts and/or lost their jobs are not up 50%.

Therefore, when it comes to this economy, I look to Chairman Bernanke and the Federal Reserve. This is the logical choice for me, especially since they hold and control the gold. I have to believe Chairman Bernanke and the Federal Reserve will guide us to a recovery and master the direction of this economy, objectively. The President's policies provide the shine to the gold. Will President Obama's policies make the gold shine brightly?

I feel hopeful a recovery is near; and I am not letting this go. I spent seventeen months using a practical theory, from a pragmatic manager “Ben Bernanke", and applied it to this financial crisis; which has guided me through the worst economic crisis in U.S. history. Therefore, I am not letting inconsisties of others steer me away from my hope.

Furthermore, it seems to me that building a strong foundation on a solid business model is what will get sound thinking back into our economy, which should bring back stability and growth in our society and markets.

This is just my opinion. I can always hope for the best!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Knowledge is Power! - Just another day in the mortgage mess

Do not underestimate the power of Bernanke. (This was how I felt when I read an article, on CNBC, regarding the Bank of England warning of debt-deflation).

I just read two articles on CNBC tonight. One of which talks about "Bank of England to warn of debt-deflation". If I recall correctly, when Chairman Bernanke began cutting the rates in 2007, the U.S. tried numerous times to get the Bank of England to cut their rates, and it refused. According to Chairman Bernanke's book, back in the 1930s, Congress failed to respond quickly and, more importantly, the Federal Reserve was increasing rates rather than decreasing rates. Chairman Bernanke did the opposite back in 2007, he cut the rates; where as Bank of England did not budge it seemed. According to this CNBC article, the Bank of England will apparently "downgrade its growth and issue a warning this week that the UK risks slumping into debt-deflation". Wow, was this de ja vue for me. This was the exact fear I had last year, but for the U.S. economy. I thought the risk of us heading towards debt-deflation was high, so I emailed President Obama almost daily earlier this year because inaction seemed as if it would have pushed us into a second Great Depression this year or next. My fear was so great because having read Chairman Bernanke's book, it seemed as if reality was kicking me in the face. It was a harsh reality check.

Moreover, what is frustrating for me, is when I hear people talking about how the stimulus package was a waste of taxpayer dollars. I cannot imagine where our economy would be today, had President Obama not passed his stimulus package. I just wished President Obama would put it to work faster. I know I am not an expert on this, but having read Chairman Bernanke's book amongst others, and seeing what the UK is potentially facing now, seems like history all over again. Chairman Bernanke's book seemed almost as if it was a forewarning of what our future held should history repeat itself. I wished I had a brain as wealthy in intelligence as Chairman Bernanke's, then I could have interpretted the equations and calculated an exact map of my own; therefore, guiding myself through to the end. I truly believe in Chairman Bernanke; and I believe in his theory. I have to believe he is working in the best interest of the American people; and a recovery will come soon. By Chairman Bernanke choosing to cut rates back in 2007, as well as pushing for the stimulus packages; it showed me he was aiming to not repeat history. Once again, this is just my personl interpretation of this crisis, not that of an expert.

I think Chairman Bernanke is brilliant and should have full control of making this recovery happen, in my opinion. I am glad President Obama passed his stimulus package. I am glad Chairman Bernanke cut the rates. I am sad, however, that Congress took eighteen months to act and pass the first stimulus package. Had they responded faster, could they have saved Lehman's? Could they have saved Bear Stearns? Could they have saved Washington Mutual? Could they have saved thousands of us from losing thousands of dollars, as shareholders of these companies? My sense of hope was completely wiped out in the second half of last year, when the banking crisis began its peak. It seemed as if a rembrandt of chaos had been painted, and there was no turning back.

Here is the CNBC article, http://www.cnbc.com/id/32354233

Furthermore, I read another article on CNBC this evening, which talked about how the world economy needs a second stimulus package. The Professor in this article was quoted as saying, "we really should have a second stimulus package, we need more stuff." Here is the article: http://www.cnbc.com/id/32354922

If this is all true, then I believe our government should create new legislation for the current stimulus package, to include $500 shopping vouchers for Americans. Therefore, allowing the U.S. to sustain itself through its recovery, while parts of the world economy struggle through its own issues. The U.S., in my opinion, has to stand on its own. We have to thrive.

I am not trying to be an expert. I am just living on Main Street and the last thing I want to do, is live through a period of stagflation and/or stagnation. I want our country's economy to grow. I want our country to be prosperous. I want the recovery we so deserve. I want Chairman Bernanke to prevail. I want everyone to win. I know I can want all day long, and it does not mean I will get what I want; but I can wish for happiness and prosperity amongst America and its citizens, us. I just believe in my heart that shopping vouchers may help the U.S. consumer carry this economy through to a recovery. It is not about incentivising Americans, it is about creating a bridge to a stronger recovery. This is just my opinion.

In conclusion, Chairman Bernanke has to prevail. Treasury Secretary Geithner has to prevail. President Obama has to prevail. Chairwoman Bair has to prevail. If they prevail, we prevail. Seems like a logical equation.

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Email to Senator Reid, Senator Dodd, and Senator Boxer - Just another day in the mortgage mess

It is 5am, I just sent the following email to Senator Boxer, Senator Dodd along with Senator Reid asking them to have Congress include $500 shopping vouchers for consumers, this month, as part of the existing stimulus package. This does not seem like pork spending, especially if food stamps and cash-4-clunkers proves to be a direct stimulant to our economy. If 70% of our economy is consumer driven, then shopping vouchers seems to be a logical solution and one that could possibly pay for itself in the long run. I already sent an email to President Obama on this issue as well. Here is the email to Senator Reid.

"Dear Senator Reid

I have been watching this financial crisis closely for the past twenty-nine months. I have been blogging on it for the past seventeen months.

Senator Reid, if food stamps and cash-4-clunkers have been successful stimulants to our economy, will you please propose $500 shopping vouchers to Congress, to include in the current stimulus package? If consumer spending is 70% of our economy, then will you please have Congress create new legislation immediately, that will announce a shopping voucher program this month allowing them to be released in the month of October? Therefore, igniting consumer spending this coming holiday season.

If there is concern that a lack of inventory in stores could spark inflation, as consumer demand increases, then it seems apparent shopping vouchers could hedge against this concern. Announcing a shopping voucher program this month, will allow stores to stock inventory over the next 45 days preparing for the holiday season.

Furthermore, shopping vouchers will allow stores to hire for the holiday season, which will allow job creation to start immediately; especially for those in dire need of a job.

Shopping vouchers seems like a logical solution to help ignite consumer spending. Moreover, more importantly, it seems shopping vouchers will help build consumer confidence; help small businesses; help with job creation; help non-profits hit hard by this financial crisis; help our GDP; and most importantly help stimuulate the economy. Furthermore, with the tax savings given to Americans and the jobs report yesterday, Americans may be more apt to use their tax savings on top of the shopping vouchers, which means more money to small businesses and retailers. It seems like a win-win proposal. It seems to make sense.

Will you please make shopping vouchers a part of the current stimulus package? Even 3% of the stimulus package could help consumers it seems.

Please, will you ask Congress to create new legislation for $500 shopping vouchers? Tax rebates/savings is not enough to ignite consumer spending it seems. It seems consumers will only save this money right now and/or use it to pay down credit cards.

Our economy needs a stimulant that will bridge us into a strong recovery in 2010, therefore, giving Americans the full-recovery we all deserve.

Thank you for your time."

Stay tuned...I have more to share. Just another day in the mortgage mess!

It Appears We May have Our Mare - Just another day in the mortgage mess

Whether or not people voted for President Obama, I am proud of the fact he may have steered us from debt-deflation earlier this year; which could have possibly led us to a Great Depression in months to come. The difference between President Obama and former President FDR, was FDR did not pass his stimulus package for nearly 12 months after being elected. President Obama did it immediately.

We may have the start of what appears to be the most powerful team in U.S. history - Chairman Bernanke, President Obama, Treasury Secretary Geithner, Chairwoman Sheila Bair. What does our future hold for us now? All I know, is our future seems to hold more hope now, than it did a year ago.

President Obama stated today "we cannot go back to the old failed policies". Once again he stated today, that he will not consider a true recovery until every American who wants a job, finds a job.

Furthermore, President Obama stated towards the end of his press conference, "I'm convinced we can now see a light at the end of the tunnel."

At the end of his press conference, I thought to myself: Can you imagine facing a financial crisis of this magnitude, as a new President, knowing the smallest mistake could have dire consequences? I cannot.

It appears we might have found our Mare. One can always hope!

P.S. - I still think shopping vouchers to consumers would be more effective than tax rebate checks/tax cuts. Shopping vouchers are forward-looking it seems. Just a P.S. thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Are We on Our Way to a Recovery? - Just another day in the mortgage mess

I was watching CNBC this morning when the job report came out better than expected. Today, a ray of sunshine shined through the dark clouds that have hung over us for twenty-nine months. Finally, a glimmer of hope! Unemployment dropped to 9.4% in July.

I still believe the recovery is coming, in what I am hoping will be 63-93 days from now. I am sticking with Chairman Bernanke's theory, 12 months from the peak of the banking crisis. I hope his theory is correct because watching a theory in progress is amazing! I will jump for joy, alongside other Americans, for having made it through this nightmare.

I truly believe Chairman Bernanke, President Obama, and Treasury Secretary Geithner are leading the pact to a recovery. I believe they are not letting the political spectrum "bog" them down, and are watching out for the American people. I can only hope!

President Obama's Secretary of Labor, Hilda Solis, was on CNBC this morning as well. Ms. Solis stated, "I would not say the recession is over." Ms. Solis stated, "We are on track of stabilizing the patient. The patient is still sick with a fever. Patient is stabilized, but has a fever."

All aboard! The train is getting ready to depart to a recovery. However, it will not depart until the weight of the train is evenly distributed, which will not happen until the life of the patient (consumers, small businesses, and unemployed) is operating without a fever. I am hoping the fever breaks in 63-93 days, therefore, allowing a recovery to begin. Be ready to board because I truly believe a recovery is near. I am cheering on Chairman Bernanke with all my soul because I want a recovery here. I want to be out of this financial crisis. He is the one person who stayed true to the American people, even during some of the most tumultuous times last year. This is just my personal opinion.

Futhermore, if I interpretted the 1930s correctly, what most do not realize is the taxpayers made a profit from the stimulus in the Great Depression. If our Leaders did the rate cuts, bailouts, and stimulus correctly, it seems taxpayers could possibly make a profit from the bailouts and stimulus. All I can do is hope!! One can hope!

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Senate Passes $2 Billion for Cash-4-Clunkers Program - Just another day in the mortgage mess

Senate passed $2 billion for the Cash-4-Clunkers program. Good news!!

Now, if the House and Senate could work this fast creating new legislation for this increase, then why can't they create new legislation giving $500 shopping vouchers to the American consumer? One can always hope!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Stairway to Heaven - Just another day in the mortgage mess

This morning, I was thinking about my Physics class I took many years ago, when we studied momentum while learning how to play the game of pool. I was thinking to myself how the force of this housing market pushed so many over a 100 foot cliff, ending in mass destruction. Then, I heard Ms. Cohen, from Goldman Sachs, talk about how this bull market was not going to be in the form of a V where the bull goes straight up but, instead, this bull market was going to move up in the shape of stairs. One stair at a time.

I began to think about this, when a picture dawned on me. See what you think.

This subprime crash pushed nearly everything off a 100ft cliff, except for those who shorted the subprime market; those who shorted the financials last year; the wealthy who were not victims of Madoff or a ponzi scheme; and the responsible homeowner who kept a job, etc. The remaining American citizens fell off this 100ft cliff with the subprime crash. However, this cliff consists of ledges.

Consider this: What if this cliff consists of ledges 25 feet apart from one another; therefore, there are three ledges from the bottom of this 100ft cliff. Ledge #1 is 25 feet from the top of the cliff and consists of the responsible homeowner/renter who lost 40-50% of their retirement account, but is surviving financially. Ledge #2 is 50 feet from the top, which has the responsible homeowner/renter who has taken a pay cut and/or furlough and is trying to modify their loan to reduce the payments and is surviving without touching their savings thus far. Ledge #3 is 75 feet from the top of the cliff, which has the responsible homeowners/renters who lost their job, is on unemployment; and they have used up almost all of their savings. They are on the brinks of falling off this ledge to the bottom of the cliff. They are barely hanging onto the edge of the ledge that is 25 feet from the bottom. They are close to crashing to the bottom of the cliff. Finally, we have the bottom of the cliff which consists of the irresponsible subprime lenders, irresponsible subprime homeowners' homes as well as many responsible homeowners' homes that fell either at the beginning of the crisis or throughout the crisis. There are millions of homes at the bottom of this cliff along with millions of unemployed Americans who lost their union jobs, homes, savings, retirement accounts, and are homeless without a lifeline.

The momentum of the subprime crisis gained so much speed because of the failure in communication amongst our leaders in government. Congress should have acted in March 2007, passing a stimulus package between May-August 2007. President Bush did not seem involved in the process until later in the crisis. The anger amongst most of us, Americans, is just in my opinion. There are people who are falling off these ledges to the next one below them daily because job creation is not happening fast enough. While this is occuring, President Obama is fixing the economy that sits at the top of the cliff. This financial crisis was a major catastrophe that did not get the attention it should have going back to March 2007. To blame President Obama for this mess and the nearly $800B stimulus package does not seem just. What other solution was there? This crisis was Katrina x 10. It was a nationwide catastrophe causing mass devastation to nearly the entire population. (maybe that is extreme, but I am trying to paint a picture).

The cash-4-clunkers program is getting some people the help they need in order to climb the lifeline to the ledge above them. However, this is not enough. While President Obama is building his new economy, at the top of the cliff, the people sitting on these ledges will suffer more until more lifelines come down the cliff it seems; but we have to believe the recovery has begun. As infrastructure begins, another lifeline will be thrown down to Americans. The ones who are at ledge #1, 25 feet from the top, will be the first to be pulled up; so those who made it up from ledge #2 to ledge #1 will begin to feel the affects of the stimulus package sooner than the ones on ledge #3 and at the bottom of the cliff.

The stimulus package will have a pull-up affect. For example, those who further educated themselves during this crisis, as President Obama wanted, may move faster up these ledges.

There are millions of people on these ledges and at the bottom of this cliff. There does not seem to be a quick fix to this mess, except Entrepreneurship.

Entrepreneurship is the answer, in my opinion. If people at the bottom of the cliff can become entrepreneurs, then they will begin to build their own case of stairs bringing them to the top of the cliff once again. With their efforts, they will be able to bring others along with them to climb these stairs. Uniting is the solution. Americans need to unite and help one another.

This appears to be a two step recovery: You can wait for the stimulus dollars to kick in and lounge on the ledge you landed on top of. Or, become an entrepreneur and begin building your own stair case to the top of the cliff. This is your livlihood. Use your anger and creativity and fight for your survival. We all have to be strong for the sake of our children, nieces/nephews, grandchildren, and future generations.

When the top of the stair case is reached, the world will be yours; not this governments anymore. Government has proven to all of us, they will not protect us or our life savings. The Dot.com bust and subprime crisis proved this to all of us.

It seems President Obama is trying to tell all of us this, by stressing to us the importance of education and the need to further train ourselves and our minds, during this crisis.

America, we need to build our own stair case! If we want this recovery to happen faster, it seems as if we need to build our own stair case. As to what the various stair cases will consist of, only time will tell.

Please think of how you are going to build your staircase that has to be 100ft tall. What steps are you going to take in order to create stair #1? What will it take to get to stair #3? If each step is one foot high, then you have a 100 stairs to climb. We can do it. This is America! Hope is your first step. Therefore, you are already onto step #2 of your staircase. You have 98 stairs left to build. Remember, some might be able to conquer two stairs at a time, where as others it will be one step at a time. No matter the pace, you are creating your own salvation.

Building our own stair case will lead us to our own salvation!

This is a new beginning. Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Still Healing? - Just another day in the mortgage mess

I just read an article on CNBC about how John Chambers, from Cisco, told analysts on a call that it is too early to call a recovery. Full story: http://www.cnbc.com/id/32300662

Okay, I have to say, having lived through this financial crisis for the past twenty-nine months, even I am ready for a recovery.

I think President Obama should get $500 shopping vouchers approved by the House and Senate. Even Chuck Todd asked President Obama today, if Congress could create new legislation using the current stimulus money for other programs, like they did for the cash-4-clunkers. I wished Chuck Todd would have used my shopping voucher as an example. Think about it, shopping vouchers to all Americans in October, right before the holiday season, will help ignite a strong holiday shopping season. Shopping vouchers will help put a turkey on the table for a family. Shopping vouchers could get a child a new red bike; which the parents could have purchased from a small business owner. That small business owner can now pay his/her employee a paycheck for Christmas. I could take a $500 shopping voucher and spend it all at a small business, then donate everything to a charity hard hit by this financial crisis or, better yet, I can give my $500 shopping voucher to the non-profit.

Shopping Vouchers = Increased morale among Americans. Increased consumer confidence. Increased profits for small businesses. Increased GDP and, most importantly, a bridge for the consumer and small businesses to carry themselves into President Obama's new economy.

Shopping vouchers is the missing bridge this economy so desperately needs, in my opinion. This bridge would help small businesses and bring back life into the consumer and, most importantly, job creation. Think about how one $500 shopping voucher could help how many people. Think about it.

Just a creative thought.

I am praying the recovery begins soon. In my opinion, it feels like we are in the healing process right before the start of a recovery. I am not an economic expert nor a monetary expert; but I can hope for the best. One can hope!

Stay tuned...I have more to share. Just another day in the mortgage mess!

DISCLAIMOR - Just another day in the mortgage mess

DISCLAIMER: The materials within this blog/website have been prepared by the author for general information purposes only. The author is not a licensed attorney, financial advisor, economic advisor, monetary policy expert, or tax expert and does not intend for this material to be legal, financial, tax or real estate investment advice. No guarantees are made as to the validity, accuracy or legal aspects of the information contained herein. The author assumes no responsibility for facts based on other published sources, which may be in error and assumes no responsibility or duty to retract, rescind or correct any erroneous information. Real estate, finance, investment, tax and landlord-tenant laws and regulations vary from state-to-state. A licensed real estate and/or tax attorney should be consulted for all matters pertaining to the legal aspects of selling, purchasing, financing, investing in, or rental of real estate whenever legal and/or financial implications are (or should be) a consideration.

Comptroller of the Currency John C. Dugan Testifies before Congress - Just another day in the mortgage mess

Comptroller Dugan Supports Regulatory Reform Plan, Urges Revision to Some Details, July 24, 2009

http://www.occ.gov/ftp/release/2009-88.htm

Very informative information.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Is President Obama Leading the Pact - Just another day in the mortgage mess

I read today on CNBC's website, President Obama's Administration is hopeful on Cash-4-Clunkers program.

After I read that title, I began to wonder if this Administration is leading the pact. Will President Obama get the Senate to vote yes for Cash-4-Clunkers? I hope so. President Obama seems to be fighting for consumer spending, by providing a temporary lifeline to consumers called Cash-4-Clunkers. He has also changed the game plan. In the past, most Presidents considered the recession over when GDP turned positive, but President Obama seems to be focusing on when unemployment turns positive, before he declares this recession over it seems.

President Obama appears to have stepped out of the gate separating himself from the herd. Has our country found our Mare? Remember, the Mare is the one that determines the movement of the herd as it travels to obtain water, food, and shelter. The Mare is an exceptional breed because the Mare will also determine the route the herd should take when fleeing danger. Vice President Biden is supposed to be the Stallion, which is the one who takes care of the straggling members as a "rear guard".

Is it time to follow?

No matter how we look at it, people or animal, they all run in herds. Collective behavior applies to all it seems, which we witnessed last September when a run on the banks took place. I would have loved to have been in my Collective Behavior class, back in college, last year. I would have run with that panic and written an incredible essay.

Just remember there are potentially other smaller stallions, in the herd, that could challenge the current herd stallion, as we have witnessed with all the bickering amongst our Leaders this past year.

For now, all we can do is hope we have a Mare and a Stallion running the herd. If we do, then our future might hold a wonder for all. One can hope!

Beware: There are always weaker stallions and mares who will or could form their own smaller herd. I hope the President starts to stay above the crowd.

We can bicker and complain about the wrongs in life, but we only have one President for the next three and a half years. I cannot imagine anyone complaining for three and a half years; I am sure there are some. However, I once read that Martin Luther King said to let those who are mad vent their anger because this is a time when creativity can shine. Americans will shine as they always seem to do. America will shine again!

Just an entertaining thought. We have to keep our hope that a recovery will soon begin! One can hope!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Power - Just another day in the mortgage mess

You have to get this book, "The 48 Laws of Power" by Robert Green. This is an unbelievable book. It is riveting and errie; and something many of us can relate to when discussing the Obama Administration. Here is one of the Laws from Mr. Green's book that made me wonder why Mr. Green was not a part of President Obama's team from the beginning. With Mr. Green's knowledge, he might have been able to guide this Administration to its goals with class and efficacy.

"Law 45 page 392: Preach The Need For Change, But Never Reform Too Much At Once"

Wow, does this read familiar to anyone, almost on a very eerie level? I put the link on my blog for anyone who wants to order this book. The parallels between this book and the life we are living with this Administration, is down right eerie. Mr. Green composed some of the most sublime laws in human existence. I am speechless.

This Law further states: "Everyone understands the need for change in the abstract, but on the day-to-day level people are creatures of habit. Too much innovation is traumatic, and will lead to revolt....."

You have to read this book; it will blow you away. As a new President, is Obama breaking all the laws of power, based on this book? Are we losing a Leader out of sublime ignorance? Read the book for yourselves and come up with your own answers.

I am just speechless by this book. I highly recommend this book.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Pay-it-Forward! - Just another day in the mortgage mess

I read a story on CNN's website today, about an owner of a business who apparently gave nearly $16,000 in bonuses to his employees, back in March. The only thing he asked was that they give 15% to charities and spend the rest on local businesses.

After reading this story, I thought to myself this is not fair. There has to be a way to get Congress to listen and issue $500 shopping vouchers to consumers, therefore, providing the necessary stimulant to help small businesses. If consumers drag down this economy by not spending, then it seems this government will be at fault for failing to act and/or respond appropriately to the lifelessness in small businesses & consumer spending. It seems wrong that Americans, who might have had nothing to do with subprime, are attempting to bail out this economy themselves. Carrying the weight of this country's mistakes, on their shoulders alone, is not right in my opinion. Highly admirable, but not right that this government seems so backward looking that we the people cannot rely on our Leaders to stimulate this economy appropriately. The person in this story was forward-looking amongst so many other Americans who have tried to help small businesses. It is my opinion, if this government continues to prove it is a backward looking government, change will never happen as President Obama promised so many of his voters he would change.

Therefore, I believe this government should use a portion of the $800B stimulus package for the good of Americans, not for the good of government. It is our tax dollars at work. Therefore, it is my opinion small businesses deserve this government’s support in the form of shopping vouchers along with SBA loans.

It seems shopping vouchers will help build the morale of consumers, which will increase consumer confidence. Shopping vouchers will help stimulate the economy without consumers maxing out their credit cards, which is a goal of President Obama. Furthermore, shopping vouchers will help small businesses, which will allow them to hire again, making job creation a reality. If Congress was to apply 3% of the stimulus dollars to shopping vouchers, think of how this would help President Obama attain his goal of establishing a stronger economy, that is not built on inflated profits and maxed out credit cards. Think about it. The American consumer can pay this money forward by shopping at small businesses and giving to charities that have suffered because of this financial crisis. Consumers can also shop at large businesses that support small businesses such as suppliers.

In addition, I heard Senator McCain state today, on the news, that the cash-4-clunkers program is a disguise to help the automobile industry. What planet is he living on? The Cash-4-Clunkers program got consumers out spending, which this economy so desperately needs. The cash-4-clunkers should have shown Congress how dehydrated the consumer is for water. Consumers are fighting for survival! Will our Congress ever become forward-looking Leaders? I know some are already forward-looking and when those who are, do, it seems their peers ridicule them for it.

I think the House did the right thing by voting $2 billion more into the cash-4-clunkers program. I think the House should re-evaluate the stimulus package along with the Senate and President in order to create new legislation that will provide consumers with shopping vouchers; and stop the waste. If the House created new legislation to add more dollars to the cash-4-clunkers program, then we know they can create new legislation with the remaining stimulus package. We are not dumb!

Furthermore, one of the biggest mistakes Congress made back in the 1930s was they over regulated. I am glad Congress has not passed any major financial regulatory reform yet. Congress should pass regulatory reform over time to avoid stifling an industry that is already crippled. Remember, “Without fiscal sustainability, in the longer term we have neither financial stability nor healthy economic growth”. Chairman Bernanke

If I had one wish, it would be to wish our government into a forward-looking government. Therefore, allowing members of Congress to step outside the box, and let go of their traditional backward-looking provincial attitudes because preserving the strength of our economy seems more important. Americans deserve better in my opinion. One can hope for a recovery!!!

Stay tuned...I have more to share. Just another day in the mortgage mess!

My Message to America? - Just another day in the mortgage mess

My message to Americans: Do not believe everything you hear. Words are just words. Stand up for what you believe in. If you believe a recovery is near, then hope for the recovery and act like a recovery is near. Be optimistic and, at the same time, be smart with your money because, as we have learned, no one is going to protect our life savings, except for us.

Do not lose hope if you are looking for a job, keep sending resumes out to employers. Keep calling the same company, do not let them forget who you are because if a job opening comes up, you want them to remember your name. I went on Monster.com this past week. There are a lot of jobs out there, which I know millions are applying for, but stay hopeful that one might be yours. Believe what President Obama stated in his weekly address this morning, "And the report yesterday on our economy is an important sign that we’re headed in the right direction. Business investment, which had been plummeting in the past few months, is showing signs of stabilizing. This means that eventually, businesses will start growing and hiring again. And that’s when it will really feel like a recovery to the American people." We have to believe what President Obama stated here will happen. I know this is easier said than done.

Trust me, last year, there were days where I did not think I had the hope to see the next day through this crisis. There were days when I wished the arrows on the stock market were green at all times because the meaning behind a red arrow was depressing. There were days where containing my anger towards both myself and my stockbroker was nearly impossible. There were days where I did not want to watch the news because if the arrow was pointing downward for stocks, it meant the market was having another bad day and I was losing even more money. There were nights I would go to sleep at 11pm only to wake-up at 1am to catch the international business news to see how bad our markets would be. There were nights I would wake-up at 3am to hear what Joe Kern had to say because I had watched him through the last recession we had; he knows his stuff.

Through all of this, I hung onto something Joe Kern said over a year ago, on CNBC; which was, we will know when we are near the bottom of the recession when the expectations of companies earnings are so low that they begin to hit/exceed them. It was something I did not forget. However, I will say, companies getting to this point seemed like it took a lifetime, but businesses are beginning to report better earnings once again. Finally!

I do not trust Congress to watch out for Americans best interest anymore. After this crisis, why would I? I trust Chairman Bernanke, Chairwoman Bair, Treasury Secretary Geithner. Their message has been consistent. I do trust President Obama because once he separates himself from the herd it seems he will command respect, in my opinion. I might be wrong, but I have to hope because whether or not I voted for President Obama, I have to hope he will do what is right for Americans and our country. It is his job.

After a recovery starts and things calm down, the one thing I will have in common with most, is how many gray hairs I gained from this crisis. How many wrinkles found my face? How many years I lost on my lifespan because of this crisis? How much money I lost. No matter how great my anger was, eating healthy and working out stayed my motto, even throughout the toughest days I had ever seen in my life. No matter how much money I lost and how much income I lost, I kept my hope. No matter how much pain I was in from the car accident last year, I kept my hope.

I have to see this crisis through to a recovery. I have to believe Chairman Bernanke's theory is correct. I have to believe a recovery is near. Seventeen years ago, my dad had been diagnosed with brain cancer as I was graduating from college. Weeks before he died, he had stopped talking. In my heart, I believed it was his way of maintaining some sort of control over what was left of his life. I knew his time was near, so I told him he should be proud that he did the best he could as a dad. That me and my sisters were all doing great and that we would be okay. I let him know I loved him. As I finished talking to him, he looked up to me and said, "Heather, whatever you do, do not stop talking it is going to take you farther in life than you will ever know." He died two days later. This was my inspiration to keep writing on my blog, share my thoughts, and not give up on the thought that a recovery would begin sooner than later. I had to hope no matter what our Leaders might have said or what inconsistencies there were in their words. I had to hope. A life without hope is misery. A life without hope leaves one vulnerable to changes that may not be in his/her best interest. I had to hope.

We, Americans, deserve happiness and prosperity. We deserve a recovery. We deserve respect.

Stay tuned...I have more to share. Just another day in the mortgage mess!

This Economic Storm will Pass - Just another day in the mortgage mess

This morning, I listened to President Obama's Weekly Address and I was pleased with what he said, for the most part.

When I listened to President Obama's Address, my interpretation was that he was not giving up on this economy, even if a recovery began, until he sees American's employed. I put two quotes from his speech, which are not in order, but I liked these words because they seemed honest and consistent with what happened with unemployment. They did misread the economy, in my opinion.

Here are President Obama's words, so you can interpret his words for yourselves: Quote #1: "As far as I’m concerned, we will not have a recovery as long as we keep losing jobs. And I won’t rest until every American who wants a job can find one."

Quote #2: As I’ve said before, it will take many more months to fully dig ourselves out of a recession – a recession that we’ve now learned was even deeper than anyone thought.

In President Obama's Address today, I think he correctly laid down the expectation for Americans, in my opinion. Businesses will feel the recovery before we, Americans, will feel it. This is usually the normal process when coming out of a recession.

Furthermore, President Obama initially addressed, in his Address this morning, the GDP report that came out yesterday. He stated, The report showed that in the first few months of this year, the recession we faced when I took office was even deeper than anyone thought at the time. It told us how close we were to the edge.

Okay, I knew. How did this Administration not realize how deep this recession was before January 2009? Even I knew how bad things were going to be after reading Chairman Bernanke's book, back in February 2008. I knew the difficulties both state and local government Agencies were going to face, if Congress failed to act promptly. Therefore, I knew we were in trouble back in September/October when major financial institutions were failing left and right. When the threat facing money market accounts occurred, I knew the challenges we faced was going to be intense. Moreover, more importantly, Congress still had not acted at this point. It was more stress than I had ever endured in my life. I lived this crisis firsthand being in the mortgage business. Credit was done, it was tighter than I had ever seen it in my career; and all because of irresponsible subprime lenders and irresponsible subprime borrowers.

Last September, it had been eighteen months since the subprime crisis occurred, and Congress still had not acted. We were entering into a crisis that I truly believed could have been avoided had Congress acted between May-August 2007. My fear was so great I stopped blogging. I basically surrendered to my own fear because this government seemed as if it did not care. It was if, our government had failed us all in my opinion.

It was between September and December of last year that I took a hiatus from blogging and, instead, inundated a Family Practice Doctor with texts because the fear I felt for our future was so great; and no one was seeing it prior to the peak of the banking crisis. No one. The only one who acted was Chairman Bernanke, by drastically cutting interest rates in 2007; he is our hero in my opinion. It was back in April 2008, I created my petition to Congress because it was through Chairman Bernanke's book and one other book, I knew what the future held for us, and it was not promising.

Furthermore, after reading Chairman Bernanke's book, I knew the depths of the crisis we were facing if Congress failed to act; which looking back we now know Congress responded too slowly. My fears came to fruition in the second half of 2008 when the peak of the banking crisis supposedly hit. Not being an economic expert or monetary expert, it was a reality that struck me like a knife in the gut.

It was last September when I knew in my gut, we were near the end of the financial world we once knew it to be. I knew we were spiraling into a black hole that had already sucked up nearly everything in its path. I knew it was going to be bad. It took nearly eighteen months for Congress to act. When Congress finally acted, it gave me the sigh of relief I had been begging for in prior months. However, I knew the stimulus was not enough and all we could do was sit on the edge of our seats waiting for a new President to step in and finish the work of past failures. The new Administration had to pass an even more aggressive stimulus package. Commodities’ were deflating at a pace we had never seen, which was what happened in the 1930s. I knew if Congress and President Obama failed to act, we were going to face a Great Depression in the year to come; and there was nothing any of us on Main Street, could do. I knew the risks were great and were still there. This Administration had to help small businesses, which FDR failed to do in the 1930s, which led this country to an all time high in unemployment, 25%. My biggest fear was President Obama would not fully understand the sense of urgency and get his stimulus package incorrect. My fear was he would not act aggressively enough, which would then spin our economy further out of control.

In conclusion, This financial crisis was nothing like any recession that occurred over the past 30 years. Nothing compares to this, except a mixture of 1873, 1907, and 1930s. It was the “Perfect Storm”. This crisis was far worse than anything any of us had seen in our lifetimes, including most of our Leaders. Our Leaders misdiagnosed the problem going, back to March 2007. The only hope I had was Chairman Bernanke's theory. I had to believe he would lead us to a recovery twelve months from the peak of the banking crisis. I just pray this is correct. I pray we do not enter into a deeper crisis/recession. I hope a recovery will start soon.

I had a thought today. What if the economic storm ended in January 2009 and, since then, this economy has been trying to gain upward mobility through the stimulus packages and the rate cuts combined? What if, our economy needs one more shot in the arm to bridge us into a full-recovery? I heard a Congressman state today, on the news, that we will continue to want more money if Congress continues to give it. Americans do not want hand outs, Mr. Congressman. Americans want jobs! Americans want their dignity back and, if this means providing us with shopping vouchers to help build up small businesses to create jobs; this is our right! Tax rebates will only be saved, in my opinion. We need to rebuild the strength of our small business owners, not enable Americans to need more. That Congressman's words, showed me that he was still backward looking. We need Congressmen and Congresswomen who will take this country forward, by being forward-looking. If Congress took our tax dollars and paid it forward through shopping vouchers, then Americans can pay this forward onto our small business owners, who then can pay it forward by creating jobs. Wake-up Mr. Congressman. I say this with all due respect.

Furthermore, no matter what I hear on the news, about how the cash-4-clunkers program is only benefitting government, I cannot believe this nonsense because it is getting consumers out there again. If it helps build the morale of a consumer, who could not have purchased a car without this program, I am all for it. If this program gives a family relief from their worries about whether they will lose their job tomorrow, and further saves them $80/month in gas while enjoying their weekend driving in the woods or down the coast in their new car, I am all for it. If this program gives a family time together while driving in their new car, smelling the new car scent, and letting go of their every day worries with this economy; then I am all for it. If the cash-4-clunkers saved a family gas money & reduces their car payment, so they can now use this extra money to purchase school supplies and clothes for their kids, then I am all for it. If the cash-4-clunkers allowed a climate oriented person to buy a greener car, then I am all for it. If the cash-4-clunker allowed someone to buy a new car and save hundreds of dollars on repairs from their old car, then I am all for it. If the cash-4-clunker programs helps create some jobs, then I am all for it. If cash-4-clunkers gets the employee of the dealership a paycheck to feed his family and pay his/her bills, then I am all for it. Americans deserve to be happy. Americans deserve to thrive. Americans deserve to dream. Americans deserve to work. Americans work hard.

We need shopping vouchers for consumers, from the current stimulus package. It seems to be the last leg that could carry this economy into a full recovery, in my opinion. Furthermore, if shopping vouchers allows consumer spending to increase without consumers maxing out their credit cards, then this accomplishes President Obama's goal of not having an economy built on maxed out credit cards. If consumer spending increases with the benefit of shopping vouchers, then job creation could begin. Shopping vouchers kills two birds at once. President Obama stated he does not want an economy built on inflated profits or maxed out credit cards.

Shopping vouchers will allow consumers to use their hard earned tax dollars for the benefit of our economy; not savings accounts. Tax rebate checks will be saved, and understandably so. Therefore, it is my opinion, shopping vouchers will help build back morale in this country. Shopping vouchers could prevent the need for a second stimulus package it seems. If Congress can create new legislation increasing the cash-4-clunkers programs, then it should be able to create new legislation for shopping vouchers. Especially, if food stamps and cash-4-clunkers proves to be successful stimuli to our economy.

Just a thought. Thank you for reading.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Pay it Forward! - Just another day in the mortgage mess

Food stamps supposedly act as stimuli to the economy. Cash-4-Clunkers is apparently a huge success that the House will vote to add $2 to the cash for clunker program.

If this Cash-4-Clunkers is this huge of a success, then one would think it would show this government that consumers are eager to spend, but not with their own money. Job insecurity is too high to think otherwise, in my opinion. If banks were able to build their profits through government bailout, then it seems fair for this government to give bailout money to small businesses allowing them to build their profits. However, the program should include funds for both SBA loans-4-small businesses and shopping vouchers-4-consumers. Remember, small businesses are not like banks, where banks receive interest payments from credit cards, checking account fees. Banks have fee income; where as most small businesses do not. Therefore, providing a needed streamline to small businesses might help build their profits once again; further bridging this economy to a stronger recovery in 2010. In my opinion, this does not have to be a slow and painful recovery, as our Leaders are projecting.

Congress can use the existing stimulus package for shopping vouchers, just as the house did by voting $2 billion more to the cash-4-clunker program. Therefore, it seems possible.

I truly believe the cash-4-clunkers program is not enough stimuli to get this economy bridged to a full-blown recovery. How many small businesses could $2 billion have helped? If small businesses employ the largest number of Americans, then how many Americans would shopping vouchers help create jobs for?

President Obama stated this morning, in his press conference, "We're" not going to rest until "we" see that American people's job prospects and incomes have bounced back.

In conclusion, I am glad President Obama is talking about small businesses, consumer spending, and the unemployed, but Americans need action. Unemployed Americans need jobs. Small businesses need aide. Words are not going to get job creation and small businesses the aide they need. If food stamps allowed employers to hire, then it seems logical to think shopping vouchers will get small businesses to hire again.

If I were to get a shopping voucher, I would shop at every small business I could, until I spent every dollar of the voucher. Then, I would donate my purchase to a non-profit in need. Therefore, allowing that small business and non-profit to pay it forward to their suppliers, those in need, and employees who will then pay it forward to their families by buying food and clothing for their families. Who will then pay it forward to someone else.

Pay it forward! Everyone, this weekend when you make a purchase think of how that purchase is going to help a small business, a family in need, an employee, and/or someone unemployed. How will your purchase positively affect our economy and a small business?

I truly believe shopping vouchers will build the morale of Americans, which will then increase consumer spending. Can Congress please use existing stimulus dollars for shopping vouchers, therefore, allowing the consumer to pay it forward to a small business?

Furthermore, I read an article on Foxbiz that talked about how inflation could rise should stores fail to have enough inventories, when consumer demand increases. Therefore, I thought to myself, this government could announce the shopping voucher program in August, and then issue the vouchers in October; therefore, leading us into a strong holiday season. This could bridge us into a strong/real recovery for 2010.

Cash-4-Clunkers + SBA Loans-4-small businesses + Shopping vouchers-4-consumers + food stamps-4-those in need + mortgage assistance-4-homeowners + reasonable financial regulation/reform-4-financial industry, could bridge us into a full recovery in 2010. "Pay-it-4ward" is going to save our economy, in my opinion.

Congress needs to pay everything they do forward, which in my opinion is not what they do because government has always been backward looking. Chairman Bernanke mentioned how government needs to be 4ward-looking. Chairman Bernnake stated it brilliantly, "Without fiscal sustainability, in the longer term we will have neither financial stability nor healthy economic growth." Congress is our ailment and it needs to be fixed.

Pay it forward with "Shopping vouchers". Pay it forward!

P.S. - I believe in Chairman Bernanke's theory and I believe we will have a recovery in Oct/Nov; however, call me greedy, I want a strong economic recovery. I do not want one that is slow and painful. It does not have to be slow and painful if Congress would get authority to create new legislation for shopping vouchers, just as it was given today for the additional funds for the cash-4-clunkers program it seems. Amazing what happens when our government puts the pedal to the metal. It gets things done.

Stay tuned...I have more to share. Just another day in the mortgage mess!

DISCLAIMER: The materials within this blog/website have been prepared by the author for general information purposes only. The author is not a licensed attorney, financial advisor or tax expert and does not intend for this material to be legal, financial, tax or real estate investment advice. No guarantees are made as to the validity, accuracy or legal aspects of the information contained herein. The author assumes no responsibility for facts based on other published sources, which may be in error and assumes no responsibility or duty to retract, rescind or correct any erroneous information. Real estate, finance, investment, tax and landlord-tenant laws and regulations vary from state-to-state. A licensed real estate and/or tax attorney should be consulted for all matters pertaining to the legal aspects of selling, purchasing, financing, investing in, or rental of real estate whenever legal and/or financial implications are (or should be) a consideration.

Has the U.S. been Healing? - Just another day in the mortgage mess

I believe the peak of the banking crisis happened in Sept/Oct 2008; and the peak of this financial crisis peaked in January 2009, as I stated days ago on my blog. I think the rate cuts the Federal Reserve did these past two years, was the Neosporin cream on a severe cut in the U.S. economy. I think President Bush's stimulus package was just a bandaid that did not stop the bleeding because it was backward looking rather than forward looking. It was President Obama's stimulus package that actually offered the stitches, which then stopped the possibility of debt-deflation and bleeding that could have led us into a serious depression. The past six months the cut has been healing.

As President Obama stated today, we are seeing the beginning of the end of the recession. He said policies helped stopped the recession from becoming depression. He was at a town hall meeting I believe. I saw this on CNBC this morning.

I have to believe in the power of Chairman Bernanke, President Obama, and Treasury Secretary Geithner; and know they will not let politics bog (BOG - the initials of Bernanke, Obama, and Geithner) them down from leading us into a full economic recovery. I have to believe they are here to serve in the best interest of the American people.

Will we have a recovery starting in Oct/Nov, that is real? One can hope! Time will tell. I have to believe and have hope because a financial crisis is far worse than a recession in my opinion. I have lived through recessions, those I can handle; but a financial crisis is far more severe and dangerous. This began with the housing market, which led us into a financial crisis which I truly believed began in the second half of 2007. Then, a full blown recession began in Jan. 08, after jobs peaked in December.

I really believe that in order for future generations to avoid a crisis like this, there has to be tools to measure the peak in "so called" excess consumer spending. The red flags could have started flying prior to 2007. Decreasing and increasing interest rates should not be the only solution.

If the The Federal Reserve remains the Agency for consumer protection/affairs, it should send out a memo to all financial agencies when it sees excess consumer spending occurring. This memo should go out to all financial agencies that create underwriting guidelines for lending purposes, warning all involved we are in a red alert concerning systemic risks; therefore, Executives/Managers are to re-evaluate their credit guidelines.

Green Alert - take risks as long as it adheres to the safety and soundness of their institution.
Yellow Alert - Begin to re-evaluate credit risks.
Red Alert - pull back on less creditworthy borrowers and make sure the loan to values are reduced and full-income is required.

We are heading into a yellow alert where lenders can take more risks, but subprime is off limits unless the loan to value is 60% with full-income documentation. Stated income with low LTVs for high fico and high asset borrowers should be accepted.

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Inflation - Just another day in the mortgage mess

While watching the news this morning, I had heard a reporter state that buying silver hedges against inflation. I then saw on the news how consumer confidence dropped unexpectedly. The lack of consumer spending and activity in small businesses seems like it should keep inflation in line. Where is the expectation? I know I am not an expert, but I thought if the expectation towards inflation was kept in line, we would not see inflation.

This made me think to myself that maybe the lack of concern this Administration has towards consumers and small businesses, might be methodically planned. I am not an expert, but if the consumer is not spending and small businesses are not hiring then where is the expectation for inflation? Is the media laying the ground work for inflating expectations for inflation? As of right now, I am not expecting inflation. Is anyone else? Think about it, how are consumers expecting inflation when more than 10% of Americans will be out of a job this year? Where is the expectation? If we have deflation and inflation, then stagflation seems more realistic than inflation; and I do not see the Federal Reserve heading us into this direction.

This did not make sense to me this morning. The lack of consumer confidence with high unemployment seems as if it will keep expectations of inflation grounded. Seems like common sense?

Stay tuned...I have more to share. Just another day in the mortgage mess!

Is the Consumer Lifeless? - Just another day in the mortgage mess

I saw on the news today, consumer confidence fell more than expected.

As to how this caught anyone off guard, does not make sense to me. Consumers are losing their jobs. Where is this government expecting the consumer to get cash? Remember, our 401ks, retirement accounts, and investment accounts were either wiped out or pushed down nearly 40% last year. Therefore, it seems logical for consumers to save that extra money in their paychecks, from the stimulus package; they're not fools. If they have taken a hit in their investment accounts, 20-75% cut in their paychecks, a furlough, and/or a cut in the hours they worked, then what made anyone think consumer confidence would not disappoint? Where is the common sense here? If the consumer does not bounce back, then the lack of consumer spending could drag us into a deep recession it seems, therefore, jeopardizing a recovery. If corporate America is not strong enough to support this economy, then this could jeopardize a recovery. If small businesses are not subsidised or given assistance, then this could jeopardize a recovery. If the Feds increase the interest rates, which will increase option arm loans, this might jeopardize the housing market even more?

The Federal Reserve cannot work alone and be the only sector of our government that is putting the pedal to the metal. Will President Obama's apparent lack of concern towards small businesses and consumer spending jeopardize a recovery? Chairman Bernanke said in an interview on PBS, yesterday, that they are trying to work fast to get small businesses access to funds. Why is it taking this long? Why wasn't this initiated when the stimulus package first passed? Why?

It really seems as if this economy needs a booster shot to hedge off the risks of no recovery. It seems the only way to do this is through shopping vouchers to consumers along with SBA loans to small businesses - a combination of the two. Note: Even steel is down today because demand is down. This, to me, does not make sense. If President Obama's stimulus package was supposed to build infrastructure, then why would the demand of steel be down?

Stay tuned...I have more to share. Just another day in the mortgage mess!

Bernanke is the Einstein of Our Generation - Just another day in the mortgage mess

I remember back in December 2007, I did not show up to my friend's house for Christmas because I was so overwhelmed with fear of the future. I knew this financial crisis was going to be horrifying, and I did not want anyone to know how down I was that day. However, my friend called me that afternoon and told me to come over no matter how upset I was, so I went to her house to celebrate Christmas that afternoon. Looking back, I am glad I went.

Months later, I remember when I first read Chairman Bernanke's book in February 2008, alongside one other book, I knew I could flowchart this economic crisis nearly sixteen months ago. I then began flowcharting the events and putting my petition together, which I linked to my blog; and as you will see I was correct. Chairman Bernanke's book became my compass. I knew in my heart that his theory was correct. However, what I did not expect, was how understanding this knowledge would overwhelm me with a fear that I had never felt in my life. The fear I felt last fall was nearly debilitating because I could see the outcome before it even happened based on what I had read. Now that was fear! To some I might have looked foolish, but in my gut, I knew I was right. I had never felt that scared in my life, and this was on top of a car accident I had last March, and then the loss I took on owning stock in Washington Mutual. My life seemed like it was ending; and I could do nothing to control it, except blog while putting the pieces together, using Chairman Bernanke’s theory that I was not even sure was correct; but I was determined to stick by it. How scary could that thought be, I asked myself.

It was crazy, but logical to think the expert of the Great Depression was an ideal compass for me; but who knew the reality of it would be so overwhelming. What could the average person like me do with this information? Nothing, I have no power in this country. My voice is the size of a pea in a country of nearly 300 million people. I knew we were in trouble, and so did Chairman Bernanke. The global markets were in a state of ferment after the Lehmans and Bear Stern failures. What was there to do for the average person, except blog and watch it happen? I knew when September rolled around, and the crisis began to hit the money market funds we were in serious trouble. I even withdrew cash from my checking account to have as an emergency fund. I remember weekends, where I would not leave my house because I had to hear the news. I even overwhelmed a Family Practice doctor with text messages because I could not contain my fear. I knew the depths of this crisis based on what I had read, but I did not have any concrete proof to prove my fears to my friends; and when the perfect storm hit there was no where to hide. This storm left so many of us in a state of shock. The mass destruction was debilitating for many, which will never be regained. This government failed to protect the people, and we learned we could not rely on this government when it came to our money and life savings. We could not even rely on experts, who told many to hang on for the long run; it will come back. How many of us heard this from stockbrokers? We did not deserve this, in my opinion. This was a true failure in government. It was a true failure in communication. It was a true failure in trust with financial firms. It was a failure, period!

Therefore, I knew if I could time the peak of the banking crisis correctly, the only person I could truly rely on was Chairman Bernanke and his theory because knowing this could lead us to a recovery in twelve months, gave me hope. It gave me hope that this black hole would eventually stop sucking up everything in its path. These past two years, wealth vanished into thin year. People lost their life savings; lost their careers; lost their homes; and some even lost their self-respect and dignity. I am close to losing my sixteen-year career that I invested time and energy into understanding the products as well as the economy. My friends did not believe me on how extreme this crisis was going to be, but I knew in my gut, it was going to be bad. I had never felt that alone in my entire life; and the only thing I had for hope, was Chairman Bernanke's book. I never let go of his theory; I clung to it as if it were the bible of financial disasters.

I knew the events of this financial crisis were paralleling history, and it became my goal to use Chairman Bernanke's book along with one other book to guide me through this crisis. The one thing I realized back in March 2007, the tools were not correct for measuring the depths of this crisis, which explained why our Leaders were blinded by the severity of it and how it would affect the economy. I knew last September and October was the peak of this crisis. I knew in my gut because a panic took place, which was part of Chairman Bernanke's theory. It was history all over again, and I knew based on Chairman Bernanke's theory the recovery would be twelve months from the peak, which is this coming October/November. I had so much confidence in Chairman Bernanke and one other book that I knew I could buy a particular stock last December and know it would increase in months to come. Thus far, it is up 50%. I believed in Chairman Bernanke's theory wholeheartedly going back to February 2008 that I have stuck to it since. His theory was worth more to me than the bible because I knew his theory was concrete and something I could prove to be true.

I pray Chairman Bernanke's theory proves to be true, and the recovery starts in a few months because to see this, is a miracle of life in my opinion. Even today, I was reading on my cell phone the news, as I am the news junky; and I read a blurb how Bernanke said the recession would end in the next few months. I jumped with sheer excitement because to watch history alongside a theory leaves me in absolute awe. I wish I were as brilliant as Chairman Bernanke is. I had never seen anything like this in my life, and to be experiencing this firsthand is like watching an Einstein at work. If Bernanke's theory proves to be true, then this means future generations could have a key tool for measuring the outcome of a major financial crash.

As Bernanke stated according to this article on CNBC, "recessions happen". Oh, how I can say this is true having lived through a few now. However, if the proper tools are in place for future generations, they may very well be able to steer off a financial crash of this magnitude, which to me is truly amazing. I believe President Obama steered this country away from debt-deflation (deflationary economy) by not repeating history.

In conclusion, I truly believe that if Congress had passed the first stimulus package between May-August 2007, we would not have faced a crisis this severe. Congress repeated history, not Chairman Bernanke. It is my opinion that Alan Greenspan failed to put the necessary tools in place to measure the extremes of this crisis, therefore blinding Chairman Bernanke in the very beginning; but soon Chairman Bernanke proved his leadership and aptitude by “putting the pedal to the metal”, as he stated the Federal Reserve did.

Moreover, more importantly, had our government had the necessary tools in place, back in March of 2007 or prior, it would have known the housing crisis was going to crash the entire system, globally; and an immediate stimulus package needed to pass between May and August 2007. Even I knew it was going to be bad, but who knew how intertwined this mess was? Who knew irresponsible subprime lenders and irresponsible subprime borrowers would pulvarize the entire financial system? Who knew? I ask myself this question because someone had to know. Did AIG know? Did WAMU know? Did Bear Stearns know? Did Congress know?

I pray the recovery will start in October/November because there is no way I can live through another deep recession. Today, I sent President Obama an email telling him the ailment in this country is Congress. He has to fix Congress in my opinion; and I believe Obama is the one to do it. I have to believe Obama can break down the barrier that exists between Congress and the American people. Someone has to do it. It is what the American people deserve. Not all Congressman and Congresswoman are bad, but with what I watched these past twenty-four months, I want new people representing us. I love this country and I think Americans are amazing people. If there is one thing this crisis has taught me, Americans are nice.

I hope a recovery is near.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Microsoft Earnings Disappoint - Just another day in the mortgage mess

Microsoft earnings tumble, http://www.cnbc.com/id/32108142

Now, someone would think Microsoft's disappointing quarter would show that consumers are not spending. Dell even disappointed because consumers are not buying PCs right now. Even my computer is a dinasour, and I refuse to upgrade until I know this economy is back on track.

President Obama's Administration could offer a temporary solution to businesses, by building them a bridge to get them over these troubled waters. The bridge would be in the form of shopping vouchers to consumers. If shopping vouchers had been out there this past quarter, do you think Microsoft would have disappointed today?

President Obama seems to be building all these other bridges for healthcare, education, and energy, but there is not a bridge for consumers to cross in order for us to reach businesses.

I wished this Administration would issue shopping vouchers for this coming September, with December 25, 2009 as the expiration date; therefore, getting consumers spending, so we can help these businesses and the economy.

How loud does a company like Microsoft and Dell have to yell to get anyone to listen, that 10% of the consumers are unemployed; the remaining are sitting on the sidelines paralyzed by job insecurity. There is only 1% of the population that can afford to spend right now, and this is not enough to support this economy.

We need $500-$1000 shopping vouchers. $500 vouchers to 40,000,000 consumers, is $20,000,000,000. $20,000,000,000 of $787,000,000,000 is what, <3% of the stimulus package. It does not seem difficult to quantify the benefits of shopping vouchers. There has to be research showing if there is a qualitative difference between food stamps and shopping vouchers. If both of them would have the same affect on the U.S. economy, then one would think this Administration would get shopping vouchers out to consumers immediately. The cost of shopping vouchers is a drop in the bucket, and instant stimulus to the economy.

If shopping vouchers can have the same affect as food stamps, then spending 3% of the stimulus package on Americans, who will invest it back into this economy, does NOT seem like pork spending. Nor does it seem unfair to demand this. If consumer spending can re-ignite this economy and fuel job growth, then the need for a second stimulus package might not be needed. What is wrong with investing $20B into the U.S. consumer? If banks received billions in bailout money, then bailing out the consumer right now, seems just as important. Especially, since we put the money back into the economy. The money would be working, just as food stamps are now.

Seems logical. Think of how many PCs could be bought with shopping vouchers. Think of how many could put a down payment on new solar. Think about how many local grocers would benefit from $500 in groceries. Think of how Apple would benefit with a $500 shopping voucher. Think about how one could paint a room with $500. Think about how someone could buy a new bicycle for their child's birthday next month. Think about how someone could put new speakers in girlfriend's car that has not traded in yet. Think about how someone could go to Lowes to pick up $500 in home improvement items. Think about how someone could hire a local painter to paint a room for $500. Think about how that painter now has a month's worth of groceries for his family. Think about how that grocery store the painter just purchased his groceries from, just benefited a local farmer who could now hire a new cherry picker. Now, that cherry picker is able to put food on his family's table.

Shopping vouchers is a logical solution to this financial crisis and, as to how this Administration does not get it, I will never understand. What more does someone have to do to get Congress to see this? It seems so logical.

Stay tuned...I have more to share. Just another day in the mortgage mess!

President Obama - Just another day in the mortgage mess

President Obama stated today, in his press conference that it is okay if his healthcare reform is not passed in August.

Whew, I thought to myself, when I heard President Obama state this because this might mean we could get a solid healthcare reform plan. One can hope! As long as healthcare reform is nothing like the reform taking place in my industry, then it might be okay. The reforms in my industry, mortgage industry, seem to be costing borrowers more money and time. How is this reform?

Stay tuned...I have more to share. Just another day in the mortgage mess!

More Government Intervention is NOT Protecting Borrowers instead it seems to be Costing Borrowers - Just another day in the mortgage mess

Home & Economic Recovery Act must see video, http://www.thinkbigworksmall.com/mypage/player/tbws/12733/1077782

This will most likely cause further delays for homeowners, which is going to cost the borrower, not the bank.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Newt Gingrich Job Creation Campaign - Just another day in the mortgage mess

Finally, someone is focusing on job creation.

Newt Gingrich jobs campaign: Jobs Here, Jobs Now, Jobs First! http://www.americansolutions.com/jobsfirst/

Stay Tuned...I have more to share. Just another day in the mortgage mess!