There’s always something to howl about.

Month: August 2011 (page 2 of 3)

Reforming FannieMae and FreddieMac with Marx: Rotarian Socialist rent-seekers of the world unite! You have nothing to lose but your brains!

Totally cool. An actual newspaper article about America’s favorite welfare program, government subsidized mortgages — and in The Boston Globe, no less:

Amid all the clamor about entitlement reform during the struggle to raise the debt ceiling, one enormous cost – and potential source of future savings – largely escaped scrutiny: the billions of dollars the United States spends to support the mortgage market. Even before the 2008 financial crisis, the government assumed the credit risk on most loans, which allowed banks to offer better rates, but ultimately left taxpayers footing the bill when the housing market collapsed: $138 billion and counting.

During the crisis, the government became even more involved in the mortgage market by rescuing Fannie Mae and Freddie Mac and agreeing to backstop larger loans. This furnished enough liquidity to prop up the housing market and helped bring about the low mortgage rates of the last three years. But getting in has proved much easier than getting out. Today, the government backs 95 percent of new loans, leaving taxpayers more exposed than ever.

That could finally be about to change. After next month, federal loan limits in expensive areas like Boston, New York, and Los Angeles are set to decline from $729,750 to $625,500. Had the lower limits applied last year, the government would have backed 50,000 fewer loans. But even this modest pullback may not happen. At the urging of homebuilders and realtors, lawmakers in both parties want to extend the higher limits, possibly for good. It’s an early skirmish in the larger battle over the government’s proper role in the mortgage market. And the issue isn’t just when to pull back, but whether to do so at all: Many Americans have come to regard cheap mortgages as an entitlement.

I am so ecstatic to see Fannie, Freddie, Ginnie and FHAVAUSDA properly identified as welfare programs — invented by rent-seeking Rotarian Socialists for the benefit of other rent-seeking Rotarian Socialists — that I’m finding it hard to kvetch.

Well, maybe not too hard. Look at this:

Liberals tend to support government intervention as a means of subsidizing home ownership for the poor and Read more

Seasteading: Galt’s Gulch for a new century?

If Galt’s Gulch is going to exist in this century, might it be called Seasteading?

Peter Thiel has given $1.25 million to an initiative to create floating libertarian countries in international waters, according to a profile of the billionaire in Details magazine.

Thiel has been a big backer of the Seasteading Institute, which seeks to build sovereign nations on oil rig-like platforms to occupy waters beyond the reach of law-of-the-sea treaties. The idea is for these countries to start from scratch–free from the laws, regulations, and moral codes of any existing place. Details says the experiment would be “a kind of floating petri dish for implementing policies that libertarians, stymied by indifference at the voting booths, have been unable to advance: no welfare, looser building codes, no minimum wage, and few restrictions on weapons.” – Yahoo.com

A floating haven for Libertarians.  It sounds like freedom.  I wonder where they could find real estate expertise for such a venture?

Galt’s Gulch had one big advantage over Seasteading, it was beyond detection of government.

Full price wheel barrel of money and a lost client; Realtor gets tko’d.

When the going gets tough, the tough gets going.  I scheduled an appointment to see a home in a nice community.  The school districts are great as well as the neighborhood.  The price was right and this home was not a short sale, not an easy find in South Florida.  After getting four appointments cancelled by the seller, my buyer was getting rather desperate as his moving date was only 4 weeks away, as his landlord was kicking him out because he would not sign a one year lease.

The buyer decides to write an offer sight unseen.  The offer was full price, cash, with zero contingencies.  The urgency was high, as this buyer wanted to be in a home and have the sweat heart school district.  Surprisingly the offer offer was never even looked at by the seller, because she had a change of heart on selling.  Besides the fact that I was owned a commission and deciding not to waste my time to chase it down, the buyer then ends up firing me because I was unable to pull this deal off.

Hence the title, full price wheel barrel of money and a lost client: Realtor gets tko’d.  What has your experience been in situations like this?  Reporting live from the trenches of a warm muggy humid South Florida, I’m Robert Worthington, and I promise to have yet another doozy to report on soon!  I’m keeping my head up, ears up, tail waging,  and I’m sniffing out my next deal!  When your part of the bloodhound pack, you never quit!

Mark Steyn: “If Charlton Heston was horrified to discover the Planet of the Apes was his own, Britons are beginning to realize that the remote desert island of ‘Lord Of The Flies’ is, in fact, located just off the coast of Europe in the northeast Atlantic.”

I’m getting quit of bitching at people, but I confess, always, to taking delight in well-written castigation. For eloquent excoriation, none surpasses that of Mark Steyn:

Within two generations of the Blitz and the Battle of Britain, a significant proportion of the once-free British people entrusted themselves to social rewiring by liberal compassionate Big Government and thereby rendered themselves paralytic and unemployable save for nonspeaking parts in “Rise of The Planet Of The Apes.” And even that would likely be too much like hard work.

Give the man your mind. He’ll give it back to you wittier, at least, if not wiser.

“This economic mandate represents a wholly novel and potentially unbounded assertion of congressional authority: The ability to compel Americans to purchase an expensive health insurance product they have elected not to buy, and to make them re-purchase that insurance product every month for their entire lives.”

Dang. There goes the NAR’s chance to force every American to buy three or four more houses, thus to save the starving real estate brokers.

As President Obama himself has noted, there is something wrong with our politics when perfectly reliable campaign donors cannot despoil the taxpayers at will, without judicial interference…

Say “Cheese!” It’s time to play Business Card Monte

We’ve all seen them. The usual suspects on a line-up across a counter in an empty kitchen. Gathering dust on a convenient window sill. Spread out like an abandoned poker game on a dining table. Ah yes, the real estate business cards left behind at showings. Black, white, red, blue, cheap, shiny, standard issue, each one with a Friendly Neighborhood Expert (FNE) smiling earnestly or stupidly grinning, depending (see tiny mug shot, above). My clients notice them too and they kind of scowl over the line up. When I toss mine onto the pile they say, “Hmm. Yours is different.” At which point I flash my own killerwatt smile and say, “Because I am.” They grin back, we move along.

Business cards are pretty awesome when you think about it. Palm-sized advertisements that you can carry about. A potentially effective way to get your message across, but it seems mostly wasted in the world of real estate.

Recently I saw a business card that was left behind with a printed thank you message: “Thank you for allowing us to show your property.” That’s nice. The message was printed next to the full length image of Mr and Mrs FNE. I wonder if it would be useful to have a showing-specific business card, with space to write a note on it? “Love the floor plan!” “Great job with the kitchen.” “Sorry we accidentally let the cat out.” “What the hell is that smell?” You get my point. Someone more experienced can fill me in on why that would be a disastrous idea for their client.

I’ve had property-specific business cards printed up, that’s an easy item to hand across a threshold if you are door knocking, and I have all purpose business cards I use, (see blurry photo, below) they feature The Brick Ranch logo from my website, and it does stand out in a sea of tiny FNEs splashed across the Formica, but business cards are so cheap, why not have a few on hand for a multitude of purposes?

I remember Russell Shaw commenting on one of the BHB business card posts that your Read more

What could be worse than Uncle Sam as the nation’s mortgage monopolist? How about Uncle Sam the monopoly landlord?

From the Associated Press:

The Obama administration may turn thousands of government-owned foreclosures into rental properties to help boost falling home prices.

The Federal Housing Finance Agency said Wednesday it is seeking input from investors on how to rent roughly 250,000 homes owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration. All of the homes are foreclosures.

The U.S. government rescued the two mortgage giants in September 2008 and has funded them since the financial crisis. Fannie and Freddie own or guarantee about half of the nation’s mortgages and nearly all new mortgages.

Converting the homes into rentals may reduce “credit losses and help stabilize neighborhoods and home values,” said Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees Fannie and Freddie.

Fannie and Freddie have been hoarding foreclosure inventory in Phoenix for months. Now I know why. Witness:

It also might meet the growing demand for rentals.

So would selling them, except then they would be owned and managed by people who are working for profit, not political functionaries.

But wait. There’s more:

Private investors could also be allowed to oversee the conversions.

That is to say, all the best Fed-friendly butt-buddies will be cut in on the graft.

And you thought the Federal government could not screw the housing market up any worse…

They don’t know them as the world’s most elite warriors.They know them as “Dad”.

The last 48 hours has been kind of a blur for me. My friend Gary Lundholm, who is a broker with about 160 agents in a couple of offices in Virginia Beach and Chesapeake VA emailed me on Monday am with an unexpected need. (I am going to tell you more about Gary in a future post…he is a Bloodhound and his office is thriving in this economy).

The SEAL Team that was killed in the helicopter crash in Afghanistan was based in his area. Among the agents in his office are many Navy Veterans (Gary is as well.) and spouses of active duty personnel. He wanted to do something to help the families.

He purchased SEALKids.com and wanted a site built so that his agents could all help gather donations from the local community as well as the real estate community for the children of these fallen warriors. Their goal is lofty. $100,000 for the kids of these fallen soldiers. Starting tomorrow morning, they will be sending this online to their friends locally.

If you know Gary at all, this is exactly the type of thing he is known for. (He’d never admit that, which is further proof.) So for the last couple of days on and off, we put together a site to help be a collection for funds to be donated to the Navy SEAL Foundation which will go to aid the families, who often cannot ask for help because they need to protect their identities. It is a close knit community.

It has been an honor to donate some time to work on this. I have cried often as I thought of my own kids and as I have thought of these families’ sacrifices.

I am not asking for donations unless you have it and want to give. I AM asking that you share this around with others so that those who can and want to give have the opportunity. I gave. I would not have posted that unless I had. My family and I decided together that it was something we needed to do.

One more thing that I would ask Read more

Reasons to be cheerful: Defying the specter of ugly fates.

I’m kicking this back to the top from June, 2010. I had occasion to re-read my thoughts on sex earlier today, and then I went back and looked at this essay. I like it better today than I did last summer, and I hope you will, too. –GSS
 

Reasons to be cheerful, part zero: The ground we stand upon is firm and the lever of the human mind grows ever stronger.

I need to take this someplace else. I am madly off-topic here more often than not, this for the past couple of years. I think I may be in the third act of this spectacle of ideas I have made of my life, and I can’t even say, yet, if it’s a farce in three acts or a tragedy in five. I would prefer an epiphany, to say the truth, a symphony, a grand opera composed of nothing but the simplest and most obvious of abstractions, an idiot’s guide to what every last idiot among us has always known forever, has never once doubted, and has always, always betrayed — until now.

But that’s why I’m cheerful, I think, despite everything. There is still so much time left to us, amidst the crush of on-rushing events. I am thrice lucky, I know it: I can see and I can understand what I am seeing. I can think and I can transcribe my thoughts. And I live in a time when the thoughts of everyone in human history who ever thought productively are instantly available to each one of us — on demand, no charge, quantities unlimited, with every taste in depth and rigor satisfied and then some.

This is an amazing thing. It’s never happened before, and it remains to be seen how deeply humanity is willing to set its roots in the boundless praries of the mind. But the simple fact that this is possible — and that people all over the world are taking advantage of it — is a profoundly important reason to be cheerful, no matter what despair might be unearthed in the day’s events.

Clearly, Barrack Obama is incompetent. That’s Read more

Greco-Roman Rejection of Rotarian Socialism Is The Cure For What Ails the United States

Europe has tried all sorts of Statist approaches to the PIIGS problems.  Today, Europeans are considering “liberalization”:

As the European financial crisis moves into its next phase, there’s a new word to learn: “liberalization,” and it’s likely to be even more unpopular than “austerity.”

Leaders in Europe are promising to “liberalize” their economies in an effort to grow those economies, but they face an enormous wall of vested interests that don’t want anything to change.

Greg Swann talked about cutting regulations a year ago.  My comment:

There are close to 400 licensed occupations. Compile a list of half of them, introduce legislation that outlaws states (and Feds) to regulate any of these professions.  Repeat each quarter. Within a year, you’ll only have 25 regulated industries. Within two years, the unemployment rate will drop to 6%, and there will be some 2 million new businesses created

Ohmygosh, cut the licensing regulations?  Does that mean that someone, who hasn’t taken a 400-hour licensing course, will be charging money for weaving hair in their living room?  The horror.  How will the public ever be protected from bad hair-weavererers?  Reputation management is already happening in the free market.  Read Greg’s response:

Check. There’s more that can be done, much of it to the benefit of very small businesses. Consider this: When you’re trying to decide if you should take a chance on a restaurant, who do you trust more, a city inspector who may be on the take or nine fiercely independent Yelpers? The dollar cost of preventing injuries that almost never happen is half of our economy — which is nothing compared to the opportunity costs and interest value of those lost opportunities. We’ve got a dinghy loaded up with admirals and we can’t figure out why it’s slowly sinking.

Who then would stand in the way of  “liberalization”?  Let’s go back to the CNBC article:

Leaders in Europe are promising to “liberalize” their economies in an effort to grow those economies, but they face an enormous wall of vested interests that don’t want anything to change.

Take the case of Simon Galina, a 38-year-old taxi driver in Rome. His profession is one Read more

A practical governing strategy for the Republican party. It won’t happen, but at least it’s potentially doable, unlike everything else.

[Back to the top from November 3, 2010. –GSS]
 

Here’s what the Republicans won last night, most probably: The opportunity to be left holding the bag if the whole creaking kleptocracy crashes.

Here’s what they mostly can’t do, at least not right away: Cut spending or taxes. A huge and growing portion of the budgets at all levels of government are entitlement payments — a subsistence dole under various labels. We have taken a once-free people and turned it half-predator, half-prey — often with both halves living under one scalp, amazingly enough.

So what can Republicans actually do, right now, to deliver on their promises?

They can eliminate every form of business regulation, at all levels of government.

Civil court has always been more than adequate to deal with actual injury. Not coincidentally, statutory regulation is always anti-economic nonsense: Banning competitors (as with the real estate licensing laws), government make-work, monkey-see-monkey-do, superstition, ossified tradition, power lust, etc. If no one is getting hurt, what is being regulated out of existence is this: Human intelligence.

That’s significant for two reasons: We need for business people to get to work and to take a bunch of us along with them. If we decriminalize human intelligence, at least partially, it’s reasonable to expect to see more of it — to everyone’s benefit. But even without the innovations we currently forbid in many businesses and industries, business people need to be able to plan for the future. If they are constantly subject to a vast, unknowable array of ever-changing regulations, they will not take risks. This is news to no one.

So: I’m not talking about some kind of “temporary moratorium” on regulation. This is an old, old leftist dodge: If the cows start to look scrawny, let them fatten up a little before you take up the slaughter again. Alas, because Republicans often have no firmly-held philosophical principles, they fall for these stunts again and again — as with the Bush tax “cuts.”

No, what is needed is the complete eradication of regulation: Repeal the enabling legislation, pay off and dismiss the staff, liquidate the chattel- and real-property. (All of this will Read more

It’s not enough for the tea party movement to throw the bums out. To contain the federal government, we have to cut its powers.

[Back to the top from January 21, 2010. –GSS]
 

What a delight it is that the citizens of Massachusetts have risen up against the federal leviathan. All across the country, the tea party movement is furiously aboil, angry Americans anxiously awaiting the opportunity to pull some levers in a voting booth.

But if the current populist uprising is nothing more than yet another throw-the-bums-out movement, it will come to nothing. We threw the bums out good and hard in 1994, and yet the federal leviathan has done nothing but grow since then. By now the national government is so huge that it threatens to crush the nation and its people and productive plant beneath its enormous weight.

It is not enough to throw the bums out. To contain the federal government, we have to cut its powers. Nothing else will stop its long-term growth.

The United States was originally conceived of as a confederation of sovereign states. The states joined together for those common purposes that seemed to make sense to them, with each state retaining is sovereignty in all other matters.

That was the theory — the federal government was to be the hand-servant of the states. In practice, the federal government has usurped the power of the states from the very beginning, with the abuses becoming more bold and more comprehensive with each passing decade.

This turns out to have been a mistake — as we are discovering. Where each state is independent of all the others, each one can try different policies. The states can become the laboratories of democracy that the founding fathers envisioned.

But to achieve this, we will have to rein in the federal leviathan. The states and the people need to reassert their ownership of and control over the national government.

How? By constitutional amendment. Probably by constitutional convention, since it seems unlikely that sitting members of Congress will vote to circumscribe their awesome and terrifying powers.

But here, in a very short summary, is what needs to be done, if the head of steam built up by the tea party movement is not to be wasted. The text within the quotation marks Read more

A strategy for the Republican party that can actually win elections

[Back to the top from November 6, 2009. –GSS]
 

The national Republican party is riven by an insuperable internal contradiction.

Out of one side of their mouths, Republicans wish to portray themselves as tax cutters, red-tape slashers, champions of liberty fearlessly hacking away at the slimy tentacles of the leviathan state. Ignore for the moment that they’re spineless jellyfish when it comes time to cut, slash or hack; this is how they wish to present themselves.

Out of the other side of their mouths, Republicans offer American voters an alternate set of slimy tentacles for the same old leviathan. The state they promise to shrink will simultaneously promote a nebulous family values agenda and forbid abortion. Republicans will simultaneously dismantle the Department of Education and supplant ecosocialist indoctrination with theocratic indoctrination. The leviathan state will lose the power to ban cancer drugs but gain the power to ban rap records.

Things fall apart. The center cannot hold…

Whatever the Republican party seeks to be in the states, in the counties, in the towns, what it cannot be at the national level is the party of both smaller and larger government. It can’t because as a strategy it makes no sense, and it can’t because there is no common ground between the liberty-seeking Republicans and the theocracy-seeking Republicans. Those two wings of the party can only fly apart in the long run.

But: There is a way around this: The Tenth Amendment to the United States Constitution:

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

If the national Republican party were to concentrate solely on shrinking the Federal leviathan to a strict adherence to the Constitution, devolving all of the usurped tentacular powers to the states to do with — or do away with — as they choose, the party could achieve these goals:

  • It would actually deliver on a promise, prompting universal amazement.
  • It would present to both of its contradictory wings the opportunity to achieve at the state and local levels what they cannot hope to achieve nationally.
  • It would result Read more