There’s always something to howl about.

Category: Group Therapy (page 67 of 81)

The Financial Post: “Aging self-serving demagogues who have spent decades warping the U.S. political system for their own ends.”

Is this the end of America? Canada’s Financial Post:

Helicopter Ben Bernanke’s Federal Reserve is dropping trillions of fresh paper dollars on the world economy, the President of the United States is cracking jokes on late night comedy shows, his energy minister is threatening a trade war over carbon emissions, his treasury secretary is dithering over a banking reform program amid rising concerns over his competence and a monumentally dysfunctional U.S. Congress is launching another public jihad against corporations and bankers.

As an aghast world — from China to Chicago and Chihuahua — watches, the circus-like U.S. political system seems to be declining into near chaos. Through it all, stock and financial markets are paralyzed. The more the policy regime does, the worse the outlook gets. The multi-ringed spectacle raises a disturbing question in many minds: Is this the end of America?

Probably not, if only because there are good reasons for optimism. The U.S. economy has pulled out of self-destructive political spirals in the past, spurred on by its business class and corporate leaders, the profit-making and market-creating people who rose above the political turmoil to once again lift the world out of financial crisis. It’s happened many times before, except for once, when it took 20 years to rise out of the Great Depression.

Past success, however, is no guarantee of future recovery, especially now when there are daily disasters and new indicators of political breakdown. All developments are not disasters in themselves. The AIG bonus firestorm is a diversion from real issues, but it puts the ghastly political classes who make U.S. law on display for what they are: ageing self-serving demagogues who have spent decades warping the U.S. political system for their own ends. We see the system up close, law-making that is riddled with slapdash, incompetence and gamesmanship.

One test of whether we are witnessing the end of America is how many more times Americans put up with congressional show trials of individual business people and their employees, slandering and vilifying them for their actions and motives. And for how long will they tolerate a President who berates business and corporations Read more

There are no second acts in American real estate listings: It’s priced right, prepared right, presented right — and the house still won’t sell. What do you do now?

Barry Bevis in Tallahassee is looking for help. And he’s willing to pay for it.

He has a listing that he’s having trouble moving, and he’s looking for marketing ideas to draw the attention of a buyer.

Here’s Barry’s note:

I have a great listing that just won’t sell…

I’ve given it my version of the Bloodhound treatment: Custom Sign, Website, URL and lots of photos. You can see the home by clicking here.

It’s in a preferred neighborhood with parks and shopping within walking distance. It has been well maintained and is priced well — according to comps and other brokers feedback. It has a great yard and a hot tub!

The negatives: After a year of trying to sell I know them! Small Master bath and No Half Bath. Tile Counters in the kitchen — our area prefers Stone. The cost to cure these “issues” is beyond what the seller can do.

We did start with it priced too high. The seller was “not in a hurry” and wanted to try a higher price. I said okay because he is a friend — knowing all along that it was a mistake. Now its in the ballpark and would appraise at the new list price.

I get a couple of people in a week — and loads of website traffic. But no offers. Not even obnoxious low ball offers.

So the seller keeps asking me what to do… Besides lower the price. So this month we are dropping the price 1K a week, a 4K price drop. That will make it show up on any buyers automatic web searches as “Price Reduced.” We are also offering to pay a point to drop a buyers interest rate, likely below 5%.

What else should I be doing?

I’m looking for ideas to ignite interest in this home and get it sold. I’ve got a $100 AMEX gift card to the most creative idea. Greg and I are the judges.

Step up and tell me what to do!

This is a tough problem, one I wish I were unfamiliar with. F. Scott Fitzgerald said, “There are no second acts in American lives.” One of the Read more

The Fed Translated…..

Well, it’s time to do a little Fed translating again.   This one was a big one, so settle in and let’s translate it.    As usual, my comments are in bold and italics.

Release Date: March 18, 2009

For immediate release

Information received since the Federal Open Market Committee met in January indicates that the economy continues to contract.  The economy continues to contract – no surprise there.  But ask yourself, if the economy continues to contract, then why is the stock market rallying?

Job losses, 651,000 jobs lost in February,  declining equity and housing wealth over 20% of the homeowners with mortgages are underwater, and tight credit conditions not only in mortgages, but home equity loans, credit cards, car loans etc., have weighed on consumer sentiment and spending.  Weaker sales prospects and difficulties in obtaining credit businesses are having a harder time getting credit too. have led businesses to cut back on inventories and fixed investment.  U.S. exports have slumped as a number of major trading partners have also fallen into recession. This isn’t just a US recession, it’s pretty much all across the country.  Although the near-term economic outlook is weak gee, that’s an optimistic outlook of things, don’t you think?, the Committee anticipates anticipates?  Is that sort of like I anticipate that I’ll become a millionaire by the time I’m 45? that policy actions to stabilize financial markets and institutions translated – more bailouts, together with fiscal and monetary stimulus translated – the Fed’s printing press will be working overtime!, will contribute to a gradual resumption meaning we really don’t know when things are going to turn around of sustainable economic growth.

In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued but they don’t say for how long inflation will stay subduedMy estimate is that we’re looking at 12 to 18 months before the economy recovers enough for inflation to become an issue.   Moreover, the Committee sees some risk that inflation could persist for a time below rates that Read more

The Wannabe Cosmopolite

I choose to live in a big American city because frankly, I stick out like a sore sport in most rural settings and my accountant says we can’t afford London. One of my earliest pre-school memories was a Trenton to New York City train ride with my mother on a blustery Saturday morning.  How much of  that early 1960s day trip I accurately recall and how much is anecdotal family filler (pulled, kneaded and peppered over the redolent decades around my parents’ kitchen table) I’m not quite sure.  Still, certain sepia frames have been imprinted in my mind for life— gazing up at the sky scrapers whose dizzying heights give me vertigo to this day; creeping like a mouse through the bowels of  The Museum of Natural History, terrified of the mummies and the smell of all that marble; seeing  a man get his arm tore off by a taxi cab while standing at a busy Broadway corner…I’m pretty sure; sitting on a New York City phone book for a child’s eternity at  Mamma Leone’s, waiting for the dessert course to arrive.  Feeding the ducks in Central Park.  Observing  the landscape artists with easels and tams, their turpentined pigments slathered on thumb-holed palettes, probably all long dead by now but  full of  abstract perspective on that day.  Not peeing my pants for the entire afternoon.

A similar ferment churned in my gut when I first strolled the arrondissements of Paris; same thing along the canals of Rome; and Gaudi’s Barcelona.  And while I can easily inhale the woodsy fragrance of say, a Walden Pond (or even Dyer, Tennessee) without much complaint, I am clearly no Thoreau.  Once you think you see a guy get his arm torn off in Times Square, you can never really go back to the suburbs.  Not entirely.

As each year strikes like lightning, I find myself  being both drawn to, and repelled from, the urban twist of what once was Sandburg’s Chicago with its animal sense of outcome and yellow inner eye… ‘ hog butcher for the world.’  Liebling’s Second City.  On a calm evening the whispers can Read more

Who Needs Sit-coms?

I’ve always enjoyed well written television comedy and I’ve wondered lately why I’m not seeing as much.  What happened to the writers?  Believe it or not, they all moved to DC and are writing for our Congressmen!  Oh sure, there’s a dark edge to the lines they write, but it’s classic television comedy just the same.  The congressional outrage reported in this AP story on the AIG bonus debacle is a perfect example.

AIG notified all involved, over a year ago, that these bonuses were contractually due and payable this quarter.  Former President Bush knew, current President Obama knew, the various financial players in the administration knew and Congress knew.  But that doesn’t prevent Senator Chuck Schumer, D-NY, from issuing this power-drunk one liner: “If you don’t return it on your own, we’ll do it for you.”  (If I had written the scene Sen. Schumer would have exited the room directly after delivering this tour de farce but before going through the door he’d stop, turn and say “I’ll be baaaack.”

Turns out Treasury Secretary Timothy Geithner did meet with AIG CEO Edward Liddy in hopes of discovering ways Mr. Liddy could renegotiate the contracts and all these bonuses, but Mr. Geithner “recognized that you can’t just abrogate contracts willy-nilly” according to President Obama’s chief economic advisor Lawrence Summers.  (Apparently, you can only do the old willy-nilly abrogation of contracts on mortgage lenders using BK judges.  Don’t you just love this juicy sub-plot on the importance of consistency running throughout the program tonight?)

At this point enters Representative Barney Frank, D-Mass, quite possibly the most culpable legislator in the current mortgage crisis.  A less confident person, living in such a LARGE glass house, would probably keep a lower profile but not our crazy Uncle Barney.  “The time has come to exercise our ownership rights.  We own most of the company.”  What??  I thought the administration was taking shares in the companies only to ensure that taxpayers are paid back.  Do you mean to tell me they are going to start running these companies tooI’m shocked, shocked to find (this) going on here.  Rep. Read more

“What do you mean, stop the party? We haven’t ripped off the new neighbors yet!”

One of the fun devices in Part III of Atlas Shrugged is something author Ayn Rand called “the policy of the microsecond.” Despite the high-flown philosophical claims of the looters, their actual motivation was never anything other than “the expediency of the moment” — one absurd rationalization after the next, justifying theft and visiting the consequences of that theft upon its victims.

Just about a month ago, as a comical palliative for the housing mess, I wrote this as a joke:

[I]t would make great sense to make immigration to America easier and faster. Imagine having neighbors who work hard, pay their bills on time and can spell correctly!

That’s the logic of the policy of the microsecond. We don’t want to stop stealing wealth from innocent people. We don’t want to amend our ways and do better going forward. We don’t want to undo the awful damage occasioned by centuries of accelerating criminal government. No. All we want to do is find a way to get through this crisis. We’ll worry about the crisis caused by this “solution” — the crisis of the microsecond after this one — later on.

So guess what happens? I might have been joking, but we live in a world beyond satire. From the Wall Street Journal:

The Obama administration should seriously consider granting resident status to foreigners who buy surplus houses in this country. This makes more sense than the president’s $275 billion housing bailout plan, which Americans greeted with a Bronx cheer.

The federal bailout forces taxpayers to subsidize overextended homeowners who bet on ever-rising house prices and used their abodes as ATMs, and it doesn’t get to the basic problem — the huge inventory of excess houses. We estimate that 2.4 million houses over and above normal working inventories are left over from the 1996-2005 housing bubble. That’s a lot, considering the long-term average annual construction of 1.5 million single- and multi-family units.

Excess inventory is the mortal enemy of house prices, which have already fallen 27% since the peak in early 2006. We predict another 14% drop through the end of 2010 if nothing is done to eliminate Read more

If the congenitally big-hearted American people were to fixate upon a moderately competent administrative assistant and make that man president of the United States, what would happen?

They’d wake up and catch a clue, that’s what. From the Wall Street Journal:

It is simply wrong for commentators to continue to focus on President Barack Obama’s high levels of popularity, and to conclude that these are indicative of high levels of public confidence in the work of his administration. Indeed, a detailed look at recent survey data shows that the opposite is most likely true. The American people are coming to express increasingly significant doubts about his initiatives, and most likely support a different agenda and different policies from those that the Obama administration has advanced.

Polling data show that Mr. Obama’s approval rating is dropping and is below where George W. Bush was in an analogous period in 2001. Rasmussen Reports data shows that Mr. Obama’s net presidential approval rating — which is calculated by subtracting the number who strongly disapprove from the number who strongly approve — is just six, his lowest rating to date.

Overall, Rasmussen Reports shows a 56%-43% approval, with a third strongly disapproving of the president’s performance. This is a substantial degree of polarization so early in the administration. Mr. Obama has lost virtually all of his Republican support and a good part of his Independent support, and the trend is decidedly negative.

A detailed examination of presidential popularity after 50 days on the job similarly demonstrates a substantial drop in presidential approval relative to other elected presidents in the 20th and 21st centuries. The reason for this decline most likely has to do with doubts about the administration’s policies and their impact on peoples’ lives.

There is also a clear sense in the polling that taxes will increase for all Americans because of the stimulus, notwithstanding what the president has said about taxes going down for 95% of Americans. Close to three-quarters expect that government spending will grow under this administration.

Recent Gallup data echo these concerns. That polling shows that there are deep-seated, underlying economic concerns. Eighty-three percent say they are worried that the steps Mr. Obama is taking to fix the economy may not work and the economy will get worse. Eighty-two percent say they are Read more

That’s the night the lights went out in Pike County Georgia

lightswentoutpike

The Pike County Chamber of Commerce has decided not to host the annual Fourth of July fireworks this year because of the current state of the economy. You can read the whole story here: C.O.C. decides not to host July 4th event

No fireworks? No Celebrating our Independence? Are you kidding me?

There isn’t any doubt that times are hard. All we have to do is cut on the news, and gloom and doom is broadcast 24 hours a day – 7 days a week. Turn on the radio: Whenever they stop playing songs, the announcer is battering us with how bad things are, with how we’re living in fear and hopelessness. All we have to do is look at our neighbors and see them losing their homes to foreclosure. We all pray quietly that we won’t be next…

Next to lose our home. Next to lose our car. Next to lose our job. Next to lose a person that we love.

There is darkness everywhere.

That’s EXACTLY why we shouldn’t cancel the fireworks. That’s exactly why we need to celebrate our Nation’s Independence. That’s exactly why we need to go boldly into the night.

Fireworks. They are a reminder of a time when royalty tried to tax our people to death with an iron-fist from across the Atlantic. They are a reminder of the brave men and women who laid down their lives to fight for our Independence. They are a reminder of the men who signed their names on a piece of paper – even though many believed they were signing their own death warrants. They are a reminder of the soldiers that have died in days of old and in the most recent days of new. Some of those soldiers lived here in Pike County. Went to school here. Have families here. How can we dare insult their memory by not honoring their service?

Fireworks. They are reminders that we are a people that call ourselves Americans and we don’t all have to agree to get along. We come in many shapes. Many colors. Many sizes. We’re all unique. We’re all beautiful in our Read more

Ave atque vale: Bidding farewell to conversations past

Notice a drag in the action lately? Have you been getting the database error a little too often? Time-outs? Memory overloads?

Everything associated with Bloodhound Realty runs on a dual-core Xeon box. All by itself, no shared users. We have the whole server to ourselves. Two processors, two big disk drives, gigahertz ’til it hurts.

And we’re maxing it out in peak hours.

BloodhoundBlog has thousands of RSS subscribers, and we serve our own feeds. In the long run I might have to bite the bullet and sign up for a third party feed service like everyone else.

But there is another big problem that I’m making an effort to cure today:

BloodhoundBlog gets hit with spam comments around 5,000 times a day. Almost all of these are caught by Akismet, but each one is a strain on the MySQL database — the very chokepoint that’s getting maxed out.

So effective now, I’ve cut off all comments for posts over two weeks old. I hate having to do this, because sometimes pure gold turns up in a comment on an older post — and our archives are ripe with gold in any case. But the spammers are looking for juice, and older posts are where the juice is to be found.

I hate having to do this, but swatting at flies only gets you so far. Eventually you have to rob them of their food supply.

My apologies. But: Let’s hope this speeds up the action on the live conversations.

“If I never make a single payment on my super-cheap FHA loan, do I still get my $8,000 tax credit?”

WAPO:

The last time the housing market was this bad, Congress set up the Federal Housing Administration to insure Depression-era mortgages that lenders wouldn’t otherwise make.

This decade’s housing boom rendered the agency irrelevant. Americans raced to aggressive lenders, seduced by easy credit and loans with no upfront costs. But the subprime mortgage market has crashed and borrowers are flocking back to the FHA, which has become the only option for those who lack hefty down payments or stellar credit. The agency’s historic role in backing mortgages is more crucial now than at any time since its founding.

With the surge in new loans, however, comes a new threat. Many borrowers are defaulting as quickly as they take out the loans. In the past year alone, the number of borrowers who failed to make more than a single payment before defaulting on FHA-backed mortgages has nearly tripled, far outpacing the agency’s overall growth in new loans, according to a Washington Post analysis of federal data.

Many industry experts attribute the jump in these instant defaults to factors that include the weak economy, lax scrutiny of prospective borrowers and most notably, foul play among unscrupulous lenders looking to make a quick buck.

If a loan “is going into default immediately, it clearly suggests impropriety and fraudulent activity,” said Kenneth Donohue, the inspector general of the Department of Housing and Urban Development, which includes the FHA.

The spike in quick defaults follows the pattern that preceded the collapse of the subprime market as some of the same flawed lending practices that contributed to the mortgage crisis are now eroding one of the main federal agencies charged with addressing it. During the subprime lending boom, many mortgage brokers and small lenders milked the market for commissions and fees by making as many loans as possible with little regard for whether they could be repaid.

Once again, thousands of borrowers are getting loans they do not stand a chance of repaying. Only now, unlike in the subprime meltdown, Congress would have to bail out the lenders if the FHA cannot make good on guarantees from its existing reserves. And those once-robust reserves Read more

A few thoughts about freedom and real estate from the middle of an undisclosed cornfield

I am Bloodhound hear me howl! Or, something like that.

I went to a farm forum yesterday and learned about the state of farming in Ohio. I think Ohio is returning to it’s agricultural roots. We are becoming the Green Belt, and I welcome that change. You have my permission to snicker at corn fields and pig farmers. You have my permission to make jokes about farm folk. You may snort behind your hands at the thought of working with the land in order to create a world of your own. We should all be so lucky. I’m not here to romanticize cornfields, but I can think of few people who live a life of more independence and take more risks than Ohio’s entrepreneurial farmers.

It got me thinking about my own life among the cornfields of Ohio, and my own sense of independence and freedom, and I wonder why it might be different for you.

We are all here, online- the great equalizer, btw- reading this. Maybe from a farmhouse in the middle of corn-fed world that your own hands and hard work have created, but maybe from a loft in a world of concrete that you did nothing to create. Most likely you are reading this from a tract home on a piece of dirt that will never produce for you. Wherever you are reading this, Welcome to your future. Now what?

Freedom is the reason I became a Realtor- my freedom, but also my client’s freedom. Wasn’t that part of the attraction for you? The freedom to think your own thoughts, have your own life, decide for yourself how you choose to live. I decide how many hours I work, how much money I make, where to spend that money- it’s all in my hands, I get to live or die by my own sword, just like you. So here’s my question: Why shouldn’t I take offense to an organization that is created for the purpose of restricting freedom? Or, more to the point, why wouldn’t you?

Why would you willingly allow someone to curtail that freedom? Why would you choose to follow Read more

I’ve taken the liberty of posting my “Mortgage Market Week in Review” here…..

The Week We Woke Up

I’m going to deviate from the normal format this week, because I believe that this week has deviated from the normal that we’ve been experiencing lately.   I’m calling it the Week We Woke Up.

What did we wake up to?  A couple of things:

  • The fact that the debate on whether we’re going to have to nationalize some of the banks/financial institutions is pretty much a debate over semantics.   The announcement that the government now owns 36% of Citibank and that we had to spend some additional billions (how many has yet to be determined) to save AIG for the third time effectively said that we are now in a situation where the government does own some of the banking industry and the debate should now be about the how and not the whether or not.   This mess sent shock waves through the financial markets and virtually every bank saw their stock prices get “adjusted” accordingly.  There was a time this week that Citibank was trading for less than the cost of a Jr. Bacon Cheeseburger at Wendys.
  • The reality of GM’s scenario became a lot clearer and not in a way that was going to make the economy any healthier.  There’s a phrase in business accounting called, “A Going Concern.”   What does that mean?  Essentially it means that a business is generating enough income and has enough cash to continue in business.  Well, GM not only had some bad news in terms of sales, but they admitted that their auditors don’t believe that they can remain in business. That’s a pretty strong indication that GM’s condition is a lot worse than what we thought a couple of months ago.  What does the prospect of a GM bankruptcy mean?  Best case scenario – renegotiated contracts with the UAW and bond holders, substantial job losses and dealership closures.   Worst case scenario – total liquidation of GM and absolutely staggering job losses that will make Read more

Here’s Some Piss Poor Journalism For Ya

Since Greg welcomed me aboard BHB last week, ideas have been racing through my head.  What would I write about first?

CRM execution tactics? Too predictable.

Skinned cats? I’ll leave that to my favorite cat skinner.

Then it occurred to me last night:  why not dive right in with an example of why BHB and blogs like it are putting the traditional fish rag out of business.

I’m a sports fan(atic).  I find it to be the ultimate in reality television.

But whether your remote is hard-coded to ESPN or not,  you’re surely aware of the ongoing steroid crisis in professional sports.

This week’s Sports Illustrated features an article about a former football player named Tony Mandarich, commonly known as the biggest bust in NFL history.  However, two decades ago, SI ran a story proclaiming Mandarich as “The Greatest Offensive Line Prospect in the History of Football”.  This story was written by a journalist named Rick Telander.

Now, twenty years later, Tony Mandarich Book Deal is ready to say he’s sorry for using steroids.  So he looks up good old Rick Telander Spineless Jellyfish and lands himself a feature article advertisement.

Here’s the article, please keep a barf bag nearby:  “Tony Mandarich is Very, Very Sorry”.

And here’s my favorite paragraph from said article (via Telander):

“… He lied to me.  Lied to everybody… I knew he was using steroids… but all I could do was hint at my suspicions…”

Um, Ricky baby… you knew he was taking illegal steroids, cheating and gaming the system but you, a Senior Writer for the most respected publication in sports were POWERLESS to do more than “hint at your suspicions”?

Telander’s article goes on to reveal that

  • Mandarich was known at his local gym as the “Doctor”

So what Telander’s telling us here is that he could have easily broken arguably the biggest sports-related story of the decade if he simply noses around the gym a little bit to explain how/why…

  • Mandarich magically transforms from a 6′ 3″ HS kid who rode the bench on his JV team into a behemoth that bench presses 585 pounds and “runs like a deer” in college

Wait a second.  This blog is supposed Read more

Confessions of a Married Man

No, not that type of confessions, I’ve been happily married for 23 1/2 years and believe firmly in the “until death do us part” of my marriage vows.

But, after a conversation I had with Teri and after reading Sean’s post and the subsequent conversation in the comments by a number of people including a couple of friends who I respect and value their opinions, I felt I had a confession to make.   Much of this confession is based on what I’ve learned from my wife.

So here goes the confession:
1. There is a LOT to worry about right now.  Probably more to worry about now than any time in my adult life.
2. Listening to CNBC can increase the amount of worry that one has about the financial mess that’s happening.
3. There are a lot of people who make a living off of increasing the worry that other people have.  Many of them work in the main stream media, but many of them work in Washington too.
4. While I agree with people like Sean Hannity and Rush Limbaugh more than I disagree with them, I told Jeff Brown yesterday that I can’t listen to either one of them for very long.   Why?  The way that they play on the worry and discord over what’s happening in Washington is just too depressing.
5. While I have voted in every Presidential election I’ve been able to and all of the congressional elections (off years), I have missed a few school board and township elections.  I firmly believe in the power of people to make a difference by voting, but I’m also very jaded by pretty much everyone who is in Washington and the state capitals as well.

So what did I learn from my wife?   It’s pretty simple:

Don’t worry about things you can’t control.

I can’t control what happens in Washington – but I can learn and be informed about what’s happening so I can make wise decisions.

I can’t control what happens in the stock market – but I can learn and be informed so I can make knowledgeable decisions and help my clients and my referral sources Read more