There’s always something to howl about.

Category: Group Therapy (page 81 of 81)

Chicken Soup for Your Business

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April Groves shared her thoughts on how mundane tasks often tend to produce seemingly unrelated benefits. I love this post – Whether, as April suggests, it is the ordinary act of house cleaning (okay, not so ordinary in my house) which inspires healthy eating or the simple ritual of applying make-up which increases productivity, random tasks can work to produce surprising results. (I can’t leave this last “make-up thing” without warning April that when her odometer nears a significant roll-over milestone as mine is, the task of “putting on one’s face” becomes about as simple as engineering a space station).

April is right, though – We needn’t surrender our lives and our work to a constant state of entropy. And yes, you naysayers, there is a real estate connection in all of this. I think it is safe to say that we all from time to time find ourselves either on a low boil or losing steam. We all periodically risk burn-out.  Let’s call it Business Block, and sometimes the answer isn’t to do more of what got you into this place, but to recognize your motivating triggers. I have my own mechanisms for harnessing the energy to refocus.  I make chicken soup – Using the Suzuki method. No defined recipe, but just a lot of seemingly unrelated stuff from the pantry which sounds good and I intuitively know will make me hungry again.

Dress for Success

I remember my elementary school dress code. Skirts or dresses for the girls were required. The argument was that we would be more inclined to learn if we dressed the part; sloppy appearances would translate to sloppy attitudes and shorter attention spans. Today, many light years later, this is just silly. Blue jeans don’t symbolize a day off – Ask any Microsoft employee. For me, they symbolize “no appointments” and therefore a “back office day”. My most productive back office days come courtesy of Abercrombie and Fitch. Unfortunately, Steve’s “back office day” uniform involves a pair of hideous day-glo orange shorts which, ironically, work the same magic for me. They send me running for the office.

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Some days there is just no wind in Read more

Nobody Behind the Curtain — Cookies and Milk — Judo — And NOT Repeating History

What went on with the speculation about the Fed Funds Rate all last week, and will surely intensify today and tomorrow, has been almost, but not quite analogous to the scene in The Wizard of Oz, when we discovered there was a man behind thehide in plain sight curtain. The characters were told to ignore him — by the guy behind the curtain.

Dr. Bernanke is not in any way analogous to that guy.

Bernanke has, in my opinion, played this whole melodrama out while hiding in plain sight, instead of behind a curtain. He’s using what I’m now calling Bernanke Judo. That is, he’s using the other guy’s energy against him, which keeps them off balance. Nobody is paying attention to what he’s really been doing the last few weeks, because he’s got everyone watching his interest rate hand. Meanwhile, he’s been free to play out his real agenda with the other hand.

The almost humorous part of his plan is how simple it’s been to execute — again — in plain sight.

First he treated all the whiners on Wall Street like petulant children by giving them all cookies and milk. It came in the form of a cut in the Fed Discount Rate. Everyone smiled, and the warm and milk and cookiesfuzzies returned to the land of bulls and bears. Confidence was bolstered.

Then they all took a nap — as he knew they would. He knew exactly how to manage their fears and frustrations. Sure, they kept complaining, but they kept it down to a low, manageable roar. They figured they’d finally thrown enough tantrums to get their way.

Bernanke also knew that beyond everything technical and debatable, the one thing he couldn’t let fall below the critical floor, was confidence in the economy as a whole. He cut the discount rate.

So, what’s he been doing you haven’t heard much if anything about the last few weeks? Making history, that’s what.

I can’t find a two week period in the last 40 years where the Fed has increased money supply by over $110Billion — can’t find it. That doesn’t mean it hasn’t happened, but Read more

My 9/11 prayer . . .

This is me, this time last year:

Cathy and I watched The Path to 9/11 on television tonight. I had forgotten that we were in Metro New York for the Turn of the Millennium. My father lives in Connecticut, and we went there that year for New Year’s Day. The photo you see is my son crawling all over a bronze statue of a stock broker in Liberty Park, directly across from what was then the Merrill Lynch Building — on December 30, 1999.

I lived in Manhattan for ten years, from 1976 to 1986. For quite a few of those years, I worked just across from Liberty Park, in the Equitable Building at 120 Broadway. At the other end of that little brick park was the southeast entrance to the World Trade Center complex.

I worked insane hours in those days, and, very often, when I got out of work, I would go sit at this tiny circular plaza plopped down between the Twin Towers. Not quite pre-dawn, still full dark, but completely deserted — and to be completely alone in New York City is an accomplishment. I would throw my head back and look up at the towers, the fourth movement of the Ninth Symphony running note-perfect through my head.

Everything I am describing was either destroyed or heavily damaged on September 11, 2001. Along with the lives of thousand of innocents. Along with the comfort and serenity of their families. Along with the peace of the entire world.

I don’t believe in any heaven except for this earth, this life — the heaven we make every day by pursuing the highest and best within us. The World Trade Center had its faults. I can detail every one. But it was a piece of the sublime, a proud testament to how high, how good our highest and best can be. I don’t believe in heaven, but when I think of what was done that day, I pray there is an everlasting torment for the men who did it…

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Sub-Prime Borrowers Got Lucky- They Didn’t Pay Enough

I floated an idea about a federal bailout, along the lines of Chrysler in 1980, of Countrywide Financial Corporation. I wanted to highlight two things in this post: Countrywide is in trouble and their trouble is our trouble. My premise is that the collapse of CFC goes beyond the 55,000 employees. I may have been guilty of thinking like Charles Erwin Wilson.

Jeff Brown replied, “Countrywide ain’t no Chrysler” and proved that my premise may be an insult to Adam Smith. His idea of a bailout was more along the lines of a Tom Clancy novel with Ben Bernanke playing Jack Ryan, Angelo Mozilo playing Dr. Strangelove, and Bank of America playing the United States Marine Corps. Life often imitates art so my money’s on Jeff’s covert bailout plan.

What really happened to the mortgage market ? They didn’t properly price loans for the risk they assumed. While Hilary Clinton is crying about the “poor borrowers” what about the poor lenders who got caught in the middle of this mess? Borrowers said “We’ll buy it if you give it to us on the cheap !”, Wall Street said “We’ll take the extra yield!”, and we all said “This time it’s different !” Extrapolations proved that a two bedroom condo on the Las Vegas Strip would sell for at least $5 million in this new economy, fueled by leverage.

Read Ralph Alter at The American Thinker:

The dirty little secret of the sub-prime crisis is the fact that sub-prime lenders failed to charge interest rates high enough to offset their expected level of defaults. Make no mistake: sub-prime lending is going to have borrowers who fail. Even conforming borrowers sometimes default. Enabling lenders to charge enough to make profitable loans to less qualified borrowers will result in a higher level of foreclosures. But it will also enable legions of “sub-prime Americans” to realize the American dream of home-ownership.

Who were the losers of the explosion of non-prime lending? The 10-15% of the homeowners who were able to buy homes, Read more

It’s A Lenders’ Market

I pulled a Cramer today. The pressure has been mounting for some time, now.

Roberta Lee, a real estate broker in Norco, CA left a comment on an article I wrote on Active Rain:

My son is in the mortgage industry. He took the time….. 🙂 to enlighten me…..”Mom this isn’t a buyers market or a sellers market, it’s a lenders market.”

Ain’t that the truth, Roberta? I had two, um, situations this week that influenced the Cramer that erupted at 3PM this afternoon. Both involved incompetence and arrogance by the wholesale lending “professionals”. THAT is going to be a problem that needs to be addressed immediately.

Customers are scared. I know and you know that this stuff happens every ten years or so but it’s pretty scary when it’s happening to you. I do a fair amount of business in negative amortization loans. That product has been repriced to reflect the investor’s perception of increased risk but the portfolio lenders are still in the game. I’ve come full circle and have started placing loans with the banks I used in the 90s. None of my old friends are there, anymore. They’ve been replaced with the cast of High School Musical.

One rep doesn’t truly understand her products. She parroted the sales manager’s script when I questioned about a recast and argued relentlessly while I did the math. She was off by about nine months…those nine months matter to an engineer (my customer). When I asked her to be more precise with her answers, that customers’ financial futures were at stake, she flippantly replied that it wasn’t her problem these “morons” are in trouble. She lacks what business school professors might call, um, a “consumer-centric” philosophy.

Another bank rep couldn’t understand why my customer was nervous when she broke a promise to me. The problem was exacerbated by her poor knowledge of her bank’s closing process, so she told another little white lie. This delayed the closing another day. When I explained why customers were stressing in this Read more

The Mortgage Tax Act of 2007

Michael Cook did an excellent job explaining the two noteworthy debacles of last week. American Home Mortgage went belly up and Bear Stearns may be downgraded to a negative rating. Thursday afternoon, Angelo Mozilo of Countrywide Financial, did his best Nero impression by muttering two words to analysts; “Don’t Worry“.

Mr. Mozilo may be parroting Bobby Mc Ferrin but the rest of the lenders aren’t. Non-conforming lenders readjusted to what they now call “risk-adjustment” pricing. Basically, at Wall Street’s direction, the large lenders added about a 1% fee to the stated income and no income documentation loan programs. Loans that conform to FNMA or FHLMC guidelines, with verified income and assets, remain at their original pricing. There still are 100% financing programs available to those with good credit and the ability to make the payments.

Have borrowers who choose not to disclose income documentation become personae non gratae overnight? Not really. We have always known that light documentation borrowers, who can not demonstrate an ability to repay the loans, have been a higher risk. There has always been a price adjustment for that risk. Large down payments (20-30%) used to be the norm for those programs. It wasn’t until after our country was attacked, in September of 2001, that Wall Street started reaching for yield. The easy money policy and anemic stock market of that post-attack economy left the investment bankers STARVED for business; they found that business in high risk home borrowers.

This brings us to the Mortgage Tax Act of 2007. The way out of this mess is to originate more product. That sounds counterintuitive, doesn’t it? Well, if lenders can originate more loans, they can spread the risk across more assets. The risky loans (stated and no doc) now have a higher risk adjustment. That risk-classified pricing model is not unlike the insurance industry’s move to segregate tobacco users from non-tobacco users. Smokers are charged a higher insurance premium than non-smokers because their life expectancy is lower. That’s what the lenders Read more

Stuck in the middle – Real Estate Business Basics and Clearing the Cobwebs

To Do Post ItMy life is a series of Post It notes. They are stuck to my computer screen, they clutter my desk, and they litter my backyard when a light wind kicks up in the vicinity of my patio table. They can be found in the floor of my car, at the bottom of my purse and, more than occasionally, on the foreheads of my children.

My organizational skills are not so hideous that they would be the subject of the next Lifetime family movie, but my life (we will call it my “back office”) is certainly, at this point in time, in a state of disarray.

I could read a book about organization and time management, but I simply don’t have the time. I think I will make a note to do that tomorrow. In the meantime, I will come to my own defense – It’s not my fault!

Lani’s Internet which has become such an essential part of our lives, Greg’s Internet which is well on its way to replacing the paper book, and our collective Internet which births eighty-seven more ways each day to make our lives easier has simply made me numb.

My frying pan runneth over with fish. Jeff Brown turned me on to Jott awhile ago, thinking it would be useful to a girl on the go. Call the toll free number, speak your message, and the next morning you will be emailed a transcript. A virtual To Do list. Now, I have to remember to Jott.

And I have to remember to blog and comment and trackback and linkback, to be a Trulia Voice and a Zillow neighborhood specialist, to log onto Meebo when I am “in” and off when I am “away”, and to download and study my Altos charts. The list goes on. With each of these exciting opportunities comes an email reminder, and each of these “to dos” involves a brave new world of email inbox populating never before seen. So much so, that I find myself “saving” these messages for another time, a time that often never comes. So large is my inbox, that it has lost Read more