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news: The Banking Situation Explained - 10/06/08 12:29 PM
Based on an email received from a friend today, here is a horse racing analogy for you. Just add the appropriate number of zeros to these figures and it will be a closer, though still not a perfect match to the banking situation. Still, I think it is closer than what Congress is using to explain the problem to the public.
George is at the race track and bets $2 on a horse to win.
Two guys observe this bet and Fred says to Samuel, "I'll bet you $5 that George wins his bet."
Nearby are William and Bob. William says: … (0 comments)
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news: What Next, One Wonders - 10/04/08 01:57 PM
It has been a busy time since my last post. WAMU collapsed into the arms of JP Morgan, the exiting President, Mr. Fishman, receiving about $1,000,000 per day for his 19 days of service.
Wachovia, suffering from indigestion from their earlier purchase of World Savings apparently, faded into Citibank - er Wells Fargo, now creating conflict between these two giants. Lehman Brothers fades to memory.
But AIG gets an $80Billion support package from congress. I wonder of these folks would be quite as generous with their own money as they are with ours.
The list goes on, and will continue to … (0 comments)
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news: We're From the Government and We're Here to Help! - 09/10/08 06:28 PM
Heard that line before. Never seems to work out quite the way it was promised up front. One wise mentor maintains that there is an inverse law at work in government. Whatever the government tries to do, the reverse happens. There are myriad examples, but the bottom line seems always to be that the incentives are inverted.
Business people have a constant measure of success or failure. If they spend more than they make, the business dies. You don't have to wait for a committee to tell you that. But in government, the more you spend, the better your promotion will … (4 comments)
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news: FNMA & FHLMC - still in the news - 09/09/08 04:52 PM
Much more about the developing situation around these two former GSE entities in the news today. When these two agencies were first birthed by Congress about 40 years ago, the goal was to bring order and stability to the mortgage lending activity in America. Prior to their creation, mortgage lending was mostly a function of local banks and savings banks, with some insuring activity available from VA and FHA. These were the days of 20% cash down payments and your choice of 30 year or 15 year fixed rate amortization loans. Life was pretty simple then. Home ownership rates were climbing … (2 comments)
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news: FNMA & FHLMC Bite the Dust - 09/08/08 04:38 PM
Dateline - Washington DC
Two interesting bits of news in from the Potomac. This first item from the Washington Post...
U.S. Seizes Control of Mortgage Giants Washington Post (09/08/08) P. A1; Irwin, Neil; Goldfarb, Zachary A.
"The federal bailout of Fannie Mae and Freddie Mac involves putting the companies under conservatorship and placing the Federal Housing Finance Agency in charge of their operations and appointment of senior managers. The government has dismissed Fannie Mae and Freddie Mac's CEOs--who will, however, assist in the transition--and will provide capital, if necessary. The plan also calls for a cut in the stake of current … (4 comments)
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news: Smart Upgrades To Your Home - 07/29/08 03:49 PM
There are many remodeling options available to make your home more comfortable now and more appealing to buyers down the road. But which options will offer the highest return on your investment?
Each year the nations Realtors rate remodels and upgrades that offer the highest return for your dollar. This information is available in Remodeling magazine on the Cost vs. Value Report.
It is a great reference source for the questions:
How much will the project cost?, and Will I get most of my money back if I have to sell? The results are broken down by region, so you can … (0 comments)
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news: And the dance continues... - 07/22/08 12:39 PM
How about that! A new subprime lender discovered by Beal Bank, and they appear to be a bit put out by the discovery too.
According to the Washington Post (07/22/08) P. D2,
"FDIC Sued Over Subprime Loans: The Federal Deposit Insurance Corp., which insures U.S. bank deposits, made subprime mortgage loans to borrowers in 2001 and 2002 that violated guidelines, according to a lawsuit by Beal Bank. The FDIC made the loans after it took over Superior Bank as conservator in 2001 and operated its subprime mortgage business, according to court documents. Beal Bank sued in 2002, saying about a quarter … (2 comments)
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news: Ramp up your marketing power - 07/17/08 01:13 PM
Just recently discovered this option from a friend of mine. A very creative idea called RipCard, which is a double sided, full color business card designed to be ripped in half (it is perforated down the middle) to enhance your referral business. Each card carries an unique identification number. You give out a few to each of your current clients, who then share them with their friends and associates. When a referral contacts you, the card ID number tells you who made the referral and you can complete the thank you option of your choice at that time.
Of course, you … (7 comments)
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news: Lender of Last Resort - 07/14/08 12:53 PM
The news is everywhere that the government will not allow FNMA and FHLMC to fail. Instead the Federal Reserve will offer funds at the same rate that the big banks pay and the loans will all be guaranteed by congress. Maybe.
Obvious problem with this solution is that, contrary to popular opinion, the government does not have any money, earns no income to speak of, and seems unable to manage critical issues such as concealing concubines, balancing the budget, and uniting in the defense of the country. Odd group of failures, one thinks.
Politicians strive prmarily to remain in office. Events … (3 comments)
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news: FNMA & FHLMC??? - 07/12/08 08:16 PM
It is all over the news this weekend, and last week's stock market seems to be pointing the way. Fnma, affectionately known as Fannie-Mae, and brother FHLMC, AKA Freddie-Mac are in deep financial trouble. Some say these two industry giants are already insolvent by a wide margin. Their need for new capital is currently at 75 million and in the latest debt offering, FNMA had to pay nearly 3/4 percent above the Federal Funds rate that supported their usual borrowings.
What would happen to the real estate business as we know it is these two market makers (roughly half of all … (2 comments)
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news: IndyMac CEO Requests Pay Cut - 07/10/08 05:34 PM
IndyMac CEO Michael W Perry requested a 50% pay cut as a result of the market changes at the bank he has run for the past 15 years. What does that really mean?
Recently he was listed as number 84 among the Forbe's list of top CEO's compensation across America. That put him on page 4 of the list; entry reproduced here for your convenience.
So his pay cut request essentially means he will need to struggle along on a bit under $8 Million per year. The 3,400 soon to be former employees will get somewhat less, even though IndyMac … (7 comments)
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news: Another Bank Bites the Dust - 07/09/08 04:17 PM
In the news today, IndyMac Bank depositors want their money back. So they've started a run on the bank to close their accounts and get what cash they may have, even those under the FDIC insurance limit. This follows Monday's announcement that IndyMac would shut down the mortgage lending operations. These were the heart of the bank's income and profits just as recently as a year ago. Most of its retail mortgage branches were sold to Illinois-based Prospect Mortgage for an undisclosed price.
Hard to remember that a year ago IndyMac Bank stock was $30.00/share. Two years ago it was at … (7 comments)
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news: Help protect yourself from cyber crime - 06/27/08 01:11 PM
When you need web access on the road, even locally, you have greater risks than when working from your secure home or office location. Protecting your critical information, such as log-in and password combinations to your securities trading account, checking and other bank accounts, credit card accounts, and so on is actually in your best interest.
The biggest risk comes from using other computers, such as in hotel business centers, Internet cafe and coffee shop computers, and even those at your public library. While most of these machines are not out to get you, the possiblity exists for someone to insert … (0 comments)
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news: July 1 is coming - 06/27/08 12:53 PM
For all you multi-tasking, hard driving, folks out there, remember that the new hands free only law concerning cell phones (if you are 18 or older) is effective July 1, 2008 and there is no grace period. You can get the official Q&A at the California Highway Patrol website at http://www.chp.ca.gov/pdf/media/cell_phone_faq.pdf which will require Adobe Reader, but who doesn't have that?
For those with drivers under age 18, the rules are even tighter. Both age groups have new rules to follow. There are a few exceptions, but none start with "I didn't know".
Have an awesome day!!
… (3 comments)
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Bruce Forge
Irvine,
CA
More about me…
iNET Realty, Inc.
Address: 2450 Dupnt Dr, Irvine, CA, 92612
Office Phone: (714) 376-4488
Cell Phone: (714) 376-4488
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