Ed's Blog

No word can explain the current LA real estate market.

Ed Tse (richvalley) — Tue, 02 Jun 2009 18:18:29 -0500

I went back to California from Texas. It has been one month for me to personally submerge into the current Los Angeles real estate market. A refreshment?!

I swear to myself that I would not say anything before I have some ways to get along with the market. For now, all I want is just sit tight, observe what the market is functioning and doing some purchases and investments. Hope no extra word of opinion out of mine.

One month watch leaves me a very impressive and confusing image on Los Angeles market. It is incredible to believe what could be like this, out of the housing bubble and Bernanke-Paulson-Gaithner‘s policy. What kind of monster is out of there? I wonder if a decent traditional real estate market does exist in terms of conventional wisdom, foreclosure, short-sale, justice and mortgage banking laws.

Using a foreign language to describe the current maze situation, such as "Shonda" is not good enough (please see Mortgage crisis is crying 'shonda'.) Not only it is still too foreign to me, but it confines itself within the angle of hindsight. It is not good to portrait the "REAL" pictures of the status quo, let alone the foresight, solution or predictable game rules.

If I have one word to say, it is "LP." In Taiwan, it is the word bearing a sense of "barbarian civilization." It will make the term of "jungle" too polite when a civilization meets this hard-to-explained situation.

What I mean exactly? It is difficult to imagine and explain what kind of real estate market the current Los Angeles is. Well, I believe nobody with reason can interpret the LA market without difficulty. Sometimes I have very difficult time to see what is going on like last night when I received two “addendum” from a REO banker in one day. The first email was revoked when the 2nd one arrived in 30 minutes.

I was so frustrated that I don't even know how to reasonably response or proceed. While the REO banker has totally ignored the original 8 page CAR form my agent presented, its asset management gave a brand new "addendum" as its counter offer or contract. Ann, the bank asset manager, is insisting on conveying the title to the property by a "quitclaim deed," even she orally and in her emails agreed to use "Grand Deed." However, in the last two addendum, she still insist to include the "quitclaim deed" in the contract and says that is the bank form which no outsider is able to change without its legal department's permission.

I have no enough reasoning ability to see why she or the bank lawyer wants "quitclaim deed" in the contract on the one hand, and, on the other hand, they claim all their transaction are done by a "grand deed" with no exception? They even went so far to admit it is illegal to use a "grand deed" in their transaction. But if the bank is not going to do "quitclaim deed," what is the big deal for the banker refusing to take the term "quitclaim" out of the contract? Does any my fellow agent understand the rationale behind this? Dealing with this banker, only this nonsense issue is enough for me to rush out for Rolaids. (NOTE: l don't want to mention other issues, such as the bank's right of unilateral termination to the contract. To rebut the "illegal" claim of their usage of "quitclaim deed", I may release the legal form of the attorney later for my agent fellow to review.)

Is it totally insane, irrational or crazy, or may be I should be not so strong to say, different from what I am used to. Hum, am I too old for this brand new ball game in the E-ages?

With the Californian judges denying gay community the marriage right, I am also wondering what is so important for them to fight to death, when some people decide to love and live together without a legal license? Hum, am I an old-fashioned? Am I normal or abnormal in facing the Los Angeles new game? At least at this moment, I have to think: By who’s definition of normality or the law of cause-effect?

I wonder, it would be much easier for Hilary Clinton to face and react to the recent behavior of North Korea than I am going through the Los Angeles real estate phenomenon.

Wish you all good

Ed Tse (richvalley) — Wed, 22 Apr 2009 22:52:20 -0500

Posting Guidelines - Regional News and Information

**** ****

Hardly for me to check my earned points. I am just farting my thoughts in AR. Who cares about points? But, today Jay invited me to join his political group so that I went to check other fields in "my home." It surprised me that my most recent 3 articles has been removed their points since 2 weeks ago. This is the first time I encounter this episode.

No idea for what's going on. The only thing I know of is I hate to play an unfair game under the rules unfairly set by others. Since I am an individualist and naturalist, I love freedom and hate to do "confrontation." Life is too short to mingle with something unpleasant; or to make this already miserable world more miserable.

So I left my inputs of reply to John, the CEO of AR in his blog above as follows:

To Linda, Pat, Steven and all of you:

I am with you.

All most recent 3 articles of mine are being treated the same way as yours. Points are removed without a clear explanation, just saying "view guidelines" in which I don't see anything specifically related and applied. I really don't care about points. What good is it for me? Can I use it to buy a pack of VERY EXPENSIVE cigarette without the recent Congress tax hike? No way, Jose!

Well, so that's fine with me. However, I just realize that talking or socializing in AR doesn't make things happen. I have no intention in attracting business to me or marketing a plan to profit myself. So, I'd better leave AR and save me some time in "farting" my love of our people or feelings about the surroundings here.

Ready to go out alone doing something workable about my dream: help the poor folks or little guys to have an affordable housing.

(NOTE: I just accepted two students.

2 weeks ago, Coldwell Banker's real estate agent Shanna and her husband Steve asked me to meet when they knew I plan to leave Texas this end of April. Now, I am doing my free intensive "mentor" to guide them step by step to understand the "distressed real estate market." Shanna has been working in real estate as an agent for 2 years or more. She helped me buying one piece of REO property and highly regarded my very profitable investment strategy, that created 500% return rate in the case which she got her little commission check.

Nobody knows better than her for how much I paid for the property and how much I sold it. She is not surprised how many little guys line up to buy my properties. But, she would be very surprised if she could talk to my buyers and see how happy they are. One of them is a mechanic. Knowing I am leaving, he volunteers to check and fix my old Mercedes 560 to make sure I have a safe long trip to California. That's what kind of people I love so much; but being ignored and mistreated by our government.

I am just wondering if a small poor guy with very limited source like me can help some of those little guys to easily and happily have a very affordable housing, why those big brothers and sisters like Tim Gaithner or Sheila Bair can't?

It is much more rewarding to my knowledge when they came to me for help knowing what they are short of, eager to learn my investment recipe by driving one hour to buy me a lunch and show their appreciation for what I put in my blog in AR. Besides being so honored and the lunch I ate, the most important qualities of them is I can see their desire to help other little folks in our society that makes me feel the need to teach them everything I know.)

Take care of yourselves. Wish you all good.

Date Points Description

04/16/2009	0	Blog Entry: Do you really know what "the first time home buyer" is - Points removed (View guidelines)
04/14/2009	0	Blog Entry: Dare to be in charge of life - Points removed (View guidelines)
04/11/2009	0	Blog Entry: Real estate agents deserve more bonus protection, not a sales tax. - Points removed (View guidelines)
04/11/2009	225	Blog Entry: To those new hybrid Auction Site: What a word of arrogance!

Do you really know what "the first time home buyer" is

Ed Tse (richvalley) — Thu, 16 Apr 2009 12:04:38 -0500

Q&A: Can we be married, but independent?

***

I am not sure what modern "being married" is in terms of conventional concept of traditional marriage, since I am an old style family-oriented man. Don't mention about what "independent" means in terms of legal context.

Well, we have evolved so many legal concepts that contradict themselves sometimes. A buyer of mine asked me a good question when I told her about the new federal plan for first-time home buyer's tax refundable credit of $8,000:

"I have NEVER owned a property or house in my past 5 years or in ALL my LIFE. Do you think I am qualifying the program?"

Good question, isn't it?

To qualify as a first-time home buyer, the law (?) says: Who has never owned a home as his/ her prime residence in the past 3 years. Well, you may simply answer: she is over-qualified, isn't she?

Don't be so fast, did you consider other factors that may involved? At least, consider our "marriage penalty" in our legal system.

Even she was "legally" seperated for a while, She has been married until this moment. During their marriage, they are not mingling their property. It is a fact that her husband has owned a house where he, she and her kids live as their own residence. But, it is HIS sole property, not HERS. Looking everywhere in the county recorder office or courthouse, no file is able to deny the fact that she does not "legally" own any piece or part interest of property in USA or the whole world. So, you think it is very simple and clear that she is qualified to the federal mercy?

Are you sure about your conclusion? Please not be so fast again. Let's ask IRS bureacrats what they think first before she gets in trouble.

The answer from IRS is loud and clear: "NO! You are not qualified to apply the tax credit of $8,000."

Do you know what the rationale IRS has behind this interpretation? Let's see what my real estate agent folks think and answer first. I will continue the logic in 2 days.

Dare to be in charge of life

Ed Tse (richvalley) — Tue, 14 Apr 2009 15:08:48 -0500

Normal risk turn in normal reward, Normal people end up with normal life.

FICO Score Is "Fu*k" Score

Re: Fw: Land contract to *****

Tuesday, April 14, 2009 12:21 PM

From:"E T <et****@yahoo.com

To: Perry" <perry@com

Message contains attachments

, PIC00014.JPG (595KB), PIC00002.JPG (214KB)

******

Dear Perry,

Thank you for your kindness.

As I maybe told you, everybody has his way to do business. Sure, I have mine. As a free individual, I don't give FICO a shit and I don't have to follow a book or code as a banker.

My way to sell my house is easy, simple and humanistic. I treat people as a human being, not a number such as FICO. I am willing to give our American poor folks a chance to buy their dream home.

At this difficult time, my next buyer told me they have had decent FICO but still no way to buy a home with bank financing (they do have more than 10% down. But every banker asks more than that! ) There are 3 people working 3 jobs (one is a manager in animal hospital) in the household and they currently pay $1,200 rent money to burn by no help in getting into their own house. After they buy my house, they'll pay only $700 a month and have a dream home with much bigger living space and better conditions.

I try all my best to help, such as helping them to remodel the house to fit their dream. My house is in move-in condition. But, they don't like the wall color, particularly carpet. The buyer's dream is all tile and wood floor. I let them use part of down payment to do whatever they want. Yes, no banker will take this approach and don't count their labor and improvements as a value into down payment. I do!

They won't have enough money to improve their property if they put everything into down payment. But I am different and I do give value to what they are so motivated to improve the property.

We are waiting to close the house sale by the end of this month. Before they move in, we try to beat the time to have a TV "Extreme Makeover" jobs done (even it is moderate one.) Enclosed is some pictures for what they are doing now and I participate to do part of floor at my leisure time as a hobby to have fun too.

Well, that is my way to recognize a real EXCELLENT home buyer who are so anxious to have a decent home for themselves. The most important to me is the valuable quality, only a human being can own spiritually, in their desire to take the responsibility to pursue a dream: to own a sweet home as it should be and to dare to work hard to get more out of their lives. In this modern society, it seems most of the people talk about material stuff such as money. I am dare to be different to highly appreciate mental power or dreaming will of a person. In fact, I almost ignore my buyers' FICO score in the past 5 years. Nobody screwed me up too (except one time I just follow my "big heart" to let one person move into my property without close of escrow. Now I learn a lesson from that.)

Look at the whole family members working so hard after their 9-5 jobs and weekend. I am so happy to have them as my buyers.

Anyway, I believe we'll end up normal or so-so if we do things the normal way other people do. No way to complain since we are normal and we'll get normal result as everyone of those stock fat cats played the same SWAP game by institutional codes 2 years ago which led us into "recession or depression."

--- On Tue, 4/14/09, Perry <perry@.com wrote:

From: Perry <perry@****.com

Subject: Re: Fw: Land contract to *****

To: et@yahoo.com

Date: Tuesday, April 14, 2009, 10:56 AM

Edward:

As always I wish you nothing but the very best and I hope

you accomplish your goals throughout all of life. Thanks for your

friendship.

Perry

(***) 333-****

email perry@******.com

Thank you, my friend.

For your info, the contract is subject to my providing payor's SSN (not their satisfaction or approval of payor's credit.) BTW, the house is built in 1998, it is only 10 year's old (not 20 years old.)

I am still waiting for Henry's contract/ proposal to approve its content. Who knows what the result is? Maybe it is another case just like Kimberly's proposal without an escrow that I rejected before.

At least, my friend Perry, it is so nice to work with you. Also, I was invited by my buyer/ payor to have an Easter's dinner. Since he collect antique car and he would like to buy my 1990 Mercedes 560SEL at the time he bought my house if I sell the other house to go back to SoCal. He showed me his 1970 Mustang. That's my dream car at college. He asked me if there is a permit needed for a garage from county. He'd like to build a garage at the property. I told him it is not needed, but I will double check. It is true that no permit is required.

I have a good buyer who has taken care of the house: he re-painted the house and transferred it into a very modern style. Inside, he changed the wood frame into "sweet walnut" color and took all old-fashion frame and fixture including the fireplace frame out to replace with a modern accent. That's a lot of beautiful works in 2 months.

Thank you, Perry. Keep in touch. We don't have to do business together to be as friends, right?

If you want, you can propose your purchase to buy my other note of $73,000 just listed in ***.com or a back-up offer to the one we talked about, in case Henry's deal doesn't go thru.

Thank you again.

--- On Tue, 4/14/09, Perry <perry@***.com wrote:

From: Perry <perry@****.com

Subject: Re: Fw: Land contract to ******

To: et@yahoo.com

Date: Tuesday, April 14, 2009, 10:03 AM

Hi Edward:

Just saw your new posting of your note on ****.com. I wish you

luck. No one I know will buy a note where no information is provided on

the payer plus the collateral is a 20 yr. old mobile home which is not

really favored as a single family home would be. If I can be of help to you

with the proposal I gave you let me know.

Thanks,

Perry

(***) 333-****

Real estate agents deserve more bonus protection, not a sales tax.

Ed Tse (richvalley) — Sat, 11 Apr 2009 23:19:26 -0500

Social media sites don't sell real estate

by Teresa Boardman

****

Read Teresa's article yesterday.

Humm, what goes wrong with her?

She spent so much energy and money to work on real estate selling and almost got nothing in return. That fits into what I called "the least protected professional" in the world.

USA society is well managed; almost every acitivities involved a license, even a small job such as selling a used car needs a license in California issued by DMV. Sure, someone or something don't need a license. The most important public jobs like politicians including President has no specific license requirement. They don't even need a political training or test.

Nobody says all license are equal. A real estate license is not an Attorney license. Before getting paid, a real estate agent paid a lot in advance. After getting paid, a real estate agent has a lot of risk to lose a lot if someone doesn't like the result. Certainly, an agent is not an attorney who still gets very good handsome pay even he loses his client's case in court. An attorney has no liability when he pays no attention to ignore something to review a client's documents. But, for an agent, no way Jose!

Now, there is a bill waiting for politicians to pass which wants to charge sales tax on an agent's commission. Gee! I can't believe it. As I know, a sale tax is only applicable to tangible goods. Humm, very interesting! Since when a real estate commission is deemed to be "tangible" in the eye of politicians? I am wondering when we are going to pay sales tax on a barber's fee? For me, to wonder when an attorney's consulting due will be tangible to be taxed? Give me a break! No way, Jose, I am not so stupid. Don't you know I know who control the passage of a bill?

Well, back to the subject, we have a herd mentality to pursue a fancy internet commercial. A real estate agent is trying all the possible to outpace others. Everyone tries to get on board a new wagon, no matter it is working or not. Because life is too tough for them. They don't want to be left behind. They will take a slim hope by spending a lot of time, money and energy to try make it work.

Since 1991, I have surfed on internet. I really doubt its fancy ads function. I decided not to spent one cent for my real estate advertisement. I believe my old fashion: "real estate is a people business." On the net, it is very difficult to develop the sense of people relationship so that the effects would be very limited, if not failed as Teresa said.

I don't fall in love with internet real estate ads, particularly after I saw so many biggest websites do a lousy design to confuse outsiders such as HUD website that is almost a dumpster full of junks to waste our time(NOTE: please check out my article Do We Really Care? and see the enclosed weblink: http://ushud.com/dyn//i/clickandqualify/h/clickandqualify/FL/BREVARD+(CENTRAL)/search.html?&case=HH1***********C&on=CAPE+****************ND%00ROCKLEDGECOCOA, FL). Probably you will agree with me that "The bigger a website is, porbably the worse."

There are a lot of websites like a puzzle once you get inside. Two days ago, I tried to find a piece of property information listed under a nation-wide reputable brokerage. I spent about 2 hours in its corporate website. First, my password is not accepted. Then, it was rejected by keying in the password sent back to me. Well, they don't even have its office listing link on each of its independent franchise individual office. I had to use its nation-wide "search." Checked the agent's name, well, it said "NO SUCH an agent." Can't believe what I saw. But I have a strong personality, not so easy to give up. I tried to use just the first name "M," I got it now. Okay, I clicked on her own listings. Out of luck, there is no SUCH listing shown. So I gave my good agent friend at that brokerage an email. Now, I finally got the information/ answer by her connection.

As a buyer/ consumer, you will be better off to just make a phone call to a local real estate brokerage and let them busy working with a dumb computer (legally they get nothing). It won't cost you anything, not like a phone conversation with a lawyer. Why waste your time if you are not a seasoned investor knowing what you are looking for?

Did I use internet to broader the exposure of my properties? Yes, I did use all available free internet ads. Why I use them? Because they are free, no penny out of my pocket. Don't blame me for taking advantage to uploading my ads as I told everybody I am a cheap guy.

However, no matter what and where I sell, I have never had a property sale or trade from almost all the internet websites in the past 5 year (I have a lot of sale thru E-bay. I gave it up 10 years ago. So I don't think I have a problem with my marketing skill.), except just one producing a possible result for me.

Last month I came across a website "Kijiji." (NOTE: Be honest, it is not fit to what I am selling since it limits its program to be a local ads so that I have to spend time to re-type and re-load for each city I want) The newly used website really surprised me by sending me a serious buyer (sure, the website attracted at least 2 con-artists sending me emails too) a week ago and a binding contract of my trust deed note reached by emails yesterday (still waiting to close).

Talking about real property, I believe the old way works much better than those in cyberspace, unless someone like me can do purchases without a visit to the property. Recently, I sold my 2 houses in 5 months. How I sold them? Simple, thanks to my yard "FSBO" signs and my water company who allows me to post a sale sign at their entrance on a busy street (NOTE: it is illegal to post a sign on city sidewalk.)

Humm, nobody says life is fair. Nobody says everything works the same to everyone. Is the old fashion way still works better for you? You be the judge! Tell us your finding if you do periodically check your ads result.

To those new hybrid Auction Sites: What a word of arrogance!

Ed Tse (richvalley) — Sat, 11 Apr 2009 14:48:24 -0500

Auctioneer reserves the right to withdraw any item before or during the auction and also reserves the right to bid on behalf of the seller.

Only registered bidders may bid on the property being sold, any exceptions to this requirement shall be within the sole discretion of REALestate*****.COM and F**** C******.

No allowances, adjustments or rescission of the sale will be allowed based upon failure of the property to correspond to a particular need. The registered bidder will be responsible for any purchase made with his or her unique REALestate******.COM identity and password. One should also note that as the auction nears the closing time the auction will automatically extend until the bidding is silent for 30 minutes.

A BUYER'S PREMIUM OF 10% PERCENT WILL BE ADDED TO THE SUCCESSFUL BID AND WILL BE USED TO ESTABLISH THE FINAL CONTRACT PRICE.

----My disclamation statement: This is a fictitious copy of a real estate auction game rules. No intention to refer to anyone. It is a coincidence if there is a match of words.

*****

What? Is it an AUCTION by the traditional definition of "auction" in a dictionary?

What a word of arrogance! Here we see one of those fancy devices used and invented by those MBA from the Ivy Tower!

I put my comment about this fictitious website in Chinese to my friend as follow: 按照其規則﹐就算依起標價１50﹐０００計﹐再加傭金１０％﹐就是至少買價要不少於＄１65﹐０００。同時﹐拍賣人可以下場投標﹐拉高競標金額﹐這是『球員兼裁判』﹑『法官兼被告』﹐佔盡所有便宜﹐非常不公平 (very unfair)。就別浪費時間吧﹗Well, in short, my comment on the website is "It is a marketing scam, a fake auction."

There are some decent and well-established auction sites out there. Just don't waste your time on this new one where they can arrange "straw men" to bid up the price (like the post inside Seattle buses: "we have plain clothes police on board." You don't even know who they are there and they have the "legal" right to do it without your notice.) Humm, a Judge is also a player or defendant?

They have all the rights whatever, and where is your right for you, the consumer? In short, your bidding is binding on you, but it is just a piece of tissue with no legal binding effect to the seller or auctioneer. Too MUCH unfair! Well, all I can say is "life is too short to deal with jerks." It is you, a dummy, putting yourself in that game. Now, are you going to ask more government regulations in this so-called "unregulated" area?

They even charge 10% buyer premium to give a phony impression of low price for a buyer to overlook what the actual end bid price is. In addition, they make it very clear "all the bids subject to seller's approval."

What on the Earth they believe they can claim they are truly doing an auction!

Hummm, just like some people are creative enough to say the two same sex human beings can still marry to meet the definition of "marriage."

Hummm, just like some government people copy the "rebate" program from "BEST Guy" to give the first time buyers tax credit of $8,000 after they buy a house. They make it sound so modern and creative in impression. Why don't you just give them $8,000 upfront to make up or "add" up the amount of down payment, to make a banker more comfortable to approve a loan and to ease credit crunch?

Well, I am an old fashion guy, honest down to Earth, may be too old to learn the new tricks and don't understand the rationale in their plans too.

Nowadays, I always keep myself wondering if it is possible to have 3 adult persons or more had one certificate of "marriage", even that piece of paper carries NO better function than a piece of toilet tissue?

How to Deal with "Ghost REO"

Ed Tse (richvalley) — Sat, 11 Apr 2009 13:51:38 -0500

Banks aren't reselling many foreclosed homes

****

Gee! Carolyn of the San Francisco Chronicle is a sweet lady. She is just so nice to point out a fact with a very conservative figure.

I read a lot of report. I have no exact figures of this so-called "ghost foreclosure"; but I guess Carolyn's number is too nice.

I has kept in my mind the fact banks' REO are piling up into its books as "assets." Almost all the big bankers don't like to release info about its REO holdings, except three bankers I know. One of them is Wells Fargo Bank.

No Wonder Wells Fargo has been shown its desire to play the game by the old rules. Under the old game, Wells Fargo has the possibility to become the Top one bank by its good and decent performance. Sure, others don't like it happen and would like to change the well-established rules by taking advantage of TARP with their pals help.

They thought we were too stupid to know the truth. But a lot of people have the insight to see through these smoke guns, such as this article: US Treasury Privatized Profits And Socialized Losses.

Sure, I read some reports telling us there are legal redtape such as courts is not cooperating to speed up foreclosure. Also, some said there were a massive layoff causing shortage of manpowers in banking system to meet the increasing REO pile up. Well, to me they are not incurable. Almost all the reports are just giving an excuses after an excuses.

Still it is a good question for me to ask: Besides those excuses, what makes them doing it this way? I mean what is the real core cause behind all of these. We can't cure a disease if we don't know the roots, am I right?

Internet Pollution: A website full of Junks?

Ed Tse (richvalley) — Thu, 09 Apr 2009 13:50:30 -0500

5 Comments

Comment by Douglas Emde 37 minutes ago

To Mr. E T and all others: just read your post and could not agree more. People are either inherently ignorant of what "trading" means, or think potential trade partners are stupid. `I joined this sight on the possibility of connecting with people who do understand what is meant by equity, value, price, mutual interest, debt, risk assumption, etc. but so far it is disappointing. But, let's continue to try.

Comment by ET 11 hours ago

I have been with other real estate exchange for 4+ years. But, it is totally a waste to me. A website full of junks. Why?
1) I believe, a trade has to be on realistic or reasonable basis. A lot of people contacted me wanting to trade their stuff with me, I have never had a successful trade. Their trade prices are way out of line (NOTE: I just get in here a few hours ago, I browse two states. I found someone doing that inflated price are here too.)
For example, one Florida owner proposed a trade to me. He wants "$150,000" for his boat-access land. The problem is there is a similar land right next to his is listed for $39,000. The worst is he listed his property on MLS for $59,000. How can he want to trade almost 3 times than his listing price for the same property? That's a phony and intentional fake trade. Still, a lot of Californian owners want to use the peak price in 2006 for trade. Say I had a trade proposal from California Vally. He wanted $80,000 for his vacant land. After checking with local realtor, its value is roughly $5,000-15,000. I don't see any point to waste my time to keep myself in that website. Could anyone tell me: did I miss something or did it wrong, even I know "trade or barter price" is normally higher than "cash deal" ?
2) A trade is an exchange of equity. However, a lot of property owners don't understand this or try to play dumb.
For example, a Californian owner proposes to trade his Oceanside $1 million property with $800, 000 mortgage for my free and clear $350,000 property. I asked him how we are going to balance our equity, i.e.how he plans to pay me $150,000 in cash, paper, or something else if I assume his property still worth $1 mil. Do you know how he react to my question? He pissed off by saying: " I give you my $1 mil property for your cheap $350,000. You take advantage of me already. How could you dare to ask me to pay you money?"
Well, what can I say? Maybe he is trying to find a fool after him, a fool having a negative equity in his McMansion.

I hope I can meet reasonable people and do some sensible swap here and all the parties involved with me are happy, feeling as a winner out of the trade as all my customers.

What's Freedom(2): Keep Eyes Open and Don't Shut Choice Out!

Ed Tse (richvalley) — Wed, 01 Apr 2009 12:11:26 -0500

What's Freedom(1): Keep Eyes Open and Don't Shut Choice Out! (edit/delete)

Special Features: Here Comes Your Stimulus Bonus- CNNMoney.com

President Obama has promised to plump paychecks -- and he'll be starting soon. Find out how much workers can expect and learn whether or not you qualify.

(NOTE: How much is the money Obama talking about? Find it out. I am a poor guy, but I have never been bothered by a $1,000 purchase, even it is a impulsive. I give out $30 loan to anyone in my neighborhood without brain or hesitation. To me, that action won't cast me a leg or arm. No harm at all.

But what is big or small? See, I can't even think of buying a property with starting bid price of $100 million or willing to be forfeited $1 million deposit as those big ladies or guys (Apartment Buyers Abandoning 6-Figure Deposits.) To a lot of people, $1 million is just like $1 in my pocket as those big VIPs talk about $1 Trillion without raising their eyelids.

So, big or small is a question of relativity. Now we have one BIG Big guy who is so proud of talking to give us a petty money every month.

He is so kind to give us more monthly allowance. That's right, $15 to $30 a month on your paycheck. Great! Who is He? That's our President who has a good mind as a detailed maid to "well-manage" our household.

	Here comes your stimulus bonus, Big guy play petty money (尚未發行)
	時事評論｜財經	2009/04/01 02:52 ｜瀏覽 1｜回應 0｜推薦 0｜

Thank you, God! Can you give him just a little bit other kind of mind to know "governing" strategy by looking at LP, i.e. Lager Picture and find out the total burden of our people to release the pain--- Please see this article after I pointed out nobody discuss the heavy tax wedge against American people: I cross it out because, after I post a draft, I am unable to locate the article I read a few days ago. I will post it here if I find it.)

Tue, 3/31/09, Perry wrote:

From: Perry P*** <perry@.com>
Subject: Re: Fw: "Texas Land Contract of $60,000"
To: etahoo.com
Date: Tuesday, March 31, 2009, 2:39 PM

et writes: Texas Land Contract of $60,000 for Sale Hi

Ed: This has to be a problem on my end and I still cannot access the photos but no matter as all doublewides look pretty much the same. Still did not get the 2nd note details either tho'.
How would you feel about an offer for PART of your note i.e. You keep the April and May 2009 payments of $644.76 each. We buy the next 117 payments and you keep the balloon payment of $30,000+. We'd offer you $**,000 cash for the June 2009 pmt. onward and you would collect the balloon payment in 9 yrs.+. Let me know. Thank You. Perry

Thank you, Perry, In 9+ years, $644.76X118= $76081.68. For that cash flow, you are willing to pay a lot of money.

Hmmm, if your return rate is 22%, you'll be happy to pay me $34,562.87 for 118 payments. So you'd like to pay me $**,000 (plus closing costs.) That's too kind an offer per my investment goal. I would get you much better return if we could work out a master plan I proposed to you.

Now, for me to get your money, is it simple and easy? No future liability? If I need CASH in an emergency and have no other alternative. Yes, not bad a deal ! But, do I have other choice?

Hmmm, let me think about it. Yes, I do need some more cash than what I have in my pocket, if I will go for my purchase of next home in Arizona, Las Vegas, or SoCal.

Any freedom out there for me to choose?

(1) Go to my credit card. Just one phone set everything. Great way to get money I need! I have to pay 3% of transfer fee, i.e. about $1,020 in advance and then be billed about $450-650 per month in the first year (even the promotional interest rate is 4.99%, but there is a 1-2% principle pay back.) All I have to do is sign my name and be executed (NOTE: Sorry, it is not me to be executed. It is the note. Nowadays, there is no need of signature. As said, help is just one phone call away.)

Hmmm, that is just like keeping my note as a stable income source for me to pay back. In the case, I am still possible to have some money of $100-200 left to me every month. $200 X 118= $23,600. So in effect I get only **,000 from you, let don't mention my payment to credit card is gradually reduced every month along the line. Is it worthy for me to be bothered to create a legal entanglement, if not a trouble, in the future? Hmmm, I am a lazy guy and want to do things simple and naturally.

(2) Go to my friendly banker's office to sip a cup of coffee and ask her give me a personal (signature) loan without any document, in the worse case pledging my note as a security collateral?

(3) My banker friend used to tell me "no problem to give you $100,000 loan at any time, just ask and sign." Time changes as Chase bank recalled one of my credit cards of $35,000 line of credit, due to 2 year "inactive." (Don't blame Chase, it is very difficult for them to keep that line for me idle since they are short of cash liquidity.)If she is not so friendly as she used to be, what I could sweet the deal? Hmmm, maybe I have to threw in my new house as security in addition?

(4) Call my "Big Brother" Eugene and his lovely wife, the richest friends to me, to ask their favor as I did last time in May 1997. They didn't want to charge me interest as my lady Ambassador friend Marietta and her husband gave me a loan of $35,000 without security, even a written note, in 1988; but I insisted. I got a hard money loan of 12%, interest only, no any junk fee in advance. I refinanced my purchase and only paid them 3 monthly interest payments and I made a "negative down" deal, better than Robert Allen's "zero down." At end, I put an additional $34,000 in my pocket and better, it is tax-free. (NOTE: I mentioned this case in my AR previous articles. May I ask how much is my return rate after the deal finalized?)

But I have never asked help from anyone, including them, since then. Even Sharon and Eugene still keep asking me FREE legal advice from California, I've never initiated a phone call to them? About 8 months ago, I advised them to post a "foreclosure" against one of their properties in order to solve a property title cloud after their mom passed away 7 years ago, without will. Their attorney who suggested to go to a probate court switched to my strategy even he said "crazy" at the first hearing of my idea. But I succeed in convincing him to finally say "capital idea!" in legal practice. Now they completed the volunteer "foreclosure" themselves and have a clean title.

However, I do have a big problem in asking a favor from anyone. That's against my Principle I said to myself at the time I retired: "Never ask any financial or money help from others from now on."

Well, I am an easy and lazy guy, sell partial note is not my top priority. That creates too complicate legal situation to my simple mind, if not to those Obama‘s guys who love it. It would be much appreciated if you could have us had a straight sale.

Do I have any other alternatives? Sure, I believe I do in this democratic society, not like those Obama's guys or politicians. (NOTE:I came up an idea to better my seller financing to cope with Obama's home buyer's $8,000 tax refundable credit. Do you know what it is?)

*** *** ***

NOTE:After I checked into it, I came up an idea to better my seller financing to cope with Obama's home buyer's $8,000 tax refundable credit*. Do you know what it is? The Oop Depression tax credit plan has been estimated to cost our government revenue about $39 billion**(NOTE: I don't know where they get this figure: a lot of houses have to be bought. At least, in theory, 5 million houses have to be sold. That's about our normal sales volume a year. But even we assume all the house purchases qualify for the full amount of credit, at this slowdown market, do you think it making sense to project this huge revenue loss? ) Mind you that there is no ceiling cap limit set on this tax credit in our Federal budget, unlike California which set a budget limit of $100 million.

Based on the current law and Chinese philosophy of "上有政策下有對策", It would be easy for me to legally incur 10 times the projected revenue loss to $390 billion if I could be in charge of a small size charity foundation. Well, I am not greedy; $39 billion is too big money to get for my sales goal and too good to work on for now.

My plan would be function like another subprime loan to the poor for an affordable housing, without its bubble effects. Trust me, NO way for New York attorney general Guamo to accuse me of something like Madolff case or Chase bank recent credit card membership surcharge of $4.4 millions. Because I don't like government regulation, I am going to navigate mainly in un-regulated "private economy." or, you may say, private citizen "automacy."

What's my plan in my mind? Give you guys a hint. There is a Chinese saying: "朝三暮四"i.e. even a monkey knows some basic laws of economics in face of his master/ government game play.

* The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

** Estimated cost: $39 billion.How stimulus can help your wallet

What's Freedom(1): Keep Eyes Open and Don't Shut Choice Out!

Ed Tse (richvalley) — Mon, 30 Mar 2009 15:49:23 -0500

Shortsale slow down: It depends on what they ate at lunch, beef or fish

FICO Score Is "Fu*k" Score

***

Compared last week and last two business days, the stock market is very interesting!

Just about 10 days ago, 3 days afte stock consecutive 3 day rally, my wife asked me: "Is this the time for me to get back into stock?" My answer is simple: "Stay put where you are." Last weekend she kept asking the same question. I told her, "Did I tell you be patient?" It is a so-called "sentiment" after Gaithner and Benanke release a optimistic aroma. Some investors are trying to realize their paper gain, cover their short sale to clear their position. I don't see any fundamental improvement in our economy if it is still as "sound" as those politicians said.

Tonight, I will tell my wife: "See what I told you 10 days ago? After those big investors make profit, the DOW is definitely coming down before April. It is very possible for you to see it back to 6700. Did I tell you that. A lot of people made a lot money in the last week. Now, we are going back to the basics if our government won't stir it up again."

A few days ago, I made my challenge by a loan proposal. It seems no any my fellow agent takes it serious. Okay, I am a lazy guy. Just let it be.

Well, a chance came in. A guy "Perry", not that famous TV lawyer, contact me about my notes. He claimed he control $50 mil in his portfolio. Sure everyone can put any number on his screen. I am a naturalist with open mind to look at all the alternatives, not like Hank Paulson or Obama's people who have chosen one option: to eye on big fat cats with green bucks. They shut the "eye-door", if not turn their back, to the Main Street Mr. Joe as a banker uses FICO to reject some decent citizen and laugh them out of the door.

Here is my reply to Perry last night for your reference.

Dear Perry,

You are very interesting. Maybe we can work together as a team to make more money. Tell me what your return rate you expect to get in a year. Try to see if I can do better for you than you thought.

I have my way to do business. All I care is NUMBERS, no emotions. But FICO score is almost never my major concern.

For a trust deed, so many factors are materially more important than FICO such as those basics: LTV, market value, and local market appreciation trend.

Tell you the truth I really don't trust FICO codes because I know how the establishment/ system works. I am a creative individual, not a bolt and knot in a banking mechaine. I don't have to follow a book or guideline.

I have my own way to judge a buyer's decency and safeguard my decision. For example, I had a buyer Laura who paid me off in 11 months. When I wanted to mail her my annual interest charge for tax return, I didn't know her social security number. Sure, now I have all buyers' SSN in file; but still I didn't check their credit score.

I have my ethics to do business, such as "everyone dealing with me has to be happy about the deal and feeling as a winner," i.e. any one can walk away from my deal before close of escrow no matter what reason he has and I don't even ask, even we have a binding contract.

One of my business game rules is to protect the privacy of the other party or my co-workers. I don't release my buyer's credit unless it is needed, such as a binding contract with a contingency on satisfaction of my buyer's score.

So many people, including so-called "birddogs," contacted me about this note. Unlike you, almost first thing for them is to follow book or so-called "proven formula" asking my buyer's credit score. If I gave it to them, trust me my buyer's FICO would be reduced 100 points in just few days by so many inquiries. That's not fair to my buyer/ payor. So please understand my position: unless we have a binding contract, I would not give their private information out even that is very easy for me to just look at my files. Well, so sorry to say that.

I look at you profile in ******.com in which, you claimed, you have control of $50 mil. If you do in that position, I just wonder if we can do a much bigger project, not these small notes, to make your life much easier and more profit. Say, would you give me 1 percent of you fund, $500,000 as my line of credit and we do business as car dealers do? Every time they buy and sell a car, they apply or re-pay the line of credit to release a car, case by case. I believe I could make you very happy to make a steady profit of much larger amount, under this master plan, with much lighter everyday routine email and paper work.

In addition, while I am providing 50% LTV to your credit/ loan, you are going to be proud of ourselves to know our providing social justice/ charity to the poor in need.

At this moment, just let try to do this note first. After we make some deals and you can judge me. Then we may try to do something else together even before discussing my master project that will give us a glory sense of achievement: a meaning of life.

Enclosed herewith are those info for my two properties you asked and interested. (1) For the note we discuss here: *****.com (2) for the possible note creating later: ******.com

Thank you for listening. Give me your 2 pennies if you have any question. ED

From: Perry
Subject: Re: Land contract to ****
To: et@

Date: Sunday, March 29, 2009, 5:07 PM
--- On Sun, 3/29/09, Perry wrote: Ed - I could bring you an offer muy pronto if I only had the credit info. to check on your **** payers so please try to get that info. to me as quickly as you can and the same if you will be carrying any note on the 2nd house too. I hope this message doesn't go into your 'spam' file too. Thanks, Perry

Shortsale slow down: It depends on what they ate at lunch, beef or fish?

Ed Tse (richvalley) — Fri, 27 Mar 2009 17:44:19 -0500

Real Estate Weekly: Lots of short sales, but they are taking a lot longer to get done "MarketWatch e-Newsletter" reports@marketwatchmail.com

*****

Well, did I say so long time ago?

As long as Obama and Gaithner keep saying they are going to buy bank's toxic notes, there is no incentive for a banker to speed up REO sales, let alone short sale. In the past week, I have observed that in some area there is no new REO listing. If there are new listings, the price is going north.

Some banker friends told me that there has been a rumor. They said Gaithner proposed to buy those notes at 70% discount. What do you think? My answer to them is use your brain to say "no such luck" as Keynes said to a crowd of reporters.

Bankers upbeat after DC meet, still want to repay TARP

By MarketWatch
Last Update: 4:07 PM ET Mar 27, 2009

WASHINGTON (MarketWatch) - Top banking CEOs emerged from a Friday meeting at the White House with President Obama saying that they are on board with the administration to do whatever they can to get the economy back on track, but that they remain anxious to pay back government investments in their firm's and end their direct ties with Washington.

Chief Executive Jamie Dimon told CNBC Friday that J.P. Morgan Chase & Co. is looking for guidance from the Treasury Department about when to repay money the bank got last year from the Troubled Asset Relief Program. He also noted that Wall Street compensation practices "went too far" and that banks made a lot of mistakes in this area.

Dimon and chief executives of several other top U.S. banks made the pilgrimage to Washington Friday for a noontime meeting with President Barack Obama to discuss ongoing risks to the financial system and a new regulatory framework.

Don't take a reporter's writing at its face value. Why those bankers went to see Obama? What they are trying to accomplish?

We as VSP have no chance as those VIP to sit in at the dinner party at White house so that we don't know what they ate. But we have a nose to smell the air to figure out what they exactly ate: a prime rib, fish or lobster, right?

We are not stupid; and we will see what comes out very soon: to insure their note position or to benefit the whole economy.

Back to Good Old Days (2): Find a Good Way to Make It before the Tanker Tanked.

Ed Tse (richvalley) — Tue, 24 Mar 2009 10:16:39 -0500

Back to Good Old Days? This Arizona House Up $380,000 or 400% In 5 Months?

** Zillow's Comment **

Hi Ed, it's David from Zillow,

Please e-mail me the address and I'll let you know what's going on here. Thanks,

David (d AT Zillow DOTCOM)

David Gibbons (Zillow.com)

*** My Reply ***

Sorry, I am unable to release the information due to the current situation. When the situation settled, I will give you the information you need immediately. BTW, your Zestimate has gone up again for anotrher $15,500 in a week, from $482,500 to $498,000.

Zestimate: $498,000

30-day change: $77,500

Value Range: $353,580 - $507,960

Last updated: 03/20/2009

The subject property attracts me now after I run into it and run my numbers. Tell you what: I would like to buy this property if someone in AR could give me a hard money loan of $30,000.

Tell me how much interest you want from me, I will pay you back the loan in a year with at least double security of my purchase price, i.e. 50% LTV or more. Say, if I buy this property for $50,000; I will come up $20,000 out of my pocket as down payment. In addition, I will put something as additional collateral or walk your loan to other properties or assets of mine, at your choice, to make your LTV lower than 50%.

What you folks think? Are you ready to take my challenge?

NOTE: Please don't say I "beg" for your hard money loan. As I mentioned earlier, I don't need that money since all I have to do is giving my credit card a call. This other people's money is in my account. The job is well-done in one day. Then, why do I bother doing this? I like to be a mentor who does it "all the American Poor Folk's E-gold" way while you are watching to see the power of my formula and how it happens.

Okay, I confess. Tell you a little bit more behind this. This morning a guy "Ryan" called me. He tried to further sell me the "Tom" short sale secret, I bought Tom's material before at $10 and finished my reading on his book and two CDs in one day. I concluded that his formula was nothing new and would work in a very tough and difficult condition with pretty much narrow application in situations. So it is not for me, a easy, lazy and "chicken (conservative)" guy.

I politely said, "I would buy your program if yours is better than mine or can solve my doubts about pre-foreclosure investing." My reason to buy the material is I am old enough to know there are so many approaches to do real estate investment. (NOTE: Depends on the locality and situation, some work and some don't. It is much difficult for you to do "wheel deal" in California or Texas. It is very good for rich people to do "tax shelter" strategy in 1970', but no longer good after and disappered after tax code changed. Do you notice that Obama-Gaithner homeowner's hope is trying to do the same "tax shelter"strategy and applies it to average American people? Can it be done by the switch from rich to the so-so? Based on what assumptions it could be successful? You are the judge.)

I love to keep my mind open to all the options, possibilities or alternatives. I want educate myself or being updated about what other folks are doing and how well they have accomplished in real estate as a poor folks. But clearly I don't get the answers to my doubts on preforeclosure deals. Tom's formula can be an effective tool if other factors fall in place; but in fact it has its limits, very difficult to do for me, let alone an average Joe.

Ryan guaranteed that I could make $200,000 every month. The advanced program is 100% no risk. No money out of your pocket using OPM (Nowadays, so many so-called "birddog" programs has developed so that we have to be bothered by those pretening as a professional. I am so sick and tired of this new style or breed of telemarketing that I put "serious principal only, no birddog please" in my free advertisement.) He advised that I would miss the Tom's "magic" way to make money in the world that nobody knows how to do it so easily with so huge profits compared to none.

I replied: "One of the best ways to make money is to be an executive working for a Wall Street security firm. They mess it up and still get their millions bonus dollars with no obligation or guilty." Also, I compared the return rates in those real cases Tom has done, Tom is not even close to mine. Why I switch to his?

We ended up in arguments, this telemarketing guy who appears to me an novice in the field even dared to tell me that "you don't know about short sale." So I would like do something like Robert Allen did in his book "Challenge" to show how easy my "APFE-gold" formula could be done by an average Joe.

Thank You for Mentioning "Governing," DUI Pres. Obama

Ed Tse (richvalley) — Mon, 23 Mar 2009 10:14:22 -0500

Feds unveil plan to sop up bad bank assets (AP)

AP - The Obama administration, striving to ease lending in the struggling economy, moved Monday with private investors to sop up bad bank assets. The administration said the program could grow to $1 trillion in purchases eventually, if it proves successful in attacking the bad-books problem that has been at the heart of the banking crisis.

Obama: Anger isn't governing strategy (AP)

*** ***

Recently I have kept saying "please do governing, not managing." Did I hear someone say that today?

Well, what? Anger isn't governing strategy! I fully agree anger is of no use since I expressed my frustration about nationwide "blaming" is a crazy baloney phenomena. Thank you, Obama, for your agreeing with me.

But, what did Obama tell? Anger isn't govening, Then did he tell us what governing is? Does he tell us what governing is all about, doesn't he?

One year ago, Hank Pualson would like to implement his "TARP" plan to buy "bad assets" from banks. American people stop him right before election! Those politicians stop talking about buying bank notes since they did need votes, not irritation anger from voters. After Obama took over the administration, there came out their beef some called it "TARP II." Yes, TARP II made a more soft and arrogant posture trying to give us some phony "hope" to expect relieve the pain of people by tax credits or rebates.

After the same Wall Streeters in White house gave us the first "improved" TARP II to switch and bite our people's focus on the issue. Now they try to bring out Hank's left over (NOTE: the original "TARP", what TA stands for?) and want us to enjoy it as a good entree in White house.

Why Hank, Ben, and Tim would like us American people pay the check for the louzy "gourment" cuisine on dinner table out of "White House Kitchen?" Why they are cooking the same dishes in the same recipe as an identical chef, so insisting and anxious that they would force us to eat up "toxic notes", CDS, or CDOS?

Very good question for us to have a deep breath to see where is the beef!

So many things I have observed. But it is difficult to put all of them out in a good short article (because we Americans don't have much patience to read a long one.) I'd like to point two things very conclusive here:

1) Under Hank and Tim, we set a record straight to break some fundamental key game rules that a free market needs.

One of them is "a financial institution such as a bank is NOT allowed to practice real estate activities" which our NAR, National Association of Realtors, persists to hold intact. Now, almost all the financials do it. Without a change of congressional legislation, not only a bank or an investment banks (they are used to be under SEC regulation and investors in fact) but also those GSE such as Fannie (they are used to be in secondary market and perform home loan purchase) are IN the real estate business. The do all kinds of sales or perform as a landlord to manage their properties in substance. Whenever I see an agent putting out a topic and name it with "how we can let a banker cooperated in short sale approval." I am laughing out loud. How could you do that, if there is no market "incentive" under the old regulations for a banker to do a short sale?

2) Yes, Mr. President, anger isn't a governing strategy. But I am sorry, all I can see from your statement are negative (passive) reactions to situations. Can you clearly and actively tell us what it is or shall be your governing strategy?

I will tell you that one thing I am 100% sure is "Buying toxic bad loan isn't a successful solution to the current economic mess." Further to say, you are "driving" us into an Oop Depression if you keep thinking buying those toxic stuff is a good idea.

Don't blame me. I have done nothing. It is simply a sure thing to have Depression if you are under intoxication. No matter whatever you take in: wine, medicine or a piece of note paper, it is considered the same as a crime of DUI by law. Well, time is changed. You have 4 years to drive us without fear of people's power such as a recall or "tea" party after dinner. So here we go at your mercy, DUI President!

Even I know there is no housing bubble burst if there is a housing booming and there is a happy party in those "prosperous" Wall Street penthouses as Madolf's. Almost everyone says housing busted is the core reason of the financial meltdown. But once it bursted, the only way for our wishes to go back to the prosperity is to "inflate" it back, right? A piece of paper burned into ash, the remedy is to pull water on it to restore it to the previous condition as Prince von Metternich did by "legitimacy" to stablize Europe after the Napoleon War. Humm, good thinking out of human instinct. So simple, I love it but I am not so smart to fully grasp the underlying Obama's reasoning assumption.

May I have your wisdom and transparency since I have doubts as a humble American citizen to ask your answer before you are still having some clear mind, not 100% intoxicated? Please tell us why you are up there trying so hard to keep the old "glorious" house buble from deflation, i.e. literally want housing price intact or flying up in the sky beyond Mr. Joe can reach while you keep claimed yourself a DEM socialist who are looking for some benefits for the poor such as "affordable housing?" (NOTE: it is called "charity distribution" instead of "productive growth" in political economic theory.)

Catch 22: Are We So Desperate to Use the Better-not-to-use Printing Weapon?

Ed Tse (richvalley) — Fri, 20 Mar 2009 18:29:21 -0500

Fed to buy up to $300B long-term Treasury bonds (AP)

Five reasons to buy a home this year

Market meltdown refutes 'efficient markets' theory

Great! I am totally amazed, but puzzled.

What "to buy back treasury bonds" used to mean?

If my understanding is right on traditional science of economics. That shall be interpreted as: To print more paper money (that will cost FED 4-5 cents each paper or note called American green buck, a "fiat money" or "digital money" stored in a computer register without a hard copy of print and cost almost nothing to Fed.)

That's right, in theory, we should have more money supply or credit liquidity.

Then what shall come next to your brand new bill? The most obvious result is the green buck loses its real purchasing power almost in every fold in such ways like "

Then what could be next? How about Inflation? Gas pump price? China trade? Well, I will leave you guys the first two questions for you to answer.

As to China?

China, just downgraded last night by World Bank giving an estimated 6,5% of growth to down play China's official expected 8%, shall have more confidence over the outlook of export to USA. But who knows how the international commodities react to this Fed announcement.

Wal-Mart shall be very "happy" since they have 5,000 Chinese suppliers out of its 6,000 vendors.

Great! Stocks soar immediately March 18, after the FED release around 2:30. That was interpreted as a rescue in terms of bond market! But, what would be perceived in the stock market if FED simply said it would upgear his printing machine to print more money, not to mention Treasury bonds?

Which way Dow would move? Up North? Or down south?

NOTE:

This article had been stored in AR as a "draft" for 2 days. I have had no "incentive" to release it or even speak on other topics related to finish it. After I saw the article "The Real AIG Conspiracy," I just release it ONLY to serve as a TLC warming to my fellow agent friends to be very careful and use your good judgement.

"Penny Wise; Pound Stupid"? As Said: "Try to Fool Electorate, You'll Know the Real Fool."

Ed Tse (richvalley) — Tue, 17 Mar 2009 10:41:13 -0500

只見秋毫﹐不見輿薪

2009/03/17 23:15:57　瀏覽3｜回應0｜推薦0

Housing starts surge 22% in Feb. on apartment building

By Rex Nutting Last update: 8:30 a.m. EDT March 17, 2009

WASHINGTON (MarketWatch) - Boosted by an 82% increase in construction of apartment buildings, U.S. housing starts surged 22% in February .... Economists had forecast a further drop to 456,000, despite an expected surge in multifamily construction.... Permits for single-family units rose 11% to a 373,000 rate, the largest percentage gain in 18 years.

*** My Two Pennies ***

What a good morning! Great news hit me once I waked up. That is what I want to hear so desperately since I am in housing business. But,... Let me clear my thoughts a little bit more at this early morning.

Look how much a share of Citi increased last week?

As of March 9, it was $1. Next business day, news reported a great wonderful news. It gain big and increased very sharply. Really, there is no lie; it is true: a big jump!

How big it is? A big Sixty Seven percent increase in one day! It is a good news everybody want to hear. Have you heard a day jump of 67% in the history of Citi.

Never!

Well, form another perspective, let's change the way to ask: how much it increased in terms of dollar amount? Sorry, it is not even qualified as One dollar, it is only 67 cents in fact. Then, how many times in the past you could find a share of Citi increased more than $1 in a day?

In those good old days, who was going to scream out "Citi jumps 67 cents!" as a big surprise or glorious rally? Probably you would say: "what's the big deal for cents?"

As of this morning, March 17, Citi has accumulated 138% increase in 5 business days. Everyone would drop his mouth if Citi could have this GREAT JUMP percentage when Citi carried $50 a share before October 2008. That's just 6 months ago, who cares about this stock price up 67 cents or $1.38?

Well, some people are out to orchistrate an aroma of hope spreading optimism on the outlook of our economy as putting a big red lipstick "rising star" on Mao's Communists' regime in the early 1950'. Sure, we need a cheerleader to light us up in a difficult time or when we are down.

Great! we do need that kind of sentiment not only for the stock market but also for housing market. Now someone is up over there! But we have to be very realistic to avoid getting hurt as those Chinese people did expecting a good days to come when they put their hope on the so-called "New China."

So get serious and go make a reality check:

How much inventory do we have now in US housing market?

Isn't it just like we read a report that we have the biggest inventory in history last night?

Could those huge amount of surplus disappear overnight, i.e. sold in just a few days or weeks?

Why all the big guys won't release their REO holdings fast enough to list them on the MLS service as the head of RTC suggested?

(NOTE: No, the new REO infusion to the listing seems idle to me, if not a total halt. While we have had a big long time increase of foreclosure activity recently, we don't see much new REO listings, except a few banks such as W*** bank who are in normal or aggressive (anxious) mood. Those old listings remain its price sky up for 6 months without a bit reduction in some areas. There are something that can't be understood by a capitalist's economic theory of free market.)

Why they allow those REO piled up in their books, i.e. letting those "perishable" goods sit on street in vacant condition with minimum of tender loving care. They are left alone to be deteriorated and ruined by nature (NOTE: I found some REO properties sit there with no "sale" sign for more than 500 days) or losing their true"market" value day by day. Let alone a waste losing value in our national wealth book?

Why our government authorities loose up (or "choose not to enforce it" as Senator Schuman talked about FDIC operation on Indymac or as Pres. Obama hinted or suggested when he signed the Pelosi's $410 billions spending plan into law) their normal regulation on the ratio how much a banker could take in its REO on its book? Is it as low as our FED interest rate: near 0% so that bankers can rack in as many REO as they want, literally with no limit? That would explain why it has been getting more difficult to do a "short sale" for an agent?

Is there a plot or factor for all of those VIP to work together to stop housing falling and keep pumping air to keep US housing price flying in the sky not like Harry Truman said "let the dust rest"?

If you are serious enough, you would laugh out loud at people or our congressmen who are so angering at "AIG's distribution on bonus or compensation." Why? they have focused (or been switched) on something cost them just $1 and make their President Obama swore to "block" the loophole. (NOTE: Since those money went into cat's pocket and we are ruled by law or contract, how could we expect Obama do something about it legally to get our money back?)

Why they didn't pay attention on two or three news reports in the past 3 days telling us there is $999 at big risk. Probably someone don't want us to face the $999 reality and would like keep us shopping for trivia items at a 99 cent store.

If you don't see this mentality of "penny wise; pond stupid," allow me give a hint "CDS" which bites the biggest chunck of AIG payout. Still can't see it? Okay, google in the term on internet. See what it is and what is going on in the near eyesight on LP (the WHOLE LARGER PICTURE.) Based on what you could find, judge them yourself if the 18 month recession could be over as Fed chief Bernanke said.

No matter what, keep in your mind the saying "Figures don't lie; people figs."

What A Nice and Neat Comment on Bernanke's Sunday TV Show

Ed Tse (richvalley) — Mon, 16 Mar 2009 12:48:57 -0500

California Financial Dreaming: 5 Exhibits Showing Why California will be in a recession until 2011: Revenue Projections, Housing Inventory, Unemployment, Toxic Mortgages, and Consumer Psychology.

One thing that we know how to do as a nation is provide housing for prisoners:

Very sadly interesting to see the table "USA is the world leading Jailer."

Well, it reminds me of a report. "Of course, with 2.2 million people in US prisons, that means there is about 1 lawyer for every inmate." http://en.wikipedia.org/wiki/Prisons_in_the_United_States#Population_statistics.

Don't even want to further discuss the relationship between our GDP which is more than 50% of the world GDP and our lawyer population. Well, what a coincidence! We happen to have 50% of the world lawyers, too. Are they create the same contribution into our GDP?

On the paper as Bernanke said "bailout money is not directly from taxpayers," our lawyers did push up our GDP into much higher numbers in PAPER. In fact, their income is not a creative or productive property in our national balance sheet. It should be treated as a "passive" or "business costs" ("debts" as a "non-performing asset" in a banker's book) to our GDP in terms of real national production or productivity growth.

I remember a report that Washington state had a biggiest public construction project in the past 10 years: state prison. That's right it was where the biggest public money spent in Seattle area in 1980'. There was a report that prison riot took place. Why? Because they don't have a color TV in each room, only black and white one.

We spent about $60,000 on each prisoner per year, since we would provide the most humane treatment in the world. Yes, we are more modern and civilized than China. But, I am just wondering how much our average Main Street Mr. Joe could bring home to put breads on the table? Is it a median household income of $46,000 for the "whole" family? What kind of reward and punishment system we have?

It also refreshes my memory. When I was stationed in Seattle, WA in 1980' as a foreign service officer. There is a report that a street people breaking a shop window and what he does next? He did nothing else, just sitting on the curb of street and waiting. Waiting? For what? He is welcoming a police to arrest him? Why? Because it is so cold and he is hungry in the cold winter; and all the charity shelter is full. He wants to be creative enough to have a shelter. He finds the creativity out of his instincts given by God to survive: by getting into jail for free "social security benefits"

Trust me! God created us. He also gave us the power of survival. So, don't be so desperate to kill yourself or your family as I read some reports telling the US suicide rate is surging. There is always a better solution than suicide since nothing could be worse than that.

I am with you wondering what kind of country we have building so far after our ancestors voted by their feet and moved into this NEW WORLD. Did we fail the wishes of our founding fathers?

It is also so different in 50 jurisdictions on "this new world." Please don't generalize enough to say everything is the same. Tell you that Texas is booming, i.e. with its cities in the top three job markets now (just as the old day's saying: "go to Las Vegas, you can always find a job if you are unable to find one in California.") and being the first exporting state in USA, and foreclosure rate is going down (certainly housing price is appreciating).

However, I quarantee you that there would be nobody in Mercedes pulling up to a recycle center in Texas. Why? Because Texas politicians have a easy and simple mind, or should I say "not so liberal," "socially green" or "well-managed," there is no such a tax to create "CRV" in soft drink's cans or bottles. No value added is no value or need to spend gas and time to recover the tax charged in advance. Save time to everybody, right?

Reading and watching what Fed head Ben Bernanke said last sunday, there are so many pennies coming up in my mind. One of them is caused by Bernanke's words mentioning "historic lesson" of the Depression. Gee! he lead me think about Napoleon, the French self-made Emperor:

By comparison of what Ben Bernanke have in his mind, I could imagine what could be the main factor as said by so many scholars leading to the "meltdown" of Napoleon's Empire in early 19th century: A trade boycot against British. But, I am really not in the mood to speak out. I run into a comment made at MarketWatch.com as follows:

"If your neighbor is out of work it is a recession. If you are out of work it is a depression. If Bernanke is out of work it is a recovery."

What A Nice and Neat Comment by ereilad! I love it!

*** One More Penny ***

U.S.A.: There is one lawyer for every 265 Americans.

Are you telling me that in USA about 80 families have to support 1 attorney's family to have a decent life?

Are you kidding me? After California government takes off 10% our anunal meidian household income in the name of property tax only (Yes, tax rate is just 1% per Proposition 13. But how much money you have to pay? That's right, it is more thant $6,000 or 10% of what you earned a year in the past 3 years), those lawyers bite another 1.25% off your pizza pie (assume their income are not form offshore).

Now how much left for you to pay mortgage payment, food, car, utility, cloths, let just ignore all the junk Federal taxes? Under this increasing tax situation, how could our upper class or politicians dare to blame us by accusing Americans of "spending too much, not saving enough."

What do you expect us to save for tomorrow's pickle if there is not enough vegetable for fresh-eating today? (NOTE: In the poor China, they express it by saying "青吃不夠﹐還想曬乾﹖" Even I don't make a long-distance phone, my basic bill would jump up from $10 into $21 per month. Look at those tax items of your long-distance phone bill if you don't realize how much those junks could be and how creative our public servants we are lucky to have are.)

P. S. Almost everyone points out his finger at bankers or mortgage brokers for the mess of housing bubble. It seems nobody is willing to discuss the real huge property tax burden that makes a home owner suffered even much worse, particularly for those retirees in Florida whose property tax increased 3 or 4 folds to let them down in foreclosure.

Those retirees did nothing, no sale, no purchase, no market flipping or speculation at all, but they are victimized by county officials charging more and more by so-called "assessed system," no matter how stable and of no change their income is.

Why nobody, including the kindest lady Sheila Bair of FDIC, is going to speak out and asking "property tax relief or modification plan" from Obama as she did to those big fat cats?

Excuse me, I know the game rule: it all depends where you put your ass on the grass of your yard, right? Oh, well, I don't mind to put it more politely: it depends on which side of the table you sit. But it is me who stands up (sorry, no seat reserved) in the middle of the table? I know it is hard, tell me what should I do?

Back to Good Old Days? This Arizona House Up $380,000 or 400% In 5 Months?

Ed Tse (richvalley) — Sun, 15 Mar 2009 02:20:00 -0500

Gee! unbelievable in these crazy days. Takes a lot of guts to invest or "gamble" your life.

See, how much you will pay for this late 1980' beautiful house with 4 beds, 2.0 baths, 2,382 sq ft ?

First, let see the listing description:

4 BEDROOM HOME ON A CUL-DE-SAC
WITH A POOL DUG OUT AND PLUMBING. JUST NEEDS TO BE POURED. NO HOA.
UNIQUE FLOOR PLAN AND KITCHEN HAS ALL APPLIANCES EXCEPT FRIDGE AND ALSO
HAS GRANITE COUNTERTOPS. CEILING FANS THROUGHOUT HOME. HOME IS IN
DECENT SHAPE. GARAGE DOOR HAS MINOR COSMETIC DAMAGE AND ALL THE DOORS
HAVE BEEN REMOVED INSIDE HOME BUT MANY ARE STILL IN GARAGE. AT THIS NEW
PRICE THE HOME SHOULD GO QUICKLY. BUYER TO VERIFY SCHOOLS.

Now, you get a rough idea about the house. How much are you willing to pay? Guess it and write the number down and then, read on.

Next, let see what Zillow.com said. Well, well-prepare yourself for the roller-coaster curve skyrocketing that the housing price is going through the roof in Arizona. Trust our President Obama, we have to be optimistic about anything or something, right? Everything would be okay like the stock gains last week.

Zestimate Information

Zestimate: $482,500
30-day change: $83,500 (Incredible! Price increases $83K in a month for an Arizona house. Can you believe it?)
Value Range: $342,575 - $492,150
Last updated: 03/13/2009

So hang on. Helps are coming and ready on the way from National Association of Realtors and Federal bailout rescue. Housing will surge higher and pass the peak of 2006! It is just near the corner, right? Good old day shall be back, that is why we voted for a man with such a wonderful name with hope: to Bring aroma Back by an Old Back Man. (NOTE: I am not sure I should use "aroma" or "arrogance." God will let us know very soon.)

But, wait a minute! Are we sure that the market is like a flying firework in July? Are you proud of the number you wrote down a right number as President Obama said, "I believe I did the right thing." Or is your number far out of the line? Let's get a second opinion from other famous real estate doctor.

Oh, my god! How come Eppraisal.com give the same house an estimated value range: $50,000-68,000?

eppraisal for:

****** AVE, PHOENIX,AZ

value range:

$50,377

$59,268

$68,158

Now the last, let look at its sold history provided by my favor zillow.com as follows:

4 beds, 2.0 baths, 2,382 sq ft

10/14/2008: 11/07/2003: 01/15/2002: 05/07/1999: 08/20/1993:

Sale History

$105,400 *

$133,000

$110,000

$97,000

$90,900

What is the realistic or true market value for this house?

Is it all depends on what formula or module we use? After the housing crash, so many people accused banks, brokers, appraisal firms of inflating house value. However, everyone is just pointing at a scapegoat by making complaints or blaming someone else. All blamed the current appraisal method. Can we use "income approach" or "cost approach" to better a home's value? Did I hear anyone present a better solution other than"comparative market approach" to evaluate a home-owner occupied dwelling?

None!

Nothing at all, they are unable to come up a better way of performing it. The only thing they keep doing is "blaming" others as Taiwanese did. Ouch! I should say the only TWO things. Sorry, they are bragging what they can do or achieve, even they are doing the same thing. They are just good at "SWITCH AND CHEAT" tactics of a used car dealer. (NOTE: please see my article "Keep going, folks! We can live on blaming? ")

Anyway, an appraisal is just an opinion, right? Zillow.com gives it half million dollars, Eppraisal puts $50K price tag. So you have your opinions; I have mine. I will not be surprised this house would be sold for less than $45,000 even it is in a good neighborhood. That's my opinion I should be able to get it for less than $50K.

We are in a free society to express an opinion, right? Even you are in appraisal business with licence, nobody says your profession is a "science" as nobody says an attorney is doing a science. You are probably unable to get a degree of science, but a bachelor of art instead. All the academic students agree an appraisal report is a function of "art" by some rules. So, bear that in mind, please just don't drag Zillow.com, eppraisal.com or me to a judge as some prosecutors did or intend to do recently once the housing price dives down or flies up in the sky later;

It is just a democratic way of "compromise" between Sellers and Buyers, under a free market mechanism. Who says price is constant or can be fixed? No student of economics or even an average person says so, except a stupid government?

Everyone does have his right to do his judgment wildly, weirdly or wisely. It is normal to have a housing up and down, if not bubble or burst, at any time. It is natural as a cyclical activities as Four Seasons. Don't be surprised! Nothing strange!

Ivy Tower Wish or Street Wise Guts?

Ed Tse (richvalley) — Wed, 11 Mar 2009 14:52:41 -0500

A Sign of CCC

（Cat's Credit Card; A cat got $4,200 card. CCC sounds like 死死死 "death" or 喜喜喜 "happiness" in Chinese. All depend on your mind or position.）

Hanging On, or How to Get Through a Depression and Enjoy Life (M.B., March 2009)

So Edmond G. Love's 1972 autobiographical novel, Hanging On, Or, How to Get Through a Depression and Enjoy Life

One of the undercurrents of this book, in my view, was how long it took the author and many others to realize just how drastically their circumstances had changed and that the depression was not going away anytime soon. Though Love notes that some historians later would divide the depression into different phases (depression, recovery), for him there was little to distinguish these years and when the depression finally did end, it did so fairly suddenly.

(NOTE: How it ended suddenly? Very interesting to know the conclusive observation paragraphs written by Love: Even in the summer of 1939, the school in which he taught closed 5 weeks early (256). But as WWII began, circumstances finally started to change for the better. "The Depression ended on the day the war began, but it did not become apparent to most of us for some time," says the author.

(NOTE: Great! Could we afford another WWIII to solve an OoP Depression, after Oop is doing a HOPE or Expectation as a "New Deal" copycat?)

Things picked up for a while in 1933 but then in March 1933 the depression hit its "very bottom." Michigan was the first state to close its banks following a run/panic, other states followed and Roosevelt after his inauguration on March 4th closed the banks in the rest of the nation (118-119).

Though hardships continued with Roosevelt in office the tone in 1933 started to change. "When one looks back from a distance of forty years, it is easy to see that the New Deal did not accomplish very much in good hard terms," Love writes. "The period is euphemistically called the era of Recovery, but the same old disasters were overtaking us and the casualties continued. We were still as uncertain in 1936 as we were in 1932. The big difference was that we felt better" (133). Roosevelt's personality -- his "bearing," courage and "rapport with the people" -- "reached out and touched everything" (133).

(NOTE: We are enjoying the "Obama Charisma" which NOW gives us the same HOPE and Expectation as Roosevelt did, enough for us to hang on and not to think about the possibility of ourselves being in a stage of "self-denial." Last night I told my lovely "wife" that "the stock market would be down tomorrow after a big rally of 380 points up today." We'll see if it is right or wrong about my view on a rally of bear market caused by the Citi's "accounting" profit report, not a real sign of uphill for a return of bull market. )

Something else had become apparent, too. The idea that each family and each community could take care of its own and exist like a small island in a great sea was no longer valid. The crisis of the Depression with its poverty and its hopelessness had long since proved too much for cities like Flint, for counties like Genesee County, for states like Michigan.[...]. The whole essence of the New Deal was the abandonment of this small, individualistic outlook in favor of the bigger, stronger, national government and the immense power it could bring to bear on the solutions of the pressing problems which faced us."

Conclusion

Love led an interesting life, reaching adulthood in one of the nation's most difficult eras. Though there are many differences between the 1930s and our era some of what people experienced and how they responded is perhaps not entirely without parallel in modern times.

**** My Two Pennies ****

Well, look at Ben Bernanke's main framework of "stabilizing and revitalizing" our American economy by infusing bailout money into the current banking system, even going far enough to say "never giving up those big banks," I would like to say BB is so so nice as a kind mother who happens to have two big BB, i.e. Boo-Boo to feed his crying infants.

But, I am also wondering if that big "Dolly" are good enough to breast-feed those hungry alligators named by Robert Allen in his book "Nothing Down" to refer to "negative cash flow." Maybe the LP of the boy Napoleon from "Sicily Island" would be big enough. (NOTE: LP is a term means something that only a man has in Chinese, particularly in Taiwanese, it was a "dirty" word, at least deemed as a improper or decent words suitable for a civilized person to speak, let alone a high-ranking official. However, Taiwan's DDP party Foreign Minister Chen, a longtime American resident, used it officially at an open occasion. But here let's just mean "big Picture" or "guts" in English)

Benanke sees limited impact of subprime mess on economy
9:30 AM ET, May 17, 2007 - By Rex Nutting

What was propping up the emerging markets and many foreign markets was the notion of decoupling. The idea with decoupling is somehow the world was large enough to withstand an economic recession in the United States without missing a beat in growing.

Well, decoupling is a wish widely talking about recently in the scale of world economy while the words of "subprime mess would be contained in a small limited sector" was out of BB's wishes list on US economy only. Now, what you have seen? Did BB have a good judgment as he truly believed it was for real?

Did someone told us 40 years ago that the world was sharply narrowed into a "global village"? Who did it? Brezenski in his "Between Two Ages" or Tofler in his "Future Shock." Did someone told us 30 years ago that the world would be absolutely no longer an "open" political economy, but a very tight "woven," as just one, "closed" worldwide political economy as Confucius thought it for China 2000 years ago? Nowaday, no one can escape from the impact of a small event from a remote place almost unknown to him, let alone the biggest American GI. Who said that? You guess it and let me know.

Big banks will not be allowed to fail, Bernanke says: Recovery later this year is not out of the question, says Fed chief

"It was the...collapse of banks and other institutions in late 1930 and early 1931 that made the Great Depression great." - Fed Chairman Ben Bernanke

Humm? Per BB's usage of "IT", I take the liberty to interpret IT sounds clearly to BB there IS one-and-one-only cause to lead us into the Great 1930' Depression, right? Well, he definitely misses reading Love's book "Hanging On, Or, How to Get Through a Depression and Enjoy Life" and the others I happen to read.

Well, interesting enough to know that FDR closed all the banks in America, i. e. letting them fall, if not killing them all after his inauguration in 1933. How come FDR cut all the ties with banks while Obama is insisting on tying us more firmly with them?

Okay, so there exist some situations parallel to the Great Depression. Really, BB would like to make them parallel as he could pretend himself as a scholar using the phrase "others being equal" widely used in the science of economics. As I know, even it is an useful analytical tool or assumption in theory, NOTHING could be equal in reality given a human emotion is involved. How come he would not mention there were a lot of difference between now and then.

For example, there is no "universal credit" rule in our mortgage banking sector now, even it still exists in credit card service sector. In the Depression, a banker would and could call his loan no matter what you had been paid the contract interest-only payment on time months after months. There was no such a thing as amortization out there in 1930. So many things or institutions we are used to NOW are never heard at the Depression. Let's just stop here and don't bother mention other big improvements after the Depression.

So does that mean the conclusion of BB's doctor thesis suggests us that FDR couldn't stop leading us into the Great Depression due to no banking system or banking collapse? That's why BB decides to firmly tie us up with those financial Titanics such as BAC, Citi, without any chance for us to jump on a smaller live boat. Out of his kindness, he believes giving the huge Bailout fund to monster Wall Street bankers should be EXACTLY deemed as actually delivering money to the hands of the Main Street to further up the interest of the public. He truly believes and wants us to believe there is no other way out there, but to keep those super banks from bankruptcy, for rescue actions.

Common! Are you telling us that the Great Depression was trigerred and started at that point of time: 1933? Here I am so confussed. What should be the causes; and what, the effects? Does that mean BB, as a well-acknowledged a brilliant student specialized in the study of the Depression, thought those first 4 years sould not be considered as part of the 10 year contraction of the Depression? Give me a break, BB.

Son of stimulus?
Speaker of the House says she's open to another stimulus injection.

Well, you mean the lady Pelosi could be a great "Son" or what? I am puzzled. Clearly by sex, Pelosi is more qualified than Bernanke as a MOTHER, not a son. Even BB has so much milky liquid in his breast, it would be definitely more important for us to see he could put his smart, bright and shinny head in use than that Dolly wisely used her big boos to be a very successful star.

Wait! Who is the son by this news article? Good question when I look at the following top hot news just came out: Obama defends pet projects and signs spending bill (AP)

AP - President Barack Obama, sounding weary of criticism over federal earmarks, defended Congress' pet projects Wednesday as he signed an "imperfect" $410 billion measure with thousands of examples....Obama signed the bill in private, unlike a number of recent signings that took place with fanfare.

(NOTE: In private? I am wondering why the story sounds like Papa-Mama family business operation? Common! there are $410 billions Public dollars in it. That's a huge number, not even Bill Gates or Warren Buffet could make it in his CEO/ President 4 year term. Tell me, you are just kidding. Would it be a reporter's fabrication? Gee, forgive me for my fast-running mind. We can't go on like this, jumping topics after topics everwhere.)

But sorry to say, Bernanke could be the best student Professor Milton Friedman could possibly have. He is so good and behaves himself to read absolutely nothing, except those books his teacher endorsed and put on the shelves of Ivy Academy. Bernanke might make some intellectuals so shameful who dared to read those books which their university professors believed would be "dangerous." Who are they? You guys may know much better than me.

All I would like to mention here is just one. That is England's Adam Smith who became the first and best student in establishing the science of economics. Well, Adam is not a good student who had a copy of David Hume's "Treatise of Human Nature" at hand and was caught by the school authority. Adam could be nearly expelled from Oxford University as Bill Gate as a Harvard dropout. Don't believe me? Go ask Professors Robert Heilbroner and Lester Thurow if I am a liar.

Obama: U.S. recovery depends on rest of the world

Well, seems some one is going to say "all of us are responsible for this" after saying "American people have to be ready to sacrifice" following the famous statement made by J. F. Kennedy "think about what you can do to your country"? Is now Obama more "realistic" to want to follow Bush's path of strategy, not only to switch his position against Bush's "signing statement" at signing a bill into law, but also to form a friendly "coalition" while running into and in charge of an international crisis.

As S. Russell said, "Give me a break!" Who holds the final responsibility for the Iraqi War to the bone? The costs of Trillions dollars and hundreds of thousands people. Isn't it we the American people alone? What's a coalition"? Face the reality, USA is the major, if not the only, one picking up the checks at most expensive "Iraq" or "Afghanistan" restaurant. Don't look around, there is no way out, period.

Not a bad idea from those MBA, though. To spread the risk, it is called "diversifying." Everybody is responsible for the results, i. e. equally saying that "don't just blame me alone." Very good a student of modern MBA program could be!

But allow me remind myself. Don't you think We American still remains as the one-and-one-only REAL leader, if not the boss, in the world to make it more safer as we were after WWII and in the international Brentwood conference. Would Obama be in a little bit of losing confidence of American's role of leading?

(NOTE: Obama looks taller than all the other four former presidents when they took picture right before Obama took over the oval office, at least I am sure he would be much taller with more guts than the shortie Napoleon. Even he seemed to be the only one holding his hands together in front of himself, that doesn't mean he is lacking of confidence by body language reading. Coversely it may be a good sign to show his humbleness, ready to be wide open to all the perspective views. Ha! it is very interesting to look at the picture and see the big 5 showing their property of current mentality by their body expression. Don't believe me? Go find the valuable picture and read in between. You are going to appreciate the great professionalism the photographer has to catch the core spirit of each of them.)

Never mind that we were the one to mess it up; and we shoud have the honor and dignity to make it up. Even we want to run away from the duty, whom and where we can possibly pass it to? We are still much better off or luckier than Obama if we would think ourselves just free like a bird in this great free country. As an individula, we may do so.

How about Obama? Don't we know that there is only one guy who is the boss in White House vested with an "absolute" presidential power to have final say on every decision according to our Constitution, compared to a British Cabinet system? That guy happens to be Mr. Obama now.

Yes, there is no way for you out after your two year hard fight to get in and I am sorry for you that you would be trapped there for 4 years, President Obama. Some presidents felt being defeated and hopeless, such as LBJ fighting the Vietnam war lonely and painfully all nights long trapped in that little white house. I wish things would be much better for you, not like LBJ. If you could "do the right thing," it would be simple and natural with joy of success (治國如烹小鮮) for you and your recent words "it is not easy" would not be out of your lips again.

Hon. Obama, your have a great opportunity at this critical time to make unprecedently glorious history as President Bill Clinton once said "it makes me so envy to him (Obama.)" Yes, President Obama, it is your honor and privilege to be in that oval office to own such a super power given by God. Also, it is your duty to express your talent, royalty and make contribution to our great country and people if you are a responsible man as you said. Again, don't even think of asking around for help, there is no person out there except the great Uncle SAM in naked and uncovered short sales.

Barack, in deed, it is absolutely up to you as a "naked, isolated and lonely person (孤王寡人)" as a Chinese emperor called himself in some ways when facing a risk and taking his responsibility!

Kathy and Sheila, You Are So Wrong in Helping Home Owners

Ed Tse (richvalley) — Mon, 09 Mar 2009 18:02:17 -0500

Thanks to You, There's More Hope ... But We're Not Done Yet
Friday, March 6, 2009 10:54 AM From: "Center for Responsible Lending" <CRLNewsBrief@responsiblelending.org> To: "e t" <et@yahoo.com>


CRL Action Alert

Thanks to You, There's More Hope ... But We're Not Done Yet

If you're ever tempted to think that your calls and letters to Congress don't make a difference, then remember March 4, 2009. Yesterday evening, the House of Representatives passed the "Helping Families Save Their Homes Act of 2009" (H.R. 1106), a vital reform that finally allows distressed homeowners, as a last resort, to seek loan modifications through the courts. This action, which is a crucial part of the Administration's housing recovery plan, could help prevent a million foreclosures.

*** My Response Email Revised **

Sunday, March 8, 2009 1:57 PM From: "E T" <et@yahoo.com>Add sender to Contacts To: "kathleen.day@responsiblelending.org" kathleen.day@responsiblelending.org

Dear Kathy:

Don't make your lousy means defeat your kindest ends, please.

Sooner or later, you'll find out that Sheila's "loan modification" is simply a fraud, if no intention of scam, just as our organization has accused bankers, mortgage brokers, real brokers and appraisers of making subprime loan fraud now.

Enclosed herewitn some ideas of my 2 articles for your reference

Who Cares the Home Affordability? All We Need is BIG Brother Obama.

Let's say, he is trying very hard to stop housing price falling as Don Quixote was so brave to stand up with an ideological mind "social responsibility," like his supporters Kathleen Day of the nonprofit Center For Responsible Lending. She said in a report Some denounce Obama's homeowner rescue as unfair: "This is the financial equivalent of what Hurricane Katrina did to New Orleans. Did they know they were living below sea level? Yes. Does that mean we shouldn't help them? That's ridiculous."

(NOTE: Yes, it is absurd! I mean, Kathleen's opinion is the most ridiculous words I have heard recently, even I am a news subscriber and supporter to her organization. Well, it is a value she chosen. May I ask: "Kathleen, will you jump into a trouble water to help someone drowning if you don't know how to swim, i.e., you have no sufficient competency and may lose your life, too? That's REALLY ridiculous if I ask you so doing, right?

Sorry, I am an individualist and capitalist, too selfish and realistic to dare to push you into the river, in the name of social responsibility.)

See we are so different! (2)

(NOTE: I have been farting too long. Otherwise, I will talk about Sheila Bair's "loan modification."

It is simply and basically a concept "short sale" used in 1990' by the private sector (banking practice) to meet the needs of a distressed housing market. Nothing really new or creative in this Sheila's idea infusion into our federal policy.

In the past, only a third party is able to do a "short sale," a home owner is NOT allowed acting alone to ask this "favor", without inviting a buyer/ investor involved. The only difference is Sheila officially (still not legally) opens the door for a home owner to negotiate with his banker.

To a consumer, the government plan is even worse, more greedy or much evil than the traditional model used in the private financial sector if we factor into Sheila's "modification" her intention to add a so-called "CAP tax" framework. In essence, she tries to import an "equity sharing" program into her "short sale" hybrid plan.

The "equity sharing" concept used in a hard money loan or venture capital investment in order to boost or generate more fat or extra returns for a greedy investor while he smells a situation where a sign of big hopeless or anxious desperation of his borrower is detected. However, it was hardly used or never seen in a "short sale" deal in the past financial housing practice. That's a sweet dream a banker had never thought reasonable, workable and possible, to even making a request under the nature market forces of a free market.

A banker who wants future "equity sharing" in addition to today's pure "loan relief" knows that a homeowner is in a distressed situation, but he also realistically knows that the third party concerned, i.e. the buyer or investor is NOT. No buyer or investor will accept an "equity sharing" term (or called it CAP tax in governent legal jargon) in a "short sale" under a normal condition. They will walk out the deal if a banker insists. Those buyers are not under duress or in a situation to be intimidated where our poor home owners go under the water of foreclosure (NOTE: I had been there and felt the unbearable pressure in 1989-90).

How dare a public servant Sheila as the Head of FDIC is asking the wonderful perk, a Obama-said stlye of "sacrifice," from a home owner? To whom the sacrifice is supposed to be made? Is it for increasing the benefits of banks or someone else, except aggregate of the owners concerned?

Because Sheila knows the fact that a home owner is desperate and the buyer is the identical hopeless owner/ victim at the same time under her idea. She knows, dealing with someone who has no help to get from but herself, she is the only Savior a home owner can wishfully depend on, count on and put trust on. Is Sheila violating her fiduciary duty to those people who gave her the trust when she swore into her office? Or is she in a "conflict of interest" by presenting both banks and owners? Sure, she will claim she is just a intermediary as a broker working for both sellers and buyers, so as to get her 6% commission for her Uncle SAM brokerage without anyone's notice of tax hike. I have no answer on the possible questionable issue until a judge tells me.

In fact, Sheila is playing a rat trap to catch a home owner as a wolf to the little Red-hood: to give a home owner something with a sweat and kind smile in bold print; then, turn around to take something substantially much bigger back from him in fine prints. This scenario makes me wondering if Sheila used to be a saleswoman who professionally owns knowledge and knows how to sell an insurance without giving out a real pledge of warranty in her policy.

Is watching taxpayer's pocket just a responsibility for a British Parliament member or our American Congressman? In England, no mandated representative is allowed (or it is prohibited by her "Constitution") to initiate a legal bill to increase tax in Parliament. Sure we America is so different. Our Congress has the right, duty and shall introduce so many tax-increasing proposals at any moment under its own discretion. Such as Pelosi's Dem would like to initiate Dem's version of "domestice spending of $400 billion" bill immediately in a week after passing Obama's $800 billion stimulus into law. Why they don't combine both spending into just one act with more consistent, organized and coordinated order? So, what we can expect from our dear Congress and Administration?

On both sides of Atlantic Ocean, it is so supposed for either Federal public employees or the Cabinet in executive branch to propose new tax burden unto people? So what is the big deal for Sheila if she is doing it with additional returns for her friendly bankers or GSIs who are too "bashful" or realistic to ask such goodies?

Is Sheila's concept so big a deal for her, Obama or the News media to brag about? Does it greatly change the way a banker handles his business if a homeowner used a straw man as an investor to do a short sale in the past? Do we have no other way to achieve the same or better result? To me, there is no really strategic breakthrough, but just unnecessary disturbance to the free market cause from all the government plans.

How about your two pennies?

See we are so different! (2)

Ed Tse (richvalley) — Sun, 08 Mar 2009 01:30:14 -0600

See we are so different!

Comment by Dan H

March 6th, 2009 at 8:50 pm

It is plain and simple, the likes of AIG and Citi are already on the bottom under a 1000 ft of water. Time to STOP bailing with our money. They seem to be on a course to print enough money to kill the dollar! Then what do you do….start another war , have another terrorist attack?

There are plenty of well-run banks in this country. We need to support THEM, not sink the whole system for the sake of the TOO-BIG-TO-FAIL crony friends of government. The problem is that we will all loose big-time as the pension funds, retirement accounts and 401Ks are decimated as a result of the fallout.

I converted my IRA/401K money to hard assets periodically as I went along. I had a feeling that something like this would happen. I also set up a disciplined approach to PAY OFF the mortgage EARLY. Home equity loans seemed fairly foolish to me. Why should I risk my home for a vacation ?!!? I can now walk around on, farm, cut firewood and when the time comes, sell off lots from my retirement fund. I won’t loose much in the market. However, we all could loose everything if the system collapses.

*** My 2 Pennies ***

To Dan H:

Thank you for pointing out these two points I kept in mind:
1) There are plenty of well-run banks in this country. We need to support THEM
2) I won't loose much in the market. However, we all could loose everything if the system collapses.

Our Gov't action is wrong for the orientation, because they are up there to only know the feelings of those fat cats' pain. They don't see something, a real "emergency" in the bottom.

Before I retired 5 years ago and moved to a rural area in Texas, I had been in the high or highest social pyramid dealing with some state's Governors. Up there, I was really in blindness "See no evil, Hear no evil." Today, Look at all the government plans, I feel so sorry that nobody in power can see through the fog.

Our conventional wisdom or method to solve American poverty is "full employment." It is wrong said by the poverty specialist Barbara. I'd like to say the assumption "to stimulate our economy is go through saving big banks like Citi, BAC" is terribly wrong.

As Barbara found in 2000, some working class people have to live in a lousy "motel" or his car due to lack of rent deposit, even they are working so hard to stand up for 11 hours. Now, let's look at so-called "tax credit", no matter what it is federal or California state's, how can the bottom 50% of our people come up 20% down to buy a home when subprime loan is history, when a lot of my neighbors are even unable to have $1,000 at hand to put his rental deposit or when HUD, FDIC, bankers hike their loan processing fees? Let alone some don't even have a spare money of $20 to go buy a bag of dog food for a hungry strayed dog coming to their home; or some working couples have to come to me asking for $30 loan for gas tank fill-up to work when the gas was $4 per gallon.

The truth is no matter how low the housing price goes down, there are 50% or more of our people has no capability to be with sufficient down payment to buy a home unless it is free or $7,000 in Detroit. As usual, some have to keep spending their 50%-70% hourly wages on expensive weekly high motel charges, not on a more comfortable and cheaper apartment on the long run. In other words, they have to stay on where they put their asses now: no kitchen, no air conditioning, no living room, no refrigerator, no fan, or window (a caveman?); even sharing the bed with others. They are working peoples, including WalMart's employees. Huh! the biggest world retailer/ private employer to create/ provide jobs. Many of them have to work two jobs to make the end met. Their living condition is making our American society no better than the third world.

Don't believe me? Go read Barbara's book "Nickel and Dimed." Barbara didn't make it up, I see it and feel it everyday to know it is true.

Suffice to say that those invisible poor have no way to buy a home under the current conditions. What's that supposed to mean? No home purchase, equally as to set a clearly written law saying "you are out, working class!" No home purchase, no honey, okay? You are not getting any penny out of government's fake mercy money of home purchase tax credit. Am I right, my hard working class?

Tell you the truth, when I look at the face color of Obama, One thing bothered me so much keeps popping up in my mind (Sorry, I shouldn't mention color, but I have no control of my mind).I recalled the misery of the black slavery when they called a black citizen "NEGRO."

When those slaves set free in 1860', did those WHITE people in power be kind or wise enough to go set up today's "stimulus" plans to give some basic need to help them live decently or independently with hope for the future? What is or are needed for them to start to stand up as a freeman? Did most new freemen have some necessary means to live without the threat of starvation? Absolutely not! They can't even afford their "affordable" shelter as our working class today. They didn't even have a loud crying as those big guys in Wall Street has now cried all day long to express the fear of constant threats of dying (bankruptcy). No, nobody up there is going to give grease because no one cares to see or hear the squeaky noise from and hands out to reach the bottom down there.

For the same token, think about who knows what those poor folks need? Don't just say they are lazy. That will be insulting our intelligence, at least a challenge to Obama's IQ. How come Obama claiming he grew up from the grass roots of lower social class, but just acting as he was one of white autocracy in the past who was so blind to know what a "dependent" poor lives under "social welfare" framework and to provide real help to them in need and in deed? I know a fact that Pres. Obama is the 2nd generation who doesn't have live experience of black slavery in his father's family. He may not have the frame of reference to the hardship our black slaves went through. However, I may have to go back and see how he has done so great to break the social "glass ceiling" than Rev. Jessie.

Full employment would not sufficient to solve the poverty in America. Simple, it is based on a wrong assumption: "social income or wealth will equally distribute or grew among All social classes on our pilot establishment automatically." In fact, the rich gets richer by knowing the new rules such as stock derivatives or being helped to play the paper money game by their attorneys and CPAs. The poor stays in the Ground Zero or is getting poorer without time, energy, knowledge and resources to cope with the new ages by being used up all his time on the new wave of 2 job life style (I am not dare to say as a working blue ant in Communist China). The disparity of national wealth dramatically increased; the wealth accumulated on the top only; money simply didn't go down to the bottom naturally as water, even we have a president who has a middle name "water."

Today, we see all the big fat cats or so-called "too big to fall" institutions has gotten a lot of bailout money. At least enough to spend on "CEO compensation or bonus" to reward those wrongdoings. They are encouraged to "expand spending" of half millions dollar on a weekend party in California to help our government "stimulate" our distressed economy.

Benanke, Hank Paulson and Tim Gaithner (I call them BHT in short, no offense to refer to "bigshit." I truly mean, those wives working Badly enough to put their Husbands Through to be dumped without appreciation, after their husbands get their PHD degree) have the same fallacy assumption: "Give money to the big banks, then others will get loans and economy revitalized." Did we see any liquidity (water) fall down to the bottom? Is that fair to those prudent middle size banks you mentioned here? Is that what we call the spirit of "free competition" to cut out the chance for the good banker to grew into the bigger or biggest when the established ones fail?

Give the poor some fishing tools (a sufficient money to not only buy, but also to plan or invest in themselves), please don't just give them fishy, wasteful "goodies" to barely prolong their life under so-called "temporary shelter assistance" or "social welfare." (Please check what Barbara got in her "charity" basket, you'll know goody is not needy.)

Putting myself into those poor folk's shoes, I wouldn't be so nice as Barbara to say those working class is doing "savior" contribution to our American society, by selling (donating) their labor cheap (not "exploitation" as Karl Marx said?). As Dr. M. L. King, I would rather shout it out loudly : "that is a torture, as cruel as keeping a slave free but naked and hungry, by the name of freedom. I have a dream tomorrow we'll see a world to give people a chance and means to hope, to drive and to excite themselves to plan their future and enjoy the happiness of achievement ."

Sadly enough to say, in the current subsistence level under Obama‘s plans, sometimes it is just like "放生" in Buddhism to set animals free into the wild jungle without rebuilding or revitalizing their abilities to be fit in and live in.

Now is the best time for re-building America! While our government revitalizing US economy and a lot of surplus housing inventory in market, we shall be able at least to easily give the misfortunate invisible poor people "sufficient" down payment to buy their shelter that is the biggest expense to their lives or move out of their colonia, if those taxpayer's money would not to be spend or wasted on those fat cats and red tape.

Best part of it, all of these can be done without a major change of our traditional market rules, PERIOD.

(NOTE: I have been farting too long. Otherwise, I will talk about Sheila Bair's "loan modification." It is simply and basically a 1990' concept of "short sale" in the private sector (banking practice). Nothing really new. In the past, only a third party is able to do a "short sale," a home owner is NOT allowed. The only difference is Sheila officially (still not legally) open the door for a home owner to negotiate with his banker. Is her concept so big a deal to brag about? Does it greatly change the way a banker handles his business if a homeowner used a strawman as an investor in the past? Do we have no other way to achieve the same or better result? To me, no real strategical breakthrough, but just unnecessary disturbance to the free market cause from all the government plans. How about your two pennies?)

Keep going, folks! We can live on blaming?

Ed Tse (richvalley) — Fri, 06 Mar 2009 11:37:25 -0600

http://www.personalliberty.com/poll/economic-bailout/index.php?SC=BLL1002

Keep going, folks! We can live on blaming, can't we?

What a Chaos! Suppose a Democracy Is a Politics of "Responsibility"? But, what a Responsible Politics is? Whom is responsible for what happened? What do you reach your verdict? And how? Are you facing a situation like those Chinese in Taiwan, who are the best American political followers/ idols in the under-developed countries.

(NOTE: Sorry I know, they prefer the noun "emerging" countries now to the " backward" before WWII or the "developing" one, popular after WWII. In Chinese, emerging means “崛起” that gives them the same encouraging psychological effect as Mao's “超英趕美,” i.e. "Leap forward to pass USA and Britian." Even those words mean the same thing in content, different terms do make people feel so good and so different. Better than the phrase "Japan's #1," it is enough for some Chinese to brag themselves as "the leading engine" as the "number one" savior for the global economic growth in the near past and to believe in so-called "de-coupling" theory recently.)

Republic of China on Taiwan was a follower of our American political experience and America has been their role model in the route of modernization, if not Americanization. And NOW, time is changed, USA becomes a follower of Taiwan political turmoil experience and Taiwan, a front runner to lead America to ruin her glory? Who is the leader? Or a statesman willing to take his responsibility while our system allows him to easily find a scapegoat to blame, with confusion, as opposed to British Parliamentary System?

In the past 20 years, Taiwan has done quite enough negative "blaming" to such a point that they are destroying so-called "the Taiwan Miracle" of economic achievement. They are losing their worldwide productive advantage and letting the government functions idle or in an "invisible non-existence" to produce no positive impact on people's daily life?

Instead of creative and productive activities of cooperation to better their systems, Taiwanese have wasted their energy on all kinds of passive accusations balking against each other. Anything went wrong, no problem at all. Just like our affluent lady Pelosi in the picture, point your finger out and blame the other no matter which party is the ruling party, as we have heard "class hate" talking arising in internet forum (Of course, some people called it "class envy" to beautify its meaning while it has the same social disorder as "hate crime" in terms of races.)

It is very funny or absurd to hear GWB called the recent developments as "Democracy of Taiwan advanced."

Are we the Americans heading the same Taiwanese episode, even it seems unavoidable for Obama and Pelosi to "jump-start" our recession into OoP Depression (an acronym: Oops, Obama-Pelosi Depression)?

Isn't it a very good question for us to think deeply?

Government Bailouts... Good for America? PersonalLiberty.com, America's #1 news site for independent minded individuals is conducting an urgent economic poll. We want to know if you think the government bailouts will be good for America and help rescue our country's housing market, stock market and ailing financial system. The results of the poll will be available to you after you submit your vote and we'll also share the poll results with major media outlets across the country. Thousands will vote, so take a moment right now to stand up and be counted... your opinion matters! Vote today!
1)	Who is most to blame for America's current economic crisis?
Democrats and US Congress The Bush Administration Wall Street Banks and sub-prime lenders Real estate and mortgage professionals Investors Home buyers
2)	Do you agree government bailouts are the answer to America's financial crisis?
Yes No Undecided
3)	Do you believe the American taxpayers should have to foot the bill for our financial systems mistakes?
Yes, we have to or we'll end up in a prolonged recession or worse a depression. No, America is too far in debt already. Absolutely not, the American people should never be responsible for bailing out the private sector. Undecided
4)	Do you believe the government bailouts will ultimately rescue our country's financial system?
Yes No Undecided
5)	Do you believe Barack Obama was the best choice to handle the country's future economic policy?
Yes No Undecided

Go Out to Govern As a King, Not Stay In to Manage As a Maid, Please!

Ed Tse (richvalley) — Fri, 06 Mar 2009 09:16:22 -0600

House approves bill to let judges modify loans(11 hours ago) +1 Votes 1 Up 0 Dn

Have nothing to say, being fed up by Obama's Dem follows.
In fact, we don't have to tear down the house to re-build it. I mean we don't have to change the basic rules to such a situation.
Well, let them do whatever they want since they control everything in all the branches of our government. We just do whatever we can, Okay?
So cheer up, I will share an article I wrote today with you: Happy to See It Happen. I Told You So Simple.
http://activerain.com/blogsview/968377/Hppay-to-See-It-happen-I-Told-You-So-Simple-Didnt-I

Happy to See It happen. I Told You So Simple, Didn't I?

15 months ago, I put "The real market value is lower than $60K" in my neighbor's case mentioned in the above article. At that time I knew the fact that I could buy the non-performing note underlying the property for $20,000, $15,000 or much less. If nobody is too emotional to base decisions on reason, it is a very realistic goal to accomplish.

In other words, as NAD purchased the Ernst's note of $150,000 for $96.296, it will cost me, say, $15,000 or less. And at the end as NAD got $99,900 out of the deal, it will be much easier for me to make a NEW principal of $40,000 loan since I give out more discount of 50-60% compared to NAD's 37%.

Is it difficult to reach my goals to grow the amount of my cost into double, 3 times or 4 times to have my profit in jsut 1 month or 2? Not really tough, at least not like a mission impossible.

How do I know that fact? I bought some properties there and know the local market, right? I paid better and bigger properties about $16,000-$21,000 in the area by a performance I call it "a legal bank robbery." I sold them for $55,000-$75,000 at end (my escrow paper can prove it. In AR, I mentioned I sold a property last January for $72,000. Guess how much I paid for it?)

I gave my buyers an opportunity to buy a very decent place as their "affordable" home at 70% market price with easy terms and no FICO score check. My properties shall be in "heaven" condition as opposed to those inhibitable "Hell" conditions for the average American working class, mentioned in barbara Ehrenreich's book "Nickel and Dimed." My annual percentage of yield goes more than 200% makes me feel guilty sometimes. I always wonder: do I have to charge such a huge profit?

After all, as a real capitalist shall be the one as Mark Haroldson put in his book "Financial Genius" and, as long as my buyer poor folks are happy to make their payment today, less than the rent they used to pay yesterday, and live in a much much better shelter they own, I have my life to support. If later they encounter hardship, I will be in a better position to help them to reduce their obligations as NAD has done.

So far, I do thing easy, nature and simple. I hate complexity. I don't do anything tricky and fancy as our politicians or those IVY MBA play all kinds of trivia, such as rebate, tax credit or deductible, to make people busy and confused. By making those small smoke "lip service" stuffs to set qualifications, our politicians are eying on a small branch to disregard the root. Our government makes more red tape to increase administrative costs to taxpayers, in addition to compete or "challenge" the wisdom of their people to make people's life more miserable and difficult.

Why so big a powerful government as USA acts like a spoied kid focusing on those small fine and dizzy prints to ignore the key, basic and vital issues or values? I wonder if they are really in a position of "governing", not acting as a manager as a Maid to daily life activities like sweeping the floor? (NOTE: sometimes they even spread the toxic germs everywhere. To better understand the point, please go read Barbara Ehrenreich's great book "Nickel and Dimed" to get the feelings of a Maid she had.)

In the past 5 years, nobody has problems in making payment. Nobody defaults or unhappy about me. One of them even paid me off the entire amount of my seller financing in a year after they bought a property from me.

Trust me, it is Knowledge and Vision to overcome the hurdles to easily make a breakthrough, no matter which field it is in scientific, technological, culture, social or economic field.

Happy to See It happen. I Told You So Simple, Didn't I?

Ed Tse (richvalley) — Thu, 05 Mar 2009 19:10:53 -0600

Bank Charges May Surge as Mortgages Marked to Market (Update1)

By Elliot Blair Smith

The process will "put a lot of them out of business," Amaya says. "There's going to be some hard, short-term pain that needs to happen in order for us to start rebounding." (NOTE: It is true from a perspective, but not all the spectrum. Do we have a better choice? Even I can't promise, things are not so dimmed.)

Ernst Henry, 43, a respiratory therapist in Charlotte, North Carolina, responded as skeptically as Greenberg had after receiving a solicitation from NAD (National Asset Direct) early last year.

"My initial instinct was to shred the letter," he says.

NAD's Hussion says the company bought Henry's $149,900 loan on a four-bedroom rental property for $94,296, a 37 percent discount from the unpaid balance. Yet with the mortgage market collapsing and the appraised value of Henry's property declining, Hussion says she struggled to refinance the debt.

Henry balked at her offer to cut the principal by about $50,000, contingent on his paying $8,000 in closing costs.

"I'm giving you $50,000. Give me the eight, stop complaining!" Hussion says she told him, raising her voice.

That got Henry's attention.

"It made clear sense to me," he says now.

He took the offer.

**** **** ****

Ha! Ha! Ha! I've known that bankers increased their fees and FDIC charged more insurance premium on bankers already. See everyone has different perceptions, even with this long article. The section I am interested most in the article is the last few sentences quoted above which may be the least concern of the reporter.

Why? I am smiling at it with my appreciation on an experiment confirmation to some practical ideas which has proved there is no need to change the basic game rules as Obama has done or determined to do those Dem's bullshit plans.

Finally, there is a news repost. I can see someone is doing a partial vision of my ideas on a broader scale. It took at least 1 year for someone like NAD doing one of my ideas expressed here in AR, by one of the ways I have in my mind long time ago, in making money in this downturn market.

NAD is doing good in seeking profit. Look at the Bloomberg's report (web-link provided as above), those few last paragraphs pleased me so much. Seems Henry got the deal by reducing his loan principal amount from almost $150K to $99,900 and How much the NAD cost is? Did I hear "$94,296"?

Wrong answer! Anyone has "software" knowledge of real estate trust deed purchase knows that. Did you recall there is "$8,000" upfront fee from Henry? That fee is called "point" in terms of mortgage jargon or "Buy Down." So NAD's real cost is 86,296.00. However, the NEW loan interest is charged and based on what? Yes, you are right, it is $99,900, not $86,296 or $94,296.

So there is roughly a built-in (or call it "intrinsic") interest "surcharge" of 15% of Ernst's paper rate ($14K divided by $86K= 15%) as opposed to a banker's new loan. Say the real interest rate for NAD is 9.2% (APY) istead, if Ernst sees it clearly put 8% (APR) in his document. (now can you see what I said: "two sides of a coin" or a "win-win" situation by thsoe real estate gurus?)

Nothing in the report mentioning about old or new interest rates for Ernst as in Patricia Greenberg's case. I don't want to go into detail analysis about NAD's profit. All I want to say is NAD is doing great.

No matter what took place, every party involved here is naturally happier than yesterday. Ernst, NAD and the banker who sold NAD his note. (Nobody points a gun at his head to sign the contract of assignment, right?) That's the nature beauty of capitalist market. Unlike government interference, all the programs made by GWS or Obama incurred objections, complaints and injustice. In this case, anyone, including you reading my article, is going to blame anything? Tell me about it, please.

NAD is not good enough for me to grade them "excellent." They produced social or marcroeconomic effects, not only providing home owners "affordable" housing but also creating jobs, etc. However, NAD seems far behind my performance criteria: 1) making 100-150% profit immediately (NOTE: for charity reason, we may set the goal for 50-100% profit or less in a year); 2) cut the original homeowner's monthly payment in half. Why they miss the goals I set in November 2007? Simple, they are missing the other side of coin my vision has been on.

From my obersevation, a few people are working the way I figured out and they are probably on the other side of coin or both sides. They are doing great in the past five years. I can see their business expand from a certain area into nationwide, such as Worldplus (starting from California into the vicinity of states) or Harley (starting from Florida into Seattle). Probably, they are a private investor looking for their pot of "gold" by digging out others' trash. Sorry I have no way to know how they are doing, but I will assume they have made some real money to expand their business. They may not have a non-profit charitable cause in mind, to effectively help the poor folks while revitalizing our housing or national economy.

Well, I told you that it would be so simple and nature to rescue or revitalize our economy if those people in power could do it right. When I mentioned it 15 months ago, probably nobody will look at me without difficulty to have a "You are just Bullshit Bragging Yourself" idea kept popping up in his head. Now, NAD comes up and do it half way I have in my mind. I am so glad, even NAD just did it with the half performance or achievement I want.

I did it all by myself in the past with my successful cases, on a very local basis without influence to our national economy. So far, no case failed and all successful, to meet the above two criteria I set.

However, without the fund support from someone like DellaCamera, I am still down here in Texas and feel so sorry to be unable to do something as I said "to only provide real good, solid and practical stuffs to the weak publics."

Okay, so I told you, didn't I? Let me prove it to you. Please go back and read my article post here in November 2007: A Funny World (6-1): Talker with Lips, Doer with LPs

	花花世界走馬燈集(6-1): Talker with Lips, Doer with LPs
	時事評論｜財經	2007/12/03 02:13 ｜

Hope you can see what I meant by now in the following sentences:

For an example, one of my neighbors had his home foreclosed on Nov. 6, 2007.

It is too late for me to work on when I knew it. There is only 3 days left for me actively and positively "attack" from the other side. [in fact, there is one business day since it is a weekend.] They owe a bank $82K that is the minimun bid amount on auction block.

The real market value is lower than $60K.

If they let me know earlier and give me at least 2 weeks to work on. It is very possible for them to stay at their home now. They may be able to owe a new loan of less than $40k and pay 50% less of monthly payments. It is a very possible practical goal for me to reach.

BTW, you guys may ask what's in it for me since you know I am very selfish and good at return calculations?

Ooh! you are smart to ask! Let me tell you, it won't make me feel guilty to my pre-set investment goal: 200% return in a year.

How can I do it? That' what I mean the other side of a coin: know the "sofeware" real estate well enough to set your own rules to play with a lender shark, not to follow theirs.

If I go out to help the general public with less funds those organizations have, believe me I won't talk about those public or private useless plans that are at the mercy of those greedy lenders.

I won't do lip service to give advice and comfort only.

Trust me I will use my expertise and the rational market forces to only provide real good, solid and practical stuffs to the weak publics.

Bank Bailout Will Hurt; But Taxpayer May Avoid Being hurt

Ed Tse (richvalley) — Mon, 02 Mar 2009 20:04:30 -0600

Taxpayer Beware: Bank Bailout Will Hurt

In other words, the paper says, if the government tries to save taxpayers money, many people will lose their jobs and the whole economy will suffer.

The research note offers a solution any banker would love: The government should "estimate the highest price it can pay for the various toxic assets on financial institution balance sheets," then pay that price to buy them.

We figured Simon Johnson, a professor at the Massachusetts Institute of Technology, should argue it out by phone with Joseph LaVorgna, chief U.S. economist for Deutsche Bank and the man who wrote the paper.

*** *** ***

What you think about the above article releasing a honest Deutsche Bank economist Joseph LaVorgna's simple solution?

Well, to me, it is telling a truth; but it is a partial truth to a banker, not the whole truth to the people. Due to its confusion, I changed the title in my comment on other website into the topic as follows:

	A Partial Truth Told: Bank Bailout Will Hurt; But Taxpayer May Avoid Being hurt
	時事評論｜財經	2009/03/03 09:00

Whom are going to be hurt by the bailout as the report claimed? The greedy bankers at Wall Street or the prudent Joe on Main street?

Mr. LaVorgna may have his good underlying assumptions. However, he is too narrow himself in Finance Ivy Tower (I don't want to say he has an invested interest in it) and doesn't see the whole true picture in terms of political-ecnomic viewpoints. Most likely, his statement is too absurd to assume CATS and PEOPLE are the same and on the same boat with the same fate.

Not true, the big ship may sink; but the small live boats are floating to survive, right? To me, the victims shall be those big reckless fat cats. Unless we the people let Uncle Sam keep doing what those fat cats want as LaVorgna believes, both of us will sink. We the people shall overcome if we can cut the ties to those too big to fail, in time.

Is there only this solution to lead the American people holding the bag? I doubt it unless Obama is unknowingly "cooperating" with Wall Street to do those "stimulus" plans figured out by Tim Gaithner and Pelosi.

If Obama can do the right things, most of American people is not going to be hurt. How can Obama do the right things besides his "big" socialist mouth? Well, you tell me what you think first. Then, I will use CDS (credit default swap) and the event of a projected event of California Monster Earthquake (or Katrina Hurricane) as example of analogy to explain the situation we are facing now.

It is very simple for You to clearly see through the mess and understand what I mean. You won't believe Joseph's solution by pointing out his simple-minded way of thinking and laughing at him by confidently saying: "We people won't get hurt."

It is a choice of us, or maybe Obama's.

See we are so different!

Ed Tse (richvalley) — Tue, 24 Feb 2009 19:52:34 -0600

Do We Really Care?

We Need Action, Not Big Sweet Mouth from Obama

Foreclosure Has Its Merits in a Natural Course, Not Just a Problem to Homeowner

See we are so different!

The VIP have their top priority: Bankers.

As to me, a VSP, I have my bottom line: the grass roots of our American society.

Well, they are up there in the sky (or sick) branches; I am down here to the core roots.

Well, they want to inflate ABS value and keep housing price flying up through TARP for them to play with as a toy game; I just want housing price falling down to earth like the dust rests fast and in peace to be a shelter affordable to our Main Street Mr. Joe and to be a solid ground for a new growth of our national economy.

House: $/Sq. Ft. More Info

Summary Data

	House	Condo	Total
Total Homes for Sale	264	26	290
For Sale By Owner	2	0	2
Bank- & MLS-listed Foreclosures	142	9	151
Median List Price	$99K	$186K	$100K
Median Sold Price*	$90K	$205K	$92K
Median List Price/Sq. Ft.	$90	$141	$92
Median Sold Price/Sq. Ft.*	$81	$163	$83
Median Days on Redfin*	76.5	82	77
% Homes with Price Reductions*	50.9%	60.9%	51.6%
Median # Reductions*	2	1	2
Median Total % Reduction*	27.5%	16.0%	25.2%
% Sale to List Price*	96.5%	-	96.7%

*Based on homes sold or taken off market in the last 90 days

Well, they want to use government intervention to ease the gravity to increase the value, if any, of Trouble Asset (the first two letter of TARP.) I prefer to let the nature run its course, continue the driving inertia of the above curve in the case mentioned and finanlly and naturally go to an equilibrium, even the speed of falling has increased.

Well, they love to play a role as my rich grandpa did to my junior uncle: give monthly petty allowance to subsidize those misfortune in order to show they are "Big Brothers" with huge capability and so persistent charitable kindness. I will take a totally different approach to trust our people by giving them a lump sum of money, at least enough down payment or seed capital, to do or initiate whatever they want.

I mean I will try give them a "free and clear" permanent housing, if possible, instead of helping them pay rent. For example, in the case I referred to, that means I will give the poor a house of $25,000 immediately, not trying to keep the bubbled price of $338,000 up in the sky high and then try to "reduce" the principal or to "modify" the terms of loan in the name of my "mercy."

In other words, I will let them have no problem to go fishing by themselves, not give them a fish by me and pride myself by so-called "charity" or "government welfare plans" when they cry out of hunger. Please, with your deep kind and calm thoughts, take a good look at the article: Homelessness Official Wins Praise With Focus on Permanent Housing

Well, they love to show you that they are working hard day and night everyday to deserve the salary and hope; I am just a lazy guy who doesn't want to be a stock day-trader, did I say that before?

So to speak, different people, different position, different life style. I understand.

the fed
Bernanke: Fix banks first (Note: fix shall be changed into "feed")
Fed chief says government's top priority is restoring financial stability to the system
and that next year could be one for recovery.
• 19 banks eligible for common infusion
• Banks must give Fed notice of dividends