San Diego Blog

Bank Failure Friday - A Hat Trick

San Diego Short Sales (San Diego Homes) — Fri, 07 Aug 2009 22:43:15 -0700

The nine most terrifying words in the English language are, 'I'm from the government and I'm here to help.'

Ronald Reagan 40th president of US (1911 - 2004)

If you are a bank and its Friday, its only four words: "I'm from the government".

The suits struck again today, adding banks 70, 71, and 72 to the list of siezed banks.

From Reuters:

Friday's closures were:

* First State, Florida, which had $463 million in assets and $387 million in deposits. The failure is expected to cost the deposit insurance fund an estimated $116 million.

The FDIC said Stearns Bank, National Association, agreed to assume the insured deposits of First State, whose nine branches will reopen on Monday as branches of Stearns Bank, N.A.

* Community National Bank, Florida, which had $97 million in assets and $93 million in deposits. The failure is expected to cost the deposit insurance fund an estimated $24 million.

The FDIC said Stearns Bank, National Association, will assume the insured deposits of the failed bank, whose four branches will reopen on Saturday as branches of Stearns Bank, N.A.

*Community First Bank, Oregon, which had $209 million in assets and $182 million in deposits. The failure is expected to cost the deposit insurance fund $45 million. The FDIC said Home Federal Bank, Idaho, will assume the insured deposits of the failed bank, whose eight branches will reopen on Monday as branches of Home Federal Bank.

Dems Give Dodd Free Pass on Countrywide Loans

San Diego Short Sales (San Diego Homes) — Fri, 07 Aug 2009 14:14:00 -0700

"Once you became aware that your loans were in fact being handled through a program with the name 'V.I.P.' that should have raised red flags for you,"

The above comment was in the letter from the Senate Committe that looked into Dodd's sweetheart refi deals with Countrywide.

As Homer Simpson says, "doh!".

From the Washington Post:

The Senate Ethics Committee on Friday dismissed complaints against Sens. Chris Dodd (D-Conn.) and Kent Conrad (D-N.D.) for their participation in a "VIP" mortgage program with Countrywide Financial Corp. The panel informed the two senators that while it found "no substantial credible evidence" that their mortgage deals violated the chamber's ethics rules, they "should have exercised more vigilance in [their] dealings with Countrywide to avoid the appearance" that they were "receiving preferential treatment" because they are senators.

The Ethics Committee began its probe in June 2008 in response to complaints filed by the watchdog group Citizens for Responsibility and Ethics in Washington. The complaints followed press reports that both Dodd and Conrad had received home loans through the "Friends of Angelo" program, named for Countrywide CEO Angelo Mozilo, that provided discounts and improved service to select customers.

In its letters to Dodd and Conrad dismissing the complaints, the ethics panel said it had "treated this matter very seriously," reviewing more than 18,000 pages of documents and conducting "lengthy depositions with numerous former Countrywide employees." According to the letters, Conrad informed the panel that he knew he was in a VIP program but did not necessarily know what that meant, while Dodd told the committee he simply thought he was getting better service, rather than special mortgage terms.

To paraphrase Mel Brooks and Tom Petty- It's good to be a Senator.

Colonial BancGroup Faces Criminal Charges

San Diego Short Sales (San Diego Homes) — Fri, 07 Aug 2009 13:24:00 -0700

This bank will live past Bank Failure Friday today, but only because the plug will get pulled next week.

Rueters, and others reported that Colonial BancGroup admitted today it is the target of a criminal investigation and the FDIC is likely to step in next week.

From MarketWatch:

NEW YORK (MarketWatch) -- Colonial BancGroup Inc. /quotes/comstock/13*!cnb/quotes/nls/cnb (CNB 0.55, -0.15, -21.29%) said Friday that it is the target of a federal criminal investigation relating to its mortgage warehouse lending division and related alleged accounting irregularities. Montgomery, Ala.-based Colonial BancGroup said it intends to cooperate with the investigation. The bank also said the Securities and Exchange Commission was seeking documents related to, among other things, its disclosures related to its participation in the government's Troubled Asset Relief Program. On Monday federal agents raided a Florida branch of Colonial BancGroup, and on Wednesday state regulators said Colonial Bank may be placed in the hands of the Federal Deposit Insurance Corp

I would not be surprised to see Colonial shut down today.

Should Bernanke Be Re-appointed To The Fed?

San Diego Short Sales (San Diego Homes) — Fri, 07 Aug 2009 13:20:09 -0700

Bernanke's term expires in January, 2010. He inherited one heck of an economic situation. Should he be re-appointed for a second term?

Nouriel Roubini says yes, and gives a pretty solid defense of his opinion.

LAST week Ben Bernanke appeared before Congress, setting off a discussion over whether the president should reappoint him as chairman of the Federal Reserve when his term ends next January. Mr. Bernanke deserves to be reappointed. Both the conventional and unconventional decisions made by this scholar of the Great Depression prevented the Great Recession of 2008-2009 from turning into the Great Depression 2.0.

Mr. Bernanke understands that in the Great Depression, the collapse of the money supply and the lack of monetary stimulus during contractions worsened the country’s economic free fall. This lesson has paid off. Mr. Bernanke’s decision to keep interest rates low and encourage lending has, for now, averted the L-shaped near depression that seemed highly likely after the financial collapse last fall.

The rest of the article is a great read.

Your thoughts?

Ruthless Defaults Stun Credit Card Companies

San Diego Short Sales (San Diego Homes) — Sun, 26 Jul 2009 15:20:35 -0700

In 2007 Bank of America CEO Ken Lewis said, “I’m astonished that people would walk away from their homes,”

From the NY Times:

"Bank of America has its hands full, with a June default rate of 13.8 percent, up from 12.5 percent in May. The other major credit card companies are in a similar fix. Estimates of the total industry losses are over $100 billion for the current recession.

Collectors are noticing a shift not only in ability but in willingness to pay. “With all the bailouts the government is giving everyone, no one has any personal accountability about their own debts,” said Roger Knauf, who runs a trade group of debt-buying firms.

Many of today’s debtors were maxed out long before the recession. Much of this debt was of course in the form of junky mortgages on wildly overpriced houses, and it was here that people first began to rebel."

CA Wanted to Drill Holes to get Out of One

San Diego Short Sales (San Diego Homes) — Sun, 26 Jul 2009 15:11:48 -0700

From The San Diego Union:

Calif. officials concerned about new budget woes

SACRAMENTO, Calif. — California officials are warily awaiting the next round of state revenue figures, concerned that their latest budget-balancing efforts may not be enough to end a seemingly endless stream of deficits.

Lawmakers wrapped up a nearly 24-hour session Friday afternoon by approving most of a complicated package of spending cuts, raids on local government funds and accounting maneuvers designed to eliminate a $26 billion budget shortfall.

But Gov. Arnold Schwarzenegger and legislative leaders said they might have to deal with more red ink in a few months if the state's economy doesn't turn around.

"We are still in troubled waters; there are still uncertainties," the Republican governor said. "We don't know how much longer our revenues will drop. We don't know if we may not be back in the next six months to make further cuts."

and this:

"Two parts of the latest budget plan – proposals to tap $1 billion in local gas tax revenue and allow new offshore oil drilling in the Santa Barbara Channel – failed in the Assembly on Friday, but Schwarzenegger said he would make up for the shortfall by vetoing additional spending."

Trillion is the New Bilion

San Diego Short Sales (San Diego Homes) — Fri, 24 Jul 2009 18:47:33 -0700

A billion is 1,000,000,000 or a million thousands

A trillion is 1,000,000,000,000 or a billion thousands

* 1 million seconds equal 11 and 1/2 days.

* 1 billion seconds equal 31 and 3/4 years.

* 1 trillion seconds equal 31,710 years.

but how much is it really? Visualize this:

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Bank Failure Friday - FDIC Hits the Pick Six in Georgia

San Diego Short Sales (San Diego Homes) — Fri, 24 Jul 2009 18:24:24 -0700

The FDIC became the receiver of the six bank subsidaries of Security Bank Corp of Macon Georgia.

From the FDIC Today:

"The six bank subsidiaries of Security Bank Corporation, Macon, Georgia, were closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with State Bank and Trust Company, Pinehurst, Georgia, to assume all of the deposits of the six bank subsidiaries of Security Bank Corporation.

The six banks involved in today's transaction are: Security Bank of Bibb County, Macon, GA, with $1.2 billion in total assets and $1 billion in deposits; Security Bank of Houston County, Perry, GA, with $383 million in assets and $320 million in deposits; Security Bank of Jones County, Gray, GA, with $453 million in assets and $387 million in deposits; Security Bank of Gwinnett County, Suwanee, GA, with $322 million in assets and $292 million in deposits; Security Bank of North Metro, Woodstock, GA, with $224 million in assets and $212 million in deposits; and Security Bank of North Fulton, Alpharetta, GA, with $209 million in assets and $191 million in deposits."

PLus one in NY today. Lucky number 7.

Condo Short sales Hampered By Fannie, Freddie and FHA

San Diego Short Sales (San Diego Homes) — Mon, 20 Jul 2009 11:46:18 -0700

We all know that a short sale is tough enough, but when you deal with condos, it becomes a whole new ball game.

The challenge: Buyer financing.

With government backed financing the main source of funds these days, underwriting standards for condos makes the job of selling the short sale condo even harder.

Fannie and Freddie increased the required fees on mortgages for condos. Buyers seeking more than a 75% LTV loan must pay closing-cost fees equal to 0.75% of the loan, regardless of credit score. This went into effect last April. Fortunately Fannie is slated to drop the fee in August on coops and detached condos, but that is not going to applty to the vast majority of condos on the market.

One suggestion: Dont rely on past FHA approval. We see many agents write offers on our short sale condos with no idea if their buyer can actually get a loan. I make sure before we get to far into the offer negotiations that the buyer talks to their lender specifically about the condo complex to ensure their lender doesnt get 4 weeks or more down the road just to inform the buyer that that the complex doesnt qualify for govvie financing.

Sherlock Holmes - The Appraiser

San Diego Short Sales (San Diego Homes) — Mon, 20 Jul 2009 11:19:33 -0700

Todd Lackner's day job is a real estate appraiser, but his moonlighting as a mortgage fraud investigator has led to the indictments of more than a few mortgage scams including sale and cash schemes where the buyer over pays, gets cash at closing, then walks away.

The most recent real estate scam uncovered by Lackner involves as many as 81 properties and numerous straw buyers. The straw buyers were paid $10,000 each for the use of their name and credit. Not surprisngly, the loans defaulted and the the straw buyers are now looking at torched credit.

Here's the rest of the story

San Diego Commercial Real Estate Outlook Bleak

San Diego Short Sales (San Diego Homes) — Mon, 20 Jul 2009 10:55:38 -0700

The San Diego commercial office market will lag behind the San Francisco and Los Angeles markets, with recovery not expected until 2012, according to the Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey.

“In the case of San Diego, our forecast is for office using demand to return to its 2009 level in 2012, With an increase in the stock of office space from those projects already underway in 2006, 2007 and 2008, falling rental rates and occupancy rates follow.”

The upside is local businesses should be able to negotiate better terms on new and renewing leases.

The report does provide a slight silver lining. We are not as bad as Orange County, which isnt expected to see 2006 levels reached again until 2014.

Short Sale Guides Coming Soon - Help Me Educate

San Diego Short Sales (San Diego Homes) — Sun, 19 Jul 2009 17:44:40 -0700

One of my latest online projects is a nationwide guide to short sales. One of the challenges I see for the consumer and many agents less experienced in short sales is the lack of state specific information. With 50 states and numerous laws that vary from state to state, my goal is to create an online repository of region specific expertise.

If you have documented short sale expertise and would like to be included in this upcoming guide, I would like to hear from you. Leave a comment with that mentions your local and experience and I'll be in touch.

looking forward to tapping into the depth of knowledge that exists here.

Investors Keep San Diego in View

San Diego Short Sales (San Diego Homes) — Sat, 18 Jul 2009 16:33:25 -0700

According to DataQuick President John Walsh, the rise in median prices in San Diego County is an indication that the real estate market is a bit less unstable, showing a more normal distribution of sales across the price spectrum.

Its a different story for the higher end though, as the lack of jumbo financing for all but the most golden of buyers has impacted the demand, or more accurately, ability to buy jumbo financed properties.

DataQuick reports that 18.6 percent of sales were fueled by investors, up from 16.1 percent in June of 2008.

Foreclosure sales decreased, but that is a factor of lenders not releasing their REO inventory.

San Diego Vital Signs Steady

San Diego Short Sales (San Diego Homes) — Sat, 18 Jul 2009 16:25:38 -0700

The San Diego Business Journal reported yesterday market news that should relieve a bit of stress in the distressed market we have experienced for that last two years:

"The housing market is showing consistent, albeit gradual signs of recovery as median home prices and home sales rose in June, La Jolla-based MDA DataQuick reported July 15.

Buyers scooped up 3,692 single family homes and condos in San Diego last month, compared to 3,242 in May and 3,077 in June 2008.

Median home prices increased to $314,000 in June, compared to $295,000 in May, and $290,000 in April. Median prices are still down significantly on the year compared to $370,000 in June 2008 and $380,000 in May 2008.

Across the region, the number of home sales hit its highest level in 30 months, according to DataQuick."

Any bit of good news is welcome.

Citi Seeking Minimums For Short Sale Approvals on 2nds

San Diego Short Sales (San Diego Homes) — Sat, 18 Jul 2009 15:32:16 -0700

I'm seeing this all over - Citi Mortgage telling agents to tell the 1st lien holder to take their $3000 offer to the 2nd and shove it.

Our most recent Citi negotiation ended with Citi requiring 10% of the balance on the 2nd form the seller PRIOR to close of escrow in order to approve the sale.

The seller agreed and paid up. The upside was that this was a short pay on a recourse 2nd that resulted in a "Settled for less than owed" situation. The seller now has two options with the first, which is approved.

1. Take the approval and close, then deal with California's Franchise Tax Board for tax on the debt relief

2. Tell the non-recourse purchase money 1st to pound sand and foreclose, This would eliminate any California tax on the debt forgivenss.

At least now the control is in the hands of the Seller.

The Perils of the Approval

San Diego Short Sales (San Diego Homes) — Sat, 18 Jul 2009 15:13:46 -0700

Below is a typical boilerplate approval from Countrywide. Many agents are telling sellers that if they have purchase money loans, then this approval is good enough.

The problem is that BofA, who now owns Countrywide, doesn't quite see it that way and is now actively selling debt to 3rd party investors.

Be careful. It's dangerous out there in the short sale world.

_______________________________________________________________________________________________

what this means to the seller

Countrywide and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above. In addition, if this loan is covered by mortgage insurance, the mortgage insurance company may reserve the right to pursue the seller for the deficiency based on the terms of the mortgage insurance policy Furthermore, there may be tax consequences associated with entering into a short sale. The seller is encouraged to seek the guidance from an independent tax advisor, and/or an attorney, before proceeding with the short sale.

If this short sale is contingent upon Countrywide and/or its investors receiving a promissory note, we will reserve the right to collect the full amount on the new promissory note which may lead to us pursuing a deficiency on that balance should the need arise. If the short sale does not close, then we will pursue all remedies under our note and mortgage.

The conditions of the approval are as follows:

Closing must take place no later than or this approval is void.
The approved buyer(s) is/are the sales price for the property is
Another buyer cannot be substituted without the prior written approval of Countrywide.
Closing costs including realtor commission is not to exceed $ . This figure includes the payoff in the amount of $3,000.00 to the 2^nd lien.
Proceeds to Countrywide to be no less than $3,000.00
The property is being sold in “AS IS” condition. No repairs will be made or be paid out of the proceeds, unless specifically stated otherwise.
Seller is to contribute $0.00, to assist in the closing of this transaction. This contribution will be in the form of:

PROMISSORY NOTE (Signed and returned prior to closing): $0.00

CERTIFIED FUNDS CONTRIBUTION (Due before closing): $0.00

If a promissory note is required, it must be signed and returned to Countrywide prior to the close of escrow. It is the responsibility of the closing agent to ensure that the promissory note is signed and returned to Countrywide.

If a promissory note has already been signed and agreed to between the seller, investor and the Mortgage Insurance Company, a signed certified copy must be provided to Countrywide prior to the close of the short sale transaction. It is the responsibility of the closing agent to ensure that Countrywide receives the copy.

*** Sales proceeds will be returned if the note has not been received. This will result in a delay of the transaction and/or possible cancellation of this short sale transaction. ***

The sellers will not receive any proceeds from this short sale transaction. If there are any remaining escrow funds or refunds, it will not be returned to the seller; it will be sent to Countrywide to offset the loss.
The property must be free and clear of liens and encumbrances other than those recognized and accounted for in the HUD-1 approval, on which this approval is based.
Countrywide does not charge the borrower for statement, demand, recording, and reconveyance fees on short payoff transactions. Do not include them in your settlement statement. Countrywide prepares and records its own reconveyances.
Other: All funds must be wired. Any other form of payment of funds will be returned. Payoff funds must be received within 48 business hours of the HUD-1 settlement date.
Other: Should the closing be delayed and the Investor/Insurer agree to an extension of the original closing date, the Borrower(s)/Seller(s) will be responsible for any per diem fees through the new date(s) of closing, extension fees and foreclosure sale postponement fees. The Borrower(s)/Seller(s) will be responsible for any additional costs or fees over the stated approved amounts.
Realtor’s commission, paid from proceeds, not to exceed $

If the seller is entitled to receive any proceeds based on a claim for damage to the property under any policy of insurance, including homeowner's, lender-placed, casualty, fire, flood, etc., or if seller is entitled to receive other miscellaneous proceeds, as that term is defined in the deed of trust/mortgage (which could include Community Development Block Grant Program (CDBG) funds), these proceeds must be disclosed before we will consider the request for short sale. If we receive a check for insurance or miscellaneous proceeds that were not previously disclosed, Countrywide will have the right to keep the proceeds and apply them to Countrywide’s loss after the short sale. We similarly would have the right to claim the proceeds to offset our losses if it were not previously disclosed and it was sent directly to the borrower.

Forget the Sharks, In San Diego Its Beware of Squid

San Diego Short Sales (San Diego Homes) — Fri, 17 Jul 2009 13:16:16 -0700

While the San Diego real estate market has seen it's share of sharks circling for the kill, if you are beachfront, its the giant Humbolt squid that grows up to five feet in length that is unnerving more than a few loacls and tourists alike this week. Local divers have reported large amounts of the squid, nick named the "Red Devil" because of its reddish color and aggressive behavior, made even more fearsome due to its razor sharp beak. The Humbolt also has the ability to jump out of the water, giving it the appearance of flying.

New San Diego Attorney Site

San Diego Short Sales (San Diego Homes) — Fri, 17 Jul 2009 13:08:13 -0700

The San Diego based Law Firm of Quintana, McConnin & Sarte LLP launched a new web site this week at www.qmslaw.com. The firm practices business law and litigation, as well as personal injury, but has been focusing on bankruptcy, real estate and mortgage issues as the housing crisis has deepened.

If you are in need of an ethical law firm in Southern California, or need to refer clients to a San Diego short sale attorney, give them a call.

What Steps Do You Take Prior To Listing A Short Sale?

San Diego Short Sales (San Diego Homes) — Fri, 17 Jul 2009 12:42:18 -0700

What steps do you take when qualifying a potential short sale listing?

Do you require your seller to obtain legal and tax advice first?

Do you ask if walking away is an option?

Are they a candidate for bankruptcy?

Aside from determining if a hardship exists (many short sales are done without a hardship, btw), what else do you do?

Is the California Short Sale Agent a Foreclosure Consultant?

San Diego Short Sales (San Diego Homes) — Sat, 27 Jun 2009 12:32:29 -0700

With the impending July 1, 2009 deadline for those acting as foreclosure consultants in California to register with the Attorney General's office and post a $100,000 bond, the question that still has not been definitively answered is, "Can a real estate agent doing a short sale cross the liine into the arena of a foreclosure consultant?"

Given the fact that landing on the wrong side of this law could result in a year in jail and a $25,000 fine, it would seem prudent to get this right.

Calls to the California Association of Realtors have yeilded opinion from staff that argue both yes and no. One legal eagle at CAR said that a "conservative" interpretation of the law would be "yes, agents could be considered foreclosure consultants and not exempt", while a "liberal" view would suggest that agents wdo not act as foreclosure consultants.

The crux of the matter for me is in how the law spells out very clearly what actions would be considered those of a foreclosure consultant, such as dealing with a lender to postpone a foreclosure. Not sure about you, but several of my shortsales have involved postponing sale dates.

So what do you think?

Dealing With Lender Lock Changes on Short Sale Listings

San Diego Short Sales (San Diego Homes) — Sun, 22 Feb 2009 15:08:14 -0800

Lock changes, such the one illustrated in this post - http://activerain.com/blogsview/932337/LOCK-CHANGES-ARE-KILLING-THE-SHORT-SALE-BUSINESS, are not uncommon. However, if the property has not been abandoned and the bank changes the lock, they just did you a huge a favor.

If the locks are changed on a property where the seller has previously made the lender aware that they are pursuing a short sale, have the seller's attorney (if they dont have one, then you have already made your first mistake) send a letter to the lender or loan servicer addressing the issue with regard to their (the lender or servicer's) interference with the seller's right and intent to sell the property, and the bad faith on their part to negotiate a short sale.

This has happened to us twice, and both times after the lender was faced with addressing the issue of bad faith, they expedited the negotiations.

Stop Thief! Calling Out An AR Plagarist

San Diego Short Sales (San Diego Homes) — Wed, 17 Sep 2008 16:32:50 -0700

Enough is enough! I've had it with thieves, liars and unethical agents. The gloves are now off.

Normally when I find my work stolen, I notify them directly. but not this time. This time guns are blazin' and I'm going to hang 'em high. He can find out about my actions the same way I found out about his -Google.

On AR, THERE IS NO EXCUSE for plagarism, since before one can publish, there is this at the bottom:

This is not my content but I have permission to repost it

If you don't check the box, then a pop up appears that you can only clear by agreeing that you have the right to publish the content. You have to deliberatly lie at that point.

And then there are the dozens (maybe hundreds?) of posts people have made about this issue.

Now we are not talking about Fair Use here. We are talking about plagarizing complete articles.

Here is a brief overview of what you can find on the thief's AR blog:

'Either-Or' Apartment Projects Written by Lew Sichelman for RealtyTimes.com

Nobody Panic: Government Seizes Freddie Mac Fannie Mae Published on "The Consumerist."

What To Do When You're Facing Foreclosure Written by Phoebe Chongchua for RealtyTimes.com

Condo Trends: Slow Housing Market Good for Rentals Written by M. Anthony Carr for RealtyTimes.com

Don't Overlook The Garage When Getting Your Home Ready To Sell Written by Phoebe Chongchua for RealtyTimes.com

Short Sale and Phantom Tax Debt Relief Overview Written by Bob Wilson for HomeSalesSanDiego.com

HR 5830: The FHA Housing Stabilization & Homeownership Retention Act Written by Bob Wilson for HomeSalesSanDiego.com

I used to work with Phoebe and she doesn't let people republish her work without getting paid, but it doesn't matter, as the content writers publish on RealtyTimes is exclusively licensed to RT. just ask Bill Koelzer, one of RT's featured writers.

I know I didn't give permission. The posts on my site are geared toward consumers and are quite popular. There are over 800 comments on 3-4 posts. The last thing I'm going to do is allow someone to screw with my intellectual property while at the same time risk duplicate content issues.

Not only did he blatantly rip off the copyrighted works of others, but he tagged them on AR as "Reblog". Amazing! Perhap he just doesn't understand the concept of "Fair Use" or the legality of copyright, but I doubt that is the issue for someone who makes the audacious claim of "San Diego's #1 Agent".

Now for the irony. he also published the following on AR:

HOW TO PROTECT YOUR REPUTATION AS AN AGENT

Let us know how that works out for you, Justin

A Dont Miss Travel Site

San Diego Short Sales (San Diego Homes) — Fri, 05 Sep 2008 09:54:20 -0700

Then dont miss Goin2Travel, a vacation rentals website site that offers easy online booking for vacation rentals around the world.

Real estate agents should also check out their real estate section. They offer agents for free, the abilty to advertise real estate listings in such areas as Hawaii, Florida, Newport Beach, Costa Rica, Cabo San Lucas, Colorado, Myrtle Beach, Tampa, Kauai, San Diego.

Obama - A Chicken in Every Pot

San Diego Short Sales (San Diego Homes) — Mon, 01 Sep 2008 21:26:59 -0700

An old saying popular in American politics, it takes on a new meaning every four years. In this decade it has been everything from social security in a lockbox to affordable healthcare for everyone.

I'm not sure what the token fowl is this time around, but I hear the word 'change' bandied about quite a lot. Now as the political junkie that I am, when politicians talk about change, I assume most interpret it to be a transitive verb.

From Merriam-Webster:

1 a: to make different in some particular : alter <never bothered to change the will> b: to make radically different : transform <can't change human nature> c: to give a different position, course, or direction to2 a: to replace with another <let's change the subject> b: to make a shift from one to another : switch <always changes sides in an argument> c: to exchange for an equivalent sum of money (as in smaller denominations or in a foreign currency) <change a 20-dollar bill> d: to undergo a modification of <foliage changing color> e: to put fresh clothes or covering on <change a bed>

I always interprt it as the noun though, given the fact that the word is uttered by a politician.

Again from merriam-Webster:

a: money in small denominations received in exchange for an equivalent sum in larger denominations b: money returned when a payment exceeds the amount due c: coins especially of low denominations <a pocketful of change> d: a negligible additional amount <only six minutes and change left in the game> e: money 1 <cost a large chunk of change>

So with that in mind, I enjoyed this USNews piece on "4 Money Problems Obama Can't Fix".

I think it should have read, "4 Money Problems Obama Can't Change", but clearly I have a slightly different sense of humor. Either way, it is worth reading.

KC Fed President - Banks Should be Allowed to Fail

San Diego Short Sales (San Diego Homes) — Mon, 01 Sep 2008 20:44:23 -0700

Bloomberg covered a speech given today in Buenos Aires by Thomas Hoenig, president of the Federal Reserve Bank of Kansas City.

"Federal Reserve Bank of Kansas City President Thomas Hoenig said for economies to work best, institutions must be allowed to `fail.'

Economies must ``find a balance between financial stability and a stable price environment and in doing so must be able to allow individual institutions to fail,'' Hoenig said in a speech today in Buenos Aires."

The entire speech can be read here.