Rumors of my untimely demise are greatly exaggerated. This year has been a whirlwind. I have added an entire group of agents under my wing when I accepted the position as manager ( I never realized how important and constant a helping hand might be. The burden of so many questions and fires to be put out is well balanced by the joy of helping). Then, I have been busy as a Realtor. No, the market is not sizzling, nor is it frigid......it is the market. I have been fortunate and continue to succeed in completing transactions. Then, well, let's just say that my personal life is better than ever and I have enjoyed the rewards of placing those I love first.
So, my dear friend Jenn blogged ...from my heart through her fingers...Happy minds think alike.......enjoy this post.
Visit most real estate training sites and you'll pretty quickly see references to being a Superstar or a Champion or a Hero or a Top Producer or some other high-falutin' descriptive term for a tippy-top level of real estate production. You'll see testimonials from agents who bought whatever system is being marketed claiming to have tripled their income or hit the half-million mark in commissions or sold 167 houses their first month on the program.
Wow. That's something. I'll admit to being intimidated by such marketing, both as an active real estate agent AND a real estate trainer myself. Gee, I never made $500,000 or sold 300 houses in a year. Neither has anyone I've ever coached or mentored or trained.
Do I believe the claims? Sure I do - no real reason to believe that such levels aren't attainable just because I never did it or know anyone who did.
But I don't believe that the majority of agents are going to see anywhere near those production levels, regardless of what system, program or philosophy they follow. No, not even in a good market.
And that's okay! I have a loyal following of several thousand real estate agents who don't want or need to set the world on fire - they just want to make a consistent, comfortable living, doing business in a manner they're proud of, making more people happy than unhappy. They also want to have time for their families, their hobbies and their naps. They don't want to be Power Prospectors who generate business 14 hours a day and then hand it off to their harem of assistants and specialists on their way out the door to drum up even more.
Hey, there's nothing wrong with wanting to be the Top Dog in your office, neighborhood, city, county or state. But if you don't, that's okay, too. There's plenty of room (and commission checks) here in the middle for those with slightly less-grand aspirations.
So, don't fret if you doubt you'll ever be a Superstar. You're in very good company.
It's DONE! The Sequel to Sell with Soul AVAILABLE NOW! Order Here
It is a rare thing when someone in a position of power addresses a situation honestly. This is a very important issue and the writer is telling the truth. As it now stands, there is not one program that addresses this issue, not one agency reviewing this issue and not one sound bite from Obama's fix it all group regarding this problem.
The current price of homes is of little consequence. The current interest rate is of no consequence. We have not even seen one tiny iota of the calamity facing the housing industry if this issue is not addressed.
This may be the most important post found on Active Rain this year.
There's an interesting thread in Zillow Advice right now discussing whether we're at a bottom in the housing market. And the discussion is very timely because today Zillow released its 1st Quarter Home Value Report, detailing what is happening to home values in 161 cities. It's by far the most comprehensive report about the housing market in terms of its breadth and depth. True, individual Zestimates have their issues (more about Zestimate accuracy), but the Zillow Home Value Index is very reliable because it has enough aggregated data to wash away inaccurate Zestimates -- in other words, statistically speaking, for every Zestimate that's too low, there's another one that's equally too high, so the ZHVI is highly reliable.
So, what does the data say?
First a reminder about methodology. Zillow's reports speak to the value of almost every single home in the country, not just those that sold in the period. This is a very improtant distinction, especially in the current market environment in which less expensive homes have become a much bigger part of the market than traditionally. As a result, data that reports on median sales price (e.g., NAR's data) is very unreliable and dramatically overstates the level of decline to the typical homeowner. I previously discussed the unreliability of median sale price here.
OK, here are the highlights -- er, the lowlights, I mean:
the USA ZHVI (the median value of almost every home in America) declined 14.2% in 1Q09 versus 1Q08, the 9th straight declining quarter
Americans lost about $700 billion in home values in the 1st quarter alone
1 in 5 American homeowners (20.4 million homes) are now underwater on their mortgage
Was there any good news?
A few markets were bright spots, including Fayettville NC (military bases) Oklahoma City (solid local economy) actually gained in value
Some markets that have been very hard hit (e.g., Los Angeles and San Diego) are no longer increasing in the rate of decline. In other words, although home values are still declining there, they're not declining any faster than they already had been declining. So things are still bad, and getting worse, but not getting more worse. I guess that passes for "good news" nowadays.
And now for the really bad news:
There is a massive amount of "shadow inventory" waiting to come online. Specifically, 12% of homeowners say they're "very likely" to put their home on the market if there was evidence that the market was turning around. Another 8% were "likely" and another 12% were "somewhat likely". In short, there might be another ~20 million homes waiting in the wings to come onto the market as we see signs of a recovery. When asked what "sign of recovery" they needed, 71% said "increasing home sales in my neighborhood". That's a massive amount of potential new listings, when considering our current ~4 million listings. To be fair, some of the current 4 million would have been sold before those new sellers come on the market. But the point is the same: as I said in Forbes, this is going to be an L-shaped recovery. New listings are going to come onto the market rapidly as soon as people believe we've bottomed, and the new listings will sop up what little new demand there is.
Sorry to be a party-pooper. I'm not going to spin things overly positively or overly negatively. I'm just calling it like I see it.
So much has changed in a few short years. It seems like only yesterday that buyers were coming through the office door wielding approval letters that far out paced their ability to pay. In those days, buyers found no doc, no verification, no down payment, no interest, no common sense loans available from anyone that had a dime to lend. They filled open houses, created a buying frenzy that rivaled filenes wedding dress rush and created a demand that spiked housing prices across the country.
Then the bills came due, rates went up, resetting occured, the economy stalled and that large housing bubble popped like a prom night pimple. We are reeling as the market returns to normal. I think most people feel that there must be pent up demand out there. All the life events that created a need in the past continue to occur.
Yet, homes remain unsold.
So, I thought something is amiss. We keep hearing the phrase that interest rates are at historically low values. Money is cheap. We keep reading about the wave empty homes. Supply is there. We keep hearing that based on all the financial data, now is a great time to buy.
Yet, homes remain unsold.
If you put the situation under a microscope, you find that one of the problems that exists today is related to the lack of information being provided buyers. For some crazy reason, the NAR and others keep harping on the INVESTMENT value of a home. In my opinion, too much is focused on the "long term" gain and tax advantages of home ownership. People buy homes because they want to own a home. They want to have the security and well being provided by all the rights of ownership that are inherent in a deed of trust.
But let's look at the obvious.
Most loans being made today are FHA loans. It was a culture shock for the industry when the change was made from sloppy sub-prime, stated income, 80-10-10, 80-15-5, 110%, teaser rate, etc. loans that had become the standard. Agents were uneasy. No one had been writting FHA loans. Behind closed doors people feared it would be the end of us. Au contrare, it may be the very thing that saves us and the industry. Not just today, but down the road as well.
You see, no one is focusing on one of the sweetest features of an FHA loan. Oh, they talk about the modest down payment and ease of underwriting. They talk about a certain comfort level that the loan will close. We don't hear many folks mentioning the biggest asset about FHA loans.
They are assumable!
Stop for a minute and think about 3 years or 5 years or 10 years from now. What do you think mortgage rates might be in 2012 or 2014 or 2019? Do you really believe that in the face of increased government spending, increased inflation, increased devaluation of the dollar that rates will hold around 5%?
You won't find many economists that agree with you.
Let's just suppose that one of those buyers waiting to purchase bought the house on the right for $255,000. The neighbor on the left bought their home two years ago and paid $300,000. Now that chap on the right got a good deal. He put 20% down and has a mortgage of $240,000. The new owner put his 3.5% down and has a FHA mortgage of $246,075.
Fast forward 5 years. Both owners have outgrown the home and decide to sell and move up. They both have good agents and the market value of the homes are about $320,000. They both put their home up for sale for $320,000. Fair enough, but the fellow that paid $255,000 will have more to put down on his next home as he moves up. You might say he will move farther.
Oh, and why might the lad on the left sell sooner? His 5% mortgage rate is assumable. Now, the new buyer will have to get a "wrap around" mortage for the difference between what is still owned on the FHA loan and the sales price and yes, that loan will carry the going rate at that time. The seller on the left will have to try to move his home at time when money surely will cost a bit more. It doesn't take an MIT grad to discern that 5% on the bulk of a loan is much more attractive and affordable than the 8%, 9% or 10% or more that will be the rate in five years.
Why buy now? Seems to me that not only are you buying a home at a very good price, you are also buying an interest rate that will only become more attractive as rates go up in the future. You see, this really is a great time to buy but it is also a dynamic time to borrow at a rate to day that you can sell in the future.
This used to be the way people searched for a new home.
Mom and Dad would gather up their brood and walk down the street to the home with the for sale sign. Communities grew. Walking around town just didn't do it anymore.
We progressed
Newspapers began to carry "homes for sale". Sunday morning would be spent circling the possible choices. Mom and Dad would load the brood into the car and begin a journey from house to house.
Sure, there were real estate agents available. Back in the day, they had books filled with mimeographed pages. They kept the information about their listings behind closed doors and the general public did not have easy access to the homes that were for sale.
Early Real Estate Agent
Now this system came to a crashing halt when the internet opened the doors of information to anyone with a computer. Every listing could be found on line. As a matter of fact, there were hundreds upon hundreds of sites that offered the opportunity to view listings. Those sites still exist today. The majority of agents offer access to the MLS on their personal sites.
Seems like progress.
But a funny thing happened driving around looking at homes. There were more homes for sale than the most meticulous searcher could find on the computer.
If you wanted, you could have your agent ride around with you. If you agent was worth their salt, they could access information about homes you missed on your search.
This is 2009. We have just gone through a whirlwind of price adjustments. Most people looking for a home are not prepared to tour a house for 10 minutes and decide.........this is the one.....let's buy it. At least, I hope no one is still buying a home that way. Now, some agents will say, don't worry, if we miss something, a home inspection will uncover it. Really, and how many home inspections do those agents think you want to pay for?
It would seem to me, that a lot of folks want to do the search on their own. They want to sort of wander and get a sense of a neighborhood and then see some houses. Some of them go to open houses. That decision limits them to touring homes on Sundays between 1 and 4 and limits them to the homes that are being held open.
What about all the rest?
This old dog has a new trick !
What if you could just stop in front a home for sale, dial a phone number and get all the information about the home? What if you didn't even have to write it down? What if you didn't have to go back home and search the web to find out the price, how many bedrooms or bathrooms or other info?
301-703-2698
301-703-2698
Try this on for size. Pull up in front of a home in my market area (DC, Montgomery County, Frederick County, Howard County, Anne Arundel County, Prince Georges County), dial that number 301-703-2698. Follow the instructions.
Pretty cool, huh?
There is a reason that all agents are not the same. There is a reason that if you look closely, you will see why my clients feel they get service that is above the standards in the industry.
Times have changed. You can text me at 301-537-4377. I understand your desire to have me around when you need me. I'll be there.
In an industry filled with look alikes, JMac isn't hard to find!
My name is John MacArthur. I am the Branch Manager of the Long and Foster Office in Olney, MD. I can be reached at 301-537-4377.
This business of being a real estate agent is ever changing. There are more styles in this profession than any other. Agents not only come in all shapes and sizes....they all bring their baggage with them.
Now I will admit that I have neglected signing on and sharing thoughts lately. I have been busy. Spring has sprung and many of you have made the move to buy.....now. I don't know what they put in the water in this area, but some of those unidentified chemicals must have created buyer urgency. You know who you are and you have been sipping the kool aid.
Not a bad time to storm the DC market. Lots of inventory out there. Lots of over priced inventory. Lots of undervalued inventory. Lots and lots of houses, townhouses and condos for sale. Did I say...lots of them?
In recent weeks, there have been multitudes of buyers doing the price range and location procession. You may have seen them. They form the unstructured caravan travelling from one open house to another on Sundays.
They rush from door to door, computer print outs of listings in hand, hoping to discover "home sweet home". Don't see many agents. Don't understand that.
It is one of those things that made me go......hmmmmmmmm.
So I decided to investigate just what are these people thinking. I made up a little checklist and positioned myself outside a popular open house (I am sure the agent loved having me out there...but it was a free sidewalk, and I only talked to folks as they left and I never once shared that I was an agent and God knows I told no one I was the Naked Realtor).
I heard some very interesting things. Some of you have an agent(?). Really? And your agent told you to go out and visit open houses and if you found something you like...give the agent a call.
What part of no representation don't you understand?
You are walking into home after home, heart in hand, dreams in your eyes, unarmed in quagmire of legal issues that quietly put you at risk. You are spending the better part of 20 minutes to determine the quality and value of the largest purchase of your life. You carry the false belief that on your own, you can evaluate the merits of homes.
Let me share a secret. Everyone selling a home has done as much as possible to put lipstick on that pig and make her the belle of your ball. You are ravished and they are offering all the sizzle your senses can bear. A pretty red door may suit feng shui but it is no indicator of the energy efficiency of the home. Those new stainless steel appliances may gleem in the kitchen, but they are no indicator of anything other than the sellers ability to polish up the area. All that glitters is not gold. Do you realize that the agent sitting at home, watching t.v. is supposed to be representing you, ferreting out fact from fiction?
Some of you have decided to go it alone. You have read all about buying a home online and you have heard that you can strike quite a deal if you don't have an agent. You might be able to get the seller to reduce the price of the home a bit because they don't have to pay an agent. Sounds like a plan.
Of course, the listing agent is the one that has to make the concession. In Maryland, they can write up the offer for you. They can promise that things will be as smooth as silk. There may be a scintilla of truth in that statement. They represent the seller. They can not represent you. They can not say or do anything that is not in the best interest of their client.........the seller. They can not negotiate for you. They can not advise you. They can just smile......maybe make a little less for their effort..........and smile all the way to the bank. You get the keys and absolutely nothing else.
Now, does that sound like a responsible plan when making the biggest purchase of your life?
Actually, running out on your own and reporting back to your agent(?) is pretty stupid. Your agent works for you. They will be paid fairly at the close of the transaction. Don't you agree that they should earn the money? I do.
Taking your best shot on your own, with no representation, is absolutely the riskiest way to go about purchasing. Most agents will represent you and be willing to accept the commission offered by the seller. That arrangement seems like a win-win to me. Just like anything else...you get what you pay for.
Of course, I am just the naked realtor, I do this for a living. If you want to receive further information or send hate mail or ask a question or maybe you can tell me..where the hell is your agent?...you can write me by clicking on this link.
The music seems to change, but the partner remains
I have the opportunity to interact with many agents. Some have barely noticed a change in their success and others seem to be beaten down. Why is it that two people in the same office, in the same market, dealing with pretty much the same potential client pool realize wildly different results.
At first blush, anyone can perceive a difference in attitude between the two agents. The successful agent is upbeat and positive. The less than successful agent seems to be downtrodden and negative. It would be easy to just simply use the time worn cliche "one sees the glass half empty and the other sees the glass half full". I think the answer is much deeper than that. It has to do with self perception. It has to do with "sins or failures" from the past.
It is not half full or half empty. Whatever is inside can be used to accomplish many things!
It seems to be the nature of man to carry the sins of their past with them as they make their journey through life. It really is an added burden. Dragging all of your perceived failures along will sap the energy you need to deal with the here and now. Looking at today, through eyes clouded with yesterday, makes it difficult to accept your strengths. Dragging a ball and chain of yesterday slows down your journey to tomorrow.
There is a better way !
Take a moment and identify the guilt that you continue to enjoy as a dance partner. Picture it as the weight that it feels like on your shoulders. Close your eyes for a moment and feel that weight. Now, open your eyes. It does not have to be a weight. Everything you just pictured as a fault or a mistake was in reality a learning experience. Let the weight slide from your shoulders and picture it becoming a solid block on the ground. See it as it truly is. Every experience where you faltered, every experience where you chose the wrong path, every negative that you are carrying around inside was a building block for a sound future. We are to learn from our mistakes.................not carry them around forever. See them for the lessons they were.
The lessons we use as building blocks elevate us.
You have the capacity to change direction. You have the capacity to excel. You have the right to stare at those demons whispering in your ear and tell them "No". Whisper to yourself, seize control of your life. Believe that every bad thing has prepared you for a richer tomorrow. Accept that lessons learned enable you to deal with more things, they allow you to empathize with others and they are the building block for
If you are struggling with this concept, feel free to give me a call. If you are an agent in the DC market and would like to work in an office that will help you focus on tomorrow, give me a call. My number is 301-537-4377. My name in John MacArthur and I am fortunate to be the Branch Manager for the Olney Office of Long and Foster Real Estate.
I was sitting with a new agent the other day. I was trying to get a handle on why they had chosen this profession. If I can determine what motivated them to join the ranks of Realtors, I can then delve a little deeper into what might be that one factor that will separate them from those that have tried and failed and those that are still active today.
The young lad turned the question around and asked me..."Why are you a Realtor? You have had great success in other industries. Why are you still practicing this profession?"
I gave it a moments thought. I have always known the why. I smiled and said this profession offers me an abundance of opportunities to make someone happy. Everyday, I have the chance to make a difference in one person's life. Why, I often have the chance to make a difference in many lives with just one transaction. As a Realtor.........I can make someone happy!
Now I understand that there are some agents that are truly money motivated. When they think of a transaction, they immediately begin calculating how much they will earn. They will pause between different stages of a sale and gaze at the picture of the new car or new boat or new golf clubs that will soon be in their reach. They have vacation flyer's that offer tantalizing pictures of exotic places. They pause and dream.
I will be the first to admit that I have failed every test administered to determine if I were money motivated. When I was younger and moving through different career paths, more than one human resources staffer scratched their head upon reviewing the psycho-evaluation test. Money never did it for me. That does not mean that those that are money motivated are any better or worse than me. Nope, you see I have grown wiser in old age and I understand that money can provide some people with the means to be happy. If it is money you seek, make transactions and you will be happy. The collateral benefit is that those involved in the transaction will also be happy.
Some agents love the recognition and awards that come with success. I am never surprised to see the "top 1% of Realtors Nationwide" on business cards. I know that many of the best agents in my office have walls that are filled beyond negative space with plaques and awards from days gone by. I have seen the joy that recognition brings to their face. They are proud of their accomplishments.
I don't think it is unusual to desire recognition of a job well done. Agents are usually beaming a wonderful smile when that step up to receive an award. They are happy. If awards and recognition are your goal, make transactions and you will be happy. The collateral benefit is that the transactions necessary to complete to achieve higher levels will have created lots of happy people.
Maybe it is time that we set aside the dollar figures and the awards and stepped back from the recognition and admitted the base need that is being fulfilled every time we accomplish our goal. We make someone happy. The happiness certainly can begin with ourselves. The happiness may be measured in dollars and cents. The happiness may carry an award or special recognition. The happiness is our goal.
This is not the goal. This is a sign that the goal has been accomplished!
I am both proud and privileged to be a Realtor. I firmly believe that those of us that have chosen this profession make a tremendous difference in our communities one deal at a time. We may not be as haughty as Attorneys or Doctors. We may not have to pass multi-hour exams to become licensed. We work and live in the communities we serve. Realtors are active participants in the ever changing landscape of our society. We are called on to be counselor, confessor, adviser and friend. We are required to possess general knowledge and the integrity to direct our clients to the proper professionals. We are Realtors and we should be proud.
This may be the symbol on our lapel.
This is the symbol of a career well spent.
It is never to late to understand that your personal success is within reach every day. You need only get up, get out the door and be committed to the goal that today, you will....
Are you with me so far? This is a broad picture and I know it does not include Alaska or Hawaii. For the sake of this post, let's just say this is America. If you pick any spot on this map and go there and begin digging, at some point you will reach dirt. It may be under concrete. It may be under a river or a bay. Regardless of the spot, there is nothing but dirt there. It was there when we founded the country. It is the third largest land mass in the world.
It is limited.
There is only so much dirt
So we founded our country and lots of people showed up. They had to live somewhere. They elected officials and the officials appointed zoning people and they got together and determined an orderly way to partition the dirt so we would make the best use of this limited resource.
They planned subdivisions
People wanted a home of their own. They came to the subdivision offices and bought homes to be built. The bankers and the builders and the developers all did their job. The construction industry fulfilled its mission. As time went by, these neighborhoods began to dot the landscape from the east to the west.
An entire economy was created
Every bit of it built on the limited supply of dirt
We had our ups and downs, wars were fought and won, we had a man on the moon. The red sox finally ended the jinx. We grew as a Nation and a world power. We changed and became a true melting pot. Even as we were vilified in the world community, people still came to America. This remains the land of the free and the home of the brave.
Then we forgot to mind the store. We created the American Dream and failed to keep our eyes on those that were aiding and abetting the process. Our elected officials kept promoting a lifestyle that was not sustainable and all the people that had to create the illusion followed the pied piper of fiscal irresponsibility off the cliff of our solvency.
We woke up and the entire system had crumbled before our very eyes.
So now there is talk of toxic assets and derivatives and all sorts of fancy terms that are related to the housing crisis. The government is going to great lengths to repair the damage that has been done. I hear that. Maybe I am just too damn dumb to understand.
We now have this.
..
This is a toxic asset
Most people would call it an empty home. I suppose I don't understand why they don't just make the purchase of this type of "toxic asset" a bit easier. I mean if someone actually buys the "toxic asset" it becomes a non-toxic good deal or look what I bought for my family.
If something is done to promote this activity, assets won't be so toxic.
I have said it before, more than one time, but I just don't understand why the brilliant people that are trying to fix this mess don't address this problem at it's core. Why can't we have a trickle up theory working here? If the focus is on getting these empty homes sold, at some point those investors holding fancy derivatives will get something for their paper. There is value. Remember, there is only so much dirt.
This should be the result we are seeking
But, then again, maybe I am just too damn dumb to understand
By: Diana Olick, CNBC Real Estate Reporter | 21 Mar 2009 | 08:01 PM ET
President Obama is planning to name the head of Long & Foster Real Estate to lead the Federal Housing Administration, CNBC has learned.
Dave Stevens
Dave Stevens, president and chief operating officer at Long & Foster, likely will be named to the post Tuesday or Wednesday, sources said.
With housing at the centerpiece of the White House's economic rescue plan, the leader of the housing agency will be critical in making sure the plan is implemented.
Among Obama's goals are to help rescue homeowners facing foreclosure and to improve the regulatory process in the mortgage industry. FHA would be central in dealing with many of the issues the president has outlined.
David H. Stevens is a personal friend of JMac while also serving as President and Chief Operating Officer of the Long & Foster Companies which includes Long & Foster Real Estate and its' Affiliated Businesses including Mortgage, Title, Insurance, and Home Service Connections, and David joined the Long & Foster Companies in July, 2006 as President of Affiliated Businesses. Prior to joining The Long & Foster Companies, Stevens was Executive Vice President, National Wholesale Manager responsible for all sales, operations, and finance for Wells Fargo Home Mortgage's wholesale channel.
Prior to his joining Wells Fargo Home Mortgage, Stevens was Senior Vice President of the Single family business at Freddie Mac where he was responsible for all sales, marketing, affordable lending, product development, communications, and loan prospector for the firm. In this role, David served as lead spokesperson for the firm and managed all aspects related to sales, customer management, market share, and business strategy.
Stevens began his career at World Savings bank, where after 16 years; he was promoted to Group Senior Vice President, National Sales Manager for the mortgage division.
Stevens was the founding Executive sponsor of the Woman's Mortgage Industry Network, and coordinated the first Latino initiative joint venture with Freddie Mac and Latino mortgage industry leaders. He currently sits on the Board of Directors for Long & Foster and the Real Estate Settlement Service Providers Council.
Let me share a bit about Dave Stevens.
I have had the good fortune to know Mr. Stevens since he came on board in July 2006. He has worked tirelessly to revitalize the company from the ground up. His leadership led to Long and Foster leading the way in returning the focus of real estate sales where it belongs....on the consumer. Long and Foster has rolled out a new campaign ... "Buy with confidence" that has at it's foundation a focus on the individual buyer.
It has been a long time coming, but finally one man asked the question "It is a great time to buy, but is it a good time for you?" The slogan and question are at the heart of developing a responsible attitude as we move forward in the real estate industry. The program responds to the questions that all consumers have when faced with conflicting information and data that is difficult to comprehend.
I, for one, happen to believe that his appointment will lead to the FHA performing as all Americans expect it to. His focus has always been on seeking a fair and equitable solution to any problem. He has been willing to involve people at every level in creating the companies direction.
This country, long suffering from bureaucratic strangleholds, will now enjoy the service of a truly great leader. My firm will suffer a loss, but he will leave behind a focus and direction that will result in our continuing to be a prestige brokerage. The country will have a man at the helm of the FHA that understands all sides of the housing market and has the capacity to make tough decisions to resolve our current dilemmas.
I am fortunate to have had his counsel and will support him in any way that I can.
I was reading blogs this morning. I came across one offered by ABC News Senior Political Reporter, Jonathan Karl. You can read the entire entry here.
It shares this opening salvo..."The AIG Bonus Tax:"Give the money back or we'll take it away".
Now this is an interesting concept. The public is outraged that these employees are being rewarded. Elected officials are patiently standing in line, waiting their 2 minute soundbite opportunity.
The angry mob has gathered.
Do you really think let this throng loose will stop at AIG?
One of the ideas offered is that the employees that received these bonuses should just give back the money that is contractually theirs. The thought is that the contract they signed and the work they have done should be tossed aside and they should just - GIVE IT BACK.
Another idea being tossed around it to have the tax code changed so that the bonuses can be taxed at a rate of "95%". This would certainly put the money back into the U.S. Treasury.
The only thing missing from all this uproar is a very bright caution sign.
Caution !
Slippery Slope Ahead
Once we get past those nasty derivative creators, who should be next on the list? Once we trash the Constitution and get the nasty rule of law out of the way, which is the next group that will we vilify?
How about we move down the line. Let's target the lenders. They made money on every loan. Some of them made lots of money making bad loans. It would make perfect sense to parade their greed over the television via all the talking heads. Don't let anything like the facts get in the way. The public could become enraged and all the politicos could stand before microphones and denounce the actions and demand that all lenders and mortgage brokers return the money they earned on any loan that has defaulted.
GIVE IT BACK.
Give back those fees. Give back those points. Give back the money you were paid. It can go right down to the loan processors. Publish their names. Print every dollar earned in all newspapers. Release the home addresses. Send in the crowd. If that doesn't work, well we will just change the tax code and tax earnings on loans that went into default at 95%. This will certainly put money back into the U.S. Treasury.
Don't stop there. Next we should move to those greedy real estate brokers and agents. They made money on every transaction. Some of them made lots of money representing buyers that have since defaulted on their mortgage. In the spirit of continuing to trash the Constitution, we should parade their greed and avarice on all the major networks. Let the talking heads continue to share outrage. Give the elected officials another chance to rail against the horrible greed of someone accepting money that was contractually obligated. They could demand that all brokers and agents return any money earned on a transaction that involved a buyer that has since defaulted on the loan.
GIVE IT BACK
Give back those commission earnings. Give back that money earned to process paperwork. Give back those dollars paid at the table. Print the name and earnings by transaction of every broker and agent that represented a buyer that has since defaulted. List the home address of all those involved. Let the world know how much money was pocketed representing buyers that defaulted. If that doesn't work, well we will just change the tax code again and tax all those earnings at 95%. This will certainly put money back into the U.S. Treasury.
Finished Product?
The country as we know it...goes up in flames.
I suppose we can keep going down the list. We can gather in everyone in the entire cycle. I think if we play the hypothetical game, we will eventually reach the elected officials. They will have no one else to blame. It seems that they will be left with but one option.
They will just have to stand alone and fall on their sword.
Hmmmm.................maybe we should rethink our outrage. Maybe we should see if we can not quell the angry mob. Maybe we should focus on the solution and stop taking our eye off of our goal. Maybe the crowd should be sent home and told........let's get on with the business of correcting our faults.
This is no way to resolve anything.
Allowing this......
(the flag representing the Constitution) will only lead to something like this.....
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