Carlos 's Blog

What's wrong with the President and the Congressonal Priorities of this Nation?

Carlos R. Arvizu Sr. with Prudential California Realty — Wed, 23 Sep 2009 20:38:48 -0500

Carlos R. Arvizu Sr. California writes:

The problems were facing today such as jobs, the economy, the housing market, and national security far outweigh the President of the United States desire to pass a bogus health care package down our throats, especially the 1000 plus pages of garbage.

Politicians be prepared to lose in the 2010 elections, regardless of your party affiiations, be you a democrat, republican or indepndant, the American people can only take so much and if you dare pass legislation such as the crap you have on the table right now.

Americans can only take so much abuse. Once you back us up into a corner, our patients only goes so far, don't expect the American public to buy into this outright fraud against every hard working American.

President Obama and the gang of thieves may have some believing that they are the for the working people, but in reality they are lining their pockets with Silver, from all the lobbist pushing that bogus health care bill. In fact our elected offifial just chastised that Congressman from South Carolina; Joe WIlson for exercising his Rights to Free Speach guaranteed by the Constitutions of the United States, by calling the President a Liar. Granted it may have been an embassament to the President, none the less, the President does lie, he's a lawyer, they munipulate the truth to their benefit. Pres. Obama is a Liar A ruling set in 1983 proclaimed that anyone needing medica care cannot be denied assistance.

The Congressman from South Caroina was absoultely right when he called President Obama a Liar. Illegal aliens will be entitle to use health care under a 1983 ruling.

This is really a joke, when you have the trial lawyers lobbist, Insurance companies lobbist and self serving politicians writting all the crap in this latest bill that they are trying to shove down our throats. Greed and corruption.

I am a conservative democrat, and I will be watching my congressional representative in the 34th Congression District to see if she rubber stamps this hog wash. She will diffinately have a lot of resentment toward her re election in 2010 s the sleeping giant may have been awakend.

Carlos R. Arvizu Sr

The Hinden Truth that nobody wants to know?

Carlos R. Arvizu Sr. with Prudential California Realty — Wed, 26 Aug 2009 00:41:07 -0500

The Hidden Truth is always whitewashed. Mr. Bernanke and Mr Greenspan are the true culprits of our economic downturn, they along with gang of thieves, who helped rob the American public of it's vitality. The gang of thieves include the likes of Christopher Dodd, Barney Frank, and the Office of Federal Housing Enterprises that controlled both Fannie Mae and Freddie Mac. to name a few, ah and lets not forget wall street greedy fat cats.

I would like to Ask these questions;

Why did the Federal Reserve act too slowly in raising short term interest rates with .25 point increases for 17 consecutive months, during 2004 to 2006?

Why did they wait over a year plus a few months to make a move to counter act the move to lower interest rates, when they know by history that it generally takes 6 to 9 month to react? Not over a 2 to 3 years to get back on tract.

Why didn't the Federal Reserve recognize and inform the GSE that they may need to raise the conforming loan limits that help the primary mortgage market sell off to the secondary market to circulate the mortgage money supply, that is to Fannie Mae and Freddie Mac.?

Why did Federal Reserve deliberately wait to see what reaction was going to happen? Was it Greenspan responsibility to help the in coming federal reserve chairman or did Greenspan want to make Bernanke look bad? Was Bernanke not wanting to take advise from the old Federal Reserve Chairman?

Wasn't this like playing Russian roulette with the economy?

In 2005 Mr. Greenspan made a comment to the news media, pointing out they had a problem stated income 100% financing programs to Wall Street? Why do you think we bailed out Wall Street? Why did we only bailed out a few select Banks?

Why doesn't the federal reserve recognize that 30% of Americans are small business owners also employ 70% of the population?

Why do you think, most small business owners couldn't get a mortgage loan?

Was stated income the real problem of the mortgage meltdown, or was it stated Assets the real problem, or perhaps educating the borrower on the type of mortgage loan they had, their rights and responsibility in plain english, and if so, what would you do if you were incharge of the Federal Reserve and the Head of the Treasury?

Aren't Doctors, Dentist, Real Estate Brokers, Car Dealers, Insurance Agents, Small Business Owners? What do they have in common, they are self employed. Something to think about in our banking problem, when you cut out 30% to 50% of the of all mortgages out of the market place. Something to really look at if you were incharge.

Carlos Arvizu Sr.

Comments on Sweeping chances from the Federal Reserve!

Carlos R. Arvizu Sr. with Prudential California Realty — Thu, 18 Jun 2009 16:27:57 -0500

It looks like we let the "Fox in the Hen house" Am I the only one to see through this mess. The Federal Reservve caused this mess, yes the Federal Reserve.

Back in the last Quarter of 2005, Chairman Greenspan had the chance to re-correct the market to a slow and soft landing by stopping the quarter point increases in the Fed Funds Rate. It takes normally 6 to 9 months for the market to react, instead the FEDS Choose to stop raising rates well into 2006 and took a wait and see attitude for well over a year plus several months to make a move to lower rates to counter act and the market.

The Feds found themselves chasing the market with large moves to lower rates back in September of 2007,the market got out of control, to complicate matters, the other entity that controls Fannie Mae and Freddie Mac was to blind to see that the Conforming Loan Rates did not reflect the market value in which those entities purchased loans from the primary mortgage market, thus many lenders got caught with their pants down, because the GSE and the Federal Reserve were not in sync, coupled with the SEC and the Supervision in both Houses of Congress failed meserably.

Now a new Federal Reserve Chairman, New Treasury Sectrary and a New President all are making it worst. If you want to fix it, lets not overly regulate and already fragile system. Lets look at the underline problems, Banks, MBS, and Collateral Debt Obligations.

Many lenders have foreclosures that can be salvaged by turning these mortgage related instruments that are non performing assets and converting them to producing assets by simply leasing out these problem REO's on their books to tenants, who want to buy using lease with an option as a method of buying in the future.

Give them a credit for their Down payment, while they are paying a higher than market rents to be applied when and if they exercised their option to buy in 2 or 3 years from now. Values would move upward and they would have time to clean up their own financial situation if credit and down payment was an issue, obviously that would be conditions to the credit. But that works.

Carlos R. Arvizu Sr.
thedon1950@aol.com

SB407 Point of Sale Burden on Consumers and Real Estate Industry

Carlos R. Arvizu Sr. with Prudential California Realty — Wed, 27 May 2009 14:36:00 -0500

Recently, Senator Alex Padilla,D San Fernando introduction or revival of SB407 Point of Sale retrofit requirement that all sellers of residential real estate would be burden with a cost that has far reaching affects that many homeowners can ill afford. This is not the time when homeowners have been facing a deep resission, high unemployment, and for what, another backdoor buracractic department to collect fees for the state.

Perhaps Senator Padilla doesn't reconize the real problems of the state, it's called living within your means. Cut back on salarlies and those expensive trips he's been taking, perhaphs if stayed a home, maybe he'd realize his low flow toilet requires him to flush it 2 and 3 times to make it go down, what ever the case, maybe he's in bed with those energy retrofit companies.

Regardless Senate Bill SB 407 does not come at the right time. The real problem is the lack of thinking of the consequences, that's how we got into this mess in the first place. I don't know what behind Senator Padilla's agenda, but I think it imposes more harm than good, especially at a fragile time like this for the real estate industry and to impose this burden on all California property owners who want to sell their home or investment property is darn right ill responsible on the part of Senator Padilla.

If you want to solve the shortage of water and help solve the global warming issue and envormental problems that we are facing, try desalination plants to add ocean water to our water systems and pipe in water to desert areas to plant trees and other oxigenated plants that displaces carbon dioide. Now thats something to work on. If we tried some constructive thinking instead of ways to create backdoor taxation, we would be better off. I hope comon sense prevails and SB407 is defeated. Comments are welcomed.

Thank you.
Carlos R. Arvizu Sr

thedon1950@aol.com

Economic News

Carlos R. Arvizu Sr. with Prudential California Realty — Mon, 30 Mar 2009 16:07:05 -0500

Economic News

By; Carlos Arvizu Sr

Many citizens are deeply concern with the direction the economy is going. Many hard working people are concerned with losing their jobs, homes, or have seen their 401k's retirement investments dwindle 40 to 60% in value over the last year.

Fixing the problem, one must understand the problem, and how they relate overall to the economy.

1. Congress can use stimulus money by way of reducing or eliminating the taxes from all passbook savings accounts, up to at least $150,000 per year on all personal income taxes. This gives the American public an incentive to save.

2. Regulate the passbook savings rate that is tied to the 52 weekly average of the 10 year Treasury Note, minus 1% point on all passbook savings accounts. What that does, is flood the banks with money.

This will not only encourage the American public save but also give banks an incentive to lend, this forces them to lend.

3. A Stimulus, is something that creates, and encourages new Jobs, or improves stability in existing Jobs that help move the economy forward. The average American appreciate the tax credit the Stimulus provides, however, most don't realize, that's really a token, which we can't afford, do the math, its very costly.

4. Give American taxpayers a shot (Stimulus) in the arm, by giving them a tax deduction of interest for buying and financing a major big ticket item, such as major appliances, cars, planes, boats that are manufactured in America, (at lease made partially in the U.S. (That's a real incentive to create and keep jobs.) I am not saying to have a trade war, but for Americans to have a choice to help keeps their Jobs here in the U.S. or find themselves displaced in the future to foreign companies that now taking place and losing jobs here in the U.S.

5. Reduce the Capital Gains tax to 5% (Remember this, taxes are non productive, more is less, less is more) Most people think that capital gains relief is for rich investors, that's far from the truth. Realize this, that most Americans who own a home, or the average person who is not a homeowner who has a 401k they invested in mutual funds, stocks or bonds or has a small apartment unit they own, also that falls in that category.

Having a Capital Gains tax of 5% federal government and 5% to the state does not takes away revenue, it actually adds to it by creating cash flow (Stimulus) to the government in volumes by giving an incentive to sell and cash in paying a fairer tax, versus holding on forever, paying no capital gains taxes and passing it along to your heirs,who get the stepped up basis. Paying very little, if none in capital gains taxes.

6. With regards to the current toxic loan problem that banks have on their books, pool those loans to a National Clearing House, and Lease those homes out with an option to buy for renters who want to own a home. Giving them a three year window to exercise the option to buy, these renters would have an opportunity to own and be a productive part of society. There of course would be conditions over that three year period, but that would at least make a non performing asset into a healthy performing asset that is at least bring in money each month. That's a Win, Win, not only for the taxpayers, but also for the tenants and the economy.

With respect to the Housing Market, and The Foreclosures that were attributed with the Toxic Loans on the market. If you want to fix it, and create some stability in the market, you don't need to raise taxes, you don't have to give away hundreds of billions of dollars away like candy. We just need to Think. We need to raise the confidence of the American public and the real estate market; the stock market will fix itself by that confidence. We also need to stop listening to the doom and gloom news a little. The News is a self perpetuating attitude of doom and gloom, it won't go away like a head cold, unless you solve or fix the problem. We Need to really look at the problems and solve them, not add to them.

Carlos R. Arvizu Sr.

562-755-3856

Downey, CA 90241

TheDon1950@aol.com

Forest Gump compares the govenment Economy to "Stupid is, what Stupid Does!"

Carlos R. Arvizu Sr. with Prudential California Realty — Fri, 13 Mar 2009 15:50:03 -0500

All I can say, it is ashame that we have these smart people running the government, who have education and No Common Sense!

If a free society can not pays it's bills, and the government continues to spend, raises taxes and can not afford to pay its' own bills, what will be the final outcome be for that free society? Anarchy? The Big question is: How does a government exist?

Carlos R. Arvizu Sr.
TheDon1950@aol.com

Open Letter to Treasury Sectry Tim Geithner Re Real Estate

Carlos R. Arvizu Sr. with Prudential California Realty — Mon, 09 Mar 2009 23:17:43 -0500

March 8th, 2009 Dear Tim Keithner and to all 435 Congress Members and 100 Senators My name is Carlos R. Arvizu, I am a real estate broker with Prudential California Realty. My purpose in writing you today is to share my thoughts with you in the hopes you can share with your readers about the current state of the economy and what I call a "Common Sense Cures for the Economy" with respect to the housing market.

I am sorry, some of these folks in Congress mean well, but frankly some of them don't have a clue of how to solve a problem. I am in the lending/real estate field and have lived life, and studied real life economics. If you have a problem, get at the root of the problem and solve it. Granted we have lots of problems with foreclosures, lending issues, jobs loses and health care to name a few, however, with property values down, interest rates at an all time low, that's a perfect time to create synergy in the any market. It's my opinion that there are things that we can do to move the economy upward by creating an incentive to stimulate the embroiled American public whose confidence has shaken by a malignant media need for news, along with financial vampires.

Our banking problems stems from a lack of cash flow and confidence of the banking community in making loans to consumers and to the banks themselves. The American people are tired of hype and a constant barrage of financial woes. Let's start solving these problems and regain the confidence of our nation. Since we have a confidence problem with the banking community, as well as consumers, we can fix that with the cooperation of the banking industry as well as, our Congressional representatives. This is what I would recommend; We need to recognize we have a cash flow problem, so let's start with the Banks themselves and the House of Representatives.

1. Eliminate the personal taxes from passbook savings accounts up to $150,000 per year and regulate the interest paid to depositors to 1% less than the 10 year weekly Treasury bond rate average. That's an incentive to save. Cash Flow! The American public would start loading up on savings..

2. Reduce the Capital Gains tax to 5%. Many people are unaware or confused that capital gains relief is meant for the wealthy, that's far from the truth! Wealthy investors tend to keep on investing in larger and more prosperous investments for greater returns. This is really a tax break for anyone who owns a home or has invested in a 401k retirement plan, or owns a small rental property to retire. A capital gain is considered a long term investment which can include your 401k tied to mutual funds, bonds or stocks. By reducing the capital gains tax to 5%, many Americans in a 401K retirement program can opt out without drastically paying 30% to the Federal and State (Calif.) by the time you take in consideration the capital gains tax along with inflation, most of your investment has eroded significantly.

Reducing the Capital Gains tax to 5% also increases the coffers of the treasury department. Recently, many of us have seen the stock market drastically reduce 40% to 60% of its' value, if you had time to hold on to regroup, that might be ok for some, however, if you're in your late 40's, 50's or older, that could be devastating. Older folks don't have the job opportunities that younger people have, even though it's against the law to discriminate against age, it does exist. The benefit to the government is by reducing the capital gains tax, actually creates a windfall of cash flow to the government by way of volumes of small investors who have long term capital gains having the opportunity to sell and cash out to spend on retirement or use as they see fit. (Remember this," More is Less, and Less is More")

3. With regards to the current toxic loan problem that banks have on their books, pool those loans to a National Clearing House, and Lease those homes out with an option to buy to renters who want to own a home. Giving tenants a three year window to exercise the option to buy one of these distressed homes.

Some tenants want to be homeowners, they just haven't the cash down payment, or lack credit sufficient to qualify to buy right now, but give time, an incentive to buy with a plan of action, along with the opportunity to own, they will be a great productive part of society, of course there would be conditions that they have to earn in order to have the opportunity to own, such as pay above market rents in order to qualify for an FHA loan, to use toward their down payment and closing cost. They have to have sufficient income to qualify. As far as credit is concern, it can be marginal now, but they have 3 years to work on it, they will need to meet with a credit counselor, devise a plan of action during this 3 year window.

Yes, they will pay above market rents, approx 20%, but they can use this as a credit toward their down payment and closing costs (forced savings), provided they meet all the terms and conditions, otherwise they lose the credit that is non refundable. That's earning the opportunity. They win, by having the opportunity to buy at today's price, they get time to reorganize their life. The banks win, eliminating their toxic loans by capitalize on turning a non productive, non performing asset into a performing asset. The taxpayers win, because they are not flipping the bill. The entire country wins, as the economy starts flushing out these toxic loans from our vocabulary, and the American Financial System can get back on track..

Carlos R. Arvizu Sr. 562-755-3856 Downey, CA 90241 TheDon1950@aol.com

Realtor for Congress of the 34th District

Carlos R. Arvizu Sr. with Prudential California Realty — Tue, 03 Mar 2009 17:31:15 -0600

To whom it may concern,

My name is Carlos Arvizu Sr., I am a realtor with the Rancho South East Assoc. Board. I am considering running for Congress of the 34^th District, which consist of Downey, parts of Bellflower, Lakewood, Norwalk, Montebello, Downtown Los Angeles, SouthGate, Huntington Park, Bell, Bell Gardens, and Maywood. This is for the 2010 Congressionnal bid.

I am a long term Realtor, and we need someone who wants to fight for Real Estate Interest and the well being of the average American, young and old, pre senior and senior citizens. Lets stop the erosion of our economic health.

That's why I want to run to help fix some of the problems we have been facing. I need your help and support. If you think some of these suggestions make sense to you, please help me get elected to help fix these problems. A common sense approach.

How to fix the Nations Financial Mess

To Solve this Problem;

Since we have a cash flow problem, let's start with the Banks themselves. To solve that problem is simple, yet complex, but there are a few things we can do to restore capital, one of the things we need to do is flood the banks with money, without getting the economy into more debt than it needs to.

How is the 64 million dollar question. One way is relatively simple, we need to change our way of thinking with the use of the tax laws and the regulatory bodies; (congress job) as well as, regulate the banking interest that banks pays its customers. So how do we do that:

1. Congress can use stimulus money by way of reducing or by eliminating the taxes from all passbook savings accounts, up to at least $150,000 per year on all personal income taxes with an increase each year, with a built in inflation factor, tied to the cost of living. This gives the American public an incentive to save.

2. Regulate the passbook savings rate that is paid to depositors money into the banks, this creates an additional incentive for consumers to Save money. The rate of interest can be as simple as using the 10 year treasury bond note rate as a bench mark, that is tied to the 52 weekly average of the 10 year Treasury Note, minus 1% point on all passbook savings accounts. What that does, is flood the banks with money. It is not in the best interest of the country for the government to give money to the banks directly by way of stimulus funds, just to horde it, it would be of greater benefit the American public to get a stimulus to save money. This will not only encourage the consumers to save but also give banks an incentive to lend, They can't horde it if it's not working capital. This forces them to lend. The Federal Government should not be in the business of owning the banks, this is not a way to go.

If you want to fix it, and create some stability in the market, you don't need to raise taxes, you don't have to give away hundreds of billions of dollars away like candy. We just need to Think. We need to raise the confidence of the American public and the real estate market; the stock market will fix itself by that confidence. We also need to stop listening to the doom and gloom news a little. The News is a self perpetuating attitude of doom and gloom, it won't go away like a head cold, unless you solve or fix the problem. We Need to really look at the problems and solve them, not add to them.

3. The Stimulus of $400 for individual taxpayers is really a token, that we can ill afford. You don't necessarily have to give away a tax credit to every working person of $400., while that may seem unpopular, and it's sure nice to get a few extra bucks in your pocket, however do the math, it's very costly. The Bush Administration did that very same thing, it gave 3 of those same token tax credits away and drove the debt up more than $150 billion dollars, that will take 2 generations at lease to live with that burden of debt, and it really didn't help. A Stimulus needs to be an incentive to create or keep existing Jobs.

An unemployed taxpayer doesn't pay taxes, it adds to the burden of debt.

4. Give American workers a shot in the arm, by giving them a tax deduction of interest for buying and financing a major big ticket item, such as major appliances, cars, planes, boats that are manufactured in America, (at lease made partially in the U.S. (That's a real incentive to create and keep jobs.) I am not saying to have a trade war, but for Americans to have a choice to help keeps their Jobs here in the U.S. or find themselves displaced in the future to foreign companies that now taking place and losing jobs here in the U.S. This is an Incentive Stimulus.

5. Reduce the Capital Gains tax to 5% (Remember this, taxes are non productive, more is less, less is more) Most people think that capital gains relief is for rich investors, that's far from the truth. Realize this, that most Americans who own a home, or the average person who is not a homeowner who has a 401k they invested in mutual funds, stocks or bonds or has a small apartment unit they own also that falls in that category. If you bought something 30 years ago, and need the money to pay hospital bills or nursing home care to provide for nursing home care and your taxed at 30% Federal and State, that wipes out most of your hard earned dollars along with inflation. Y you lose buying power, and if you need that for retirement purposes, inflation eroded much of that.

Having a Capital Gains tax of 5% federal government and 5% to the state does not takes away revenue, it actually adds to it by creating cash flow to the government in volumes by giving an incentive to sell and cash in paying a fairer tax, versus holding on forever, paying no capital gains taxes and passing it along to your heirs ,who get the stepped up basis. Paying very little, if none in capital gains taxes. This gives the average American the right to chose how and when to spend their proceeds on their long term investment, that actually helps the government with cash flow to help pay the running of the government and we have a healthy economy, which in the end helps circulate more money into the economy and as well as enrich the coffers of the United States Treasury. (More is Less, Less is More, something to think about!)

6. With regards to the current toxic loan problem that banks have on their books, pool those loans to a National Clearing House, and Lease those homes with an option to buy for renters, who want to own a home. Giving them a three year window to exercise the option to buy, these renters would have an opportunity to own and be a productive part of society. There of course would be conditions over that three year period, workable credit, deposit, and income sufficient to make a rental payment, that would at least make a non performing asset into a healthy performing asset that is at least bring in money each month.

That's a Win, Win, not only for the taxpayers, but also for the tenants and the economy. Common Sense approach to stabilizing the real estate market, and gradually increasing property values to stabilize the real estate market.

7. Have the lending institutions to continue to modifying their loans in their pipeline of delinquent loans. This will dry up the foreclosures on the market and stabilize the housing markets. Any bank receiving help from TARP monies need to help those who are in this mess that the banks and financial institutions help create this mess.

My name is Carlos R. Arvizu Sr, and I am planning on running for Congress for the 34th District. I want to thank you and the treasury department for getting me angry enough to at least help fix someone else from losing their home, even though I can't save mine. Thanks again.

Carlos R. Arvizu Sr.

562-755-3856

Downey, CA 90241

TheDon1950@aol.com

Chasing the Money and Poor Judgement

Carlos R. Arvizu Sr. with Prudential California Realty — Fri, 06 Feb 2009 10:30:00 -0600

A recent article just came accros my screen that Delphi Batteries a subsidery supplier of Batteries for GM, have requested a Bankruptcy Judge to allow Delphi Batteries to eliminate the healthcare of Retirees. It is not the retirees of Delphi to blame for the bankruptcy, it's poor management.

*** News Flash***Cutting the Health benefits for future employees allows Delphi to survive on the balance sheet, however, past employees should not be penalized at the expense of losing their healthcare benefits because of poor management....Past employees have no way to protect themselves and have a legitiment right to health care. For many retirees, it is much too late get another job. The Directors and Senior management of Delphi Batteries who suggested this, are nothing more than thieves hiding behind a corporate vail.

This opens the door for more problems, If that is the case, perhaps the Bankruptcy Judge should consider going back to all of the board of directors of Delphi Batteries along with senior management for the last 40 years and retreive all the profits and benefits that benefitted them also, that way at least it's fair. Care to comment? Carlos Arvizu Sr. TheDon1950@aol.com

Stimulus Package versus more Debt for our Grandchildren to worry about?

Carlos R. Arvizu Sr. with Prudential California Realty — Sun, 04 Jan 2009 03:54:12 -0600

Another Stimulus Bill is about to take a trip around capital hill very soon. Our political leaders have a grave responsibility in using the public tax dollars wisely, not just distributing wealth from one hand to the other.

Giving credits (money) to everyone doesn't do a dam_ thing unless, the tax credit can effectively generate jobs and support systems to maintain those jobs, but also create JOBS. Be careful in what your legislators are doing. Adding to the deficient without job creation can be long lasting, President Bush gave us 3 tax credits stimulus packages with Congressional support during the last 8 years, and did we not learn that this was a token gesture, that actually added to our grandchildren debt, they will be paying for.

Let's get specific, we have approx. 180 million people who work in this country and about 10% are now unemployed, As an example, President Bush dished out a token 300 bucks stimulus to spend on what ever, Let's Do the math (180,000,000 times $300 dollars, that adds up to a lot of zero's 54,000,000,000) $54 Billion Dollars, do that times 3. that equates to 162 billion dollars during the last 8 years.

** Let's look at how a real tax credit can stimulate an economy. As an example, let's say you buy an American made car, if you were allowed to write off the interest, as part of a tax stimulus package, that vehicle, then, woukd stimulate buying activity, which maintains and creates a demand for an American Made product.

** We can do the same with Appliances that are made in the U.S., this would allow the American public to choose to buy American; there is a benefit (JOBS). Not saying there is nothing wrong with buying foreign, but recognize We cut our own throats, without really looking at the underlying problems, we help other economies to flourish, and put us deeper in a trade deficient.

**We need to realize that we can use our tax system work for the country, but it can also be detrimental and work against us if we tax too much or just tax those who own businesses or who we consider rich.

An Example; a vehicle over $30,000 has an added Special tax called (a luxury tax), a boat gets taxed as a luxury so 10% special Luxury tax crippled the Boating Industry in this country. So what happens?

People start changing their spending habits. Manufacturing plants that supplies JOB's here in the US, make decisions based on profits, not expenses, that ultimately forces manufactures to layoff people.

Imagine, if you were employed by a manufacture or other business that was dependant for it's survival on the consuming public to buy their products and if no one is buying boats as an example, this has ultimately adds to the problem we been facing in the US. We need to start paying attention to these things. This spiraling affect does filter down to the lowest common denominator, supporting jobs.

**We helped encourage foreign trading partners stimulate their economies since 1971 when President Nixon took us off the Gold Standard, and made America fight the worlds battles economically with printed paper dollars backed only by more debt (federal reserve note), believe it or not, many people in this country still thing our dollar is backed by gold in Fort Knox. It's time to re-think our monetary policy for the good of our United States of America. TheDon1950@aol.com

Carlos Arvizu Sr.

Budget Problems with the State

Carlos R. Arvizu Sr. with Prudential California Realty — Sun, 23 Nov 2008 22:04:06 -0600

The Govenor of the State, has said that California has budgetary problems. I think that's an understatement. What California need to be asking specifically is the budget broken down. According to

the budget proposal for 2008/2009 fiscal year we are spending 41.3% on education

25.3% on Health and Human Services

and a whooping 7.3% of the Departmet of Cooreections. We spend more on Prisons that houses only 173,000 inmates which 70% return to the system.

Something is wrong. I think we need to have an overhall of the of all these depts. Thats 73.9% of the budget. If you don't have enough coming in, some belt tightening must be done.

We borrow from Peter to Pay Paul. That is a prescription for disaster. We need to find ways to reduce expenses, but also find ways to generate more income, by looking at our tax codes.

More is less, and less is more. SOmething to really think about. CUtting the capital gains tax to 5% will believe it or not, increase revenues to the State, that they would not otherwise have. Email me and I would gladly share that with you.

I am considering running for office in 2010. Give me your thoughts.

Carlos Arvizu Sr.

TheDon1950@aol.com

Why the Real Estate Recovery will be sooner than later!

Carlos R. Arvizu Sr. with Prudential California Realty — Tue, 18 Nov 2008 22:29:57 -0600

The Road to Recovery is upon us. Most people believe it or not, are still listening to the doomssayers, yet if you look at the underling events that are taking shape today, and analyze the momentum of activity on the market, you'll discover that multiple offers are being made on more and more property each day, even on November 18th 2008. Typically October, November and December are slow months.

Why you might ask? We all know Convential Lenders are not lending ask brisk as they were in years past, however, having said that, capital markets had stopped lending because of the MBS's, CDO's, and SPV's that contaminated the commercial paper markets. The climate at the Treasury Dept. clearly shows that banks are becoming healthier with bailout money. Fresh capital, not tarnished capital will be hitting the streets soon.

Why you ask? Bad Debt is being reconfiguered or restructuring to performing assets. How, LOAN MODIFICATION! Loan modification will soon shed many of the foreclosures that have been coming on the market due to FASB 157 that took place in Janury of this year, which required lending institutions to balance it's books on the market value of assets versus liabilities. The bottom line, Loan Modifications are turning Bad Assets into Performing Assets with the restructuring of loans, Banks can start borrowing on those good assets as Leverage. They generaly have a ratio of 12 to 1 against it's assets that they can lend out.

That's probably why Treasury Secretary Paulsen changed direction on buying bad debt and holding. It's better to feed the cat and have a healthy animal, than to keep feeding something that has already died, which will prolong the enevitable funeral. Let those Lenders pay the consequences is what is happening, a restructured debt can be eventually turn in to a refinance in the future when the economy is in a better position.

Now you might ask when do we start bottoming out? March 2009. Those who are buying now will reap the rewards, those sitting on the fense will be saying I should have bought when I had an opportunity to do so. I just made an offer on 2 units for $240,000 in San Diego California, if that's not the bottom, it's sure close to it. I anticipate a counter to $275,000 this is an REO, not a short Sale. Those short sales will soon drastically fade away as loan modifications drys any hopes of those would be speculators who are thinking of selling on a short sale and buying another shortsale.

Those buyers out there who want a to capitalize on the market now, can call me at 562-755-3856 to help them buy at todays prices and gain a future investment....

My name is Carlos R. Arvizu Sr. TheDon1950@aol.com

Prudential California Realty

562-755-3856

Bailout the Auto Industry and why it is absolutely necessary.

Carlos R. Arvizu Sr. with Prudential California Realty — Wed, 12 Nov 2008 14:47:44 -0600

Economic Bailout for the Auto Industry

If GM, Ford, and Chrysler are to survive this economic recession, they need to make a serious decision as to the future of their companies, as well as their workers, and other supporting services that provide parts and other related accessories to the auto industry.

GM, Ford, and Chrysler also employ a lot of related industries. The Steel industry, Aluminum, sheet metals, plastics, rubber, electrical components, paint industry and glass manufactures, and a whole host of inter-related supporting companies that provide valuable jobs to Americans.

If these automakers are allowed go under, so do a lot of other hard working folks that are inter-related. That's one of the reasons why the economy is partially suffering in the real estate and mortgage market.

Supporting services that were dependant in one form or another on the real estate market, also suffered dramatically, as they were inter-dependant on real estate sales and mortgages that also provided jobs, such as mortgage companies, appraisers, contractors, building material suppliers, escrow, title, and insurance companies, city municipalities, home inspectors, to name a few, but also it affects your local barber, and restaurants, printing companies and a whole host of others, which most people don't understand the complexity of it all.

What these automakers and Congress need to do is concentrate on, what seems to be everyone's problem, not enough sales to support itself. So what do you do? You cut expenses. That's an enviable fact of life.

The trade unions have made it virtually difficult to keep these automakers in business. They must realize it may be necessary to make concessions or lose their entire workforce to foreign automakers who can afford to build outside the US and sell here in America.

Short term loans may pay the bills temporarily, but that can also be a prescription for disaster also. America needs real solutions to fix the problems. Stimulus solutions work if they can stimulate growth. Just giving you a loan to temporary get you over a minor hurdle is not the same as slumping sales, credit problem, recession and poor consumer confidence in the economy. It's referred as, borrowing from Peter to Pay Paul, eventually, bills will catch up, sooner or later. Unless you have a workable plan to solve the underlying problem, slumping sales, and consumer confidence, and a lack of credit, will continue to be a plague the industry and eventually will kill the already endangered economy.

Possible solutions to fix the cash flow problem are;

•1. Reduce the workforce by early buyout for older workers who voluntarily elect to retire, but instead of a golden parachute for cash, trade stock in the company through their 401K in lieu of a golden parachute. That ultimately would be more than rewarding, especially with low stock prices and growing future return, as the company grows. This would reward the retirees for their hard work and sacrifice of an early retirement.

•2 Union Concession may be necessary to allow replacement worker at a reduced wages to start over the next 5 years. Giving these companies breathing room to survive and grow.

•3 The Federal Government needs to provide a tax credit or deduct the interest for those buying an American Made vehicle. This would truly be an incentive to buy American made vehicle, which would help the American workforce, that would truly be a stimulus helping Americans.

4. Workers who can give management ideas that can lead to money saving ideas that lead to increase production or real cost savings for the company should be rewarded for their efforts. Management needs to have workable solutions for the good of their workers and their stock holders. (Employees are stockholders)

5. Consolidate plants that provide duplicated tasks.

6. Build a better automobile that prove good value for consumers.

If the company can't survive, no one survives. Something to seriously think about.

Carlos R. Arvizu Sr

theDon1950@aol.com

A Bailout with a Parachute that works!!

Carlos R. Arvizu Sr. with Prudential California Realty — Mon, 10 Nov 2008 21:06:36 -0600

Baffled by all the political posturing? If I were running for public office, here is what I would do since having Mastered Real Estate and Economics 101;

1. Reduce the Capital Gains tax to 5%, what this will do is encourage those that are holding long term capital gains to sell.

First of all, what is considered a capital gain? Some people think this is only for the rich, think again. A sale of stock, mutual funds or bonds fall in that category, as well as other long term gains, such as a real estate investment, apartment building containing 1 to 4 units, is also considered a capital gain.

Most people don't realize it, your home could be a capital gain if you made more than the allowable profit, as an example; you bought a home for $85,000 and you sold it for 420,000 there would be a $335,000 profit, and depending on your own status, that could be a taxable event. Another example, lets say I owned a rental unit, I am tired or the headaches of managing it, I want to sell, there is a good chance I might be incline to sell, because I want retire after owning it for 15- 20 years, however, after looking at the consequences of the Capital Gains Tax, I would be very reluctant to do so, or I may opt to stick it out and let my heirs worry about it, or use a IRS 1031 exchange to defer the taxes by buying another property, hoping the management headaches go away.

Basically speaking, capital gains taxes reduces the governments ability to collect revenue. Capital gains taxes are currently at15% on the Federal side and 15% for California, plus depreciation that may be due. and are scheduled to rise in 2011.

However, should Congress lower the capital gains tax substantially this would encourage property owners to sell, who are inclined to sell. By lowering the capital gains taxes, this would have an enormous effect on the economy by raising revenue to the federal government, as well as the States, like California, who are facing budgetary problems.

Imagine increase revenues, by simply reducing their capital gains taxes, more revenues created by simply reducing taxes. Raising taxes can be counterproductive. More is less, and Less is more!

With the Capital gains tax being so high, most people are very reluctant to sell because of this.

Paying lower capital gains taxes encourages income property owners an opportunity to sell, cash in, retire and do what they want to do, pay less taxes and enjoy life, or invest in other opportunities, joint ventures that create jobs. This is something to really think about.

2. Eliminate the Taxes on individual savings accounts held by banks, savings and loans, up to $100,000 in tax free income with an inflation index to keep up with inflation. This would encourage more people to save. Imagine using the Tax laws to create incentives for people to save money.

Lot of people would be pouring money back in to the banks, making them healthy again. Banks would be in a better position to provide mortgage money for those who want to buy homes or refinance their existing homes, others can get a car loan, or even finance a college education. We should make the tax laws help our nation, not cripple the economy.

The cost of credit is much too high, like credit cards for example, they need to be reflective of the risk as well as, a reasonable rate of return for the investor banks, yet not gauge the consumers wallets.

3. Regulate the interest rate that banks pay on regular passbook savings accounts at 1% less than the 10 year Treasury Note Rate, currently published at 3.83%, that means all regular passbook savings accounts would be paying 2.83% to their depositors. What this does, it provide banks with liquidity for banks to lend on.

Currently many people are looking for a safe havens for cash, including many mom and pop investors, who lack the sophistication of the stock market.

4. With respect to the Bailout and foreclosed homes that would be on the federal governments books as bad mortgages. I would allow these foreclosed homes to become part of a special recapture equity pool, in which the Government would Lease these bank owned properties with an Option to Buy. I believe this Lease Option Program could ultimately save the government tons of money, by turning a negative asset (bad mortgages) into a performing asset. These properties will have a tenant maintaining the up keep, as well as paying rent, at above the market rents. At the time the lease has been exercised, the tenant would have a portion of the payments credited back to the tenant (20%) of the rent collected, can be used as a down payment, if the tenant fails to exercise their option to purchase or fail to comply with the lease provision, they forfeit any option money. They must also go through a rigorous housing counseling program, where they will learn how to budget and manage their finances. If they fail to attend classes or fail to pay the lease in timely manner, they lose the opportunity and forfeit any option money. every month they were late that they may have been entitled too.

Tenants still must also qualify with periodic accountability sessions, to insure they know how to manage their financial affairs. They must also sign an acknowledgment and agree to the terms prior to entering into a lease option contract, and taking procession of the property. They would still need to qualify for the lease financially to have a reasonable assurances of qualifying for a mortgage by the end of their lease option period. In no event, is the tenant entitled to any portion of rents collected, if they fail to qualify for a mortgage due to acts of ill responsibility. After attending these home buyer certification courses, they will be better prepared to handle a mortgage payment. This encourages success of obtaining home ownership, because they earned it. This also makes it a win for the taxpayers and it gives those who want to buy in the future with an opportunity to own their own home. The government wins, by receiving rent money while the equity eventually rises if the tenant fails to exercise the option to buy. The tenants are guaranteed they have the first right of refusal at today's prices, the community wins, as there is no blight in the neighborhood, and the taxpayer wins by returning a bad asset to a performing asset. That's a Win for

Carlos R. Arvizu Sr

TheDOn1950@aol.com

I may enter the political Arena in 2010. If you think I should, please let me know. Thanks

Survival of the Automotive Industry

Carlos R. Arvizu Sr. with Prudential California Realty — Fri, 07 Nov 2008 22:00:21 -0600

If GM,Ford, and Chrysler are to survive this economic recession, they need to make serious decissions as to the future of their companies, as well as their workers. they also provide jobs to other supporting services that provide parts and other related accessories.

GM, Ford, and Crysler also employ a lot of related industries. Steel, Alluminum, sheet metals, plastics, molding and a whole host of supporting companies that provide jobs to America. If these automakers go under, so do a lot of other hard working folks.

What these automakers need to do is conscentrate on is what seems to be everyone's problem, not enough sales to support itself. So what do you do? You cut expenses. That's an enivetable fact of life.

The trade unions have made it vertually difficult to keep these automakers in business. They must realize it may be necessary to make concessions or lose their workforce to foreign automakers who can afford to build outside the US and sell here in America.

Short term loans may pay the bills temporarily, but that can also be a prescription for disater also. America needs real soulutions to fix the problems. Stimulus solutions work if they can stimulate growth. Just giving you a loan to temporary get you over a minor hurdle is not the same as slumping sales, credit problem, recession and poor consumer confidence in the economy. It's like borrowing from Peter to Pay Paul, eventually, your bills will catch up to you, sooner or later, unless you have a workable plan to solve the underlying problem. Slumping sales, and consumer confidence, and a lack of credit.

Possible solutions to fix the cash flow problem are;

1. Reduce the workforce by early retiring older workers without a golden parachute. Trade stock into a 401K in liew of a golden parashute. That ultimately would be more than adequatle, especially with low stock prices and growing future returns as the company grows. This would reward the retirees for their hard work and sacrafice of an early retirement.

Union consession maybe necessary to allow New replacement workers at a lower pay wages to start over the next 5 years. Giving these companies breathing room to survive and grow.

2. The Federal Government needs to provide a tax credit or deduct the interest for those buying an American Made vehicle. That would truly be an incentive to buy American, which would indeed be a stimulus.

3. Workers who can give management ideas that can lead to money saving ideas that leads to increase production or real cost savings should be rewarded.

4. Management needs to workabke solutions for the good of their workers and their stock holders. (Employees are stockholders)

5. Consolidate plants that provide duplicated tasks.

6. Build a better automobile that proves good value.

If the company can't survive, no one survives.

Carlos R. Arvizu Sr

theDon1950@aol.com

I plan on running for politcal office within the next 2 years. If these Ideas make sense to you the reader, please let me know. These are solutions, not rederick. Thank you.

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The Economic Mess and what will help to get us out of it!

Carlos R. Arvizu Sr. with Prudential California Realty — Thu, 25 Sep 2008 20:32:29 -0500

1. Eliminate taxable income from Passbook and Certificate of deposits held in banks and credit unions and other federal and state chartered banks up to the $100,000 in tax free income per year. Make it mandatory that banks raise the minimum interest earned to at least 2% for regular passbook savings accounts. Banks can then increase the Certificate of Deposits interest rates according to the their profit margins. The free market then would allow cash flow, that provides for mortgages, consumer loans.

2. Increase the FDIC Max Guaranty currently at $100,000. obviously raise fees for the cost of FDIC coverage.

3. Reduce the Federal Capital Gains Tax to .05%, this would generate cash flow into the treasury by encouraging those who have long term capital gains to cash in their gain and turn over money. This would have an enormous effect in raising revenue to the federal government. This would also encourage States that have capital gains taxes in line with the federal government to raise state revenue. More revenue, helps not only the federal government, but also the state and local governments operate much more efficiently without the additional burden of raising taxes that can be counter productive.

4. Encourage American Consumers to buy American. A tax credit goes along way to drive the dollars spent goods and services produced by the American public. It creates jobs, and that's good for the economy. Goods that are made by foreign companies that have at least 40% made in the U.S. should fall in that category and taxpaying consumers should be able to deduct interest or get a tax credit to buy American.

5. Raise the FICA to a maximum ceiling from $102,000 to $500,000 on personal incomes. It makes no sense to allow the social security system to go bankrupt on the seniors and the future generation of seniors who help build this country. It makes no sense to allow the social security system to go bankrupt, which will affect every senior and future generations of seniors.

6. Mandate Automakers to build an energy efficient automobile with strict deadlines and incentive that make sense by allowing them special tax credits for doing it. This will help us in the long run to reduce our dependency from foreign oil. If were going to bail out the economy, we can use real incentives that are productive and not a false give away, that put us into debt without producing any real stimulus.

Stated income Programs was not the reasons why mortgages went bad, they been out since the mid 90's. Most people don't understand how the entire money system works. The real problem began with the Federal Reserve, as the housing market flourished, so did the economy. as 2002,2003. when the market continued to heat up, the Federal Reserve did the correct action by raising short term interest. However, they went over board, by raising short term interest rates for 17 months consecutive months without thinking of the consequences, and took a wait and see attitude for almost a year and a half. The economy started on a downward trend as the real estate was slowing to a crawl, so did the economy. What the federal reserve did, was inaction. This Wait and See attitude let the United States and the World economy go bust, and it got out of control.

What the Federal Reserve should have done is a little to late , but needs to be said anyway.

1. The Federal Reserves should have stopped raising the fed funds rate by the last quarter of 2005. By continuing to raise short term interest rates, this help fuel the fire that Wall Street was not prepared for. The two tiered type mortgage loans provided by Wall Street, also known as 80/20 mortgage's or 100% financing, was directly tied to the Home Equity Lines of credit, that was directly effected by the raising the fed funds rate. This was the avalanche that ultimately help put us in this mess.

2. The Federal Reserve had an obligation to inform the money markets that provided capital for mortgages, that they may want to curtail or cut back on riskier type mortgages.

3. The Federal Reserve should have warned the GSE that it may become necessary to raise the Conforming Loan Limits, that was at the time set at $417,000. Fannie Mae, and Freddie Mac, as well as FHA had provided cash flow to the primary mortgage market by way of selling mortgage back securities to fannie and freddie.

Our Economy has been based on credit, ever since Pres. Nixon, took us off the gold standard back in 1971, without the secondary market providing needed capital back to mortgage industry, those banks, savings and loans mortgage holders that help provide financing for many first time buyers, as well as move up buyers, and helping existing homeowners to refinance to lower their mortgage payments, remodel their homes, etc., This Secondery Market helps recycle mortgage money to keep it solvent and flurhing, without it, homeowners, mortgage holders would be doomed for calamity, and that exactly what's been part of the problem.

This Financial snowball got out of hand, when the Federal Reserve, Politician's and the newsmedia got involved, so did panic. We normally have a 1% to 2% Delinquency rate that forces people into the Foreclosure process due to death, illness, divorce, unemployment and other calamities as well as those ill-responsible people who don't take paying their bills seriously. Looking at the problems we face today, could have been avoided in many ways.

4. One of the actions that the Fed. Chairmen was to act hastily in the decession to eliminate stated income programs. Many professionals, and Business Owners used these programs without problems for at lease 12 to 15 years when they appeared. The Federal Reserve needs realize that it hurt middle America. They need to ease up on the restriction as far as stated income for professionals, and business owners with sufficient assets to match the flow of income. Most business and professionals carry losses that may be difficult for most underwriters to understand because of complicated tax laws that provide various treatment, yet the flow of income is present. The big part of the equation, is at least 20% to 25% of all the mortgages that are originated each year, were from the business and professional community, and the majority experience very little in defaults. Entry level home buyers, allowed by Wall Street, to use this program, in conjunction with 100% financing, that was created by wall street, along with unscrupulous mortgage lending practitioner that helped defecate this program to many good hard working professionals.

If we are to get out of this mess, we need to think with our logic, not panic. At this point, were to deep in the hole, and the rest of the world. I don't often agree with the President, but we laid our cards on the table, and too late to turn back now. Let's fix the problem. Thank's Rush. Please pass this along to your readers and John McCain.

Carlos R. Arvizu Sr.
Downey, California
TheDon1950@aol.com

What Can Be Done to Help the Budget Crisis?

Carlos R. Arvizu Sr. with Prudential California Realty — Sat, 31 May 2008 13:46:59 -0500

May 31, 2008

What can be done to help California and Nations Budget Crisis?

Our nation has been facing serious budget issues, and because California is one of the largest economies in the nation, our state is experiencing an exceptionally hard time. For many of us, it has become a delicate task to make ends meet. Even the everyday things, such as driving our cars to work and making sure there's enough food on the table, have become a bit of a juggling act. Many of the problems have been caused by our very own state and national governments paying too much attention to special interest groups instead of the taking care of the important issues.

The three biggest problems facing the United States government and California in particular:

1. Over-spending. Government spending is out of control, and we simply cannot sustain being in the negative for so long without serious consequences. It's like a bridge that has a crack in the support beams. Over time, the crack will get bigger and bigger, and eventually corrupt the safety of the support beams, causing the bridge to collapse.

2. Over-regulation and misappropriation of funds. For example, the state of California spends approximately 39% of their budget on education. If the Department of Education is allocated two-hundred million dollars this year, educators and administrators will find a way to spend every last penny of it because they know they won't get that same amount next year if they can do it on less. It's a self-defeating system in which they have to spend it or lose it.

One of the ways the state raises money for the education budget is through the state lottery. The lottery is a renewable source of income, and the money brought in from it is supposed to help supplement the education budget, but that's not what's happening. If the lottery brings in one hundred million dollars, the legislature will take that one hundred million dollars out of the original education budget instead of adding to it. What a system.

Oftentimes, money is spent in areas it really does not need to be spent. There are a lot of bureaucrats who drive state-issued vehicles to and from work or use them on their own time, paid for by the state. Most of us drive our own personal vehicles to work, which is what these bureaucrats should be doing as well. State-issued vehicles should really be limited to on-the-job use. What makes them different?

This is just one example of misappropriation of funds supplied by an inefficient administration.

Another way money is misused is through the millions of dollars spent each year for printing election materials in languages other than English. As a U.S. citizen, you are entitled the right to vote. However, you should be able to read and write the national language in order to do so. It is the responsibility of every citizen to assimilate to the national language. It is important to maintain and hold onto your culture. That's what makes this country great, but the national language of United States is English. If we were voting in Japan or France or Mexico, we would be required to read and write in those nations' languages in order to be able to vote in their countries. We should require the same of our own voters instead of wasting millions of dollars on voter materials in other languages. This is just another abusive spending practice created by politicians to gain more votes. This boondoggle of a system only serves to help bankrupt our economy.

The California Freeway system is an area that wastes millions of dollars in energy costs and costs associated with car accidents, injuries, and insurance claims for damages due to the carpool lanes. The carpool lanes, especially in Southern California, are a tremendous problem for many of us. Countless accidents occur each and every day because the carpool lanes are poorly designed. It's hard to get into or out of them without causing some sort of traffic jam or accident, which ends up costing Californians millions of dollars. These carpool lanes would be much more efficiently used if they were opened for use by everyone during non-peak traffic hours. This would help cut down on the harmful emissions released from idling cars, which burn more fuel (and we could all stand to spend less on fuel). Opening the carpool lanes would also generate a more free-flowing freeway and help eliminate the already overwhelming traffic congestion.

3. Not enough financial cash flow. Instead of borrowing from Peter to pay Paul, we need to be able to raise revenue to support the services we need in order to live or we need to reduce spending in order to maintain an equilibrium. This can be done by raising taxes or finding ways to generate more renewable revenue sources. Raising taxes is generally a politician's first solution to raise the money to pay for services. This way, they don't have to think outside the box. So, how can the state of California (or the federal government for that matter) raise revenue without massive tax increases, and at the same time make already-established taxes be more productive for the economy? That's the sixty-four million dollar question.

Believe it or not, some taxes actually create a deterioration of revenue. As an example, 80% of income producing properties owners are over the age of 50, and many of these owners decide not to sell their properties because of the high capital gains taxes, which currently sit at 15% for the state of California and 15% for the federal government. These landlords just hold onto their investment properties because of the high amount of taxation involved with cashing out. The bad news is that capital gains taxes will double in the near future, making it even less likely that the state will be able to build revenue.

If the government actually lowered the capital gains tax to about 5%, however, it would be much more beneficial for the state. If, for example, 100,000 income property owners elected to sell and cash out under the 5% tax rate, and the average taxable gain was $200,000, that would generate $10,000 to the state per owner for an overall one billion dollar gain. It would also generate more revenue from property taxes, as the buyers of those 100,000 properties would now being paying at a higher tax rate than the previous owners due to the appreciated sales prices. That's a lot of money the state could put towards something more useful, without have to raise any taxes at all. It would actually create a renewable revenue source that could create a vast amount of money for the state on an on-going basis.

Another revenue-building resource can be found in the gambling industry. The amount of money gambling produces is tremendous. If taxes were raised on gaming establishments at 20 cents for every dollar collected, it would generate enough cash flow to support a functional, substantial health care system in not just California but all of the United States. The gaming establishments could then reduce the payouts to maintain a profit, meaning that the house controls their own profit margin. It would be foolish for the State of California not to take an additional share of taxation from the gaming industry to help pay for the many services that are in desperate need of financial support.

The actions of our state and national governments, political leaders, and special interest groups have almost bankrupt our country's economy.

When a government cannot pay for itself, it robs our nation of the spirit of democracy and leaves an open door to revolt and revolution. As a society, when we cannot afford the basic necessities such as food, clothing, fuel for our cars, shelter for our children, or basic medical care, then the system has run out of control and needs to be changed. It's time to elect new leaders and hold them accountable to the laws they make, the laws that we have to live with.

Carlos R. Arvizu, Sr.
Pronounced R.V.Zoo
TheDon1950@aol.com

California Realtors Alert Alert Contact your State Assemblymen

Carlos R. Arvizu Sr. with Prudential California Realty — Thu, 24 Apr 2008 19:34:59 -0500

REAL ESTATE LEGISLATION

ALERT

*** IMPORTANT ISSUE ***

There is Bill before the State Assembly, AB 2678, (Nunez) that would be disastrous for all Californians, upon the sale of any residential home, including rental property, as well as any commercial property sold in the State of California.

The provision of this Bill, AB 2678, would require that any property sold must have an Energy Audit at the cost of $400, this also establish a regulatory committee to monitor the point of sale audits and would also require a mandatory energy efficiency investment be made before escrow can close.

This will further hurt our already crippled real estate market. The Audit will cost California property owners $400, plus the cost of mandatory required energy compliance that may run into the thousands of dollars, and eventually get filtered down to the consumer, which would also add to the price of any property in California. Renters will feel the added expense in the form of possible rent increases. Consumer goods and services will also be affected in the form of high prices, adding to inflationary pressure.

I believe in energy conservation, and while the overall intent is good, we do need to get off oil dependency, and OPEC, however, this legislation was not well thought out, and puts a tremendous burden on ALL California property owners and tenants alike.

What we need is good old fashion common sense thinking, not special interest, self serving sacred cow politicians, that like to spend tax payer dollars to support expensive junkets. What this legislation really is, is a back door tax revenue raising source. Call it what it is.

You want more dollars into the state treasury, lower the Capital Gains tax to 5%, see how many people cash in on those rental properties that never get sold because of the Capital Gains Tax is too high to sell. This also would add tax dollars to the state's fragile economy, as the property tax revenues would increase on the sale. The Federal Government could also rake in hundreds of billions of dollars too. They just don't get it!

What California needs, as well as America, is not an overly regulatory bureaucracy, it needs pure down to earth leadership, for the good of the people, and all of the people, not just special interest. We've allowed Special Interest to dictate the lives we lead, such as, career politicians, oil companies, automakers, insurance companies, wall street financial CEO's that gave us the credit crunch, as well as the medical and prescription drug companies.

If California, and the rest of United States is going to survive this decade, we better start to re think our responsibility to the American public. Respect the little man who doesn't have a giant bankroll. I believe John F. Kennedy said it so eloquently, "Ask not what your Country can do for you, Ask what you can do for your Country. ... I believe what this meant was, respect your fellow man, give them a chance to dream, and do good, to build better things for the sake of doing for others, not to line your pockets. Contact your Ca;lifornia State Assemblyman today to vote against Assembly Bill AB 2678. Thank you. " This will be probably my last comment"

Our State Legislators need to be revitalized.

My name is Carlos Arvizu Sr.

Unemployed Realtor

I'm not running for Office, I can't afford it.

Panicking to a Confusing Market and Communications adding to the problem

Carlos R. Arvizu Sr. with Prudential California Realty — Mon, 17 Mar 2008 15:31:14 -0500

Comment and Perspective on the Real Estate Market

Carlos R. Arvizu Sr.

Contributing Writer

Communication and Panicking in the Market Place

Regardless what market your in, the stock market, real estate market or the Lending Market, sometimes we need to stop and rationalize what's going on.

The problem in this day in age, is that too much communication that causes confusion. Were bombarded with everyone's varying opinion Radio, T.V. Newspapers, Magazines and the Internet, you name it, it's no wonder why we have so many indecisive decisions clouding up our vision. Just this morning my wife had a panic attack about the money in her 401 k retirement fund. She is getting mixed signals from every directions, and is in a panic, and doesn't know what she should do.

On the lending side, I was talking to a prominent loan officer, she says that she had several people who heard that the interest rates were dropping (confusing the short term Fed. Funds rate with the 30 year fixed rate), in particular, several clients, wanted to wait for the rates to drop lower, instead of locking in a good rate, the rates went up considerately, and unfortunately several of these clients lost a good opportunity for lower payments.

On the real estate side, I don know how many people are setting on the fence to buy, waiting for that great deal, unfortunately, some of these people won't know when the real estate market has bottom out, until it's already past them going up again.

Warren Buffet, a Billionaire and one of the smartest business people, said this;

"Buy from Pessimist, and Sell to Optimist."

Which means, if opportunity presents it's self buy now, and profit from panicking people. Stay cool, don't panic. Now is a great time to buy real estate, and get a good loan.

Carlos R. Arvizu Sr.

Pronounced (R. V. Zoo)

Prudential California Realty/

The Mulhearn Group

562-755-3856

The GSE finally approves to raise conforming loan limits by the end of this week.

Carlos R. Arvizu Sr. with Prudential California Realty — Wed, 27 Feb 2008 11:42:34 -0600

This morning, the Director of the Federal Government Sponsored Enterprise, Jame B. Lockhard, finally agreed to allow FannieMae and FreddieMac to set the Conforming Loan Limits higher than the current $417,000. Unfortunately, it's taken 18 months of huges sacrafices for the real estate and mortgage industry to get to the brink of total disater.

Why it takes so long for these people to make a decision is beyond me. It's very frustrating for homeowners, who are trying to buy or refinance. History teaches us valuable lessons, I not sure if politicians, short term economist, and the news media ever stop to rationalize the long term affects on their opinions, that affect our daily lives.

Carlos Arvizu Sr.

Prudential California Realty

TheMulhearn Group

562-755-3856

UNDERSTANDING THE COMPLEXITY OF THE REAL ESTATE MARKET AND THE ECONOMY.

Carlos R. Arvizu Sr. with Prudential California Realty — Mon, 18 Feb 2008 20:22:27 -0600

How fragile is the real estate market in comparison to the rest of the world of economics, and what does it take to get us back on track to stabilility and eventually growth?

To answer that, we must understand how all the componets work.

The Federal Reserve System and the Secondary Market (FannieMae and FreddieMac) which is operated under the Government Sponsored Enterprise (GSE), these two entities have a direct influence on our economy.

The Federal Reserve Systems controls the money supply that influences banks who borrow from them and other banks, short term interest rates, such as adjustable rate mortgages, hybrid type loans. They also affect consumer loans, home equity lines of credit, construction loans, cars loans, and also has a direct influence on the prime rate charged to the banks best customers.

FannieMae and FreddieMac are operated under the Government Sponsored Enterprise, they're main objective is much like an overdraft protection to a checking account, as a way for the financial community to maintain liquidity in the mortgage market and maintain an equillarium to the credit market.

This system works well, as the need for mortgage money is forever assisting not only first time home buyers, also move up buyers, as well refinancing home owners, who also benefit from FannieMae and FreddieMac purchasing loans on the secondary mortgage market, this systems provide the flow of monies to the primary mortgage market that conform to their established conforming guidelines.

Under these guidelines, pools of loans are graded by the types of loans, interest rates, due dates, rate of return etc. These pools are a mixture of perfoming assets, as well as non performing assets. These pools are also known as Mortgage Back Securities. These MBS are often purchased by investors, who may want a certain rate of return on their money, such as a retirement fund, 401K's, etc., in many cases, these pools provide a safe rate of return.

When both these entities are allowed to operate in unison, the economy can maintain growth, keep inflation in check by controlling the money supply.

So what happened? Why are we faced with so many problem loans, and really, how bad is it? Why is the economy in such a mess, and cofidence very low?

Raising short term interest rates 17 consecutive times consecutive and waiting to see what was going to happen took a tremendus toll without counter balancing the fed funds rate could have soften the landing of home prices losing values.

A changing of the guard with the Federal Reserve Chairman Ben Bernake taking over, and delaying of taking action to restore order.

The last piece of the puzzle is a mechanical part of the process, by that, raising the conforming loan limits that allow the secondary mortgage market to provide liquidity in states that are considered high cost states, like California, and New York to name a couple.

As an example, When you make it difficult for home buyers to buy, whether they are first time buyers or not, refinancing or move up buyers, you restrict the flow of money, this is the life blood of the economy. Like turning off a faucet that flows water to the things that grow, without it, it can not grow, it dies. That's exactly what happened.

Look at what a slow down of the real estate market actually does, if a person can not sell, buy or refinance, this ulltimentally filteres down to national level, as well as a state level. look at states like California, who depend on property tax revenues for everything, schools, health, and other services. You can't run it efficently without the flow of money.

Subprime was just the source of the fuel, Monitary policy, in effect was the match that lit the fire. The Federal Reserve is now taking a pro active stance, Congress finalally understand part of the problem, by raising the Conforming Loan Limits, now it's up to the consumers to take advantage by looking at the opportunity that now exist.

Homebuyers have a short window of opportunity to buy now with attractive rates and lower home prices, it won't last long. This was a mechanical correction, that needed to be done 18 months ago, .... it's a SHORT TERM GIFT OF OPPORTUNITY TO BUY NOW.

Election Day

Carlos R. Arvizu Sr. with Prudential California Realty — Tue, 05 Feb 2008 02:10:16 -0600

Tomarrow, is the election day. This has been a long awaited time for Californians to finally have a real say in the decision who to elect someone in the party of their choice, whether you are Republican, Democrate or affliated with the other parties.

When Voting, distinquish hype and rederick to logic and reprocussion. Remember when their is an Action, there is a Reaction. Make it a productive day and week. Lets hope and pray we made the right choice.

Carlos Arvizu Sr.

TheDon1950@aol.com

Conforming Loan Limits stymied by Senate causes concern for Stimulus Package.

Carlos R. Arvizu Sr. with Prudential California Realty — Sat, 26 Jan 2008 22:42:36 -0600

According to the Chronicle Staff Writer James of the SFGATE.com GOP is flagging resistance to increasing the conforming Loan Limits that allow FannieMae, and FreddieMac to purchase loans above the $417,000 treshold.

Unfortunately, a handful of Senators that don't realize that a combination of events have literally killed economic growth for Calirornia and the nation and it will get worst unless they raise the conforming loan limits now. We don't have the luxury of time to wait. How many people have to lose their homes, jobs and any kind of stability before actions is taken to get the country moving forward.

What some government officials don't realize is that the laws they create or delay taking action on, ultimatly can and will affect us one way or another. Most politicians don't seem to realize that not everyone who has a mortgage is in trouble.

Take for an example, 70% of the mortgages made are not necessarily first time buyers, quite a few of thoses trying to get a mortgage are existing home owners, who are trading up to buy a larger home for their famiilies or baby boomers downsizing to move into much more manageable smaller homes, or they are trying to refinancing for some reason or another. (Send their kids to college, pay bills, investments, get a better rate to lower their monthly payments, etc.)

Only a small percentage of home buyers buy a home less than the conforming loan limits, especially in places like California, New York and Massacusettes to name a few, where the average medium home price far exceeds the Conforming Loan Limits. there are approximently 30% of the population are renters, on average only 6% of those renters convert to home ownership, the remaining 24% will never own a home unless they inheiret it, or win the lottery.

All of the mortgages made are not in default. Most lenders on average have a 3% to 5% delinquentcy rate that sometimes end up a foreclosure on a normal basis, due to many reasons, loss of employment, divorce, loss of a spouse's income , medical bills, death, job transfer, and yes, some loans that shouldn't have been made, but that's not totally the reasons why we are having financial calmity.

One of the reasons why we are in our financial mess is that the secondary market has not been allowed to relieve the pressure that many lenders are faced with today, liquidity.

Some lenders have assets that are performing as scheduled, and some have not done quite as well, and some that have assets being foreclosed on, which are non producing assets. When lenders don't have the ability to sell their loans (MBS) on the secondary good or bad, they are caught up in a situation, they can't sell, they can't loan, they can only borrow into more debt, like Countrywide did back in August 2008 from Bank of America, which ultimately is, was or could be the end of Countrywide, with Bank of America standing in the wings to pluck the remaining assets, consolidate and put more people out of work.

When the secondary market and the monitary policy act in unison, the flow of money keeps the money supply moving in the right direction.(Buying and Selling, like a revolving door)......

Just like the air in a balloon, if you don't relieve the air pressure that keeps building up in the balloon, eventually at some point it's going to pop. A lender who can't sell their loans on the secondary market, is force to somehow liquidate those assets, good and bad just to survive long enough, before the government officials gets off their (#?#$?) to do something. (That's why we are seeing so many lenders opting to do a short sale to salvage cash too keep them afloat).

The Secondary market is much like an overdraft protection to a consumer, when funds start to deplete to a certain level and a need for more capital to lend out is necessary, the Primary market (Lenders) will often Sell a block of loans called Mortgage Backed Securities (MBS) at a discount to FannieMae, and FreddieMac. These Mortgage Backed Securities are a combination of performing and non performing assets.

The Secondary market, which means FannieMae and FreddieMac Buys these MBS. These two institutions also Sells these MBS to investment pools on wall street. The secondary market acts much like a broker, they get paid for Buying and Selling. This sustem works well when the flow of money keeps revolving, that's also why the Federal Reserve System also has so much leverage on the flow of money with their two key interest rates the Federal Funds Rate and the Discount Rate.

The Biggest Problem occurred, and no one saw it coming, subprime loans, with an over zealous Wall Street, along with the Mortgage market credit crunch meltdown, couple that with the Federal Reserve raising short term interest rates (Federal Funds) for 17 long continuious months of increases of a .25% basis points.

The results, of these interest rate hikes, were slow in nature, starting in 2004, the real estate market continued to trive, 2005 was a banner year, the rate hikes continued, slowly chipping away as the rate of appreciation slowed to a crawl in 2006, asking prices of homes began to drop, as the demand began to dry up, consummer confidence withered with an over zelious news media, grabing as many headlines to gather media attention to ultimately sell their advertising message, like a feeding frenzie, this provoked many political leaders to jump on the bandwagon, without looking at the underlying problem.

As property values started to decline, we were on a direct collision course with the Home Equity Lines of Credit (HELOC). These 100% type financing had two loans, an 80% 1st Loan and a 20% 2nd loan, because of the 20% 2nd loan, there was no requirement to have mortage insurance. The other part of this equastion leading us into a fast moving freight train is that when the loan is scheduled for recasting or resets, that's when the deferred interest reaches a 115% of the original loan balance, the mortgage is reamortized at the remaining balance plus any deferred interest, and usually at an adjustable interest rate based on the most commonly volitle Libor Rate, and ooften at a substancially higher monthly payment.

This is a perscrition for disaster, not only for the 3% to 6% directly affected with this type of loans, the entire system is currently bottleneck. While those politicians are still trying to debate what to do, it a break down of the system. The breakdown is this, The Conforming Loan Limiits need to be raised that will allow the flow of money to circulate the way the system is set up to do.

With the conforming loan limits at current levels of $417,000, the people who want to buy, sell, move up, move down or refinance can't. Can't Can't Can't.

20 hours ago, the GOP have expressed opposition to the raising of the conforming loan limits. This is out right stupitity on our elected leaders, they are not clearly looking at all the damage that has been done or what further damages that rest with the outcome. The dollars, will drop like a bomb, it's already taken a beating against other currencies, this is sheer political bull, that makes no sense?

Any attempts by the federal reserve to have lowered interest rates will all have been in vein. I don't side whether you are a Democrat or Republican, which side or philosophy you have, We are all Americans, and deserve to have a government that's for it's people. A hand full of United States Senators, are keeping the Country from moving forward. Bankrupting the entire economy, doesn't make a lot of sense, doesn't it?

My name is Carlos R. Arvizu Sr

562-755-3856

Why do we wait for the economic problems to kill us?

Carlos R. Arvizu Sr. with Prudential California Realty — Thu, 24 Jan 2008 13:57:09 -0600

The problem of waiting, is one of the reasons why the real estate and mortgage industry is such a shambles. If you know what the problems are, take decisive action to fix the problem.

Unfortunately, too many people in government, analyst, politicians, (and news media included which exacerbate the problem and prolong the agony without rationalizing what are all the components of the problem.

There are too many people in the leadership position, that sometimes second guess, procrastinate or are opportunist for self purposes, until the problems are so out of control, that eventually everything's comes to a halt, making it worst for everyone.

Like in the case of the Federal Reserve, for an example, they always take a wait and see attitude, which is one of the components that was partially to blame for the credit crunch and why were in the mess today.

They increased the short term interest rates for a long 17 months, and waited for the reaction to be full blown, instead of adjusting interest rates that would soften the real estate market to a soft landing. What did they think was going to happen?

They waited well over a year and several months before they started to lower the interest rates.

It's like a car, ... if you know your brakes are in need of repairing, and find it difficult to come to a stop, you don't wait until you killed some innocent family, that happens to be in the way of your fast moving car. The momentum will finally catch up to you. Why does someone have to get hurt or killed, because your brakes failed?

The same thing is happening to the country. The other part of the equation is the lending industry is stymied because of the conforming loan limits are far below, the threshold of the medium home price. How many people have to lose their homes, how many people have to lose their jobs, how many lives do you destroy. I am at the point of running for office myself, but unfortunately, I don't have the financial backing or time.

The reality is self evident. Why do you think, we are having all of these problems with mortgages, home values dropping, people losing their jobs, recession and so forth. Not taking action, or relying on someone else to fix the problems we have.

Carlos Arvizu Sr.

TheDon1950@aol.com

Open Letter Regarding Stimulus Package and the effects

Carlos R. Arvizu Sr. with Prudential California Realty — Tue, 22 Jan 2008 21:45:30 -0600

The Honorable George W. Bush President of the United States

Dear Mr. President,

It's with respect for the office of the presidency, I write this letter. I believe, as well as many others who are in the same opinion, that the stimulus package you propose who a couple of days ago would put the nation in debt without any sizeable contribution to growth to keep us out of recession.

It makes no sense to put us in debt, without creating a real stimulus package to put people to work, and grow the economy.

We have far too much debt, that this may create pandemonium throughout the world's economies. In order for the United States on the growth mode is to provide real teeth in an economic stimulus package is to create real Jobs. To point out a few examples of this;

1. Americans are losing good paying jobs to foreign countries, as of such, why not put before congress a tax rebate or credit that rewards U.S. taxpayers for buying products that are made up at least 51% that are produced here in the United States.

2. Energy efficiency should be rewarded to taxpayers in the form of a credit or rebate as a stimulus to reduce our dependency on foreign oil.

3. Credit those automakers that Increase the Standards for fuel efficiency vehicles, increasing mileage per gallon, thus reducing fuel consumption, as well as tax credit or rebate those taxpayers who purchase energy efficient cars and trucks.

4. Credit energy companies for Research and develop crude oil and natural gas here in the United States as well as explore other fuel alternatives to shake us from foreign oil interest.

5. Increase the Conforming Loan Limits in states like California, which exceed the average median home prices that of states like Alaska, Hawaii, and the Virgin Islands. It makes no sense to why Mr. Lochard is refusing to acknowledge that California is a high cost state.

The conforming loan limit for FannieMae and FreddieMac is set at $417,000. California median price has been more than $500,000. Most of the lenders that have been affected by the so called credit crunch, subprime debacle really stems from actions by the Federal Reserve acting to slow in adjusting the fed funds rate, hanging out to dry many lending institutions, such as countrywide for example.

Now that the federal reserve has lowered the Fed Funds and Discount rate by .75 basis points, the only thing stopping the economy from moving foreword is the raising of the Conforming Loan Limits. This should get the country back on the positive track.

I am forwarding this letter to the Federal Reserve Chairman, as well a few Congressional leaders as well as a few key senators. I thank you in advance.

Very truly yours,

Carlos R. Arvizu Sr.

TheDon1950@aol.com