Long Beach, Ca.  The new 3.5 trillion dollar national budget, the largest on record, named,  "A New Era of Responsibility: Renewing America's Promise." Was rolled out today by the wonderful people running this great nation.  Let us analyze the name....there is a lot in a name:

A new era of responsibility? 

Who is going to be held responsible?   It appears that the tax payers of this nation will definitely be held more responsible because Obama's multi-Trillion dollar budget will raise taxes by $989 Billion dollars over 10 years!!!!!   

Then there's the quizzical:   Renewing America's Promise?

Again, may we ask, who is being promised what?  With all of the money being pumped into social services, perhaps the all knowing legislature should take a careful look at California's new poor push social services to the brink to get an idea of what is really going on in the heartland.

After all, maybe it's time to start from scratch:  What is the basis for a healthy,  industrialized, and modern civilization?  All Empires of antiquity at their lean beginings, started off with a some form of economic base.  Either it was an agri-based country:  Egypt and Rome or a trading power: Venice and Greece.  The point being that there was some kind of economic foundation that allowed the economy to flourish without government intervention. In the United States, we reached a high point in the last century when our manufacturing base was the envy of the world. The problem that the United States has today, is that many of these manufacturing jobs have been exported simply because of the cost of labor and pensions in the United States have simply priced it out of the global market place.  When Auto workers in Detroit require $70/hr while Chinese industrial workers can be hired and retained for $200/month it is evident the world is out of balance.  How can the United States recover with out a manufacturing base? 

Meanwhile, the head of our Treasury attempts to manufacture a new securities industry, read:  Time to Break up the Big Banks

Mortgage Brokers are squeezed out of the market.  The market share for those people in the wholesale mortgage channel continues to shrink.  Mortgage brokers accounted for just 16.6% of all new residential loans originated in the fourth quarter, the lowest on record since National Mortgage News began tracking originations 15 years ago. As recently as mid-2007 wholesale -- where broker-sourced loans are table funded -- accounted for 28% of production. The 30 or so table funders reporting to NMN and the Quarterly Data Report originated roughly $50 billion in mortgages through loan brokers. All lenders -- using retail, wholesale and correspondent means -- funded $300 billion in product during 4Q,

 The Financial Stability Initiative allows for a refinance by the agencies to 105% LTV.  William Longbrake, a member of the board at First Financial Northwest, Renton, Wash., said it's "entirely possible" the ceiling could rise above 105% once the government-sponsored enterprises determine the procedures they will follow regarding refinancing upside down loans.

 Another Wholesaler slips away.  Wednesday, Chase bailed on their warehouse business. "After consideration and review, the Correspondent Lending Business at Chase has decided to no longer offer warehouse financing.  This product does not fit within the long-term strategy of our firm."

Kirk Mulhearn, a Long Beach Real Estate Broker, manages Prudential California Realty, "The Bixby Knolls Office," and co-manages a net branch of Gem Mortgage, a direct lender originating FHA, VA, and Conventional loans.   Kirk Mulhearn may be contacted at:  562-989-4608 ext. 110