LIFE IN THE MORTGAGE MESS/HOUSING CRISIS

The End of a Fraudulent Decade - Just another day in the mortgage mess

2009-12-31T12:37:00.001-08:00

Years ago, when I had tried to set-up my non-profit, I had created colors associated to it. One of the colors was blue because its meaning is puritanical. Therefore, tonight is a puritanical evening with its blue moon; and according to the Oxford English Dictionary, the first reference to a blue moon comes from a proverb recorded in 1528:

“If they say the moon is blue,
We must believe that it is true.”

We must believe 2010 will be a year of absolution bringing much truth, joy, and prosperity to all. So, look up at the sky and make a wish tonight. If you cannot see the sky, imagine the sky and make your wish. I will wish for all of you tonight as well.

Happy New Year!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Growth is Here, but is it at the Cost of Consumers? - Just another day in the mortgage mess

2009-12-22T12:29:00.000-08:00

As it appears, applying Bernanke's theory to this crisis seemed to prove true. I am glad I read the books I did, in 2007/2008, because it gave me the needed yellow brick road to follow, during what seemed to be the worst financial crisis in US history. I knew eighteen months ago, in my gut, I could apply history and Chairman Bernanke's theory to guide me through this crisis accordingly. Based on Bernanke's theory, twelve months from the peak of a banking crisis would be the start of a recovery, which was the end of October/beginning of November of this year. Thus far, it is correct.

It appears the recovery started right on time, as I had predicted using his theory and history books; and thank goodness because I had bought a stock last year based on my prediction and this information, and it paid off. The lesson I learned these past two years, was the only thing you have to rely in life, is your own knowledge. Knowledge is power; and no one is going to protect your financial well-being except for you.

- I wanted to sell my stocks in October 2007, but I let my stockbroker convince me otherwise, and I lost thousands.
- I wanted to quit my job with Primary Mortgage Group in August 2004, but I let them convince me to stay on board, only to lose thousands after the FBI arrested the owner for mortgage fraud.

Think about it, how many people went against their gut during the telecom bust, the Maddoff scandal only to lose thousands.

It is the lessons in life that make us much wiser in life. Always educate yourself and listen to your gut, it is worth more than the heartache caused by the loss.

I think this might be the end of my blog, not quite sure, but my whole point was to apply what I had read in Chairman Bernanke's book amongst other books on history, and see how effective it was in predicting the outcome. It was an amazing journey; and one I hope to never experience again.

Chairman Bernanke is the winner of this financial crisis, in my opinion! Chairman Dodd I truly believe prevented the needed stimulus in 2007, when this country so desperately needed it. This is only my opinion.

I hope the economy continues to grow; and Americans become employed again. This is my Christmas wish!

On the contrary, housing will continue to have its challenges, as you will see in the attached article below. Government involvement will have impeded a strong recovery in housing. An example, I had a borrower today, that we were ready for docs; however, the lender was not going to draw our docs because the date of his application did not match his good faith estimate. He had signed the application first, and then wanted a couple of days to review the good faith estimate; and then he signed the documents with different dates. The lender was not going to draw the docs because of what the borrower had done here. He almost lost his locked rate because of a government change in the law this past year. Government never seems to learn from history, which is sad to me because we could be even stronger as a country had they learned a few lessons from the past.

Another lending nightmare, example, I lost another purchase today because if a borrower wants to buy a new home and rent out his current home, he/she has to have 25-30% equity in their rental property in order to get approved for a new property. Even if they more than qualify to buy the home using documented income. How many homeowners in this declining market have 25-30% equity left in their homes? Serious!

If people had this much equity, we would not be in this mess. Think about it. We would not need Obama's home loan program if borrowers had this kind of equity. It seems this housing market could hurt a recovery, so I hope Congress and this Administration stop with the regulations and massive reforms, and wake-up. Furthermore, I don't know how many of us have been hurt by the credit card reform? That reform seems to have said so long to nice low rates and hello to 30% or higher.

http://www.cnbc.com/id/34520977

Stay tuned...I have more to share. Just another day in the mortgage mess!

People in Candy Land Finally Woke-Up - Just another day in the mortgage mess

2009-11-02T08:46:00.000-08:00

It appears this Administration woke-up and realized, it will take bold and innovative action on both their part and Congress's part to create jobs in the private sector; something they should have realized ten months ago, in my opinion.

I pray this Administration takes action now because I do want to see them succeed. If they succeed, we all succeed. This action needs to be put into place now and acted upon by the end of this year; therefore, preventing a "so called" black out in the small business sector next year. I do not want 2010 to be remembered as the year the lights went out because of a failure in communication and lack of action by this Administration. 2010 should be the establishment of a strong foundation, therefore boomeranging us into prosperity in years to come. 2010 should be the year to plan and prepare for success. This is just my personal opinion because after these past two years, I want hope. We deserve hope.

I hope this Administration will seriously get small businesses the aide they need today, not in months to come. This Administration is already ten months behind the eight ball when it comes to small businesses, just as FDR was twelve months behind the eight-ball in his first term. Those who study history, do not repeat history.

I am glad this Administration is finally seeing the light. I just wished they had seen it ten months ago, but that is now water under the bridge; we have to keep looking forward.

I am hopeful a recovery is happening now. I have waited two years for this recovery; therefore, I pray this Administration acts fast with bold and innnovative action to restart the heart of this country once again, SMALL BUSINESSES.

Note: This country suffered a severe heart attack in 2008, and the prior Administration, along with this Administration, failed to fix the heart of this country "small businesses" because they misread the economic data in my opinion; therefore, the risk of a second heart attack and/or heart failure is where we stand now. They have to act now, in order to steer off a second heart attack. I am more hopeful they will act accordingly now. Please.

Stay tuned...I have more to share. Just another day in the mortgage mess!

GDP Better than Expected - Just another day in the mortgage mess

2009-10-29T11:59:00.000-07:00

GDP came out better than expected. Gross Domestic Product report grew at 3.5% annual rate.

I hope this recovery continues. It seems as if the stock market and the economy are more in tuned than they have been over the past two years. I am hoping the boomerang effect of this financial crisis is over. I hope the banks established a strong enough base using TARP to steer of any future losses, if they do occur. I hope this recovery is real. I hope the economy and businesses are back on track to prosperity. I hope President Obama's Administration gets more aggressive when it comes to helping small businesses and driving them to prosperity once again. One can hope.

Stay tuned...I have more to share. Just another day in the mortgage mess!

We are Entering into the Recovery Phase - Just another day in the mortgage mess!

2009-10-22T09:46:00.000-07:00

When I read Chairman Bernanke's book eighteen months ago, along with two others, I knew I could apply his theory to this financial crisis. I knew in my heart of cards a recovery would begin this month, a year ago. As to how or why, I did not have to know this, I believed wholeheartedly in Chairman Bernanke's book. What I had done was taken his book and applied it to this mess and everything was coming true, so I knew his theory would be proven. It had to be true in my eyes. His theory was my yellow brick road. I knew we had to have the courage to face this crisis. I knew we had to have hope. I knew we had to stay focused on the end result - a recovery!

However, my only major disappointment: I wished this Administration would have pushed for small business assistance sooner and faster, rather than announcing yesterday more assistance. This was the same mistake FDR made during the Great Depression, which caused unemployment to rise to double digits. President Obama's Administration has apparently made the same mistake. We need to get small businesses assistance as in yesterday it seems. This is just my opinion.

Here are Christina Romer's words today:

"A recession that showed no signs of ending last January appears to be firmly entering the recovery phase," Christina Romer, chairwoman of the White House Council of Economic Advisers, said in remarks prepared for delivery to the congressional Joint Economic Committee.

http://www.cnbc.com/id/33431354#

Stay tuned...I have more to share. Just another day in the mortgage mess!

DOW HITS 10,000! - It's just another day in the mortgage mess

2009-10-14T10:45:00.000-07:00

Dow hit 10,000 for the first time in over a year, today!

I realize it has been a while since I have written on my blog, but I had to watch to see if Ben Bernanke's theory was coming to fruition this month, because it was something I wholeheartedly believed in for the past eighteen months. I was not going to let anyone or anything steer me away from his theory, I could not, it was the only hope I had of making it through the financial crisis last year.

The Dow hitting 10,000 today was a huge benchmark in my opinion. It symbolizes the start of a possible recovery and, at the same time, it also symbolizes the strength and resiliency America will always have no matter how cumbersome the obstacles may seem to us. We will always survive a crisis!

I hope we are on our way to the beginning of a new economy that brings much prosperity to us all. I hope this is the start of a recovery that we all deserve. I hope this recovery is stronger than we ever expected. All I can do is hope because hope is all we have in life.

Now, if this Administration can just wake-up and fix this housing crisis, then I can stop writing my blog. This housing/mortgage industry needs more help and fast, in my opinion. All we can do is hope!!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Testimony - Ben Bernanke on Financial Reform

2009-10-01T16:02:00.000-07:00

Chairman Ben S. Bernanke
Regulatory reform
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
October 1, 2009

http://www.federalreserve.gov/newsevents/testimony/bernanke20091001a.htm

"...Second, an oversight council made up of the agencies involved in financial supervision and regulation should be established, with a mandate to monitor and identify emerging risks to financial stability across the entire financial system, to identify regulatory gaps, and to coordinate the agencies' responses to potential systemic risks. To further encourage a more comprehensive and holistic approach to financial oversight, all federal financial supervisors and regulators--not just the Federal Reserve--should be directed and empowered to take account of risks to the broader financial system as part of their normal oversight responsibilities..."

Stay tuned...I have more to share. Just another day in the mortgage mess!

Chairman Bernanke said the Recession Most Likely Over - Just another day in the mortgage mess!

2009-09-16T08:59:00.000-07:00

I knew I was right a few months ago. When President Obama said we were in the beginning of the of the recession, I knew he was wrong. I have watched this crisis from the very beginning. I have lived this mess firsthand. I have seen the damage mortgage fraud has caused over the years. I knew this government was behind the eight-ball back in 2007. In 2008, I clung to Chairman Bernanke's theory after reading it, and I knew this was my HOPE. I knew the recession was not just beginning a few months ago; and I knew the recovery had months before starting. I was sticking with Chairman Bernanke.

I am convinced Chairman Bernanke's theory is true. I believe a recovery is going to begin soon. I have stayed true to his theory, it was the only yellow brick road throughout this entire financial mess. I have learned, we have to have the courage to believe in the power of this country. We have to have the courage to believe in the future of America. Corporate America has to believe in the future of this country. Banks have to believe in the future of this country, and start lending.

We have to believe in America collectively! We have to believe in ourselves and fight through this crisis united, as we do with every catastrophe. This is the American way. We have to get over the anger and stop blaming, no matter how easy this may be. We have to believe again!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Finally! - Just another day in the mortgage mess

2009-09-16T07:39:00.000-07:00

"The Federal Reserve, under a policy announced Tuesday, will implement a consumer compliance supervision program in nonbank subsidiaries of bank holding companies (BHCs)..." http://www.federalreserve.gov/newsevents/press/bcreg/20090915a.htm

Stay tuned...I have more to share. Just another day in the mortgage mess!

FRB: Beige Book - Just another day in the mortgage mess

2009-09-09T11:31:00.000-07:00

Stabilization seems to be used quite a bit in the Federal Reserves Summary of the economy. I hope we are on our way to a recovery. Obviously, there is still mixed data out there, but this should not be any surprise after the horrific turbulence this economy hit last year. The Federal Reserve came to the rescue. No matter who is to blame for this mess, it had no choice but to fix this mess. The magnitude of this financial crisis was so great that it touched nearly everything turning it to mush. As I said a long time ago, this recovery was going to be a step-by-step recovery because subprime had a spider web effect, it wrapped itself around nearly everything worldwide, nearly collapsing the entire global economy. We were all slimed by subprime it seemed.

Therefore, to think this recovery would have happened over night, without any hiccups or mixed data, would have been highly unrealistic it seemed. However, I have to believe we are on the right path to a recovery. I have to believe we are going to be stronger than we were before this crisis. I have to believe we cleaned house. I am not an expert, but having lived through this mess, the air is different. It is getting cleaned up. No matter how painful this mess is, it is cleaner and hopefully soon banks will begin to loosen up credit by making "make sense deals" again with underwriting. It is cyclical. We will survive. One has to hope!

http://www.federalreserve.gov/fomc/beigebook/2009/20090909/default.htm

Stay tuned...I have more to share. Just another day in the mortgage mess!

Big Picture for a Super Regulator - Just another day in the mortgage mess

2009-09-03T10:18:00.000-07:00

I sent this letter to the Federal Reserve this morning. Instead of having a super regulator, maybe they could create a separate agency overseeing all of the regulators, US Banking Committee, and US Finance Committee; therefore, protecting us all and rebuilding confidence. No more fighting over turfs, problem solved.

Dear Chairman Bernanke and Board Members,

I had sent an email months ago suggesting a solution for a super regulator, however, there is a better solution using my idea. Is it possible to look at the big picture and consider my idea in a different way?

Idea: Keep all current regulators in place. Take a collective approach by creating one agency overseeing regulators, the US Banking Committee, and the Finance Committee. Its main members would include members from Congress, the US Treasury, the Federal Reserve, the FDIC, and SEC; therefore, ensuring regulators and Congress never fail us again. The acronym "CUFFS". The failed actions these past 8 years hurt the integrity of this country and the financial backbone of this country. Both regulators and Congress let the kids play. Whose fault is that? The Executives were the kids. The parents were the regulators, the US Senate Banking Committee, and the Finance Committee. I have lost thousands because of this mess. This country has lost trillions. To put the blame and responsibility on the kids who found a loophole seems absurd.

Therefore, will you please create an Agency CUFFS to oversee all the regulators, the US Banking Committee, and the House Finance Committee, therefore ensuring they do their jobs? Think about, how many times has a Member of Congress asked a question that was so scary that they did not know the answer to? The one way to avoid this is through a body that consists of collective members. Had an agency such as CUFFS been in place, then it would have known the SEC was not responding to complaints about Madoff. It would have known the OTS failed when it came to WAMU. It would have known the fraud happening in my industry.

This Agency CUFFS can also monitor the housing market and lending patterns, therefore, alerting banks with my flag idea I sent to you months ago as well. This will alert banks to pull back with their underwriting practices to prevent a systemic threat.

CUFFS is a necessity to the lifeblood of this country. You have to rebuild the confidence amongst Americans "consumers" and investors. I truly believe if you were to announce a new overseeing agency that will babysit our regulators, members of Congress, and protect us from irresponsible activity, then confidence should return; and anger might subside.

The actions of CUFFS should roll down to all regulators and Congress. CUFFS efforts should pass down to Wall Street and consumers through a natural process. The regulators should be in charge of what a bank is doing with pay, not this President.

CUFFS - Agency overseeing below regulators and Congress (Independent, not run by Obama)

the US Senate Banking Committee, the Finance Committee, the US Treasury Dept, the Federal Reserve, the FDIC, the SEC, and the remaining regulators. I also think members should be from Homeland Security as well because what happened here was a form of financial terrorism in my opinion.

I hope this convinces you this might work.

Just a thought. Think about it.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Fed Officials Seem More Confident the Recession is Nearing the End - Just another day in the mortgage mess

2009-09-02T11:59:00.000-07:00

If I were to compare Chairman Bernanke and former Chairman Greenspan, I would say Chairman Bernanke is the "real" thing. I have followed Chairman Bernanke closely along with his book. I knew we were not in the beginning of the recession a couple of months ago, when Vice President Biden came out saying this Administration misread the economy and President Obama stated we were in the beginning of the recession. I knew this could not be right.

Moreover, more importantly, who cares when the end of the recession happens. I would rather focus on when a recovery is going to begin, that is forward looking. Focusing on when the end of the recession is going to happen seems so "old school" and backward looking. We need to be forward looking and focus on when a recovery is going to begin. The end of a recession does not justify the means. Think about it, just because a recession ends does not mean a recovery starts at that point. Therefore, the start of a recovery seems more important than trying to time the end of the recession. I care about people having prosperity and growth in their lives; and the only way this is going to happen is if a recovery begins, not the "end of a recession". Just my opinion.

http://www.federalreserve.gov/newsevents/press/monetary/fomcminutes20090812.pdf

Stay tuned...I have more to share. Just another day in the mortgage mess!

How Many Days to the Start of Our Recovery - Just another day in the mortgage mess

2009-08-31T10:30:00.000-07:00

I am sticking with Chairman Bernanke's theory, therefore, I have to believe the start of a recovery will begin in roughly 2 more months. The end of October/November.

I want Chairman Bernanke's theory to be proven. It is just exciting to think that someone could spend their entire career researching the Great Depression and theorizing it, only to have one of their own theories proven. It is an astounding accomplishment. It just seems like a huge accomplishment; and if Chairman Bernanke is successful then we are all successful because then this means this country is on the path of recovery.

I sent an email to the White House last week, that I am not sure will get read, but I think they should have some sort of pep rally for all Americans in October, marking the peak of the banking crisis. October of last year, was so horrifying to most of us that I thought having the President, Chairman Bernanke, Chairwoman Bair, Treasury Secretary Geithner, Paulson, Americans who voted for President Obama, Americans who did not vote for him, small business owners, big corporations, Congressmen and Women both Democrat and Republican united for the same cause - Recovery and Unity! America needs to go into the new year with a fresh attitude and a new start. We need to unite as one and recover as one; and play this game of basketball as one team.

We deserve a recovery. We deserve to spend and shop. An American without shopping privileges is a depressed American. No more depression!! Banks need to lend. We need banks to believe in the consumer, just as the Federal Reserve and Congress believed in the banks. We need revision. We need hope. We need the hope this President promised his voters. We need a new vision for 2010.

The banks are the backbone of this country, but the consumer is the blood supply to that backbone. Banks have to start lending more, it is their lifeline. We have to have hope. Some of the brightest people run banks. We cannot demonize the banks and the banks cannot demonize small business owners and consumers. This is America.

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Post Traumatic Stress - Just another day in the mortgage mess

2009-08-28T11:02:00.000-07:00

Is it possible this market could be experiencing some sort of post traumatic stress after what happened last September/October? Last year, nearly everyone had some sort of a financial meltdown it seemed, leading to one of the greatest panics of all time last September/October. Therefore, it seems this market is suffering from what appears to be low volume before the month of September, therefore, the only logical reason to me is it is experiencing some sort of post traumatic stress. I heard one analyst say the market is tired, which I agree with. I am even exhausted with this overall market and the mortgage mess. Think about it, many of these banks received billions of dollars in bailout money without anyone ripping apart their profit and loss statements and, yet, these banks want to rip apart borrowers income who are trying to make their payments. The hypocrisy in this industry and our government right now is overbearing it seems. I always believed if hypocrisy existed in a system, then it lacked morality. Maybe I am wrong, but the exhaustion many of us are feeling does not seem right. We cannot let the system defeat us. Both banks and consumers have to work together, our economy needs both. We have to keep forging ahead. A recovery has to begin soon. We have to believe and hope!

Like I said weeks ago, this economy needs a jolt of some sort.

We have to keep fighting through this. Just as we would when we start a new workout routine. We fight through the exhaustion. However, it seems as if we need a cheerleader and/or even a fitness trainer to keep us moving in this market right now. We need a Leader. We need President Obama to do a pep talk for Wall Street and America as a whole. We need action in the lending industry, especially the jumbo market. We need him to stop being against Wall Street and just cheer everyone up, as he did so well during his campaign. We need a Leader just about now.

Just a thought.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Follow the Yellow Brick Road - Just another day in the mortgage mess

2009-08-26T20:40:00.000-07:00

After reading Chairman Bernanke's book last February, I was determined to follow his theory to the end. No matter how intense my own fear was last year, I had to have faith in our future. I had to believe we would recover from this crisis. I had to let the chaos exist around me, while trying to stay focused on his theory to keep myself from having a complete meltdown. No matter how great my panic was, I had to try to pin point the peak of the crisis last year because if I could do this, then I could follow his theory from that point on, which I did. I did not steer from his theory. His theory was my yellow brick road in a time of great panic last year. Who better to follow than an expert on the Great Depression.

I have to believe we are on our way to a recovery. This for me is exciting because Bernanke is this generation's Einstein, in my opinion. No matter the mistakes, he delivered! I pray President Obama and his Administration succeed because I want us all to prevail. We deserve it!

Sale of big-ticket items soar, bolstering economy

http://hosted.ap.org/dynamic/stories/U/US_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2009-08-26-23-22-24

Stay tuned...I have more to share. Just another day in the mortgage mess!

P.S. - Chairman Bernanke Prevailed - Just another day in the mortgage mess

2009-08-25T11:52:00.000-07:00

When I saw Chairman Bernanke and President Obama standing together this morning, I was jumping for joy inside. I was so happy that Chairman Bernanke was re-appointed. He deserves it! No matter if the two of them dressed alike this morning, I did not pay attention to the lack of ties as some in the media did. I saw their attire as a symbol of "unity". One can hope for unity!

Let's hope we are on the way to a recovery, no matter the obstacles in the road, it will be the strongest recovery this country has ever seen in my opinion; if everything was done correctly. I am hoping for the best!

Stay tuned...I have more to share. Just another day in the mortgage mess!

The Value of Contrarian Thinking - Just another day in the mortgage mess

2009-08-25T08:43:00.001-07:00

Today, I read on CNBC, "This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter," Romer said.

http://www.cnbc.com/id/32551478

After reading this article today, it is my opinion that President Obama and his Administration should have followed Warren Buffet's advice months ago, which was to focus on the Economic war. If this Administration misread the figures last fall and early winter, then what else have they misread? This is the question I ask myself. To instill this kind of doubt seems rather irresponsible as Leaders, in my opinion. Therefore, as Jim Cramer once said, "Do not let the media confuse you". Now, I am going to say, "Do not let this Administration confuse you".

This Administration has proven one thing thus far. They are "consistent" with misreading economic data, which might explain why the markets are not responding to its news negatively, today. I do not think Chairman Bernanke's reappointment was that powerful to steer us away from the truth. Here is the ugly truth: This Administration has become predictable in the sense they seem to consistently misread economic data; therefore, if the markets expect this from our Administration, then it may not respond negatively to the news anymore. Conclusion: It has become predictable. No matter how sad that may seem, it might actually work to one's benefit. The one thing this Administration underestimates, in my opinion, is the contrarian thinker out there. Thank goodness! If I had listened to this Administration and the past one, I would not have bought stock last December and earlier this year. I knew they were misreading the economy; therefore, I bought a stock based on a book I read instead, and it has gone up 50% year to date.

Furthermore, if this Administration misread the economic data, then was this their Achilles heal? Think about it, this Administration moved forward forcing energy, education, healthcare, and reform onto a public faced with chaos, fear, panic, concern, and distress. This Administration overwhelmed the public with all its changes, further scaring many Americans. I really believe the anger at these town hall meetings has nothing to do with anger; it has to do with feelings of fear, hurt, and disregard. Maybe I am naive. However, if a person is scared and they know their family’s livelihood is at stake, how would you react? If your pain has gone unheard, how would you react? If your needs have gone unmet, how would you react? If you have been unemployed for a year, how would you react? People are overwhelmed and scared, which I blame the Chief of Staff for this mistake, who apparently wanted to do everything at once, according to that New York Time’s article. It was unkind to throw everything at once to the American people, in my opinion. I do not think President Obama is unkind. However, I do believe this Administration failed in "Mastering the Art of Timing". Therefore, I wished this Administration would redefine itself immediately. If it could do this, then maybe the polls might go back up; economic confidence might thrive; and they will regain the power they so desperately want in the right way.

The one thing I learned in life is there is a difference between arrogance and confidence. Arrogance is someone who thinks they have it, but cannot walk the talk. Confidence is someone who has it, and his or her walk displays this. He or she walks the talk.

Therefore, my eyes and ears are staying focused on the Federal Reserve. I refuse to let this Administration confuse me. I want to support the efforts of this Administration but as long as they continue to misread the facts, I cannot. Moreover, how do you misread the facts from last fall/winter, when this country’s financial backbone was near complete failure?

Consider this analogy: Basketball entails two teams in order to play. It seems as if the two current teams playing basketball are as follows:

Team #1: Federal Reserve and the public

Team #2: President Obama, his Administration, and Congress

Right now, this country does not seem united. Team #1 should consist of the Federal Reserve, the public, the President, his Administration, and Congress. Team 2: Our competitors (China, India, etc.)

As long as this country is playing basketball against itself, it will never thrive to levels it should. We need Team #1 to consist of all of us. How do we get there? We need President Obama to succeed. He has to succeed, no matter if you voted for him or not. If he fails, we all fail. This financial crisis was so massive that there is no room for anyone’s failure, in my opinion.

Just a thought…

Stay tuned…I have more to share. Just another day in the mortgage mess!

"Reflection on a Year of Crisis" - Just another day in the mortgage mess

2009-08-24T21:49:00.000-07:00

I knew in February 2008, after reading Chairman Bernanke's book, the demise our future held, which was why I had created my petition in April 2008; which is on my blog. I faced my fears in September 2008; and being someone on Main Street there was not a thing any of us could do, except watch and pray. It was a true sense of helplessness, panic, and fear that swept the globe. Who knew the true depths of this crisis? Who knew what institutions were involved at the time? Who knew what bank was going to fail the following day? Who knew? We, on Main Street, had no clue.

All I knew last year, was our future recovery was going to be a step-by-step recovery, once the panic was over, because most of us fell off a cliff long before anyone realized it; and the only thing I had to guide me through that mess was Chairman Bernanke's panic theory. That was such a terrifying moment. Who would have thought? There was nothing for me to grab onto except his book, his theory, what Joe Kern had said on CNBC, and history. I had not felt fear like this, since 9/11. In my opinion, this financial crisis was the truest form of financial terroism that ripped the financial backbone of not only our country, but countries around the world, to shreds.

Furthermore, I knew based on Chairman Bernanke's book, when the banking crisis peaked, I could apply his theory to this crisis, and know a recovery would happen 12 months from the peak; putting the start of a recovery at the end of October/November of this year. I am not an expert on this stuff, but I knew I interpretted as much as I could, correctly, from Chairman Bernanke's book. I truly believed Congress should have intervened in 2007, not 2008. Had they done this, would it have saved these failed banks from their own demise, by providing them with the necessary reserves/capital; therefore, steering off a panic? We may never know.

As stated in Chairman Bernanke's speech below, "...As severe as the economic impact has been, however, the outcome could have been decidedly worse. Unlike in the 1930s, when policy was largely passive and political divisions made international economic and financial cooperation difficult, during the past year monetary, fiscal, and financial policies around the world have been aggressive and complementary. Without these speedy and forceful actions, last October's panic would likely have continued to intensify, more major financial firms would have failed, and the entire global financial system would have been at serious risk. We cannot know for sure what the economic effects of these events would have been, but what we know about the effects of financial crises suggests that the resulting global downturn could have been extraordinarily deep and protracted..."

No matter how late to the game everyone was in 2007, I still believe Chairman Bernanke had game. He responded to the public with kindness, concern, respect, and consistency. He delivered.

Ben Bernanke's initials are BB, basketball. Knowing this, I have to say he was the captain of the team. He was the point guard of the team. He directed the team to a near victory. I had a dream I was playing basketball, which I did play for many years as a kid, and we won. I have to believe we are winning the fight against this economic war. It is going to take a collective effort on everyone's part to win this game. We have to win!

Chairman Ben S. Bernanke
At the Federal Reserve Bank of Kansas City's Annual Economic Symposium, Jackson Hole, Wyoming
August 21, 2009
Reflections on a Year of Crisis

http://www.federalreserve.gov/newsevents/speech/bernanke20090821a.htm

Here is a quote from Chairman Bernanke's speech, "...One very clear lesson of the past year--no surprise, of course, to any student of economic history, but worth noting nonetheless--is that a full-blown financial crisis can exact an enormous toll in both human and economic terms. A second lesson--once again, familiar to economic historians--is that financial disruptions do not respect borders. The crisis has been global, with no major country having been immune..."

P.S. - My P.S. to this blog entry. You did not have to be a student of economic history to understand the devastion a full-blown financial crisis can exact on humanity and economies throughout the world. I am not a student of economic history, my degree was in Behavioral Science. I learned what I know from books, watching Joe Kern on CNBC years ago, and reading history, etc. I knew when the financial sector lost more jobs in the second half of 2007, than the airline industry after 9/11, we were in trouble. The job losses in my industry started falling left and right, back in March 2007. This to me, is the predicator of a looming financial disaster in the future, for generations to come. No one seemed to pay attention to the job losses in my industry, at the onset of the subprime crisis. Just a thought for future generations.

Stay tuned...I have more to share. Just another day in the mortgage mess!

Obama to Announce the Re-Appointment of Chairman Bernanke Tuesday - Just another day in the mortgage mess

2009-08-24T18:35:00.000-07:00

I just read on Washington Post, that President Obama is announcing Tuesday, Chairman Bernanke's reappointment. If this is in fact true, I am going to be jumping up for joy. Chairman Bernanke has given the American people a reason to hope this year. He is the American hero!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Roubinis says Risk of Second Dip Rising - Just another day in the mortgage mess

2009-08-24T10:03:00.000-07:00

I heard on CNBC that Professor Roubini believes the risks are rising for a second dip.

On the contrary, as a person living on Main Street, I ask myself if it could be possible this financial crisis began its legs back in 2002, when the first recession hit us? Remember, after 9/11, Greenspan cut the rates instead of letting the free markets run themselves. Businesses were not strong enough to carry the economy, so this country turned to the consumer and homes. Homes became a commodity you could say, where values and risk taking rose to levels we had never seen in our lifetime and, yet, the government never intervened to stop the irrational exuberance from taking place. Why? This is the only question I ask myself regularly. Why?

In knowing this, someone at the top had to know what our future held before 2007. The consumer and home prices hit all time highs, before everything came falling down on all of us. The recovery that began after the recession in 2002, was never a true recovery, as we all have learned. It was just a fallacy; a figment of our imagination it seemed. Once stripped of that flying red carpet, many of us lost nearly everything and/or hung on for dear life. I believe the "so called" W began forming back in 2001, shortly after 9/11, leading us into a recession in 2002. Thereafter, a fake recovery began in 2003, only to crash on us in 2007, forming the third leg of the W. In conclusion, this upcoming recovery is the start of the last leg of the “so called” W, in my opinion. It is the upward leg that is going to have zig zags in it creating a zig zagged line, rather than a straight line upward. It could be a bumpy ride up, but it seems as if the last leg of the "so called" W is going to form, finally.

In conclusion: This is my observation and opinion of the past eight years. I believe the “so called” W is forming as we speak. I believe the last leg of the “so called” W is going to start moving upward this coming October/November. However, this leg may be a zig zagged leg rather than a straight leg. I think the prediction of a second dip is from the viewpoint of someone who truly did not understand the make-up of this crisis, after it hit us. This is just my opinion, from here on Main Street. I am hopeful of the future, more than I have been these past twenty-nine months. I have to believe in Chairman Bernanke.

Just a thought from someone on Main Street!

Stay tuned...I have more to share. Just another day in the mortgage mess!

Bernanke is Brilliant! - Just another day in the mortgage mess

2009-08-21T08:43:00.000-07:00

Chairman Bernanke deserves to be re-appointed in my opinion. He has not only the brains for this position, but he has the charm the American people need right now. Chairman Bernanke knows how to lead the horses to water while, at the same time, empowering them to trust the water is not poison; therefore, the horse knows it could drink if it chooses to do so. It sounds silly, but Chairman Bernanke's consistency seems to have built trust amongst the American people. His efforts in creating transparency allowed Americans to follow and believe a recovery was near. Where as Larry Summers, I think is brilliant but he lacks consistency and charm; which cannot be allowed when human behavior is at risk in my opinion. I have listened to Larry Summers and I like what he says a lot, but his lack of charm could hurt the efforts Chairman Bernanke, Tim Geithner, and Sheila Bair built last year. If it hadn't been for the three musketeers, I do not think we would be seeing the start of a possible recovery in months to come. They led the American people to the water; and if Americans know they can trust the water is not poison, then they will drink it. History proves this time and time again.

I am a fan of Chairman Bernanke. I truly believe the heart patient is on the treadmill; however, the patient will not be running a marathon any time soon after heart surgery. A heart patient will begin by walking and may experience some exhaustion the next day, only to recover the following day to begin walking again. The stock market appears to be doing the same thing. It experiences up days, but then runs out of fuel only to regain its fuel. I have to believe the stock market is acting as it should. I know I am not an expert, but I have to use my own logic to guide me because I have learned these past two years, there is no one I can rely on but myself, when it comes to my money and my career.

I think Chairman Bernanke deserves the nobel peace prize for his efforts last year, along with his studies on the Great Depression. He not only understood the panic last year, but he understood the importance of human behavior and the consequences should they negate this aspect. This is all just my own personal opinion, not that of an expert. Just an American living on Main Street.

Chairman Bernanke is the American hero!

Stay tuned...I have more to share. Just another day in the mortgage mess.

Vouchers for Appliances - Just another day in the mortgage mess

2009-08-20T15:12:00.000-07:00

I heard on CNBC this morning, that President Obama had allocated $300 million for appliance vouchers. As I heard this, I began to think that President Obama spread out this stimulus package in a very methodical manner. Think about it, our economy was seriously deprived of stimulus in 2008, that slamming it with dollars might have risked inflation. Therefore, what if President Obama, Treasury Secretary Geithner, Chairman Bernanke, Larry summers along with many others did this intentionally to try to avoid over inflating the markets? It makes sense.

I heard another comment on the news today, about how some stocks shot straight up these past six months. Well, if it is true that the stock market is a good predicator of the future, then is it possible this economy could take off when it is well and ready to? What if President Obama laid down a very strong foundation, different than any past President, therefore, giving the economy enough gas to speed up the car? What if President Obama is the throttle to the car. Chairman Bernanke provided the gas and drives the car "the economy".

If this were the case, then Chairman Bernanke's theory may become reality in October/November, giving us the start of a recovery. I can always hope. I have to believe brighter days are near. I have to believe America will shine again and much brighter this time.

Stay tuned...I have more to share. Just another day in the mortgage mess!

New York Times article regarding Appraisal Management Companies - Just another day in the mortgage mess

2009-08-19T13:59:00.000-07:00

Incredible article, must read.

http://www.cnbc.com/id/32476258

Stay tuned...I have more to share. Just another day in the mortgage mess!

People's Good Will Nature - Just another day in the mortgage mess

2009-08-18T15:54:00.000-07:00

I purchased some school supplies this afternoon and, while checking out, this woman stopped and stated, "Wow". I let her know I was donating to a local school. She looked at me and said, "that's a great idea". She let me know she was going to do the same and make a donation. I talked to a couple of my clients today, who said they were going to purchase some school supplies and make a donation as well. My contribution to consumer spending might not be much, but if we unite and work together then all of our contributions might make a difference.

I donated my supplies to a local elementary school this afternoon. I know it is a big hope to rely on just one sector for consumer spending, but it is an effort.

Stay tuned...I have more to share. Just another day in the mortgage mess.

Did We Fail to Listen to Mom and Dad? - Just another day in the mortgage mess

2009-08-18T07:56:00.000-07:00

I heard a Reporter state on the news today, that Americans should save their money. As Jim Cramer stated the other day, "Do not let the media confuse you."

Here is a history lesson: The former Chairman of JP Morgan, during the Great Depression, stated something similar to what this Reporter stated today, but Mr. Leffingwell was more animated. He stated, "The remedy is for people to stop watching the ticker, listening to the radio, drinking bootleg gin, and dancing to jazz...and return to the old economics and prosperity based upon saving and working." (from the book, "House of Morgan")

On the contrary, John Maynard Keynes, who was the leading British economist inspired by the unemployment crisis during the late 1920s, stated something brilliantly, in my opinion. Mr. Keynes, "warned that such austerity would only deepen the Depression". (from the book, "House of Morgan")

America, remember as children, the saying our parents embedded in our heads? "Always save for rainy days". Never once did our parents warn us to save during a crisis. Maybe that’s because our parents knew better. Think about it, a lack of consumer spending is potentially the biggest threat to an economy's recovery. Example: Japan. The citizens of Japan have the highest savings rate, but their country has had one of the worst economies for over a decade.

America, many of our parents warned us of rainy days, but never did they warn us to save it on the day it rained.

Therefore, my message to America: If you can buy school supplies, will you please buy them for your kids and/or donate them to a local school this coming weekend? If you have the affordability, will you please purchase school supplies for a local school? If your neighbor cannot afford to purchase school supplies, is it possible for you to purchase the supplies for their children? Goldman Sachs employees, who received bonuses, will you please purchase school supplies this weekend, for a local school? All Executives, will you please use a percentage of your bonuses to purchase school supplies, please?

I do not have kids; however, I am going to purchase school supplies for a local school this week.

My message to America including corporate America, bank Executives, Senators, Congressmen/Congresswomen, and/or all Executives, will all of you please purchase school supplies so our recovery can possibly become a reality? We have to unite to protect the integrity of our economy; it is the right thing to do. We have to share. Hoarding during a crisis does not seem to be the answer. It seems as if hoarding could possibly hurt us even more, by potentially impeding a recovery. We need a recovery. We need jobs.

If you received a tax-rebate in the amount for $18/week, for the past six months, will you please use a percentage for school supplies? $36 x 6 months = $216. If you are not comfortable using all of the $218 towards the growth of our economy, then will you consider using $50-$75 for school supplies?

We, consumers and corporate America, have to work collectively to rebuild our economy. Our government failed us these past eight years, but we cannot fail each other. When the fires happened here in San Diego, my friends and I went to the grocery store and bought food and supplies for the victims, at Qualcomm Stadium. America, we have been ravaged by the perfect storm, we cannot quit on one another. Will you please unite and buy school supplies this weekend, if you have the affordability? Will you please unite and buy school supplies and donate them, if you have the affordability? Even if you do not have kids, will you please buy school supplies and donate them, if you have the affordability?

Will you unite with me, and purchase school supplies this weekend?

Stay tuned...I have more to share. Just another day in the mortgage mess!