From the category archives:

Current Affairs

The Senate, House of Representatives and the White House have all stated their willingness to work through a lame-duck session to pass a second economic stimulus package prior to the end of the year. While many ideas have been circulated, few, if any, appear certain to be included in a stimulus package, according to C.A.R. policy analysts.

As the U.S. economy continues to struggle, politicians on both sides of the aisle are feeling pressure from their constituents, creating a strong incentive for Congress to pass meaningful legislation as the national elections near and the country heads into the holiday season.

Some of the ideas under discussion include: An additional round of stimulus checks; extending the temporary loan limit of $729,750 for the Government Sponsored Enterprises (GSE) and Federal Housing Administration (FHA); infrastructure spending; financial aid for states; a temporary increase in block grants; and an extension of unemployment and welfare benefits.

The primary factor determining what, if anything, will be done during a lame-duck session is the outcome of the upcoming presidential election. Should the Democrats take the White House and secure a filibuster-proof majority in the Senate, they may wish to wait till after Jan. 20 before proposing or enacting legislation. Should the Republican nominee take the White House, Democrats may feel the Bush administration is more willing to compromise in order to pass last-minute initiatives prior to leaving office.

FED ANNOUNCES PLAN TO PURCHASE EQUITY STAKES IN BANKS AND THRIFTS
The federal government on Tuesday announced the launch of a new program designed to assist with ongoing efforts to help stabilize the U.S. banking system and restore confidence in the country's financial markets, as well as those abroad. So far, nine of the nation's largest banks have agreed to participate in the program, which will allow the government to inject $250 billion into the country's financial institutions in exchange for mandatory preferred stock shares for taxpayers and limited pay for company executives.

The Fed's plan will provide money to banks at a fairly low cost for five years to help unfreeze the nation's credit markets, which have been faltering under bad debt tied to the mortgage lending sector. In announcing the plan, the Fed made it clear: this was not a preferred action, but a necessary one.

"Government owning a stake in any private U.S. company is objectionable to most Americans — me included," said U.S. Treasury Secretary Henry Paulson announcing the plan Tuesday. "Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable. When financing isn't available, consumers and businesses shrink their spending, which leads to businesses cutting jobs and even closing up shop."

In exchange for funding, the federal government will receive preferred, nonvoting shares in participating banks, which now include, Citigroup, Wells Fargo and Bank of America, with fixed dividends of 5 percent for five years, increasing to 9 percent afterward. In addition, the plan also calls upon lenders to ramp up efforts to stave off foreclosures by working with borrowers to either refinance or restructure loans that will allow them to keep their homes, wherever possible.

"We expect all participating banks to continue and to strengthen their efforts to help struggling homeowners who can afford their homes avoid foreclosure," Paulson said. "Foreclosures not only hurt the families who lose their homes, they hurt neighborhoods, communities and our economy as a whole."

C.A.R. REPORTS SALES INCREASED 56.7 PERCENT; MEDIAN HOME PRICE FELL 40.5 PERCENT IN AUGUST
Home sales increased 56.7 percent in August in California compared with the same period a year ago, while the median price of an existing home fell 40.5 percent, C.A.R. reported Sept. 25.

"Sales are now 85 percent above the monthly trough for this cycle, which occurred in October 2007, and for the first time this year are ahead of 2007 in year-to-date terms," said C.A.R. President William E. Brown. "While this is encouraging news, we don't expect to see a housing market recovery until prices stabilize and the number of distressed properties on the market declines.  Sales gains continue to be driven by the large share of deeply-discounted distressed sales in many parts of the state."

The median price of an existing, single-family detached home in California during August 2008 was $350,140, a 40.5 percent decrease from the revised $588,670 median for August 2007, C.A.R. reported. The August 2008 median price fell 0.2 percent compared with July's revised $350,890 median price.

"Although the month-to-month decline in the median price was the smallest in a year, it's still premature to say that the median price has begun to stabilize," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "While sales appear to have turned the corner, the median will experience additional downward pressure as we move into the off-peak season in the coming months, and will continue to face pressure from distressed sales."

    Will the government do a successful bail out or are they being irresponsible? We sit and wait today for Washington to decide on the bail out program. Well, probably not today, knowing how the government was slow to react to the problems starting back in 2004.

    So why today do we trust the same decision makers, who all have advisors with high level college degrees, who knew the economic signs 4 years ago and didn’t steer the financial market toward the correct course? The problem was simpler to fix then with implementing tighter money guide lines, instead of letting Wall Street investors (who’s mission statement appears to be “Greed is good”) to get into the banking industry. This allowed them to dictate banks qualifying buyers with guidelines like, “if they have good credit and a pulse it will be a good loan.”

    The mortgage and financial district problems continued to grow like sinking in quick sand, because we are not being lead by our government leaders with moral and ethical examples. The word bailout means the source of one responsibility is being transferred to someone else, like you and me, the American people and the tax payer. For example, why not use the 700 billion towards, tax incentives for hybrids, solar energy, energy alternatives to help win the war against terrorism, etc.?

    I am proud to say I am a homeowner, who saw values decrease in my neighborhood and has temptation of these ideas, but did not act on them. I see the value in my home and hope in this country to steer the course and hold steady. When I wake up in the morning with my cup of coffee and go out to my yard, I see the land I own and breathe the fresh air. It’s then that I experience the true American dream, not a bailout. Let us move forward as an American, I know we can solve problems in a creative and productive way.

As expected, this weekend the U.S. Dept. of the Treasury submitted its proposal to promote stability in the U.S. financial markets.

Key components of the Treasury’s proposal include:

  • The authority to issue up to $700 billion of Treasury securities to finance the purchase of troubled residential and commercial mortgage-related assets, including mortgage-backed securities and loans.
  • This authority would expire in two years, and assets must have been originated or issued on or before Sept. 17, 2008, to qualify.
  • Assets will be managed by private asset managers at the direction of the Treasury.
  • Cash received from liquidating the assets will be returned to the Treasury’s general fund for the benefit of taxpayers.
  • Funding for the program will be provided directly by the Treasury from its general fund by increasing its debt limit by $700 billion.
  • Once the program is up and running, Treasury will provide updates to Congress semi-annually.

The proposal also grants Treasury Secretary Paulson sweeping authority regarding the purchase of assets, the timing and sale of assets, determining financial institutions’ eligibility to participate and more. To access a fact sheet on the Treasury proposal, go to http://www.treasury.gov/press/releases/hp1150.htm.

Congress is weighing in on the Treasury’s proposal today, and may seek to add an oversight structure, limit the compensation of executives at the companies benefiting from the rescue, and provide mortgage relief for struggling borrowers. We’ll report on this effort in detail tomorrow. As part of that process, House Financial Services Committee Chairman Barney Frank has scheduled a committee hearing this Wednesday.

Our sources tell us that it may be overly optimistic to expect final legislation to be brought forward by Friday and cautioned us to expect this to run into next week.

For more information on the current real estate market please visit or contact me thru our website at:  County Properties Real Estate.

John Adams' famous letter of July 3, 1776

by Arnie Levine on July 5, 2008

in Current Affairs

John Adams (1735-1826) was instrumental in negotiating in favor of independence at the Continental Congresses (1774-78), signed the Declaration of Independence.

John Adams’ famous letter of July 3, 1776, in which he wrote to his wife Abigail what his thoughts were about celebrating the Fourth of July is found on various web sites but is usually incorrectly quoted. Following is the exact text from his letter with his original spellings:

The Second Day of July 1776, will be the most memorable Epocha, in the History of America. I am apt to believe that it will be celebrated, by succeeding Generations, as the great anniversary Festival. It ought to be commemorated, as the Day of Deliverance by solemn Acts of Devotion to God Almighty. It ought to be solemnized with Pomp and Parade, with Shews, Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other from this Time forward forever more. You will think me transported with Enthusiasm but I am not. I am well aware of the Toil and Blood and Treasure, that it will cost Us to maintain this Declaration, and support and defend these States. Yet through all the Gloom I can see the Rays of ravishing Light and Glory. I can see that the End is more than worth all the Means. And that Posterity will tryumph in that Days Transaction, even altho We should rue it, which I trust in God We shall not. (The Book of Abigail and John: Selected Letters of the Adams Family, 1762-1784, Harvard University Press, 1975, 142).

nara 1 line full name 600 John Adams' famous letter of July 3, 1776
clear pixel John Adams' famous letter of July 3, 1776
print friendly 570x1 black John Adams' famous letter of July 3, 1776
clear pixel John Adams' famous letter of July 3, 1776
print friendly 570x1 black John Adams' famous letter of July 3, 1776
clear pixel John Adams' famous letter of July 3, 1776
 www.archives.gov July 5, 2008 
clear pixel John Adams' famous letter of July 3, 1776
print friendly 570x1 black John Adams' famous letter of July 3, 1776
clear pixel John Adams' famous letter of July 3, 1776

The Declaration of Independence: A Transcription


IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.
He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.
He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.
He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for the sole purpose of fatiguing them into compliance with his measures.
He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.
He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.
He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.
He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers.
He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries.
He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.
He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.
He has affected to render the Military independent of and superior to the Civil power.
He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:
For Quartering large bodies of armed troops among us:
For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:
For cutting off our Trade with all parts of the world:
For imposing Taxes on us without our Consent:
For depriving us in many cases, of the benefits of Trial by Jury:
For transporting us beyond Seas to be tried for pretended offences
For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies:
For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments:
For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.
He has abdicated Government here, by declaring us out of his Protection and waging War against us.
He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people.
He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.
He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.
He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our Brittish brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which, would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these United Colonies are, and of Right ought to be Free and Independent States; that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.


The 56 signatures on the Declaration appear in the positions indicated:

Column 1
Georgia:
   Button Gwinnett
   Lyman Hall
   George Walton

Column 2
North Carolina:
   William Hooper
   Joseph Hewes
   John Penn
South Carolina:
   Edward Rutledge
   Thomas Heyward, Jr.
   Thomas Lynch, Jr.
   Arthur Middleton

Column 3
Massachusetts:
John Hancock
Maryland:
Samuel Chase
William Paca
Thomas Stone
Charles Carroll of Carrollton
Virginia:
George Wythe
Richard Henry Lee
Thomas Jefferson
Benjamin Harrison
Thomas Nelson, Jr.
Francis Lightfoot Lee
Carter Braxton

Column 4
Pennsylvania:
   Robert Morris
   Benjamin Rush
   Benjamin Franklin
   John Morton
   George Clymer
   James Smith
   George Taylor
   James Wilson
   George Ross
Delaware:
   Caesar Rodney
   George Read
   Thomas McKean

Column 5
New York:
   William Floyd
   Philip Livingston
   Francis Lewis
   Lewis Morris
New Jersey:
   Richard Stockton
   John Witherspoon
   Francis Hopkinson
   John Hart
   Abraham Clark

Column 6
New Hampshire:
   Josiah Bartlett
   William Whipple
Massachusetts:
   Samuel Adams
   John Adams
   Robert Treat Paine
   Elbridge Gerry
Rhode Island:
   Stephen Hopkins
   William Ellery
Connecticut:
   Roger Sherman
   Samuel Huntington
   William Williams
   Oliver Wolcott
New Hampshire:
   Matthew Thornton

 John Adams' famous letter of July 3, 1776

A typical question our County Properties real estate agents are asked is"when should we buy now or wait until the end of the year for better home prices and mortgage rates." Lets look at the current market conditions and some different scenarios.

The big question is where inflation is headed? Some economic gurus suggest that the recent surge in energy prices will inevitably spill over into higher inflation, much as the oil shocks of the Y's sent prices of everything soaring. Others argue that (for a variety of reasons, including the fact that the U.S. economy uses about half as much energy per unit of GDP as it did 30 years ago), inflation won’t be a problem. (Your guess is as good as the best-paid economic analyst.)

To make your mortgage rate prediction, you need to know the inflation rate for 2006 because interest rates and inflation tend to move in the same direction. The reason is pretty simple. If inflation rises, that means a dollar of savings at the start of 2006 has less buying power by the end of the year. So if those bond buyers (again, the folks who ultimately supply the money for your mortgage) see inflation rising, they’re going to want more interest to make up for the loss in buying power of their dollars. In the 1970's, the worst part of the inflationary cycle pushed mortgage rates above 18 percent.

 The change of the fed rates usually effect 2nd trust deeds, mortgage rates, equitylines on homes, and credit card rates. Below is an historical chart of the prime rate.

Intended federal funds rate
Change and level, 2002 to present

Change
(basis points)

Date Increase Decrease Level
(percent)
2008
April 30 25 2.00
March 18 75 2.25
January 30 50 3.00
January 22 75 3.50
2007
December 11 25 4.25
October 31 25 4.50
September 18 50 4.75
2006
June 29 25 5.25
May 10 25 5.00
March 28 25 4.75
January 31 25 4.50
2005
December 13 25 4.25
November 1 25 4.00
September 20 25 3.75
August 9 25 3.50
June 30 25 3.25
May 3 25 3.00
March 22 25 2.75
February 2 25 2.50
2004
December 14 25 2.25
November 10 25 2.00
September 21 25 1.75
August 10 25 1.50
June 30 25 1.25
2003
June 25 25 1.00
2002
November 6 50 1.25

Two Federal Reserve policy-makers warned on Wednesday May 27, 2008 that interest rate increases might be needed before too long to curb inflation, even as the United States struggles with a weak economy.

The remarks solidified expectations that the Federal Open Market Committee has ended an aggressive rate-cutting campaign and could start to reverse its policy course late this year. 

As you can see with rise in oil prices the feds last look at changing rates was to not decrease and do a wait and see on increasing rates.

The following article explains the current market conditions San Diego and Riverside CA Housing Crisis Is Over 

Here is another article regarding the first time in many years since the soft market started California sales increased 2.5% in April. Below is a chart of the two counties that County Properties cover, showing the new medium prices for each city.

County/City/Area

Apr-08

Apr-07 Y-To-Y % Change
Riverside County $294,000.00 $410,000.00 -28.3%
Banning $217,500.00 $276,000.00 -21.2%
Beaumont $285,000.00 $368,000.00 -22.6%
Cathedral City $230,500.00 $335,500.00 -31.3%
Corona $394,000.00 $570,000.00 -30.9%
Desert Hot Springs $175,000.00 $288,000.00 -39.2%
Hemet $190,000.00 $319,500.00 -40.5%
Indio $292,500.00 $351,000.00 -16.7%
La Quinta $561,500.00 $583,000.00 -3.7%
Lake Elsinore $290,000.00 $410,750.00 -29.4%
Menifee $277,500.00 $390,000.00 -28.8%
Mira Loma $418,000.00 $542,500.00 -22.9%
Moreno Valley $235,000.00 $385,000.00 -39.0%
Murrieta $310,500.00 $465,000.00 -33.2%
Norco $520,000.00 $635,000.00 -18.1%
Palm Desert $353,000.00 $406,000.00 -13.1%
Palm Springs $240,000.00 $365,000.00 -34.2%
Perris $225,000.00 $362,500.00 -37.9%
Rancho Mirage $510,000.00 $527,000.00 -3.2%
Riverside $300,000.00 $410,000.00 -26.8%
San Jacinto $220,000.00 $340,000.00 -35.3%
Sun City $241,750.00 $339,250.00 -28.7%
Temecula $329,000.00 $459,000.00 -28.3%
Wildomar $327,000.00 $450,000.00 -27.3%
Winchester $329,000.00 $478,000.00 -31.2%
San Diego County $400,000.00 $495,000.00 -19.2%
Carlsbad $658,000.00 $635,000.00 3.6%
Chula Vista $379,500.00 $507,000.00 -25.1%
El Cajon $340,000.00 $426,000.00 -20.2%
Encinitas $600,000.00 $708,500.00 -15.3%
Escondido $350,227.00 $440,000.00 -20.4%
Fallbrook $497,500.00 $540,000.00 -7.9%
Imperial Beach $330,000.00 $465,000.00 -29.0%
La Jolla $820,000.00 $930,500.00 -11.9%
La Mesa $432,500.00 $443,500.00 -2.5%
Lakeside $375,000.00 $485,000.00 -22.7%
Lemon Grove $279,000.00 $420,000.00 -33.6%
Oceanside $357,000.00 $465,000.00 -23.2%
Poway $458,500.00 $537,500.00 -14.7%
Ramona $385,000.00 $535,000.00 -28.0%
San Diego $410,000.00 $480,000.00 -14.6%
San Marcos $436,750.00 $525,000.00 -16.8%
Santee $349,000.00 $413,500.00 -15.6%
Spring Valley $280,000.00 $460,000.00 -39.1%
Vista $351,250.00 $475,000.00 -26.1%

sources are California Assoc. of Realtors, and money magazine

This is the time to make your move, good deals are now getting multiple offers and our agents will help you get one into your next home. Call for counseling on for investing or a buying a home to live in now, while the market prices and interest rates are still low. Click Go to my website

In looking for homes or just normal driving, gas prices may effect you. Here is a good link to find the cheapest prices Cheap gas locator.

Page 19 of 19« First...10«1516171819