Everybody wants to buy and spend, agreed? We now know that unbridled greed got us into the shape we’re currently in, agreed? Then why, I ask, isn’t anything being done to address the next ticking bomb - credit card debt? Everyday we hear of credit card companies jacking the rates on unsuspecting credit card holders. Undeservedly in most cases. 29-38%?!  Has anyone ever heard of usury? Or has that word disappeared from our vocabulary along with monopoly? We are talking about another government-sanctioned rip-off of the public…another crime of unbridled greed pounding us into the ground, killing our economy and ruining untold lives. Did we overspend? undoubtedly! Did we live beyond our means in some cases? of course! We’re Americans and we’re addicted to buying and spending. What’s more we still want to. Here’s the key - the government must make it possible. Why? Because it’s the only way to save our economy. How else do they expect to save an economy that for years has been driven by consumer spending? Let us spend!  How? Immediately lower all credit card rates on outstanding balances and all new purchases to 1-2%. Yeah! Use some of that bailout money to supplement the rate if necessary. Shouldn’t the cc companies be happy with a 1-2% return? What rate do you get when lending your money to banks (savings accounts, etc)?

Imagine how freed up people would feel. They’d be paying down their existing debt and not afraid of adding new debt via buying and spending. We’d get the wheels cranking again. We’d get people back in stores. We’d create jobs. It’s a patriotic call to duty. The credit card companies must get real and stop the greed, lower the rates and open the gates of consumerism once more.

Wow! the arrogance involved in the bailout is overwhelming. Reading this article  is enough to anger even the most mild-mannered. While reading it think back to Paulson and all those anguished politicians pleading with the American public, swearing that the bailout was our only hope. Well here we are, screwed again.

Amidst all the financial and economic turmoil we now get some really bad news.

Happy New Year! After a bruising 2008 I think we can all agree that it’s great to have last year behind us. The market opened the year on January 2nd with upward movement for all major indexes, a good sign. Some financial analysts believe that market performance on the opening day of the year signals a trend for the entire year. While I’d like to be optimistic, this week’s market has been down each day so far… so I’m not breaking open the champagne just yet. This said, it won’t surprise me if the economy begins to turn around mid 2009.

Congress went back into session this week and is already working on a huge stimulus bill that is destined for Obama’s desk right after he takes office on January 20th. In fact, both he and the Bush administration have asked for the remaining funds from the last stimulus package (TARP passed in the fall of 2008) to be released now. Everyone seems to agree that the economy needs all the help it can get now. Hopefully the money will be well spent!

TARP funds that have already been distributed to major banks are having a little effect on the credit freeze that continues to plague home and business owners. One effect we’re seeing is that conforming mortgage rates have gone down to the low 5% range for 30 year fixed rate loans, while “agency jumbo” loans ($417,001 to $625,500) still have higher rates. But this may change more dramatically also because I’ve recently seen reports that indicate the federal government is applying pressure to these financial institutions to use the funds to modify existing mortgages and to refinance existing loans into lower rates.

Loan modifications are becoming a hot topic. Unfortunately, lenders still seem stalled when it comes to actually modifying troubled mortgages. FDIC programs for banks they’ve taken over (like Indy Mac) are not offering permanent
rate reductions. Non-profit and government modifications still don’t seem to be getting loans modified in ways that offer permanent, sustainable alterations to loan terms. The law firm I’ve been referring clients to for loan modifications
seems to be having excellent success in getting loans modified… and doesn’t charge huge up front fees. So there are some modification companies that are fine to work with. Just be careful and ask lots of questions. As 2009 opens I remain hopeful that this year will be a good one!

The sun came out Thursday afternoon after a gray week for us here, and we were blessed with a glorious weekend: sunny, clear and mild.” It’s hard to believe it is January.” Lou and I took our little car out to the Pt. Bonita Lighthouse on the Marin Headlands…the view is so gorgeous out there!” I love the sense of being at the very edge of the continent…

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See below for high & low tides this week:

DAY TIME HEIGHT*

Tuesday Jan. 13

1:34 AM 5.6 feet

6:34 AM 2.2 feet

12:35 PM 6.4 feet

7:09 PM -0.8 feet

Wednesday Jan. 14

2:14 AM 5.7 feet

7:32 AM 2 feet

1:30 PM 5.8 feet

7:51 PM -0.2 feet

Thursday Jan. 15

2:54 AM 5.8 feet

8:35 AM 1.8 feet

2:29 PM 5.1 feet

8:34 PM 0.6 feet

*” Measured from National Oceanic & Atmospheric Administration’s Mean Lower Low Water mark (MLLW).” Mean Higher High Water (MHHW) is 5.8 feet.

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Although winter officially started less than a month ago, a few crazy plum and magnolia trees are starting to bloom around central Marin.” The hills are green and the deer finally have plenty to eat, the robins have arrived, and the red-tailed hawks are filling the sky with their cries.” Each day gets a little longer…you can’t miss the signs that spring will be with us soon.”

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Hate to see Redwood High School divided over adoption of the International Baccalaureate Program.” We found Redwood to be such a great school, with committed and happy teachers and a calm and competent administration.” Hope things can be worked out amicably…

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Healing prayers/Positive energy/Good karma to:

Janice H., John, Janice L. Stephanie…

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See you next time…