New Years Resolutions

About everyone likes to resolve to do something to make themselves better after the new year. It seems like a good time to make a change. New year. New me. Most New Years resolutions are to get in better shape. I have decided to make my change a week late. Every year at the gym, there are about two times as many people there after the new year. By about mid to late February it's back to normal. That means I have one less week of time to deal with the hundreds of people who won't be there long term.

Mortgage Industry

I've really been thinking about things in real estate recently. I've just purchased my first home, and I'm very happy with the property. I got a great deal, great mortgage rate, and the property is wonderful. It wasn't until I was reading in the Wall Street Journal yesterday that I considered how relative my "great deal" was. What if housing prices take another tumble like they did in 2007/2008? All of a sudden my great deal is now underwater, meaning it is a bad deal. That's a big what if. Nobody knows what will happen.

One of the hardest parts about it is how difficult it was for me to obtain my mortgage loan. I could prove every aspect of my life on paper with documents. I had to. Even then it took months to close on the place because of the scrutiny in the mortgage industry right now. Years ago the same banks were handing out loans to anyone who could sign their name on a piece of paper. No docs. No problem. Just sign this paper telling us you will pay us back and we're all set. Now I suffer.

Banks will lose out, just like they have. But they don't always take the full brunt of it. It's also the guy who pays his bills, can prove his income, and is very dependable that takes some blame. He has to pay higher rates. He has more difficulty getting a home. Once he does own that home, it may decline in value because others around him are still holding on to properties they had no business buying in the first place. They truly can't afford them. So homes foreclose, become vacant, and end up selling for 30-40% less than the previous sales price. That drives down the prices of all homes in the area.

I'm actually not too worried about my neighborhood. I bought into a rather secluded development. All the homes were built in 2007 or 2008. Everyone that lives here bought after that time so there's no option ARM's with a deathly rate adjustment in the area. I think we're pretty safe. But I can't say that about the county in general.

According the the same article referenced above from WSJ.com, foreclosures are once again on the rise. Up 4.6% in one month. As the second wave of foreclosures are anticipated to hit the market by the end of they year it makes me very worried for so many people that own homes. Strategic defaults have created another source of foreclosed inventory. In the end, who is eating this cost? It seems to be the US Taxpayer. That should make everyone in the sound of my voice upset.

Fax Machines?

Why do we still have fax machines? With all the technology in the world it seems like there are so many other options for accomplishing the same things a fax machine can do. Every time I try to send or receive a fax I feel like I'm living in 1950 trying to start my car with a hand crank to drive to the farmhouse and get my eggs for the day. Let's upgrade people. Get an e fax account. Try e mail. I heard that last one's gonna be kinda popular.

State of the Union

State of the Union



I remember when I was a kid and would lay on the floor in the living room after dinner watching TV with my family. I remember Ronald Reagan (I know, I'm old) when I was just little speaking on TV in what must have been his state of the Union Address. He said something that made my dad rather excited. So much that he cheered at the TV with a loud "YES!" I don't know what it was he was excited about. Looking back it could have been a number of things.

At the time my father was a small business owner, and still is today. He's worked most his life to provide a decent living as an entrepreneur. Maybe he was excited about something regarding taxes, or small business regulation, or even workers wages. Regardless, he thought the words of the president to be important and that they would have some kind of impact on his every day life. I see myself in contrast as not believing much of what even the president says on national TV to really have much potential to affect my real life.

Laws may be passed as a result. Tax credits may be passed. Debates will stir. I might find myself with a few more dollars in my pocket. By in large I strongly believe the actions of the government do little but provide the ability for me to act. I still believe government actions do nothing if I sit on my butt and accept the status quo. Who cares about small business loans if I'm not the one benefiting from it. For it to really make a difference, I would have to either start or own a small business. I do plan on doing this, but that's not my point.

Lawmakers spend countless hours in Washington drafting bills, debating issues, and working on the common good of the Union. It seems to me, despite their efforts, there is a strong disconnect between what happens in Washington and what happens in my personal life. I don't think I'm alone. This sort of apathy is common among everyone I talk with. I'm going to keep going to work in the morning. I'm going to plan vacations, spend money on things I need first, and those I don't second. I'll keep having relationships. I'll make friends. Those actions are hardly affected by what the President of the United States wants me to get excited about. So I don't. I wait for it to happen. The proof is in the puddin, but the puddin never shows itself for those who sit and wait. If you want it, you still gotta go get it.