Christopher discussed the proposal allowing bankruptcy judges to determine what should be owed on homes.  Most people in financial trouble today are in trouble, not because they bought homes at the peak, but because they refinanced at the peak!  In this interview, he also discusses Japan’s  tight monetary policy, and if wanted to get rid of deflation, all they need to do is start printing money.

In 2009, banks changed the way they deal with distressed debt.  Banks do not need to be aggressive about how they value loans.  As long as the bank can keep the loan current, they don’t have to acknowledge the potential loss in that loan. If we forced forced banks to comply with their actual Tier 1 capital needs; there would be at least 6000 banks out of business!

The Federal Reserve has made the stance that they are anti-inflation. Christopher believes that Bernanke needs to think more realistically, because a little inflation would be a huge relief for our financial system.  When we have inflation, we usually have an increase in wages. However, wage increases do not usually occur quickly.

Thornberg feels confident about a GDP over 1%, and if  the government backs off the stimulus and allows the economy to re-grow with less consumer spending, and more exports, then we will have a great opportunity to grow as a country. The U.S. GDP growth was supported by a lot of equity extraction/cash out refinancing.  If we did not have the big equity bubble, and if we hadn’t seen an extreme increase in consumer spending, then our ability to supply would have shifted to exporting and business spending.

As for California, it has a $1.9 trillion economy & a a $20 billion deficit; its problems are political and not economic! Christopher thinks California spends its money in the wrong places and put high taxes on small tax bases. He also thinks that Prop 13 is a fiscal injustice, and we need to get people to vote against this proposition.  Finally, Christopher believes that we own China, and not the other way around!!!   Please take time to listen to this fascinating perspective from a different perspective than CNN and FOX! 

 For a link to this interview click here.

Learn about Lilies, Native Plants, Birds & Pollinators, and Garden Tours.  There are day backpacking trips, overnight trips, ecology & cultural history and hiking.  Now that the weather is warming up and we are looking for outdoor events to experience think East Bay Parks.  Here is the link for the complete schedule. 

BTW – they are also looking for volunteers!

 With the current buyer’s market, this could be the perfect time for you to purchase your retirement home.   It could be used as a weekend retreat, or possible monthly get-away if you can work remotely.  If you plan to purchase out-of-state, you need to first learn all about the area and visit it a few times before purchasing.  (You may even want to rent before purchasing.) The best guide for your retirement location is a good assessment of your needs, your friend’s recommendation and internet information.

 According to “A complete idiot’s guide to retirement planning”, do not rule out purchasing in your same geographic area.  You will have the familiarity of location and having friends/family close could be a huge benefit in retirement.  If you are not good at making new friends, do you want to lose your current ones by moving?   Speaking of a great local retirement area for folks in Northern California – THINK BRENTWOOD!

 Brentwood has Summerset; made up of 4 communities: Summerset 1, Summerset II (The Palms), Summerset III (Vista), and Summerset IV (The Orchards).  Each community has its own home owner’s association (HOA), recreation center, pool/hot tub, work out area, and activity director.  Once you are a resident of Summerset, you will receive a monthly activity calendar, and can attend activities at any of the four Summerset locations. 

Trilogy is Brentwood’s newest active-adult community.  Nestled in the hills of Brentwood, Trilogy has fabulous home designs from 1734 to over 2800 square feet.    Here is a link (lasts only 30 days) to current homes for sale on the MLS.  Both retirement locations are a great place to meet new friends, be close to medical facilities/hospitals,  walk to grocery stores or a coffee and still be only a BART ride away from San Francisco and SFO.

Retirement planning takes time; why not start now?  I would enjoy sharing with you the joys of living in one of Brentwood’s active adult communities; call me at 925-852-1659.

Melissa Hippard, of the Greenbelt Alliance, believes the initiative would mean the loss of open space and acreage used for wildlife habitat and flood control.  This group feels that the only benefit will be to several folks who currently own the land.

As of this date, it is unsure if there are enough signatures for this initiative to go on the June ballot.  In 2005, Brentwood voters narrowly defeated a similar initiative.  The Brentwood City Council will discuss at its next meeting on Feb 23^rd.

Click here for complete article.

Brooksley Borne (the first female President of a Sanford law class) tried to warn about the danger of over-the-counter derivatives.  Alan Greenspan, Bob Reuben (ex head of Goldman Saxs), and Larry Summers all shut her down.  The three men were pictured on TIME Magazine as “The Committee to Save the World.”  They all believed in less regulation.  Brooksley wanted to regulate the derivatives, for she could see the crisis coming.   However, the 3 men thought she would cause a financial crisis, and so they turned Congress against her!  (In 2007, the derivative market was $595 Trillion dollars and 43% annual expansion of the economy.)

Brookesley Borne went up against Alan Greenspan, who believed that even fraud did NOT need to be regulated.  Greenspan’s Libertarian hero was Ann Rynd, who also believed in an un-regulated economy. She was the author of “Atlas Shrugged”.

The worst part of this whole story is that, even now, Brooksley Borne’s words are NOT being considered.  The derivative market is STILL NOT REGULATED!  Fortunately, Alan Greenspan finally admitted before Congress that his core beliefs were wrong!  A little too late, Mr. Greenspan.  If Brooksley had been a man, would his words have been better received?

1.  Of course I look familiar. I was here just last week cleaning your carpets, painting your shutters, or delivering your new refrigerator.

2. Hey, thanks for letting me use the bathroom when I was working in your yard last week. While I was in there, I unlatched the back window to make my return a little easier.

3. Love those flowers. That tells me you have taste … and taste means there are nice things inside. Those yard toys your kids leave out always make me wonder what type of gaming system they have.

4. Yes, I really do look for newspapers piled up on the driveway. And I might leave a pizza flyer in your front door to see how long it takes you to remove it.

5. If it snows while you’re out of town, get a neighbor to create car and foot tracks into the house. Virgin drifts in the driveway are a dead giveaway.

6. If decorative glass is part of your front entrance, don’t let your alarm company install the control pad where I can see if it’s set. That makes it too easy.

7. A good security company alarms the window over the sink. And the windows on the second floor, which often access the master bedroom-and your jewelry. It’s not a bad idea to put motion detectors up there too.

8. It’s raining, you’re fumbling with your umbrella, and you forget to lock your door-understandable. But understand this: I don’t take a day off because of bad weather.

9. I always knock first. If you answer, I’ll ask for directions somewhere or offer to clean your gutters. (Don’t take me up on it.)

10. Do you really think I won’t look in your sock drawer? I always check dresser drawers, the bedside table, and the medicine cabinet.

11. Helpful hint: I almost never go into kids’ rooms.

12. You’re right: I won’t have enough time to break into that safe where you keep your valuables. But if it’s not bolted down, I’ll take it with me.

13. A loud TV or radio can be a better deterrent than the best alarm system. If you’re reluctant to leave your TV on while you’re out of town, you can buy a $35 device that works on a timer and simulates the flickering glow of a real television. (Find it at faketv.com.)

Hannah Nicole Vineyards received 3 silver awards and 7 bronze awards. Hannah Nicole’s wine tastings are held Tuesday through Sunday from noon to 6PM at their vineyards, located at 6700 Balfour Road.

Tamayo Family Vineyards received 4 bronze awards, and has won over a dozen awards at this competition, since first debuting three years ago. Tamayo Family Vineyards will hold its first public barrel tasting and release party on Saturday, Feb 27^th from 1-4PM at the Co Co County Wine Company, 633 First Street in Brentwood.  The event is FREE and open to the public, but limited to the first 150 consumers so reservations are recommended. To make a reservation, call 925-240-0862.  This event will feature music, food from local restaurants. 

Bloomfield Vineyards took home six awards.  Their signature wine, Devil’s Daughter, a unique blend of chardonnay and viognier, was awarded the silver medal and named Best of Class at the 2009 California State Fair Wine Competition.  Bloomfield Vineyards held its barrel tasting on Sunday, Jan. 24.

If you’d like to sample more wines from Contra Costa County, including Concord’s Sterling Albert Winery and Walnut Creek’s Shadowbrook Winery, visit Brentwood’s Co. Co. Wine Company in downtown Brentwood.  Their phone number is 634-9463.

While visiting Brentwood’s great wineries, don’t forget to stop and sample the local olive oils at McCauley Olive Groves.  Click their link to view their recent video.  To view the complete article on the Brentwood winery winners, click here.  The weather is getting nicer and before it gets too hot, come experience the joys of Brentwood!

Your fences need to be horse-high, pig-tight and bull-strong.   
 Keep skunks and bankers at a distance.  
 Life is simpler when you plow around the stump.  
 A bumble bee is considerably faster than a John Deere tractor. 
 Words that soak into your ears are whispered…not yelled. 
 Meanness doesn’t just’ happen overnight.  
 Forgive your enemies; it messes up their heads.  
 Do not corner something that you know is meaner than you.  
 It doesn’t take a very big person to carry a grudge. 
 You cannot unsay a cruel word. 
 Every path has a few puddles.  
 When you wallow with pigs, expect to get dirty.  
 The best sermons are lived, not preached. 
 Most of the stuff people worry about is never going to happen anyway.  
 Don’t judge folks by their relatives.  
 Remember that silence is sometimes the best answer.  
 Live a good, honorable life… Then when you get older and think back, you’ll enjoy it a second time. 
 Don’t interfere with something’ that isn’t bothering you none.  
 Timing has a lot to do with the outcome of a Rain dance. 
 If you find yourself in a hole, the first thing to do is stop digging’. 
 Sometimes you get, and sometimes you get got.  
 The biggest troublemaker you’ll probably ever have to deal with, watches you from the mirror every morning’.  
 Always drink upstream from the herd.  
 Good judgment comes from experience, and a lot of that comes from bad judgment.  
 Letting’ the cat out of the bag is a whole lot easier than putting’ it back in.  
 If you get to thinking’ you’re a person of some influence, try ordering’ somebody else’s dog around…  
 Live simply. Love generously. Care deeply. 
 Speak kindly. Leave the rest to God.

The two mortgages causing our current mortgage problem are the Alt A’s and Option arms.  Alt A’s had teaser rates, and homeowners are now seeing their $800 mortgage payment go to $1500.  Defaults are incredibly high and no evidence that they are leveling off.  You can look back at what was written in 2005-2007, it is predicable what will happen, and is now happening.  Alt A’s & Option ARMs are just starting in 2010 and will reach their peak in 2011!  This segment states that at least 50-70% will default because most are defaulting before the teaser rate even goes up.   This news clip talks about Southern Florida, but these loans were sold all over the US; especially California.

 The housing community that is featured, talks about its sales history.  It was all about marketing and setting a “scene for these buyers to purchase”.   Without Alt A’s  & Option arms, these properties would never have sold, because buyers would not have qualified!  Bankers and brokers got money up front in fees.  They did not check documentation on buyers.  The key assumption was that home prices would go up forever.  History showed that homes had always gone up since the Depression! 

Housing is an important part of economy, and to get us back on track, we need to clear out garbage in the system.  It is expected to take another 2-5 years to work through these toxic loans.  Sadly, in the end, eight million people are expected to lose their homes.     Now if you listen to Neil Barofsky, the Special Inspector General of the Troubled Asset Relief Program, it may take longer!  He believes that current government policy  wants to keep home values as high as possible, to keep more people from bailing.  Barofsky feels we may be in store for “The Great Crisis, Part 2” aka the second bubble.

 Where does that leave you?  If you have a loan coming due with a payment you cannot afford, you need to contact a CDPE to give you advice on your options.  THE CDPE designation means a realtor has completed extensive training in foreclosure avoidance, with an emphasis on short sales.  For more information call me at 925-852-1659 and I will help answer your questions.

According to a new report out by Del Webb, the new retirement destinations are North and South Carolina.  The focus has gone from climate to cost, apparently with the change in most IRA and 401K accounts.  Because of this, other states are moving into the top 10 places to retire.  (However, California, Arizona, and Florida are still in the top 10.)  Also, according to Del Webb, golf courses are no longer a necessity for the over 55 retiree.  Proving this, Shea built its beautiful Vineyards property with the focus on a resort style club house surrounded by vineyards.

Thirty to Forty percent of boomers still plan to move to an new home in retirement and half of that number plan to move out-of-state.  What I want to tell those 30-40% thinking of moving is to check out Brentwood’s active adult communities: Summerset (located on a golf course) and Vineyards.  Brentwood has home prices that mirror 2001 housing values (Summerset), warm inland weather and three local golf courses.  For more information, call at 925-852-1659.  Click here to view the article.