Dear Mr. President. 

   Re:  COMMON SENSE IN GOVERNMENT

POSITION:  Kindly accept this application for the newly created position of CZAR OF ECONOMIC COMMON SENSE.  Hopefully, you’ll consider making this a cabinet level position because many Americans understand that common sense is sadly mission from government today.

STATEMENT OF NEED:   The United States of America is in recession.  Strong and innovative management of the economy is essential for the viability of financial health of the citizens of this great country.  Management of the economy of the country has been reactive, wrongheaded and dangerous to the financial stability of the American family. 

STRATEGY:  I suggest that you make this position a “Recess Appointment” at the first opportunity.  Sadly, there is little hope that any Congress, present or future, would approve anyone for a post in your administration that required Common Sense because the concept of Common Sense is alien to a Congress that can be relied upon to seek personal gain over benefit to country. 

The legislative records of the present Congress has a track record that:

• Puts Party above constituent.
• Rewards campaign contributors with tax advantages.
• Manipulates legislative order to reward cronies.

We know from your pronouncements since winning the election to the highest office in the country, that you are a man of open mind and flexibility. 

PRIORITY:  The economic condition in the United States is dire.  The former administration was one of reaction and not one of leadership.  While the new appointments to the economic management posts in your administration have the credentials for strong, sensible leadership, sadly, they have no history of common sense in any office in which they have served.  It is necessary that the citizens of the United States have a voice for common sense in your cabinet. 

Management of the Economy of the United States is critical and deserves priority over other interests. Without sound economic management, the U.S. taxpayers will not be able to fund the interests of the environmentalists, organized labor, industrial manufacturing, health services, scientific research, foreign trade, and other well represented special interests. 

WHY A CZAR OF ECONOMIC COMMON SENSE?  A high percentage of American citizens, the families and individuals who pay taxes to fund the budget of the United States are in a diminishing financial condition.  Not only is the income of the average American providing less and less buying power, the primary financial asset of most Americans, the equity in their homes has vanished. 

THE PROBLEM WITH THE ECONOMY:  The American tax payer has lost their capital, their credit, their savings, their leverage, their voice.  The American home owner finanances the building industry, the home improvement industry, the real estate industry, the home mortgage industry, the home furnishings industry, local public schools and more.

THE FINANCIAL INDUSTRY PROFITED FROM ILLEGAL ACTS PERPETRATED AGAINST AMERICAN BORROWERS.  The Department of the Treasury and Board of Governors of the Federal Reserve reward the criminals on Wall Street with about $350,000,000,000 to replace their lost capital and encourage the banks and financial institutions to resume providing consumers with credit to finance the purchase of homes, automobiles and consumer goods. 

THE FINANCIAL HOUSES AND BANKS TOOK THE MONEY.  Yet, mortgages loan approval is more difficult than at any time in the past 30 years.  Automobile financing is at an all time low causing the callapse of the American Automobile Manufacturing companies and the chain of businesses that provide jobs for about 10% of the American tax payers. 

Giving money to the financial industry that designed the financial instruments that caused the decline of the housing industry made no COMMON SENSE.  It is clear that the President of the United States, the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve and other decision makers do not understand the critical nature of the health of the housing industry and have made policy decisions that made so little common sense, that they defies logic. 

COMMON SENSE dictates that the first priority of the Government of the United States is the financial health of the American home owner.

I WANT THAT JOB.  Someone needs to look out for the folks.

The U.S. government passed a $700 billion economic bailout package in an effort to stabilize the flailing banking sector. So far, it hasn’t worked as hoped and the financial crisis has deepened since the law was approved. That’s the bad news.

The good news is that there is a lot more than help for just banks in the 451-page legislation. Lawmakers added hundreds of other “sweeteners” to make the bill more popular with the public. See if you can benefit from any of the following provisions:

More insurance for bank deposits: Now your bank deposits are protected up to $250,000 for each account. Formerly, the Federal Deposit Insurance Corporation (FDIC) backed your deposits up to $100,000. The increase is temporary, but is likely to be extended.

AMT Reform: Fewer taxpayers are going to get hit with the dreaded Alternative Minimum Tax, a parallel tax code that was originally intended to make sure wealthy people paid their fair share of taxes, but which has increasingly slammed middle-income earners. Basically, unless you make more than $100,000 for single taxpayers or $175,000 for married taxpayers filing jointly, you shouldn’t have to worry about the AMT due to the change.
Easier to get your mortgage terms modified: The new law asks Federal agencies to encourage companies that service mortgages to help their borrowers who are having trouble making payments modify their loans so they become more affordable. It sounds a little vague, but lenders are already responding to government prodding and agreeing to modify mortgage terms for some distressed borrowers. Bank of America, for example, announced a new plan Oct. 6 that will aid certain former Countrywide mortgage holders.

Caps on executive pay: Again, the terms here are a little murky, but basically executives of firms that participate in the bailout could have to repay some of their bonuses if the funds were awarded based on inaccurate financial statements. Execs also should not get so-called “golden parachutes” or large payments if they are fired. This provision may have psychic, rather than monetary benefits for those Americans who are angry about the high pay awarded some of the same bankers who have presided over the economic crisis.

Banks may be less at risk of failing due to accounting issues: In a controversial move, the law asks the Securities and Exchange Commission (SEC) to consider changing accounting rules that require banks to value securities at market prices even when there are no buyers. That so called “mark-to-market” requirement means banks have to account for some securities as if they are worthless (putting them in bad stead with rating agencies), even if they are sure the securities will eventually be worth something.

Insurers have to treat mental health like other illnesses: The law requires health insurance companies to cover treatment for mental illnesses the same way they cover any other disease. This became part of the law due to procedural requirements. The Senate’s financial rescue plan was actually added to a bill for “mental health parity” that passed the house last March.

Assorted niche tax breaks: The bailout plan has been faulted for including lots of pork – provisions that benefit a small number of people, but that can be key to a politician’s reelection bid. The law contains tax breaks that benefit makers of wooden arrows used in children’s toys, the rum industry of Puerto Rico and the Virgin Islands, wool manufacturers and racetrack owners to name a few.

More development of alternative energy: The law contains extensions for some tax breaks intended to spur the use and development of alternative energy. Homeowners can continue to get tax credits to cover part of the costs of solar panels, windmills, geo-thermal heating systems and electric cars. Companies that invest in alternative energy technologies will also continue to enjoy some nice tax breaks.

Lower taxes in the future? A part of the law which invites skepticism currently, allows the government to take equity stakes in Wall Street firms that participate in the bailout. Theoretically these stakes could one day be quite valuable. Another provision states that after five years, if there are any losses due to the bailout, the government will recoup the shortfall from the financial services industry. In theory, one day this could mean increases in government coffers without tax hikes for individuals. That would be nice.

What do you see? How is this going to impact your life and how quickly will you feel the relief?

Forget the upscale remodel. You can get a whole new look for a few thousand dollars.

You’re longing to replace those dark oak cabinets, avocado appliances and worn countertops in your kitchen. But the $50,000 to $100,000 price of a high-end renovation and the thought of living on kung pao for three months during construction make you queasy.

Plus, in today’s buyer’s market, a full-scale renovation doesn’t return what it used to: in 2006, home sellers got only 80 percent of their kitchen remodeling costs back, according to the National Association of Realtors, down from 91 percent in 2005.

But that doesn’t mean you have to live with a tired look forever. As long as the layout is good and the cabinets are sturdy, you can transform a kitchen for just $1,000 to $10,000 by dressing up what’s already there.

“And you’ll probably see a dollar for dollar or better return on the investment when you sell,” says Baltimore home appraiser Terry Dunkin, who is president of the Appraisal Institute, a professional standards organization.

Keep to neutral colors such as white, cream or beige and natural materials (like wood and stone) so the results won’t soon go out of style. You may also want to hire a professional kitchen designer ($250 to $500) to help you choose colors, products and materials that look good together (check nkba.org and asid.org for certified designers who offer hourly rates). Then pick your projects according to your budget and your priorities.

If you have a few hundred dollars to spend

Replace the ceiling fixture There’s no reason to live with an ugly ceiling light that causes eye-strain. For $25 to $250 you can buy a simple fixture that matches your cabinet hardware. If you aren’t confident in your knowledge of electrical wiring, it’s worth it to spend $200 to $300 to hire an electrician to do the work.

Put in laminate flooring If your kitchen floor is level with the floors in the adjacent rooms, you can make old linoleum, sheet vinyl and chipped tiles disappear by installing laminate flooring right over them. Laminate costs $1 to $5 a square foot and looks like wood, stone or tile, but it’s actually photographs of those materials under a clear plastic wear surface. The pieces snap together without nails or glue and are a cinch for handy homeowners to install.

Give the cabinets a new life Spending $3 to $10 or so a cabinet to replace shiny brass knobs and pulls with brushed nickel will instantly modernize their look, says Martha Kerr, a 30-year-veteran kitchen designer in Portland, Ore.: “Or have some fun with colored glass, retro 1950s plastic or little metallic vegetables.” Just make sure that any hardware you select matches the existing holes.

As long as your cabinets are solid, a new coat of paint will make them appear fresher. While you’re at it, you can install doors with wood, leaded glass or punched tin panels ($50 to $150 or so a door) and paint the frames to match them. Or eliminate some doors entirely for an open display look (free). You can fill unwanted hardware holes (use Bondo, the autobody filler) before painting.

Refinish the appliances If your appliances sport a dated color, send them to an appliance refinisher (look in the phone book for a local shop). For a few hundred dollars (about $150 for a stove door; $250 for a whole refrigerator), they will re-enamel the surfaces in the hue of your choice, such as black, stainless steel or barn red.

If You Can Spend a Few Thousand Dollars

Reface the cabinets You can get a gorgeous new maple or cherry finish for your old cabinets by hiring a refacing company to replace the doors and drawer fronts and cover the cabinet boxes with a matching veneer ($4,000 to $6,000).

“That’s less than half the cost of new cabinets,” says Dave Haglund, president of Kitchen-Tune-Up, an Aberdeen, S.D. refacing and remodeling company. Another benefit: While replacing the cabinets will take two to three months, a complete refacing job can be done in three days. Refacers can also install additional cabinets, resize appliance openings and replace the countertops as part of the job (add one day and $3,000 to $6,000).

Take your home outside

Update the backsplash A four inch- high band of laminate or tile above the sink makes your kitchen appear outdated, says Richard Gaylord, a Long Beach, Calif. realtor and president-elect of the National Association of Realtors. Replace it with a full backsplash that fills the 18-inch space between the counter and the upper cabinets (don’t worry, it need not match the countertops).

In fact, you can use that space for some do-it-yourself creativity; try using tiles of colored glass or stone ($300 to $750 for the entire backsplash in an average-size kitchen), wallpaper ($50 to $100), beadboard paneling ($100 to $150) or tin ceiling tiles ($400 to $800) to fashion the look you prefer.

Add new lighting If your kitchen has a single ceiling light, it probably casts an annoying shadow over the food whenever you cook. An electrician can add a few recessed ceiling lights ($300 to $500) to brighten the entire room and under-cabinet lights ($200 to $400) to illuminate the work surfaces.

Uncover the wood floor Most houses built before World War II have wood floors hiding under the linoleum, and there is no better floor for a kitchen, says Sandy Gordon, an interior designer in Madison, Wis.

“It’s gentler underfoot than tile and more forgiving on dropped dishes, and today’s finishes are superdurable.” If you’re not comfortable ripping out the old layers of flooring, sanding the wood and applying polyurethane, you can hire a hardwood flooring company to do the job for about $5 to $7 a square foot.

Replace the appliances New appliances will make your kitchen appear more up to date and will also improve its ergonomics and energy efficiency. Buy moderately priced equipment ($2,000 to $10,000 and up for a refrigerator, range, microwave and dishwasher) in stainless steel for a modern look. If you can’t resist that $10,000 stove, consider taking it with you when you move.

Whatever you decide to do, keep in mind that just a week of an all-takeout diet will add hundreds more to your renovation costs. So before you get started, set aside some essential foodstuffs, perhaps a microwave, a mini-fridge and – most important – the coffee maker.

home improvement

(9/17/07) – Lee Forbes of Premier Team inc. has successfully completed the REALTOR e-PRO course to become one of a select few real estate professionals to earn the prestigious certification offered through the National Association of REALTORS.®

The REALTOR e-PRO certification course is an educational program unlike any other professional certification or designation course available, comprehensive and interactive. It is specifically designed to provide real estate professionals with the technology tools needed to assist consumers in the purchase or sale of a home.

With more than 70% of consumers beginning their real estate research on the Internet, e-PRO certified agents have the experience and expertise to meet the demands of today’s buyer and seller.

"The real estate industry has undergone a fundamental change over the past several years," said Lee Forbes of Premier Team Inc. "A majority of consumers are taking the time to conduct their own research prior to contacting an agent. In turn, real estate professionals must be knowledgeable of how technology can assist them in serving the needs of the buying and selling public."

The exclusive REALTOR e-PRO certification course is presented entirely online and certifies real estate agents and brokers as Internet professionals. Because of its innovative design, students are able to complete the course at their own pace, when and where they want, via any Internet connection. The course is designed to help REALTORS stay at the leading edge of technology and identify, evaluate and implement new Internet business models.

Once completed, the e-PRO certified real estate professional joins the ranks of a special community of highly skilled and continuously trained professionals who provide high quality and innovative online-based real estate services.  Consumers can identify the e-PRO through the exclusive e-PRO Internet Professional logo.

Both the content and the delivery platform were created by San Diego-based technology company InternetCrusade®. The course instructs participants in the professional use of e-mail, the development of an interactive Web site, and the use of online research tools. Graduates use the skills they’ve acquired to provide clients information on properties for sale, local communities, and the local real estate market.

For more information, e-mail Lee Forbes at Results@LeeForbes.com or call 941-725-4258.

Thank you kindly,

Lee Forbes     GRI, ABR

Premier Team Inc., REALTOR©

3850 SR. 64 East

Bradenton, FL 34208

Direct: 941-725-4258

Toll free 877-646-8326 

"We Make Real Estate Easy"

Visit my website LeeForbes.com

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Nearly a full third of households are still renting…but if you are one of them, you could be paying a hefty price.

Additionally, the children of the baby boomer generation are close to or at the home buying age, but these “echo boomers” could mistakenly decide to put off the purchase of a home because of all the noise about a “bubble” in home prices.

Is there a “bubble”? The simple answer is “no”. Even if interest rates move a bit higher, it won’t be enough to cause a nationwide slide in home prices. The key to a healthy housing market is the job market. If the payment on a new home might be slightly higher due to increased interest rates, it generally won’t stop someone from purchasing the home of their dreams…but if they feel their job is in jeopardy, it might be enough to stop them from making a move. So with the currently low levels of unemployment and the beefy gains in job creations, it looks like the housing market will remain vibrant. Although it will be difficult to sustain the double-digit gains that much of the country has seen, price declines are highly unlikely. Expect a more moderate rate of appreciation, perhaps closer to the historical 6-7% range, which is still very good.

It is important to note that housing tends to be localized. So if the job market in your area is weak, housing prices could under perform the rest of the country.

But this talk of a housing bubble has been going on for a few years now, and those who were unfortunately victimized by continuing to rent instead of purchasing a home are painfully mulling over their missed opportunity. But is it too late? Even with the more moderate levels of appreciation expected…procrastinating on that home purchase could cost you a bundle.

Let’s look at an example. If you are paying rent at $1,500 per month and your landlord increases your payment by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse yet, after forking over $100,000, you still would have nothing to show for it.

And speaking of having nothing to show for it – how about any improvements you might make to a rental property? It’s not uncommon for renters to freshen up the paint, install new light fixtures or plant some nice flowers outside. But guess what…all your efforts, labor and the benefit of that improvement belong to the landlord, not to you.

With the extensive variety of programs to help buyers obtain a mortgage with little to even zero down payment, the very same money could have been used towards home ownership. Even using a standard 30-year fixed program, a mortgage of $300,000 could be obtained with a total monthly mortgage payment – including property taxes and insurance – of around $2,200. I know taxes and insurance in Florida are higher.  This is just an example:  Assuming a 25% tax bracket, this would be equivalent to the average amount spent on rent during the same period after your tax benefit.

And the benefits of home ownership are quite considerable. Because the mortgage is being paid down each month, equity is being built. After 5-years, the $300,000 mortgage would be reduced to $279,000, adding $21,000 to your net worth. Home appreciation can add an even bigger chunk. If your home appreciates at a modest 5% per year, the value of a $300,000 home would increase to $383,000 after 5-years. Subtract the remaining mortgage of $279,000 and you have a whopping $104,000 of additional net worth! Even if the appreciation level were at 3.5% or half the historical norm, the result would be $77,000 of additional net worth.

But if laying out the initial increase in monthly payment and having to wait for your tax benefit to show up next April is a tough nut to crack, the IRS wants to help. Instead of waiting to file for the tax benefits derived from your new home purchase, you can simply adjust the amount of your withholding. This allows you to have less tax withheld from each paycheck so you can handle the new mortgage payment more comfortably throughout the year. In essence, you are taking your tax refund as you go instead of letting Uncle Sam hold it all year, interest free.

Visit http://www.irs.gov/ and use the IRS withholding calculator. This very handy tool can quickly show you the effect a change in withholding will do to your net paycheck. Remember to balance this with the expected refund and it is always a good idea to check with your tax advisor.

Don’t be victimized by the bubble hype. Buying a home is a big step, but it is almost always one in the right direction.

bubble

Fed cut. Good for the Economy ~ Bad for Inflation

The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.

What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction…or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures.

Overall, the Fed cut is good news for the economy, but may nudge inflation a bit higher.