Barney Frank doesn't like being ask a question

Daniel Hannan MEP: The devalued Prime Minister of a devalued Government

Protestors Rally Against Bailout

To Buy or Not to Buy

With recent changes to help the National Housing Market to bounce back from the bubble burst, it is bringing some benefits to housing markets that were not affected in the same manner, such as our local market.

Regionally in Cabell, Wayne and Putman counties especially, our housing market is remaining stable. Averages for days on market and the average home prices are not fluctuating greatly, it still remains a great time to sell and buy homes.

There is no doubt there is a solid inventory of homes available for buyers searching either for their starter homes for first time home buyers, larger homes for growing families, and homes ideal for folks looking to down size due to retirement or just not requiring the amount of space they once did.

Nationally, This never ending cycle is what keeps our market afloat, but with our local market remaining strong now may be the time to benefit from the changes that are taking place.
With interest rates plummeting to their lowest levels in U.S. history, speculation leads us to believe that there will be an influx of people returning to the market to purchase homes.

Lowered rates also give buyers in some cases the opportunity to purchase a higher priced home than before. In other cases, it will allow people to purchase who could not afford a home because the monthly payment would have been too high once the rate was factored into the monthly payment.

This is also a good time in the market for those interested in investment properties that are available on the market. Homes exist that can be renovated and re-listed for a profit or in other cases, homes that can be purchased to be rented to tenants.

Just think – owning a tangible asset that someone else pays for. Over the life of a rental property, theoretically, it can be paid for time and time again. Additionally, investment property can serve as a wonderful source of income currently or in retirement.

Whether you are in the market as a first time home owner, selling and purchasing a new home or interested in investment properties, it is a great time to get involved in the real estate market and reap the benefits.

Lisa Peana is a Realtor with Great American Realty. She can be reached at lisa_peana@yahoo.com

I Feel Better About Helping Automakers Than Banks

Call me crazy on this, but I do not feel the same anxiety about helping the Big Three that I did about the banks.

I supported the bank bailout because, well, we kind of had to. Banks are the engine of the economy and we all have a vested interest in seeing them survive. Without solid banking in the US, the world hits depression quickly. I believed it had to be done, but I did not have to like it.

The automakers are kind of a different story. Basically they followed the rules. The market wanted larger vehicles and that's what the Big Three gave them. The unions wanted strong salary and benefit deals and for the most part harmony has been maintained with them. You have to give credit to an industry that keeps good labor relations, satisfies the market, and turns a slim profit every once in awhile. Sure they do make some bad decisions, but they work on a much more slim profit margin than almost anyone else.

Fact is that this is a national security issue as well as an economic one. We need to remember that during wartime, we will need these factories to churn out tanks rather than automobiles. Of course we have seen jobs being sent to Mexico over the past decade, but perhaps we can reverse that.

Instead of a bailout, let us increase the number and call it something else. Call it a reinvestment. Instead of giving them enough to help them get by, let's set them up for the future. To stay in the United States, auto plants must completely modernize in the same fashion as the coal industry. How much will it take to get these operations into the twenty-first century while giving the UAW enough to make sure that these workers have a soft place to land, or can retrain? This would not only help automakers, but also invigorate our technology sector.

In return, for the next ten years, each American who can prove they paid taxes in 2009 should get a $200 rebate when they purchase a new vehicle from the Big Three. This would be a one time rebate. The federal government should also be able to count on very good deals from automakers providing vehicles in that same time span.

I just don't think that we can allow automakers to just go down the tubes. It doesn't make sense on a number of levels.

Why not the auto companies?

They were directly affected by the rise in oil prices that occurred over the last two years. After 9/11 auto makers were the first to start the effort to move the economy with lowered prices and 0% financing. Banks adjusted their standards and types of loans, but that was often worse for the borrower when they took on an ARM or interest only product. Lower payments today but a bigger total debt. $25Billion is such a small amount compared to the $850Billion total and at least they are making something other than money for themselves.

It was warned that several large industries would follow suit once the bailout was passed for the banking industry. It should be no surprise that the auto companies are following. Or, at least no surprise to those of us outside of Washington, DC. More and more the "bitter" middle Americans will see the voting of the masses in urban areas laying hold to our hard-earned, frugally saved money. Sharing the wealth it is called. Of course, looking around one might ask, what wealth are we sharing?

But the amounts are so big that people don't notice how it affects them. $850 Billion / 300 million people (not the number of taxpayers the number of people) = $2,833 per person. A family of four makes that $11,333 for the family. Assuming that is a one-time deal, you could buy a 2002 Chevy Tahoe, fully loaded, I just bought one, for what the government is going to give away on your behalf. Or a brand new small sedan. At least when you had given a car company nearly $12K in the past you got a car out of the deal. Now you get to pay for their kickbacks and be happy because we may save the economy in Detroit.

Of course, the fact is that from 2006 IRS numbers there were 92,713,707 tax payers (people who actually paid income taxes). Split the 850 Billion by those actually paying income tax and you get $9168 per person to pay for the bailout.

It's too much and it will only grow. At what point does the money come back? It doesn't. We pay off the car companies debts, and mortgage company debts, but can't pay off our own debts. Car companies won't turn around and help you pay off your car debt. Banks won't reduce your principal, despite what Obama suggested during the campaign of promised hope. If it is just a sacrifice we have to make, let's get the car companies back on track. At least I will eventually buy a car from them. Maybe they can even use it to build a flying car, I wouldn't mind paying an extra $10000 for a flying car.

Time to cut

My brother-in-law was just notified that the job he has held for 10+years is being outsourced. He monitors computer systems to verify that ATMs across the country have enough money in them at all times. My dad, who trains sales people, is being asked to present the value of his job. Corporate executive retirements are not being replaced, their positions are being consolidated amongst current employees.

I think our recession is more a question of the chicken and the egg. Wall street continues to fall, and companies are getting ready for the coming storm by trimming excess, even the lavish AIG meeting was targeted at finding ways to cut costs. So which is it, will Obama get elected because the economy is going into recession, or is the economy going into recession because Obama is in the lead? Obama and the Democrats are standing up and saying they are about to tax people beyond the point where it hurts. Going to spread the wealth. Not everyone will get taxed of course, but when they levy taxes on big corporations, where does that money come from? Price increases on the products that you buy.

Business owners are fairly savvy when it comes to matters such as this. Many smart business owners and executives understand the need to cut will be there. They understand that Obama may be offering a $3000 tax break for hiring a new full time staff person. However, in most professions, it takes more than that to train someone just to be productive. But when businesses stop hiring, or start cutting staff, the good folks in Washington will call them greedy, after all they were being given a "huge" tax break. The result will be more people getting paid for their votes than getting paid for actually working. That's how "spreading the wealth" works. Once more than 50% of the voting public no longer pays taxes, you can raise taxes all you want. Of course that ignores the economic damage that will occur, but you are safe in Washington and passing money back to over half the people, while the media just marches to whatever drumbeat you play.

If you are in favor of taxing people making over $250,000 (or is it $200,000 after the debate?), ask yourself how you think your life will be better if these "rich" people pay more in taxes. What do you think you will gain? More money goes to Washington, do you think that will be funneled back to you? What if your boss is taxed more forcing layoffs then the money goes to help fund poverty relief in Africa (Obama's one attempted accomplishment in the Senate). You are out of a job, but a dictator in a third world country gets to add another security guard to his detail. Not to mention that many people making over $250K are very intelligent, driven people, if their jobs are cut will you find yourself competing for your job with these people who are likely more qualified and experienced and now willing to work for less?

What's next?

First the economy was collapsing because of high gas prices, now no one is able to pay their mortgage and we are under threat of a worldwide recession and outright depression in the states.

At times like these I like to turn off my TV and look around. What will you see if you try this? Contrary to the talking heads spin, gas stations are not just open, they are packed with customers. I had to wait in line, car idling just to get to the gas pump. I chanced a look back at hwy 220 to see a steady line of cars in both directions. I saw no one walking, and no one on a bike. Perhaps they were sacrificing in other ways, skipping meals or wearing the same clothes for several days. I walked inside the station and everyone was neatly dressed in clean clothes, no one was outside begging change. The store had full shelves with multiple choices of anything I could want from coffee, pop, bottled water, energy drinks and so on. Several people added to their lunches a bag of chips, and not one, but two types of drinks. Not the most economical choice (a fountain drink) but a bottled drink which is more convenient when you eat as you drive.

Surely these well to do neighbors of mine must be simply indulging. Since the news sounds like the majority of Americans are facing foreclosure it must mean that I need to go see all of the houses in disarray. I drive through the neighborhoods which all look the same. There are a few more houses for sale, but I don't see any that have been boarded up or taped off. Nor do I see displaced people roaming the streets with shopping carts waiting for someone to take them to exchange an Obama vote for a pack of cigarettes. Perhaps this is an indication of the upscale area in which we live. When I moved here Keyser was not known for it's abnormal portion of success, but I contend that we must be the most affluential area in the country right now. I have approximately 2000 clients, I have friends and family in at least 12 states across the country and I don't know anyone in foreclosure. I asked a prominent realtor about the influx of foreclosures that he must be dealing with, he laughed and said, "come to think of it, I don't know of any". So I asked a realtor from Pittsburgh, none for her either.

So I will ask you, how many people do you know that are facing foreclosure? Have you made significant cuts to your own lifestyle? Sure people are slowing down in paying bills and getting behind, but do they still pay $3 per day for coffee and soda? Do they still buy powerball tickets? How many people live like we are in a major recession or on the brink of financial disaster? Last weeks homecoming game was packed with people and the concession lines were 10 people long while I was there. And all of that occurred before the major bailout bill was finalized. I am anxious to see who the next wave of major corporations that we must "bail out" will be. Will it be the banks again, or insurance companies, or professional sports teams, or amusement parks.