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HAMP Must Address Second Liens, Congress Hears – By DIANA GOLOBAY – … Earlier at the hearing, Laurie Goodman, senior managing director at Amherst Securities, pointed toward the key role negative equity plays in predicting default behavior, saying HAMP’s failure to address negative equity meant it was destined to fail. Only principal reductions can make a lasting effect, Goodman said, but financial conflicts of interest keep servicers from reducing principal. … – HousingWire –    hattip Ira Artman
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MUST READ: Testimony of Laurie Goodman, SMD Amherst Securities before the House Financial Services Committee – Makes 2 points –   house.gov

Laurie Goodman Testimony 8 Dec 2009

Will my generation be safe?

Editor, The Times:

My name is Molly, and I go to Chief Sealth High School. A class I’m taking called Global Leadership is teaching me a lot about climate change, and the more I learn, the more scared I get [“Climate policy we can afford,” Opinion, Paul Krugman syndicated column, Dec. 8]. I’ve been looking to the convention in Copenhagen as a sign of hope, as something to combat this growing claustrophobia and panic. And yet I continue to see President Obama, America’s own visionary, play down the threat.

I know adults think it’s easy for kids to want radical things because we may not have jobs or cars or mouths to feed. But this is really our battle. My generation is the one that’s going to experience the major consequences of our predecessors’ carelessness.

I can watch the ocean begin to swallow the island and people of Kiribati, and I can watch the search for drinkable water become desperate for people in Bangladesh as their own sea level rises. When I learn these things I feel guilt, I feel helpless, and I feel like we’re next.

I know a common perception of teenagers is that of desensitized human shells. But we stay up at night, wondering if we’re on the edge of an apocalypse.

I can’t be in Copenhagen. I don’t have the power to change the world just by eating vegetarian and taking the bus. I need to know that the powers of the world care about me and my future. I need our world leaders to step up to their responsibilities, and lead our world to a sustainable future.

— Molly Freed, Seattle

‘The Wizard of Oz’ and the Earth’s rising temperature

In the classic movie “The Wizard of Oz,” Dorothy and her friends see a little man behind a curtain madly manipulating instruments. When the wizard realizes the little man has been spotted, he thunders, “ignore the man behind the curtain.” Too late. Dorothy and her friends realize the wizard is a hoax [“Copenhagen talks begin today in stormy climate,” page one, Dec. 7].

Advocates of global warming recently had e-mails published that admit they have been manipulating data, ignoring and suppressing data that doesn’t support their preconceived conclusions, and generally cooking the books. They systematically try to silence those who question them through lies, ridicule and outright intimidation.

It turns out global warming is a huge hoax, that has nothing to do with climate change. It is designed to promote a social agenda and extort trillions of dollars from the citizens of the world through fear.

The response of the biased mainstream media is to try to ignore and cover up the content of these e-mails. They tell the public, “ignore the man behind the curtain,” but it is too late.

The ugly truth is that global warming — or climate change, or whatever one wants to call it — is a left-wing socialist hoax.

— Gerald D. Cline Jr., Seattle

Climategate: the global climate controversy

Conspiracy theorists are like suicide bombers — loud and dramatic — but there are only a few of them, and they are soon forgotten by all but those they injure [“Hacked e-mails heat up Capitol Hill,” News, Dec. 3].

In the case of Climategate, the conspiracy theorists are wearing WMD and may injure us all. They’re generalizing a few pieces of doctored data in an attempt to impede the entire sustainability movement.

While it may be true that a few scientists in the U.K. have manipulated data, and while it may or may not be true that the climate is warming, what is crucial to realize is that both climate-change science and Climategate are red herrings, distracting us from specific, vital issues that threaten humanity.

Whether in climate change humankind has created a monster or a myth couldn’t matter less. Beyond the issue of global warming, readily verifiable facts show we’re running out of fish, forests and fresh, clean water.

If we continue to abuse the Earth, we in the developed world will certainly encounter a drastic decrease in the quality of our lives, while witnessing the excruciating deaths by starvation and poisoning of hundreds of millions in developing regions.

— Galen Sanford, Covington

In need of a common sense U-turn

It’s not often The Seattle Times’ editorial opinions are pointed the wrong way in regards to common sense. Except for a car parked in the wrong direction on a freeway, apparently [“The right ruling on a wrong-way car,” Opinion, editorial, Dec. 7].

If no ticket can be given because a police officer didn’t see the car drive in the wrong direction, then that would also mean a body with four bullet holes can’t be murder unless a police officer saw the shooting. Or a drunken driver isn’t drunk unless the police officer saw the drinks consumed.

And so forth, on and on.

The editorial writers need to make a common- sense U- turn, and hope a police officer doesn’t see it.

— Don Johnson, Kirkland

Traffic ticket sent to Supreme Court?

Having a traffic ticket reviewed by the Washington Supreme Court doesn’t say much for the intermediate judges in the appeals courts, or any other decision-makers in the system who allowed this farce to proceed.

I suggest the appeals cost be apportioned out to those involved, and deducted from their termination pay.

— Terry Slaton, Federal Way

Only true reform is single-payer option

It is now crunch time for our U.S. members of Congress to show their core values about representing the vast majority of us who want and need real health-care affordability and access [“Senate reaches deal to strike public option from health bill,” page one, 9].

I, along with my wife, children, friends and relatives, will be watching very closely, as our elected senators and representatives decide whom they stand with.

Will they stand with the voters who put them in office, or the behemoth insurance companies that are stuffing their pockets with money and/or promising massive payouts behind closed doors, after leaving office.

I know the only true reform comes through the single-payer option, with a distant second place being a strong public option. Anything else is a sellout, and an outrageous abandonment of my family, relatives, friends and fellow countrymen.

— Gary Ochsner, Seattle

A Christian Scientists’ spiritual health care

The article “Christian Scientists lobby to add prayer to health bill” [News, Nov. 26] seems to conclude with the impression that Christian Science healing is ineffective.

Those who have never witnessed or experienced physical healing through the study of Christian Science may be persuaded to place it in the category of questionable faith healing or mere positive thinking, which it definitely is not.

When I was 12, my mother was diagnosed, treated and labeled incurable by three independent medical specialists. Our family then witnessed her complete healing solely by Christian Science treatment recommended by a neighbor.

For more than 50 years since then, I have relied solely on Christian Science to maintain my own health because of its dependable results when correctly adhered to. Because of this, I have no recorded medical history.

Some of the healings I’ve experienced through Christian Science treatment are blood poisoning, broken arm and foot, abscessed tooth, influenza, migraine, impaired eyesight, dislocated hip, heart problem and back injury. There have been a multitude of others, which proves to me and to those who have witnessed it, Christian Science offers a remarkable, Bible-based system of spiritual health care.

— Julie Foskett, Edmonds

Blaming the Republicans

I was amazed reading the column “$10 an hour with 2 kids? IRS pounces” [NWSunday, Dec. 6], but the greatest shock was columnist Danny Westneat’s efforts to blame this on Republicans.

No, there’s no bias in the printed media press. Westneat seems to have forgotten that it was the Republicans who tried to abolish the IRS in the 1980s.

I think the Democrats love the IRS — the more income they can divorce from American citizens, the more they can spend, and the more they can control our lives.

Conservative Republicans have longed for the day when the IRS remains only as a past nightmare.

— Richard Monson, Goldendale

This is what my tax dollars paid for?

An article describing a smuggling ring in the small city of Pacific has sickened me [“Pair accused of smuggling, enslaving illegal immigrants,” NWFriday, Nov. 27]. I have so many questions, which produce skirting answers from public officials of any stature.

Why do my tax dollars fund enforcement of pathetic minor infractions, which do not directly protect members of the community?

How did my tax dollars support upgrading police cruisers to high performance secret-service-style sports cars?

I drive through Pacific five days a week in 25-mph zones. It is well known that speed enforcement is a high priority in this city.

Now I’m informed that I have been coasting by the dwelling of violent smugglers. The sexual, physical and emotional abuse was reported in 2006, verifiably. Realistic people know it has been going on for much longer, but the children’s cries for help were ignored.

Will protecting our safety ever supersede the importance of creating city revenue?

My guess is, no. I will continue to drive past meth addicts, and possible prostitutes because the almighty buck is more important than our present and future safety.

— Erin Anderson, Puyallup

To Our Clients, Colleagues and Friends,  

• We think that the paperless office is clearly the future for mortgage banking, but for everyone doing it successfully, we see someone for whom it just doesn’t seem to help speed up the process. We’d love to hear of your real success stories out there. Or any real disappointments.
• A pretty high rating in the Dumb Bank Names Hall of Fame goes to a California bank with the improbable name Bank on It.  The stock in this small bank trades, under the symbol BKOT.
• The always curious Chris Brown analyzed the big banks last week, and here are the Texas Ratios for the five biggest.

Isn’t it interesting that the two banks that most investors are worried about, BofA and Citi, have the lowest (i.e. best) ratios?  For those new to this, a Texas Ratio of 36% means, at its most basic, that for every $100 of capital and loan loss reserves, the bank has $36 of bad loans. Bad loans are defined as non-accruals, REO, plus loans 30 days or more delinquent.  We prefer using 90 days and would settle for 60. A number over 100 is supposed to be a very good predictor of the bank failing. 

• When the Texas ratio gets too high, it’s also a predictor of the Bank’s obvious need to raise new capital.  From the bank’s perspective, it’s a simple issue:  Do they raise capital and stay alive, or do they not raise capital and fail.  From the shareholders perspective, the possibilities are (1) Does the bank not raise capital and fail, and (2) if it does raise capital, does the bank survive but with my interest as a shareholder being wiped out.   This refers to highly dilutive capital raises, and we’d love to see the dilution numbers for the typical deal the past year or so. Temecula Valley Bank almost did a deal to raise new capital which would have saved the bank. Unfortunately for the shareholders, it would have been 95% dilutive. Deals like this remind us of the line uttered during the Vietnam War, that ‘We had to destroy the village to save it.”
• Hey, we have an idea. An analyst at Oppenheimer was the guy during the S&L crisis twenty years ago who coined the term Texas Ratio, so we’ll claim authorship of a new phrase, the Vietnam Strategy.  This will refer to a strategy of raising dilutive capital that saves the bank but destroys the shareholders.  If you’re at a Board meeting and your investment banker tells you “We have good news…. we can raise capital for you”, ask him about the bad news.  Ask him if it involves a Vietnam Strategy.
• We just re-read Upton Sinclair’s The Jungle, the story of a Lithuanian immigrant family that comes to America and goes through truly horrible struggles. The most devastating mistake was the decision to use all their money for the down payment on a house that was way beyond their means. All the nightmares that follow start with the father losing his house to the bank.  The book was published in 1906, but it sure seems relevant to 2009.
  To fellow libertarians, now that you’ve read Atlas Shrugged, please read The Jungle. It will convince you that Ayn Rand’s cold-hearted philosophy needs to be tempered with a good dose of compassion. 

• Be careful about the clichés you use. What if you have a Texas Ratio of 200%, a C&D and a Prompt Corrective Action letter, but you tell your Board that you’ll be okay, that  “No way the FDIC seizes the bank.  That’ll happen the day it snows in San Francisco ” knowing that it never snows here.  Um, a few days ago it snowed throughout the San Francisco Bay Area.

• Kevin Tam answered our question about General Motors, noting that GM’s market capitalization, which was once more than $40 billion, is now about $372 million. He  contrasts that to Peet’s Coffee with a market cap of $400 million.  GM once epitomized the industrial might of America .  Have Starbucks and Peet’s now replaced the once iconic GM as epitomes of American business?
• Is the demise of General Motors as an American icon a sad thing, or is it just a reflection of the times? In terms of symbolizing America and our great strengths, wouldn’t we prefer that the world see Microsoft, Apple, and even Google as symbols of American business rather than an auto maker?

• Remember our mentioning the song “Get an ugly girl to marry you”?  A very senior officer at a multi-billion dollar bank (we’re not naming names) sent in the second line, completing the opening “If you want to be happy for the rest of your life, never make a pretty woman your wife, so for my personal point of view, get an ugly girl to marry you.”  This song was truly a phenomenon at parties. Everyone would sing along loudly, but when it came to the last part – “Get an ugly girl to marry you” – people would stop dancing, look up at the ceiling, and shout those last words at the top of their lungs.  They’d then laugh hysterically, as if it were the first time they’d heard the song.
• Good news:  A secondary marketing person wrote us that they sang the “Ugly Woman Song” at parties when she was in college around 8-9 years ago. It still lives!  Long after you’ve graduated from college and completely forgotten the point of Beowulf, you’ll still remember that song, and isn’t that precisely what college is all about?  And speaking of Beowulf,  wasn’t that about the worst book you ever read?  Even the Cliff Notes were incomprehensible.
• In a few weeks it will be 2010, so let’s look back fifty years to 1960. Financial historian Barbara Campbell tells us that the total national debt was $286 billion, a first class stamp was $.04, a gallon of gas was $0.25, a brand new Chevrolet was $2,600, and the average salary was $4,743.  The nostalgia for that decade implies that it was the best time imaginable, which like most generalizations, is only partly true.
• So before we get too nostalgic for the 60’s, remember that 55,000 American boys were killed in Vietnam, 10,000 Soviet missiles were aimed at us, blacks couldn’t vote, eat in most restaurants, or sleep in a hotel in the South, tens of millions of Americans lived in crushing poverty, and woman couldn’t get hired for most jobs other than as secretaries and teachers. If a woman got pregnant against her wishes, she had to go to back alley for an abortion, our air and water were horribly polluted, many men died of heart attacks in their 40’s and 50’s, and very few women survived breast cancer.  It was a fun decade in many ways, but it was also scarred with horrible assassinations, a draining war, and all the upheaval that accompanies change.
• We asked, tongue in check, what a Mojo was, and we got 30-35 responses, among them: “Mojo is when everything is working for you, and our Mojo has been working, with a 100% increase in volume this year.”  Or from a woman in Sacramento “I’ve always considered Mojo the same asswagger.”  And   “Mojo is a proper noun! You either have it or you don’t!”  From Kelly in Phoenix “It’s a presence.”  And from Illinois “Greenspan does not have it. Brett Favre does.”  Or this one ”It’s as simple as…. 20 kids in a room and you can clearly see who has Mojo and who does not!”  Here’s one that’s a good guess but is wrong “It’s the same as a Soul Patch.” Here’s another wrong answer:  “Jim Morrison sang about it in L.A. Woman when he sings “There’s a Mojo rising”.  Most likely, he was referring to the sun or moon.”   And about 20 people sent us the definition right from the dictionary.
• For your viewing pleasure, here are the bank holding companies with the biggest credit card portfolios.

What’s interesting is how quickly the numbers drop off.  The 15^th biggest is Popular Bank with $1.1 billion, #21 is Bank of the West at $385 million, and #29 is First Horizon at $151 million.  These are all from the December 1 issue of American Banker.

• And how about Richmond , California ’s Mechanics Bank?  These guys just don’t believe in stock splits, so one share is $11,000.
• Next time you see the Salvation Army people, why not slip $5 into the pot instead of a quarter. It’s a good organization doing good things. And next time a homeless person outside the supermarket asks for spare change, why not take him inside with you and buy him some food?

Garrett, Watts & Co.   special article:  How to Use Return on Capital to Determine ProfitiablityHelping mortgage lenders increase revenues, control costs, and better manage risk.

• Joe Garrett         ([email protected])
• Mike McAuley      ([email protected])
• Corky Watts         ([email protected])

Filed under: Japan, Nissan

Here’s a bit of interesting folklore for you history-obsessed car buffs out there. Nissan (then selling Datsuns) was tricked into coming to America. Seems that Nissan never planned to sell cars here, as they felt that their diminutive, economical rides were too small and slow for the mighty U.S. market. However, one man felt different: Nobushige Wakatsuki.

The year was 1958 and Wakatsuki had a job with Marubeni Trading Corp. where he was charged with finding Japanese products to import into the U.S. Wakatsuki approached Datsun’s management and asked them if they’d be interested in bringing the brand Stateside. After all, Toyota had just began selling cars to Americans in 1957. Wakatsuki was humiliated when he heard their blunt reply, “No.”

But Cazy Nobe — as Nissan execs would later refer to the then 29-year-old — refused to let a good business opportunity go to waste. He went ahead and procured some cars from Nissan under the pretense of a marketing exercise and proceeded to put them on sale. All of this was done behind Nissan’s back. Which really pissed them off. In fact, it took another full year of pestering before Nissan took over the dealer network Crazy Nobe established here in 1960. However, the joke is on them, as Nissan/Infiniti sold nearly 1,000,000 cars in the US last year.

Nobushige Wakatsuki died on November 13, 2009 at the age of 81. Thanks for all the good memories, Mr. Wakatsuki.

[Source: Automotive News – Sub. Req. | Image: Fudge]

Nobushige Wakatsuki, the man responsible for bringing Nissan/Datsun to U.S. dies at 81 originally appeared on Autoblog on Wed, 09 Dec 2009 17:59:00 EST. Please see our terms for use of feeds.

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As an avid infosthetics reader, you should be well accustomed with the notion of infographically animated movies. Well, you might be surprised that the latest infographic movie in Australia has caused a storm of controversy, which even motivated the country’s Prime Minister to step in and comment that the company in question should have ”a long hard look at itself”.

The background is not that complex. Westpac, one of the only 4 large banks in Australia, recently raised its variable mortgage rate with 0.45 percentage points, nearly twice the level of the Reserve Bank’s 0.25 percentage points increase, and significantly more than its 3 other competitors. While this initiative was already enough to score some major headlines in the national press, the bank tried to smooth things over by sending hundreds of thousands of Westpac customers an email on Monday night from the bank’s retail chief explaining its supercharged interest rates.

Included in the email was an infographically animated video titled “Cool Bananas”, justifying the bank’s decision to raise interest rates by comparing the business of banking with selling banana smoothies. Just as a storm hits and destroys a banana field, and increases the prices of banana smoothies, the banks were hit by a crisis of their own, increasing their cost of lending. For those outside Australia, the chosen theme subtly points to an Australian phenomenon in its recent past, namely the banana shortage caused by Cyclone Harry in 2006, which increased banana prices across the country by 400-500%.

Australian banana farmers, advertising executives (already embarrassed worldwide by the recent Vegemite “iSnack 2.0” rename debacle), local politicians and bank customers somehow did not like the gesture. Their comments range from the utterly condescending tone of the movie, to the implied comparison between “an act of God” (the hurricane) and the (self-inflicted?) current banking crisis.

Read some the press coverage here and here.

Watch the infographic video in question below. (sorry for the bad quality, cannot seem to find better version)

Vaska herbatergent is making a switch to greener packaging which is a smart move in my opinion as it will help convince eco-savvy shoppers to use their laundry detergent. I actually like Vaska a lot. It’s one of my two current favorite green laundry detergents.

However, one of my issues with them when I first tried it was their packaging. The packaging wasn’t actually terrible before. The bottles of Vaska are made with from up to 50 percent post-consumer content, and can be recycled in most major cities. Both the bottle and lid carry a recycling reminder which is awesome (and rarer than you might think among green companies). That said, I think people are more likely to recycle cardboard so I noted that it’d be nice if a box option was offered.

Now though they’re offering newly packaged detergent at Sam’s Club Stores in California and Nevada. The new greener package called, Jerribox, consists of a plastic bag contained within a 50% post-consumer recycled paperboard exterior. The Jerribox saves approximately 62%* plastic usage compared to the plastic bottles that are currently the industry standard.

In addition to the Jerribox, Vaska’s laundry line includes 48 oz and 96 oz lavender scented and unscented herbatergent, oxybleach (non-chlorine), herbasoft fabric softener and spotoff spot remover. Many of Vaska’s products carry the EPA’s DfE seal and all are biodegradable and gray water safe.

I’d be WAY more likely to buy Vaska in the new packaging since it cuts down on even more waste. Also cool to note, back when I first reviewed this detergent, the company told me that they’re working on a powder too. Right now the only downside is that the new packaging seems to only be available at Sam’s Club, but Vaska does plan to make the Jerribox available to other retailers in 2010.

Visit Vaska to learn more.

Post from: Blisstree

Vaska detergent moves to greener packaging

You really need to watch this.  News to follow.

   <<< click

http://www.flixxy.com/best-christmas-lights-display.htm

Amazing Christmas display with 176 channels and 45,000 lights! The show is so popular that it requires a crew of 3 people to manage the traffic. 

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Short Sales Mitigate First-Lien Severities, BarCap Says – By DIANA GOLOBAY – Short sales may be partially responsible for the falling of first-lien severities in most non-agency sectors, according to securitization research Friday by Barclays Capital (BarCap).  Mark-to-market loan-to-value shifts and the rising share of short sales in recent liquidations can mostly explain the severity declines.  – HousingWire

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Why Didn’t Canada’s Housing Market Go Bust? – James MacGee – hattip Ira Artman – FRB Cleveland     (hint: down payment/homeowners equity)  
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House Flipping Makes a Comeback – By JAMES R. HAGERTY – … Now, a different breed of flipper is proliferating: one who seeks bargains at foreclosure auctions. Unlike the boom-time flippers, the latest generation needs cold cash, lots of local-market knowledge and strong nerves. … – Wall Street Journal

It’s not hard. We promise.

Maybe this year you’re hosting company for the first time? Or perhaps you’re already an expert entertainer but never serve cheese because you just don’t know how to make sensical combinations?

Here, all you need to know: 5 basic guidelines, for amateurs and masters alike.

Read Full Post

Chart du Jour: Unemployment Around the World – According to the IMF, despite early signs of an economic recovery, most countries around the world should see unemployment rates rise from 2009-2010. – Plan B Economics
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on market reaction to unemployment – … We are seeing the first signs of improvement in the jobs data and the equity market is nervous? What gives?  The now famous risk trade works on the premises that the dollar liquidity and zero rates would be around for quite some time.  The Fed is on hold for one simple reason – employment weakness. As long as the US jobs market stays weak, the “cat is away and mice can play”. – Sober Look Blog

Barney Frank’s House bill H.R. 3996 – impact on secured lending – …  It would require secured creditors, like repurchase agreement lenders and the Federal Home Loan Bank system, to bear losses of as much as 20 percent to cover the costs of a systemically significant bank failure. … – has list of 5 increased risks to financial system – Sober Look Blog

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China’s Consumption Conundrum – Tom Lindmark – looks at the question if China can increase consumer consumption from already high levels to spur further recovery – But Then What Blog
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Who in America is Paying Taxes? – great chart – 7% of the people pay 70% of income taxes and 47% pay zero federal taxes. …  – Plan B Economics

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Too many people pay no income tax – Scott Grannis – … Nuni, a very good friend of mine, made a similar comment to me this morning:  If we talk about the unfairness of those making a lot of money and not sharing enough with those who don’t make a lot of money, how about the unfairness of those who don’t pay any taxes asking to increase taxes on the rich? The fair thing to do would be to say that only those who pay taxes should be able to give an opinion about raising taxes. The rest are just going along for a free ride. And that’s definitively unfair … – Calafia Beach Pundit

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Low interest rates lure banks to take risk: study – … The study from the Bank for International Settlements (BIS) found evidence of a significant link between an extended period of low interest rates prior to the financial crisis and banks’ risk-taking.  …”It is important…that prudential authorities be especially vigilant during periods of unusually low interest rates, particularly if they are accompanied by other signs of risk-taking, such as rapid credit and asset price increases.” … – Reuters
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The Government Bubble When will it pop? – Brian S. Wesbury and Robert Stein – … In other words, loose money has created a temporary mirage in which a massive increase in government spending appears to be an easy burden to carry. In particular, the mirage of low rates colors the public’s view of legislative efforts to fully nationalize the U.S. health care system, making it seem more affordable than it is in reality.  How is this any different than the housing market from a few years back? … – Forbes

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Lending Squeeze Drags On – By LIZ RAPPAPORT and SERENA NG – 2 interesting points – …   One measure of the retreat in consumer lending: In 2005, over six billion credit-card offers flooded consumers’ mailboxes. This year just 1.4 billion have been sent out, according to Synovate, a market-research firm … and … These securitization markets provided as much as 50% of consumer lending in the years leading up to the crisis, says Tim Ryan of the Securities Industry and Financial Markets Association, a financial-industry trade group. “Without [the securitization markets], it’s very difficult to replicate the amount of money moving into the economy,” he says – Wall Street Journal