{"id":353514,"date":"2010-02-23T12:10:43","date_gmt":"2010-02-23T17:10:43","guid":{"rendered":"http:\/\/mortgagenewsclips.com\/2010\/02\/23\/the-garrett-watts-report-written-in-67-degree-weather-in-berkeley-california-february-23-2010\/"},"modified":"2010-02-23T12:10:43","modified_gmt":"2010-02-23T17:10:43","slug":"the-garrett-watts-report-written-in-67-degree-weather-in-berkeley-california-february-23-2010","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/353514","title":{"rendered":"The Garrett, Watts Report (Written in 67 degree weather in Berkeley, California, February 23, 2010)"},"content":{"rendered":"<p>\u00a0<\/p>\n<p><a href=\"http:\/\/garettwatts.com\/\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px\" title=\"garrettwatts\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/garrettwatts5.jpg\" border=\"0\" alt=\"garrettwatts\" width=\"417\" height=\"66\" \/><\/a><\/p>\n<p>To Our Clients, Colleagues and Friends,<\/p>\n<ul>\n<li>What happens when governments run massive deficits and then create\/print too much money to fund them?\u00a0 Here\u2019s some data on the world\u2019s worst inflations, and note in the third column that this is the <em>daily<\/em> rate. If we were to look at it annually, there would be too many zeroes for this page. The famous German inflation had prices rising 29,500% in one month, but if you look at the monthly rate for Hungary , the number comes to 4.19 x 1016.\u00a0 That\u2019s 4.19 times 10 to the 16<sup>th<\/sup> power.<\/li>\n<\/ul>\n<table class=\"MsoTableGrid\" style=\"border-bottom-style: none; border-right-style: none; background-color: #ffff99; border-collapse: collapse; border-top-style: none; margin-left: 0.95in; border-left-style: none; background-origin: initial; background-clip: initial\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\" bgcolor=\"#ffff99\">\n<tbody>\n<tr>\n<td style=\"padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 70.2pt; padding-right: 5.4pt; padding-top: 0in; background-origin: initial; background-clip: initial; border: windowtext 1pt solid;\" width=\"94\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Country<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 103pt; padding-right: 5.4pt; border-left-style: none; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"137\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Peak of inflation<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 78.8pt; padding-right: 5.4pt; border-left-style: none; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"105\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Daily inflation<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-left-style: none; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Time for prices\u00a0\u00a0\u00a0\u00a0\u00a0 to double<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 70.2pt; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"94\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Hungary<\/span><\/span><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 103pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"137\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">July, 1946<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 78.8pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"105\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">207%<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"120\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">15.0 hours<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 70.2pt; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"94\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Zimbabwe<\/span><\/span><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 103pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"137\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">November, 2008<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 78.8pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"105\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">98%<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"120\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">24.7 hours<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 70.2pt; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"94\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Yugoslavia<\/span><\/span><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 103pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"137\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">January, 1994<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 78.8pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"105\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">65%<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"120\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">1.4 days<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 70.2pt; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"94\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Germany<\/span><\/span><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 103pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"137\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">October, 1923<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 78.8pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"105\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">21%<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"120\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">3.7 days<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 70.2pt; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"94\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Greece<\/span><\/span><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 103pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"137\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">October, 1944<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 78.8pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"105\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">18%<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"120\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">4.3 days<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 70.2pt; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"94\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">China<\/span><\/span><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 103pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"137\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">May, 1949<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 78.8pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"105\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">11%<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in;\" width=\"120\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\" align=\"center\"><span style=\"font-family: Comic Sans MS; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">6.7 days<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span class=\"Apple-style-span\" style=\"widows: 2; text-transform: none; text-indent: 0px; border-collapse: separate; font: medium 'Times New Roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px\"><span class=\"Apple-style-span\" style=\"font-family: 'times new roman', 'new york', times, serif; font-size: 16px\">And isn\u2019t it interesting that inflation so often goes hand-in-hand with disruption of civil society and personal freedom? Hungary and China had inflation concurrent with takeovers by Communist thugs, and in Zimbabwe , the inflation left something like 90% of the population unemployed. Let\u2019s not forget that Germany \u2019s 1923 inflation is widely credited with giving rise to Hitler.\u00a0 With enough inflation, governments can pay off their debts for pennies on the dollar, but they will destroy the country. Look no further than Yugoslavia .\u00a0 The time of their great inflation was when the country came apart, and today there is no more Yugoslavia .<\/p>\n<ul>\n<li>Some 25-30 years ago, this writer went to Rio de Janeiro for the Carnival at a time when Brazil was suffering from runaway inflation.\u00a0 We did a little test by buying a can of Coke Cola at the same time every morning in the hotel lobby, and at the same time every evening, and it was scary to see prices move up so quickly and inexorably. .<\/li>\n<li>Will the mortgage broker ever go away?\u00a0 We know some smart people who\u2019ve started up broker shops recently, and we think they\u2019ll find good niches where they add value and make a good living.\u00a0 Scott Van Dellen and Preston James are two such people, both of whom we helped make the move.\u00a0 The days of mortgage brokers making bazillions of dollars are gone, but you can make decent money and be your own boss. There are worse things in life.<\/li>\n<li>Do you want to acquire a failed bank with those great terms from the FDIC?\u00a0 Fine, but in order to qualify, you must have at least 10% total risk-based capital, Tier 1 risk-based capital of at least 6%, a Tier 1 leveraged capital ratio of at least 4%, and a CAMEL rating of 2 or better.\u00a0 The management component of your rating must also be a 1 or a 2.<\/li>\n<li>The last requirement reminds us of a friend who was CFO of a San Diego bank that got a CAMEL 1 but a 2 for management.\u00a0 Their argument to the Examiner-in-Charge was essentially, \u201cHow can you give us an overall rating of 1 and then give us a 2 for management?\u00a0 Who do you think did all the things that got us the CAMEL 1 if it wasn\u2019t management?\u00a0\u00a0 Was it little fairies that came in during the night?\u201d\u00a0 A hilarious and true story, but we forget the outcome.\u00a0 If they appealed it to the Ombudsman, we doubt he changed it. The Ombudsman<em>always<\/em> rules in favor of the regulators.<\/li>\n<li>Last week we wrote \u201cThis week\u2019s cartoon is\u2026\u2026.. mostly a comment on yes-men, brief-case carriers, ass-kissers and sycophants.\u201d\u00a0 We just re-read that sentence and were particularly pleased with it.\u00a0 Do you ever do that, write something you really like?\u00a0 By the way, Ardythe Brandon was the first person we heard who referred to someone as his boss\u2019 brief-case carrier.<\/li>\n<li>You know that 2-3 minute Hitler video that has subtitles about the USC football program?\u00a0 <a href=\"http:\/\/www.youtube.com\/watch?v=lDUpXwoj5Ck&amp;feature=player_embedded#\">Someone now put in sub-titles having Hitler screaming about HVCC<\/a>.\u00a0\u00a0\u00a0 It\u2019s pretty clever.<\/li>\n<li>Last week we mentioned that almost $42 out of every $100 of the federal budget goes to service the debt.\u00a0 Maybe we\u2019re being simplistic, but isn\u2019t that a bit like a family spending 42% of its money on credit card bills?\u00a0 Yes, a government can print money the way a family can\u2019t, but printing too much money almost always leads to disaster.\u00a0 Zimbabwe went crazy the last few years printing new money, and the result was inflation last year of 231,000,000%.\u00a0 Yes, that 231 million!\u00a0 If that happened here, that $4 bag of popcorn at the movies would cost $920 million.<\/li>\n<li>You say it can\u2019t happen here? Going back only 150 years to our Civil War, inflation in the confederate states was 9,000% by the end of hostilities. In the North, inflation peaked at \u201conly\u201d 80%.<\/li>\n<li>We see lots of smaller companies whose owners decide they no longer like personally guaranteeing warehouse lines, who are struggling, and who want to join a bigger organization.\u00a0 We also see few of these \u201cmergers\u201d really succeed. Client (and one-time Real Estate Finance student of mine at Cal ) Evan Stone did one such \u201cmerger\u201d and it\u2019s been a big success. The company he absorbed was much larger than his own Pacific Union, and one reason it may be succeeding is that he\u2019s letting the acquired company maintain a separate income statement, keep almost their entire management staff, and retain their corporate culture. We just find this interesting.<\/li>\n<li>What did Bob Gibson, Lew Burdette, Randy Johnson and Mickey Lolich all have in common?\u00a0 All won three games in a World Series, and that\u2019s quite something.\u00a0 Here\u2019s Randy Johnson, and if 12 year old kids still put together All Ugly Teams, he\u2019d be the starting pitcher.<br \/>\n<a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/j3.jpg\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px\" title=\"j3\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/j3_thumb.jpg\" border=\"0\" alt=\"j3\" width=\"134\" height=\"176\" \/><\/a><br \/>\nIt\u2019s amazing how much time we spent the summer after 7<sup>th<\/sup> grade doing All-Star Lefties teams, All-Star Jewish teams and so on, but the one we worked on most was the All-Star Ugly Team. Don Mossi (below) was always our starting picture. Bill James wrote of him &#8220;Don Mossi was the complete five-tool ugly player. He could run ugly, hit ugly, throw ugly, field ugly and ugly for power. He was ugly to all fields. He could ugly behind the runner as well as anybody, and you talk about pressure &#8230; man, you never saw a player who was uglier in the clutch.&#8221;<br \/>\n<a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/j21.jpg\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px\" title=\"j2\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/j2_thumb1.jpg\" border=\"0\" alt=\"j2\" width=\"143\" height=\"196\" \/><\/a><\/li>\n<li>We mentioned the movie <em>Valentine\u2019s Day<\/em>, and we forgot to mention that Taylor Swift can really act. Her portrayal of an airhead cheerleader is hilarious.<\/li>\n<li>Remember National Bank of Detroit (NYSE: NDB), Nice But Dull?\u00a0\u00a0 Mike McMahon reminds us that they never did big deals, just lots of small ones, and hence their other nickname for NBD, No Big Deals.<\/li>\n<li>Farmers Bank and Trust is a great example of a successful family-owned community bank, and we\u2019re proud to have done work for them.\u00a0 The banks owns an excellent mortgage company, CapWest Mortgage, and their head of secondary marketing Director dug up the Sinatra version of \u201cI\u00a0 Left My Heart in San Francisco,\u201d which is attached.\u00a0\u00a0 What do you think?\u00a0 We think it\u2019s good but lacks the soulfulness of the Tony Bennett one.<\/li>\n<li>We made a donation to the U.S.O. in lieu of Christmas gifts to our clients, and the more we learn about this great organization, the more we like what they do. Whether you\u2019re for or against the wars in Iraq or Afghanistan , we <em>all<\/em> support the young men and women stationed there.\u00a0 We strongly urge all of you to send a small donation to them, even if only $10.\u00a0 Contact them at www.uso.org.<br \/>\n<a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/j13.jpg\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px\" title=\"j1\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/02\/j1_thumb3.jpg\" border=\"0\" alt=\"j1\" width=\"113\" height=\"71\" \/><\/a><\/li>\n<li>We were just in Maryland , and what do you make of their state motto?\u00a0 It\u2019s <em>Manley Deeds, Womanly words.<\/em>\u00a0 What the heck does that mean?\u00a0 Well, we\u2019re off to Seattle .\u00a0 See you soon.<br \/>\n<strong><\/strong><\/li>\n<\/ul>\n<p><a href=\"http:\/\/garrettwatts.com\/\">Garrett, Watts &amp; Co.<\/a><\/p>\n<p><em>\u201cHelping <\/em><em>lenders increase revenues, control costs, and better manage risk.<\/em><\/p>\n<ul>\n<li>Corky Watts\u00a0\u00a0\u00a0\u00a0\u00a0 (<a href=\"mailto:CWatts@GarrettWatts.com\">CWatts@GarrettWatts.com<\/a>)\u00a0<\/li>\n<li>Joe Garrett\u00a0\u00a0\u00a0\u00a0\u00a0 (<a href=\"mailto:JGarrett@GarrettWatts.com\">JGarrett@GarrettWatts.com<\/a>)<\/li>\n<li>Mike McAuley\u00a0\u00a0 (MMcAuley@GarrettWatts.com)\u00a0<\/li>\n<\/ul>\n<p><\/span><\/span><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=azD8hPMhOUA:L0ks6Ir6Obs:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=azD8hPMhOUA:L0ks6Ir6Obs:D7DqB2pKExk\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=azD8hPMhOUA:L0ks6Ir6Obs:D7DqB2pKExk\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=azD8hPMhOUA:L0ks6Ir6Obs:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=azD8hPMhOUA:L0ks6Ir6Obs:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=azD8hPMhOUA:L0ks6Ir6Obs:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=azD8hPMhOUA:L0ks6Ir6Obs:V_sGLiPBpWU\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/mortgagenewsclips\/qTBe\/~4\/azD8hPMhOUA\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 To Our Clients, Colleagues and Friends, What happens when governments run massive deficits and then create\/print too much money to fund them?\u00a0 Here\u2019s some data on the world\u2019s worst inflations, and note in the third column that this is the daily rate. If we were to look at it annually, there would be too [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-353514","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/353514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=353514"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/353514\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=353514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=353514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=353514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}