East Bay Real Estate

This past week Congress interviewed some of the top executives in the Banking industry to find out what was delaying their institutions from providing liquidity back into the mortgage markets.

The heads of the major Banks had tough questions presented to them this past week in Washington.  They did not have any credible answers.  They are still holding on to cash that has been provided to them from the $850 Billion bailout Congress passed last month.  It appears that they are adding to the delay in having consumers start to recover from credit meltdown.  Congress told them that the bailout was meant for them to provide instant cash into the mortgage markets.  It is not happening.

Further, Congress let them know that if the liquidity issues is not addressed immediately, the next steps in the economy may cause it to sink further into the abyss of a deep recession.  The facts are that until the real estate markets are back in business the U.S. economy will be hard pressed to make a comeback. 

In addition, the added CRISIS is the U.S. auto industry’s pending collapse.  Now they have their hands out for an additional $25 Billion “loan” from us, the consumers.  The president of GM, Mr. Wagner, was asked in an interview on Thursday how he could justify a 30% increase in his compensation this year to a $17 million salary when GM is tanking.  His repsonse was that GM was considering an executive pay freeze.  What a novel proposal!?!?!?  Six years ago Toyota started a complete re-tool of their line-up of car choices to the consumer with an focus on fuel efficient cars - including the Prius Hybred.  It is a stretch to imagine that because GM, Ford, and Chrysler continued to focus on quarter profits instead of long term planning Toyota was planning for the future.  Now, it appears we are expected to bail out GM/Ford/Chrysler because of their shortsighted vision for their companies.  Does this make sense to anyone else.  I welcome your thoughts about the steps that need to be taken in the next few months to begin our long awaited economic comeback.  Until next time. 

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Hunger never takes a Holiday!  The Food Bank Pantry is almost empty, and the need is GREAT!

Every month there are 70,000+ meals served in Contra Costa and Solano Counties!!!  And with because the financial stress of the last year and specifically the last few months the need for meals has skyrocketed, and the Food Bank  resources have shrunk.  Unemployment is rising, the economy is still being impacted each day by the credit meltdown, and people are acting from fear when it comes to meeting the needs of their specific family.   The East Bay real estate communities are banding together with a commitment to find people like you to help.

The Food Bank warehouse is located in Concord, California, and it is huge!  If you stop by there this week, the shelves are almost bare.  The demographics of the East Bay range from incredible wealth to incredible poverty - all within a 20 mile radius.  Those with a loaf of bread need to share a slice of it with someone.  Those with only a slice of bread need to share a bite with someone.  It is even more important for us, in these uncertain financial times, to live out the words, “Service Above Self”.

The Food Bank is the one at the front lines of providing meals to those in need in our community.  They desperately need our help - NOW.  In Contra Costa and Solana Counties 33% of the people receiving emergency food are children and 21.4% are over 50 years old. The Food Bank has created a method for you to “shop on line”  in order to fill their Pantry.  Also, any cash donation allows them to purchase $6 worth of food for every $1 donated!  With the need so great, please take action today.  It will only take a few moments of your time and the meals served because of your kind help will sustain thousands less fortunate than you.  And, if you are driving downtown Danville this next week, please drop off any non-perishable food or checks made out to the Food Bank to our office at 760 Camino Ramon, Suite 200, Danville, in the Rose Garden Center.  Or, contact me  and I will come and pick up any donations from your home or place of business.  Until next time…your East Bay lifestyle detective remains on duty.  

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Next Tuesday will culminate the most historic event in U.S. politics with either an African American as president, or a woman as Vice President!

Obama/Biden vs. McCain/Palin - I don’t know about you, but I am exhausted with the 20 month marathon of this campaign.  I can only imagine that the CNN reporters are in the same condition - exhausted, given they work very hard each day to come up with the “newest best thing”  to report on daily.  What in the world is CNN going to do after Tuesday for their daily entertainment?   Here are some of my suggestions to consider for the next Presidential election;

Anyone running for President who currently holds an elected political office must resign that office so someone else can be appointed who will serve their constituents during their campaign.  A person running for President is out of the Congress, Senate, or as Governor for 20+ months campaigning and it is not fair to those who elected her/him to be without representation.

The Republicans and the Democrats need to be provided equal Federal campaign funds to spend on their race for the White House.  NO  other campaign funds are allowed to be spent by either candidate.  Then a level playing field will be created so the Presidency will not be able to be “bought” by whomever has the most money.

NO  negative advertising will be permited; print, mailers, newspaper, or television.  The candidates will only be able to address the topics of their Presidency if they are elected.  The question addressed by each of them during their campaign will only be, “Why should I be elected President?”  Not,  “Why you should NOT vote for my opponent?”

All campaign promises made by a Presidential candidate will be logged into a website that will be managed by the Federal Election Committee.  This website of promises will be updated for the entire four years of the winning candidate’s Presidency.  The results of how they delivered on their promises will be posted monthly for all to see.  Accountability  seems to be a deadly word in Washington today.

I am sure you will have many more ideas that need to be considered, too, so leave a comment about how our next presidential election will be more beneficial for our entire country.  My next political observations are the State and local races, and issues that can boggle the minds of any voter.  Here are some of my observations…

Local city council elections can be as negative and mudslinging as any of the National elections.  Once a person becomes an incumbent they usually want to stay in their elected office.  Some incumbents do amazing things to make sure they stay in office.  There must be a “nasty campaign school” that is hidden from the public where candidates can learn how to sabotage opponents.  You may want to vote for the new person on the ticket and see if they bring  new ideas to local issues.  And, anyone running for office needs to checkout the California Campaign Fair Practices site.

Carefully consider initiatives that impact your personal pocketbook and determine if you really want to spend the money that the initiative is promoting.  Next support issues of human and civil rights.  Vote No  on issues that take away any rights of privacy, or civil rights.

Support initiatives that assist with education and roads.  We need more financial support of our schools in order to regain a world class position of our schools in California.  And, our roads are falling apart Statewide with little end in sight.  They need our help, too.

OK, enough of my political ramblings.  The bottom line is I am mentally worn out with this election year.  So, let’s turn off the TV,  stop the newspaper deliveries, and work on the local needs of our communities instead of believing the sky is falling and running for cover.  It is not,  and we will continue to create a magnificent local, State, and National experience.  But, we will all need to work on it together.  Until next time, let me know your thoughts…  

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Once you get on the Slipper Slide Of Fear, it is difficult to get off!  Please stay off that slippery slide!

So, I picked up USA Today  last Saturday on my flight to the Luxury Real Estate  Fall Conference in Philadelphia where I was a presenter. The USA Today headline was, “FEAR is a slippery slide!” In some of my past comments I have used the sailor’s mantra, “Do not be fearful!”   It still applies today,  in spite of an almost 900 point recovery on the Dow Jones the past two days.  Don’t forget…once one steps on the “slippery slide” of fear,  the momentum carries you away very quickly.

The voice of experience, the voice of the local authority, and the voice of credibility can still prevail.  And, we are the ones that need to be that voice. I just completed a walk from the Philadelphia Ritz Carlton  to Constitution Hall, the Liberty Bell, and other reminders of the work our founding farthers did on our behalf 230+ years ago. What an inspiring day!  ( You may recall this is the organization who is the acknowledged authority of luxury real estate!  It was founded by Brian Losh with a vision of connecting the best luxury Realtors in the world - 1,900 members from 63 countries.)

Do you think they were afraid? Of course they were. But, the consequences of letting fear paralyze them from action was not an acceptable option. Instead of the “slippery slide” of fear taking them away from the liberty and freedom they so dearly wanted for our country, they discovered - step by step, the actions needed to create the most incredible democracy in our world’s history.  It was very hard.  Thousands of lives were lost as part of that payment for liberty.  And, the founding fathers never lost site of end result that was required - FREEDOM!

There is a book I have enjoyed reading several times - “The Tipping Point”. They have a very insightful analysis of Paul Revere’s ride in Boston a few days before the Revolutionary War was officially declared.  His ride was so effective that it mobilized the citizens along his route in a manner that called them to action in stopping the British from confiscating their arms stored in Concord. Did you know there was a second rider who was sent in a different direction to alert another section of Massachusetts immediately prepare to defend Concord. Does anyone remember his name? In fact, I had never heard of him before I read “The Tipping Piont”. He was totally and utterly ineffective to a call to arms.

What was the difference between these two men with similar intentions? Paul Revere was one of the most respected local authorities on what was happening within the colonies which he believed required a liberation movement to break away from British Rule - even if it meant war. I would like to be as effective as Paul Revere during these uncertain economic times. We are the local citizens calling our “citizens” to action in order to work through the financial crisis we are in.  Will you join me as we serve our clients and communities, and help them off the “Slipper Slide Of Fear?” ( You get bonus points if you email me with the other freedom rider’s name whose ride was a waste of time. )  Contact me with your thoughts.  Until next time…

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No matter how positive and resilient one is, we are in stormy economic times!  However, opportunities abound in the midst of economic hurricane!

I was chatting with my friend, Bob Waun - president of Vacation Finance which headquartered in Michigan,  as we talked about the financial meltdown going on in the credit markets and the stock markets.  He asked if I was afraid for what is next for our real estate businesses in the Bay Area and the Caribbean.  I told him, “Nah…we are still having the time of our life!”  The mantra of a sailor is…, “Do not be fearful!”   And, the definition of FEAR is False Evidence Appearing Real!  If you didn’t know, my favorite condition in sailing is with the gunnels ( side rails on each side of the boat )  in the water and salt water spraying all over me.  You can’t imagine the big grin on my face while I am sailing in those conditions.  However, it is not the time for the faint of heart if you are sailor in stormy seas.  It is the time when experience shows up. 

Both our Bay Area  and Caribbean  real estate businesses are thriving…however it is taking all hands on deck to pull it off.  We are blessed with a great team who only look at the glass half full,  and are committed to creating a GREAT experience for our customers.  Many of our competitors are running down to Starbucks talking about how the sky is falling.  The vacuum they are leaving within our real estate community is amazing, and whoever fills that void today will have a larger market share when the market shifts again - which it will.  In order to make it through these financial times we all need to work together, side by side, realizing storms don’t last forever.  At the end of Bob’s and my conversation he left me with these thoughts.

Faith, beliefs and conviction can be fickle friends when they are tested by panicked masses. “The end is near!”,  seems to be the chant of the crowd across the world today.  But what of substance has changed within our global economy.  Did a world of Fathers change their commitment to feed and clothe their children?  Did Mothers decide that the generic brand cereal would be fine in mass?  Did we stop wanting nice things and suddenly over the weekend decide to settle for less?   What is the shift that causes such a panicked response?  What fundamental changes are causing us to doubt the future?   Purely fear of what “MIGHT” change.  Does that sound rational to you?  

Historians and economists can attest that humans don’t always act rationally in mass,  but as individuals we can still choose to be rational - to act out of faith and conviction not panic.  ”Looking back on it, I was a trader in the pits of the S&P in 1987.  It was the most exciting and profitable stock market opportunity of my lifetime.”,  a friend told me today… Did he notice it at the time?  No.  He said he was scared to death, but he kept at his work of trading stocks in the best way he could.   Life is clearer in the rear view mirror.  Regret is more painful than overcoming fear….

In a storm, it is not time for people to jump ship and swim to safety.  A storm is the time for experienced sailors to do their work and sail through it.  It doesn’t mean we are not afraid.  However, it does require us to not panic - which could cause our ship to go down.  I promise we will all will make it through this economic mess.  We may get wet and a bit wind blown, but working together, we will get to a safe harbor, and live to see another day when we will look back and tell the stories of how we made it through the storms of 2008 and 2009.  Contact me today if you would like some help through your storm.  Until next time…fair winds!!!

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This is a day that will be remembered for the rest of our lives - 777 points down in the DOW Jones!

OK, is today the time for HOPE regarding the Bailout?  Well, the world markets say NO!  We need to bring the message of HOPE to all of our friends and family TODAY.  One of the many reasons for the strength of our country’s economy is our ability to make mistakes, and learn from our mistakes and move forward.  OUR money is now being spent to re-tool Wall Street and Banks who still are creating the credit for consumers and companies - finally, the HOPE of the bailout is that a common sense of lending as the base of the way money will be lent will be used.

My view is that I still do not believe that we should look to Washington to fix what we can change.  However, this crisis is too big!  The current financial crisis is ONE part restructuring of Wall Street credit methods, and TWO parts a crisis of FEAR and a lack of faith in Capitalism.   A massive change in our financial structures is happening this week.  The media headlines are running rampant.  Remember, blood and guts sell!  Change is not good or bad, it is simply a different way of doing things.  We, as Americans, need to recognize that all of us participated in this mess by not saying STOP! 

I am a raving fan of free markets as opposed to Government “band aids” that may actually take longer for our economy to heal.  Our financial systems are in a real mess, along with millions of home owners.  And, stress is only relieved by CHANGE.  Well, change is what we are getting this week, whether we like it or not.

Another hopeful fact this week is there are billions of dollars in money market funds and investment accounts that are waiting for the bottom of this market.  When the consumers start to feel the “calm”,  that bundle of cash will rush back into the Market.  When that happens, a brand new business cycle will begin.  So, where is the bottom?  Well, it may have finally come.

My view is that we have had a drunken economic party for the last six or so years and this week the waiter brought the bill.  Instead of allowing those who hosted the party paying the bill, some bright person in the Government decided that the bill should be paid by our kids and grandkids.  Our kids now “own” a bunch of paper assets that may help pay the bill some time in the future, but I promise it will not pay the entire tab.

The message for us to consider today is that real estate has still been the best place I have EVER placed money.  There are non-stop bargains on the market and mortgage rates are AWESOME!  So, let’s make sure we bring the message of hope to all of our clients!  There has never been a better time to buy real estate than NOW!  Let’s start spreading the message TODAY!  Let me know your thoughts!

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In the midst of the biggest financial meltdown since the 1930s Jim Walberg is still focused on making lemonade out of lemons.

You remember my article about “Do not be fearful”?   Well, this is the most important time to keep a focus on this mantra given the economic meltdown that accelerated in our country this past week.  We need solutions, and we need them fast!  There is no getting around the fact it is a historical financial mess.  My focus is to always get to “what is” as fast as possible, and start making lemonade out of the truck load of lemons that has just been dumped on all of our front porches.

I have a Realtor friend in Naples, Florida.  His name is Mike Lissack.  He is one of the smartest financial minds that I know.  He came to real estate from a long and successful career on Wall Street where he was named by Worth Magazine as one of “Wall Street’s 25 Smartest Players”,  and is one of the top 100 Americans who have influenced “how we think about money.”  Before he retired from money management he directed more than $25 billion of investments, supervised their financial reporting, and assisted in the design of their risk management and investment operations.

So, we are corresponding about the financial meltdown that is surrounding all of us.  He has some pretty interesting ideas as to what he would do if he was in charge of the direction our Nation takes next regarding making sure these events never happen again.  I felt it was important for you to also review what he proposed to me as what he would do immediately.  So, here it is:

Mike Lissack’s view on the financial solutions of our current crisis:

“A vast portion of the mess is caused by the mark-to-market accounting rule and the lack of liquidity (and thus a market and thus a meaningful market price) for uncertain and “tainted” assets (mostly mortgages, credit card debt, and related derivatives).

“The mark to market rules ASSUME a liquid market and thus meaningful market prices.  Such is not our present environment. It is too late in the game to suspend the mark to market rules.  That solution would have worked well a year ago, but today investors would merely be even more spooked by the uncertainty.

“The solution lies in recognizing the shift between equity and debt which the market turmoil has created.  Since the government now control Fannie and Freddie it also controls the very mechanisms to solve the problem.

“Fannie and Freddie should mandate that every conforming loan outstanding be subject to an appraisal for the underlying property.  If the appraisal suggests a loan to value ration in excess of 110%, it is time to recognize that a PORTION of the loan is in reality an equity investment.  All such loans should then be subjected to a mandatory split such that 90% of the appraised value receives a Fannie/Freddie guarantee and the other piece does not.

The first piece would have an established market value based on par for the principal and current interest rates. The second piece would become in effect participating equity.  Banks and borrowers should have the option of exchanging the second piece for up to 75% of the future appreciation in the property valuing each 25% of future appreciation (above the current  appraised value determined above) at 5% of the current appraised value of the home.

“These two steps would restore value to perhaps 70-80% of the currently illiquid uncertain mortgage assets plaguing the US financial markets. The mess would be over.”

Do you get the message?  Mike knows what he is taking about.  Check out his second email to me regarding his thouhts after the AIG bailout.  Let me know your thoughts.  Also, if you want to contact him directly, go to www.Lissack.com .  Until next time….I guarantee we will figure out a way to make lemonade out of lemons with this financial mess.  Do you know why?  BECAUSE WE DON’T HAVE A CHOICE!

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Viscape University has booked renown bloggers Jim Walberg - EastBayRealEstate.com, and Jim Cronin - RealEstateTomato.com to moderate their teleconference on October 6th!

Remember… a Blog = A citizen journalist writing about things they are noticing or personally experiencing and sharing those with the world through the internet.  Viscape is the world’s first social marketplace to rent or buy vacation properties on-line!  Because it is a social network focused on vacation destinations they also provide a blogging forum for world travelers to share their stories and resources.  One of the services they provide their Internet marketplace is Viscape University.  This is their education division that focuses on practical topics for world travelers who are interested in rentals and vacation property purchases.  On October 6^th at 9PM EST they are hosting another one hour seminar.  The topic is Blogging and how it can be THE tool one uses for many purposes, but specifically how to use it as an additional profitable marketing tool for your business.

Because of the success of EastBayRealEstate.com, and RealEstateTomato.com’s blog sites Viscape have arranged for the owners of these businesses to be the moderators of a one hour teleconference on this topic.  Jim Cronin and I will be the contributors as we share our experience of how blogging can be the most effective tool possible to connect with people who are looking for the services you are providing.

Jim Cronin’s internet site - RealEstateTomato.com, is built to be a “hub” to assist the real estate community to better understand how to embrace blogging as the center of their marketing efforts.  He recently launched Tomato University,  serving the needs of the blogging world.   Jim moved to California in the mid 90’s as the Senior Internet Marketing Consultant for Z57 Inc. from 2000 - 2006.  He then had the idea of creating a method where he could share his incredible strategies regarding blogging as a marketing profit center for real estate businesses, and RealEstateTomato.com was launched.  Jim has helped thousands of Realtors gain a superior Internet presence by using the tool of blogging on their websites.

No matter if you have been checking out my EastBayRealEstate.com site for the last year, or you just found us, we have become the real estate resource center for the San Francisco Bay Area, with thousands of visitors using our real estate services and information.  And, our readership continues to grow daily.  Our blog site has also evolved into being your Bay Area lifestyle information center with ME - for better or worse,  as your on-site detective letting you know about the stuff I am discovering each day in this place I love so much.  Not only is EastBayRealEstate.com a resource center for Bay Area real estate, we also assist those who want to purchase a piece of their Caribbean paradise as a second or third home.  At CaribbeanIslandsRealty.com  we represent real estate opportunities from Aruba to the British Virgin Islands.  Check it out!

So…if you want to discover the rules and strategies of blogging as a very profitable marketing tool for your business - whether it is for real estate or for any enterprise, check out this FREE teleconference on October 6^th.  RSVP to RSVP@viscape.com  by October 3rd in order to get the call-in information.  Today you can start posting your questions that you would like addressed during our time together.  Contact me if you have further questions.  Until next time…your Bay Area lifestyle detective remains on duty!

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Marianne Bordogna has thrown her hat into the race for on of the Danville council seats to be decided on November 4th.

Who would have thought that a community activist who has never run for public office would throw her hat into the ring for the November election of the new Danville Town Council?  Well, it has just happened!!!  Marianne Bordogna, is the “new kid on the block” who has been nominated to have her name on the November ballot.  Until she showed up there were only three incumbents to vote for, and….there were only three spots to fill.  SO…what type of “choice” is that?  Marianne decided that she has sat on the sidelines long enough and is now ready to make a difference in the direction of how The Town Of Danville evolves.  There are many issues facing the Town Council today - Responsible growth in the Tassajara Valley;  Affordable housing; Infrastructure;  Senior Services;  Addressing specific projects, such as the Veteran’s Hall and the Danville Hotel complex; and, many more that need to be effectively addressed.  Marianne has the qualifications and the commitment to address them all!

I had a chance to speak with her today regarding why she believes she would be the best candidate for the Danville Town council.  Marianne told me,  “I am running for town council because I love where we live and want to maintain the uniqueness My experience of resolving issues within the context of the ‘bigger picture’ brings a new voice and a much different perspective in creating solutions that makes us all Danville.”  She laid out five specific items that make up her campaign’s platform;

• Proactively engage San Ramon and county officials on future Tassajara boundaries, which directly impact our town - the unincorporated parts Danville and Blackhawk;
• Seek solutions to traffic and downtown parking via stronger relationships among our school district, businesses, planners and council;
• Expand activities and meeting places for teens, singles and seniors
• Streamline our building permit and planning process for homeowners and builders, while ensuring that appropriate studies, architectural standards, community input and common sense have been applied in decision-making so that new projects (Danville Hotel, Veteran’s Hall) augment our town
• Grow Danville’s business community, while balancing downtown events that attract potential new residents - and revenue.

If elected, she wants to hear from you - often!  She is new to the political arena, but not to leadership roles. I have discovered over the past five years that she listens with an open mind and analyzes the facts, before reaching a decision.  She is a very quick study - and fully committed to win/win outcomes. When she is elected she will implement fiscal policies that continue to enhance all aspects of the quality of life that is so valued in the Danville community.

Obviously, she would appreciate your vote, and I know she would be a welcomed addition to the leadership, and stewardship of the Town of Danville.  Check out her website and learn more about her plans for addressing the important issues that are facing our community - www.DanvilleTownCouncil.com .   Your Bay Area lifestyle detective is always on duty.  Until next time…

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“The Feds took over Fannie Mae and Feddy Mac today!  Time will tell what happens next for East Bay Real Estate consumers and who will pay the bill.”,  says Jim Walberg.

The Federal Government made their historic announcement today - a Federal bailout of Fannie Mae and Freddie Mac could not wait another day!  The straw that broke the camel’s back was the liquidity condition of both of these mammoth financial entities.  It is frightening to imagine that both of these companies own or guarantee about $5 TRILLION in home loans - about half of all the nation’s total home loans!  And, we need to be reminded about my phrase, “Do not be fearful!” - False Evidence Appearing Real!   

The plan that was announced today by Treasury Secretary Henry Paulson and James Lockhart, director of the Federal Housing Finance Agency, places the two companies into a “conservatorship” to be run by the Federal Housing Finance Agency. Under conservatorship, the government would temporarily run Fannie and Freddie until they are on stronger footing. “A failure of Fannie and Freddie would affect the ability of Americans to get home loans, auto loans and other consumer credit and business finance.  And a failure would be harmful to economic growth and job creation.”  Paulson said at a news conference today in Washington.  With this bailout, the Feds have now made $200 BILLION available to them to shore up their liquidity issues.  Again, this money is coming from US as an addition to the national debt.

The roll of these two financial institutions is to buy mortgage loans from banks and package those loans into securities that they either hold or sell to U.S. and foreign investors.  This allows that national banks like Wells Fargo Bank and Bank of America to make more loans.  The problem affecting the mortgage meltdown has hit Fannie Mae and Freddie Mac VERY hard!  The past twelve months have seen an alarming number of their loans started going into default, emptying out the companies financial reserves and sending ice through the veins of the credit markets around the world.  Costs have skyrocketed and the Feds could not wait another day by placing them into a conservatorship.   The Treasury Department is now guaranteeing the solvency of these two lenders.  That means that YOU and ME are the ones guaranteeing the loans because more money is just going to be printed to bail them out.

With this bailout mortgage rates on conventional 30 year fixed rate loans are expected to fall by the end of September.  If the mortgage interest rate falls for home loans, it should attract more Buyers into the market, which would then have a positive effect on home prices.  However, Greg McBride, a senior financial analyst at Bankrate.com did say,  “Continued investor wariness and a depreciating housing market may keep rates from dropping.  We are not looking at sunshine and daffodils in the housing market anytime soon.”

Paulson stressed that both Fannie and Freddie are still in business and will open their doors on Monday with a new management team.  Freddie CEO Richard Syron and Fannie CEO Daniel Mudd will no longer run the companies, with the FHFA taking over control of their boards.  Syron and Mudd will be replaced by two market veterans with the job of restoring the mortgage agencies to a profitable condition. Herb Allison, the former chairman and CEO of pension provider TIAA-CREF, will head Fannie Mae. Allison formerly served as president of Merrill Lynch.  David Moffett, who served as vice chairman and chief financial officer of U.S. Bancorp until early 2007 and then joined the Carlyle Group private-equity firm as a senior adviser, will take over Freddie Mac.

Federal Reserve Chairman Ben Bernanke, who led the efforts to help get the U.S. housing market and the broader economy back on track, applauded the decision by Lockhart and Paulson.  “These necessary steps will help to strengthen the U.S. housing market and promote stability in our financial markets,”  Bernanke said in a statement.  The real test will come when financial markets around the world open Monday.  Pimco’s  Bill Gross, a widely followed bond fund manager, said that the Freddie-Fannie plan was the right move.  “This is a significant step and almost exactly what we had hoped for,” Gross told CNNMoney.com  Sunday.

Time is always the judge of any decision, especially one of this magnitude.   I am not a fan of ever increasing our national debt.  Today it is already staggering without the additional billions required to support this bailout.  Still, the rescue of Fannie and Freddie may go a long way towards bringing stability to the housing market while making it easier for consumers to obtain affordable mortgages.  We will see.  I look forward to your comments.

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