Believe it or not, this is the second attempt today to write this blog. My first attempt ended with me inserting my picture at the end and the entire blog went away....
Today I read a report that frankly surprised me. Whether you agree with the actions taken or not you should acknowledge that the Federal Government has more ownership of private business then any other time in our history.
Somewhere in the process we have taken the Federal Government, you know By the People For the People, and turned it into a Joint Venture Partner. Right now as I am writing this blog Secretary Geithner and Fed Chairman Bernanke is explaining to the House Finance Committee why another oversight organization needs to be developed so the Government can take control of large businesses on the verge of failure, like AIG. It would give the Government more, yes I said more, authority and oversight of companies similar to what they do with banks now.
Think about this, the Federal Government is now a major shareholder in all of the nations biggest banks. For a short-time Citigroup's stock price dropped below a dollar. I remember back in January when one of the economic outlooks I follow stated the price of Citigroup has now dropped below the price of a Chicken Chalupa Grande at Taco Bell. In an effort to have a "soft landing" we have slowly allowed our Government the position of a socialized economy. Now before I receive hate mail, I am not saying we are there. What I am saying is when are we going to stand up and say "we will take it from here"? My concern is no one is looking past the summer.
Today, not only is the Fed Chairman and Secretary of the Treasury testifying, The Federal Housing Finance Agency (FHFA) reported that in January housing prices increased 1.7% nationwide. Really? Are you kidding me? What markets? For those of you who don't know the FHFA was formed by a legislative merger of the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB) and the U.S. Department of Housing and Urban Development (HUD) government-sponsored enterprise (GSE) mission team. FHFA regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. This was done on October 27, 2008. They are reporting, like I said, a 1.7% housing price increase in January. Here is the link for the report...just the Pacific region experienced lower prices, http://www.ofheo.gov/media/hpi/MonthlyHPI32409.pdf, so judge for yourself.
I am not sure what is going to happen tomorrow but I leave you with this thought. I generally have been in favor of the actions taken. I am wondering now if we are assuming the Government will just step in and fix it and we don't have to do anything. I realize this is just one report on Housing and it was a good report. It is also being prepared, published, and supplied by our largest Joint Venture Partner without us preforming any audit. We should be asking questions and lots of them before we pass to the side of no return.
HAVE A GREAT DAY!!!!
Kevin M. Breeland
General Manager
Residential Mortgage of South Carolina, LLC
427 Johnnie Dodds Rd.
Mount Pleasant, SC 29464
www.residentialscdailyrates.com
Competitive by nature...the Best by choice!
As Sr. VP Government Affairs I am based in Charleston, SC.
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