About Downey's Bellflower, California

Another Stimulus Bill is about to take a trip around capital hill very soon. Our political leaders have a grave responsibility in using the public tax dollars wisely, not just distributing wealth from one hand to the other.

Giving credits (money) to everyone doesn't do a dam_ thing unless, the tax credit can effectively generate jobs and support systems to maintain those jobs, but also create JOBS. Be careful in what your legislators are doing. Adding to the deficient without job creation can be long lasting, President Bush gave us 3 tax credits stimulus packages with Congressional support during the last 8 years, and did we not learn that this was a token gesture, that actually added to our grandchildren debt, they will be paying for.

Let's get specific, we have approx. 180 million people who work in this country and about 10% are now unemployed, As an example, President Bush dished out a token 300 bucks stimulus to spend on what ever, Let's Do the math (180,000,000 times $300 dollars, that adds up to a lot of zero's 54,000,000,000) $54 Billion Dollars, do that times 3. that equates to 162 billion dollars during the last 8 years.

** Let's look at how a real tax credit can stimulate an economy. As an example, let's say you buy an American made car, if you were allowed to write off the interest, as part of a tax stimulus package, that vehicle, then, woukd stimulate buying activity, which maintains and creates a demand for an American Made product.

** We can do the same with Appliances that are made in the U.S., this would allow the American public to choose to buy American; there is a benefit (JOBS). Not saying there is nothing wrong with buying foreign, but recognize We cut our own throats, without really looking at the underlying problems, we help other economies to flourish, and put us deeper in a trade deficient.

**We need to realize that we can use our tax system work for the country, but it can also be detrimental and work against us if we tax too much or just tax those who own businesses or who we consider rich.

An Example; a vehicle over $30,000 has an added Special tax called (a luxury tax), a boat gets taxed as a luxury so 10% special Luxury tax crippled the Boating Industry in this country. So what happens?

People start changing their spending habits. Manufacturing plants that supplies JOB's here in the US, make decisions based on profits, not expenses, that ultimately forces manufactures to layoff people.

Imagine, if you were employed by a manufacture or other business that was dependant for it's survival on the consuming public to buy their products and if no one is buying boats as an example, this has ultimately adds to the problem we been facing in the US. We need to start paying attention to these things. This spiraling affect does filter down to the lowest common denominator, supporting jobs.

**We helped encourage foreign trading partners stimulate their economies since 1971 when President Nixon took us off the Gold Standard, and made America fight the worlds battles economically with printed paper dollars backed only by more debt (federal reserve note), believe it or not, many people in this country still thing our dollar is backed by gold in Fort Knox. It's time to re-think our monetary policy for the good of our United States of America. TheDon1950@aol.com

Carlos Arvizu Sr.

Comment and Perspective on the Real Estate Market

Carlos R. Arvizu Sr.

Contributing Writer

Communication and Panicking in the Market Place

Regardless what market your in, the stock market, real estate market or the Lending Market, sometimes we need to stop and rationalize what's going on.

The problem in this day in age, is that too much communication that causes confusion. Were bombarded with everyone's varying opinion Radio, T.V. Newspapers, Magazines and the Internet, you name it, it's no wonder why we have so many indecisive decisions clouding up our vision. Just this morning my wife had a panic attack about the money in her 401 k retirement fund. She is getting mixed signals from every directions, and is in a panic, and doesn't know what she should do.

On the lending side, I was talking to a prominent loan officer, she says that she had several people who heard that the interest rates were dropping (confusing the short term Fed. Funds rate with the 30 year fixed rate), in particular, several clients, wanted to wait for the rates to drop lower, instead of locking in a good rate, the rates went up considerately, and unfortunately several of these clients lost a good opportunity for lower payments.

On the real estate side, I don know how many people are setting on the fence to buy, waiting for that great deal, unfortunately, some of these people won't know when the real estate market has bottom out, until it's already past them going up again.

Warren Buffet, a Billionaire and one of the smartest business people, said this;

"Buy from Pessimist, and Sell to Optimist."

Which means, if opportunity presents it's self buy now, and profit from panicking people. Stay cool, don't panic. Now is a great time to buy real estate, and get a good loan.

Carlos R. Arvizu Sr.

Pronounced (R. V. Zoo)

Prudential California Realty/

The Mulhearn Group

562-755-3856

A State of Confusion. The Leadership of our Country is beyond confusion and comprehension.

What Fed. Chairmen Bernake said that the Country needs a stimulas to keep us out of recession, is true, However, the political leadership in office, and the wantabe'e are all opportunist without rationalizing the damage that they would be doing to the country if they gave a rebate to everyone.

Four or Five years ago, President Bush gave a credit of a few hundred dollars to everyone on the tax rolls, all it really did was push us into more debt. Rebates or credits should be a stimulus for Job Creation and Growth Opportunities for the country.

Look at the cost. Let's say a credit went out of $800. to 150,000,000, thats' 120,000,000,000. that does nothing but put us in debt. You want a stimulus do this:

1. Since we have an Automotive Manufaturing base in the United States that have Jobs tied to it, give a credit to the taxpayers who invest in buying cars that are made in the United States. Granted that there are foriegn companies already providing us with automobiles that are partially made here in the United States, any auto manufacture that has at least a minimum of 50% made in the USA, consumers of those vehicles would be entitled to receive a credit or a rebate. At least it provides Jobs here, instead of being outsourced.

2. Energy conservation is another form of producing Jobs and reducing our dependancy of foriegn oil. Create a credit that a taxpayer would be entitled to receive a tax credit for insallation of energy efficientcy within their homes. This helps the building trades create more Jobs.

3. Get real with the Corming Loan Limits that FannieMae and FreddieMac are authorized to purchase on the secondary market. In states like California, which is the third largest state in the country, which is and has always been a high cost state, over and above Hawaii, Alaska, and Guam.

The California economy is 20% of the nations income. When President Bush's appointee, James Lochard, who is the director incharge of the Federal Housing Enterprise Oversight Committee, refues to raise the conforming loan limits above the $417,000 treshold, he is leterally causing the United State and California in to bankruptcy.

The Conforming Loan Limits that FannieMae, and FreddieMac are allowed to buy on the secondary market helps the flow of money into circulation, which is why the Federal Reserve System can manuver it's two key interest rates to help keep us out of recession and keep inflation in check.

The system can not work efficently without the flow of money, the way it's intended to be, our entire Economy is affected and at risk from bankruptcy, from the builders, to the guy who cuts your hair at the local barber shop, people rethink their buying decisions, when consumer confidence is shaken.

When people can't make ends meet, and have to struggle just to survive, this is damaging to the country. People who are unemployed, don't produce. The very fabric of wealth of the United States economy is in our homes. Countrywide, and other lending institutions are having problems, because the money supply is dried up, and without a revolving flow of capital that the secondary market provides.

Carlos R. Arvizu Sr

562-755-3856

TheDon1950@aol.com