John MacArthur

Wow......I didn't even need that first cup of coffee to be jarred awake this morning. I picked up my "Washington Post" and was greeted with two bold print headlines.

Bailout Lacks Oversight Despite Billions Pledged

and

Treasury Redefines Its Rescue Plan

This is not the way anyone should start their day. I was concerned in the days that followed the September 15^th meltdown that the leaders in the House and Senate would overreact and by doing so, would create a bigger problem than the one we faced.

I had no idea how badly they would muddy the waters. They did pass a $700 billion rescue package. Now, I was not one of those that completely understood what the package entailed. I had a general idea what the problem involved and thought that smarter folks than me were working on it.

Treasury Secretary Henry Paulson

For those of you that have avoided all news media for fear of over exposure to the recent never ending campaign, there was some other stuff going on. In baseball, the Mets folded again and the Phillies went on to capture the World Series. In football, the Patriots did not continue their path to destiny, Tom Brady was lost for the season and those upstart Titans in Tennessee began the season with a string of victories.

Oh, the economy went in the tank. Most of the major investment houses went belly up or claimed the end of the world was at hand. The stock market began to resemble the path of a super ball bouncing down a sidewalk. Foreclosures began occurring with more regularity than anyone was willing to admit. Money markets dried up. The auto industry began to collapse and gasoline was close to $4 per gallon.

What the hell happened ?

I suppose it depends on your age. People in my generation were not shocked. We had witnessed the past decades American spending and saving patterns. We had seen the rapid increase in credit granting and the subsequent over spending by the American public. Apparently, the people in charge of keeping our ducks in a row were not using historical data. I have a good idea who was advising Greenspan, Bernake, Paulson and the other care takers of our economy.

The Brains behind the Bailout Plan

A simple overview of the path to destruction is in order. We had a depression. People that grew up in that depression had children. They wanted to be sure that their children never suffered. These depression born children grew up and had children. These were the Baby Boomers. They heard about the depression but they watched "Leave it to Beaver" and other t.v. shows and became the first guinea pigs for Madison Avenue. The stock market grew and grew and grew. They never really suffered as they grew up. They had children. The depression was ancient history. Saving was somehow moved from banks and was replaced by investments. They wanted to make sure that their children had a better life than they perceived theirs had been.

It gets uglier.

America became the place where you could have it all....for pennies a week...just sign here. Things became desired and available. Stuff. Stuff. More Stuff. Buy now, pay later.

The string that connected depression era folks with the populace of the new century began with a model-T that was bought with cash to a used car that was financed to a brand new super charged vehicle purchased with a 7 year loan. You see, as more money was owed, lenders had to come up with creative ways to indenture the American servants.

Then the unthinkable happened.

The bill came due !!!!!!!

And you think ...

Mr. Bill had it bad.

So the powers in Washington decided to fix it. We got just what we should have expected. They passed a bill that did not define the problem, define the solution or guarantee the outcome. They passed a bill that did nothing more than create more problems.

There is no money flowing today. There are empty houses. They do not produce cash flow for investors.

This .. creates this..!!!

The investors took their money and bought little packages that included mortgages. There are many sides to the story. The bottom line is that if they have money tied up in empty property.........they do not have money to invest in new mortgages.

I must be too damn dumb to get it. If folks got into loans that they can not afford because the loan reset........maybe we should use some of that $700 billion to refinance their mortgage at a reasonable rate (argue till the cows return but I figure no less than 5%). The investor would recoup the money tied up in the loan and the homeowner would stay in the home. If folks are in homes that they can not afford because of a change in their income............then treat them the same way they would have been treated before the "housing crisis" gave them cover. If homes are empty, deal with it the way we have always dealt with it........let them become crack houses until some industrious person steps in and says let me rehab it and live there. (Tongue in cheek regarding the crack house, but you get my point).

What ever is done, we must understand that the forest is the trees.

We also have to come to grips with the fact........it is our money they are spending. The current thought process that we should bolster credit cards, auto loans and other credit to jump start our economy is in my humble opinion the damn dumbest thing I have heard in many years.

Over spending created the crisis. Lack of responsibility created the crisis. Spending on credit created the crisis. Buy now...pay later created the crisis. We can not spend our way back to financial health.

Increasing the availability of credit in our current condition is as valid as handing an alcoholic suffering from cirrhosis a new bottle of Jack Daniels whiskey.

The government might be better focused if they used some of the bailout money to increase the rate on 20 year savings bonds to 7%. They might better serve the public if they actually had a plan that included fiscal responsibility.

Today's Washington Post indicates they are taking a different direction. I would encourage all of you to contact your representative in Washington and tell them that the first step in accountability will be us, their constituents, holding their feet to the fire.

O.K. , I have to be honest. I wouldn’t know how to use this contraption. I do enjoy the television show “numbers” and actually understand the relative importance of math and calculations to everything in our lives. I just never learned how to use the thing. I do know that it is used by many that are sorting out intricate problems. Sometimes, we create problems by cluttering the obvious with what we perceive to be the necessary.

Home buyers tend to do this a lot lately. There was a time when the purchase of a home was a comparatively simple task. Folks saved their money and when the need arose and the money was right, they went out in search of a new home. Back in those days it was a bit more onerous to actually see all the homes available and the agent they selected was usually armed with mimeographed sheets of paper and a tank of gasoline. Buyers trusted the agent helping them. Of course, most buyers did not know that the agent helping them actually represented the seller in every home they visited. It was a quirk of the law and not necessarily the intention of the agent.

It was a calmer time. There was less media in play. Towns had one or two daily papers. Television offered three major networks and maybe one local station. Radio offered AM only and very little news other than the required hourly five minute spiel. Word of mouth and common knowledge was the best source of information outside the family unit. Parents and grandparents were more involved and shared their experience with their children and grandchildren. It was a different America.

Today, the challenge of buying a “new” home is cluttered with more data than ever. We still have newspapers, t.v. and radio. We still have the input from our family. The media focus has changed as the challenge for the media to survive has replaced fact with fiction and innuendo. The need to sell advertising and maintain ratings has caused editors and news directors to focus on sensationalism. This old story is the new wave.

There is nothing inherently sensational about buying a home. It is a wonderful accomplishment for the buyer. It may be a dream come true. It may be one more step in reaching a desired quality of life. Outside the participants, it does not get the blood moving in the general populace.

The new player in the information game is the internet. If you have a modum, you have the world. If you can find a public library, you can access all the information available.

The problem lies in that you can access ALL the information available but you have little knowledge about the source or validity of all that information.

Today’s buyer usually believes that access to all the information will make them a better informed consumer. It may. It may not be the right information. It may not be factual. It will be information. So, off they go to their computer. They sign on, sign in and go to a search engine and type in “new homes” or something like that. Within a matter of seconds………………..they have access to a gazillion bits and bytes. It roars through the internet and blows them out of their collective chairs.

The discussion at the kitchen table was about a new home, more amenities, maybe closer to work, maybe closer to school. The information received is a mix of neighborhood reports, sites seeking leads for agents, agents that have mastered search engine optimization and data tossed out into the www hoping to find a home on your computer. The data may just complicate things more than it helps resolve things.

It can be over whelming. You might think you need some sort of fancy real estate calculator. You might be paralyzed with the thought……………where do I begin. I understand. I am a grandfather. I am a father. I am a home owner. I am a real estate agent. I will gladly assist any buyer, anywhere, anytime in the areas which I hold a license.

I don’t get down hearted by the current up or down bend of the media. I don’t get confused by the spin put out by either side in the housing discussion. I have a pretty good understanding of what data on the internet is relevant and what data is the result of garbage in. I know my area and I know how to clear the confusion from the buying process. You see, it is never about slide rules. You are buying a home. When buying a home…the slide rules!

It is a place to enjoy and not calculate. I don’t know tomorrow and I don’t believe anyone else does either. Sure, they can make predictions…………..but reality does not occur until each moment in time passes.

A buyer is much more than just one of many making up the trends we read about. A buyer is a person or a family or a couple friends. A buyer is never just a number. I never forget that.

It is sort of like understanding that access to swimming means different things to different people. I remember spending summer days leaping from rocks and boulders into the murky pools created by rainwater run off.

Others have memories of summers spent poolside............

Both amenities show up when searching for swimming opportunities on the internet. No, I don’t believe you need a slide rule…………………you need the assistance of someone that understands ..

the slide rules.

So, if you found this little note while doing a search for yourself of a friend, I would welcome the chance to chat and share what I believe……..I would love to hear your dreams and visions and see if I can’t put together a plan that will help you achieve them. I can be reached at macarthurgroup@gmail.com or on the phone at 301*537*4377.

I get it……………the slide rules !

So, in a time when heros seem to fail and we don't know where to turn for example, this story stopped me in my tracks. I would hope that anyone that reads this, shares it with another and and another. This is the best of us.

Father Who Saved Son Is Remembered For Generosity

By Jonathan Mummolo Washington Post Staff Writer

Thomas S. Vander Woude would never have wanted a big display in his honor. The Nokesville father of seven sons, who drowned last week while rescuing his disabled son when he fell into the family's septic tank, was more the type to try to elevate the lives of those around him, his family members and friends said.

But yesterday, more than 2,000 people packed the pews at Holy Trinity Catholic Church for his funeral Mass in Gainesville, some listening from the vestibule, others down a hallway watching on closed-circuit television. Among the attendees were his wife of 43 years, Mary Ellen, more than 70 priests, including the bishop of Arlington, and the friends accrued over decades who came to pay respects to a man who inspired them, right up until his final breath.

If Vander Woude saw the throng, he'd say, "Are you kidding me? . . . Don't waste your gas," said one of his sons, Steve Vander Woude of Nokesville, after the service. But "this guy did something saintly, and they wanted to come be a part of it."

Thomas S. Vander Woude, 66, died last week while helping his son Joseph, who has Down syndrome, after he fell into a septic tank while working in the yard, police said.

The tank was eight to 10 feet deep, Steve Vander Woude said. His father climbed into the 2-by-2-foot opening, managed to get under Joseph and was pushing him upward to keep his head above the sewage. Initially, Vander Woude was able to keep his own head above the muck, telling a workman who was helping from above, "You pull, I'll push," Steve Vander Woude said. But he eventually sank and was later pulled out by rescue workers, who were unable to revive him, Prince William County police said.

Joseph, 20, was hospitalized last week with pneumonia but was released Saturday and attended the Mass for his father in a wheelchair, connected to an oxygen tank. His family said doctors expect a full recovery. A few days after his father's death, Joseph's family sat with him in the hospital and explained to him that his father had died.

Upon hearing the news, Joseph "sat back . . . he closed his eyes, his chin quivered, and he started crying," Steve Vander Woude said. "I think he understands as much as he can right now."

Another of Thomas S. Vander Woude's sons, Tom Vander Woude, pastor at Queen of Apostles Catholic Church in Alexandria, gave the homily. In it, he likened his father to Saint Joseph, a man who patiently and quietly supported his family, did odd jobs for those in need and was content to worship God and not seek the limelight, Tom Vander Woude said.

At a reception at Seton School in Manassas, where six of Thomas S. Vander Woude's sons went to school, friends and neighbors traded stories about how Vander Woude had gone out of his way to help them. Fittingly, Tom Vander Woude observed, they were standing on the gym floor that his father had installed.

Mary Heisler, 36, of Nokesville, said she never would have come to Virginia as a teenager, let alone met her future husband, if it had not been for Vander Woude. She was receiving Catholic home schooling in Texas when Vander Woude, who was helping with the home-schooling program at Seton, contacted her father and persuaded him to move 14-year-old Mary and her 11 siblings to Virginia to attend the school.

Her father obliged, sold the house, bought a yellow school bus and drove his family to Prince William County. Money was tight, so Vander Woude took the family into his home for a month before lending them money for a down payment on a house of their own in Manassas, Heisler said.

"He gave us half the home," said Heisler, who met her husband, Tim, at Seton. "I don't think he realized how many people he impacted."

Peter Scheetz, assistant director at Seton, recalled a similar kindness.

"When my wife and I got married, we were trying to buy a townhouse," Scheetz said. "We didn't have any credit. . . . Tom Vander Woude ended up co-signing our loan for our first house.

" There were many similar stories about Vander Woude, who served as a pilot during the Vietnam War, a commercial pilot after he returned home and a longtime volunteer coach.

His dying act was, "truly saintly" and "the crown of a whole life of self-giving," Bishop Paul S. Loverde said at the Mass. "May we find in his life inspiration and strength."

"The future is now"; George Allen uttered those words when he took over the helm with the Washington Redskins. Let me preface this entry with the absolute truth. I am not a engineer, highway planner, social scientist or confirmed "tree hugger". I hope Govenor Marty can step aside from his lock step with yesterday and think about this project.

I am but one man. I have thought about this and feel that we are in danger of continuing on a tragic path. The website for the proposed and approved road system states "The Inter-County Connector (ICC) will link existing and proposed development areas between the I-270/I-370 and I-95/US 1 corridors within central and eastern Montgomery County and northwestern Prince George's County with a state-of-the-art, multi-modal east-west highway that limits access and accommodates the movement of passengers and goods."

This supposition is based on the yesterday concept that automobiles and trucks are the best mode of movement for passengers and goods. These projections were founded in an environment that included gasoline at less than one dollar per gallon. The idea for the cross county connector made a lot of sense when no one considered that oil was not a limited fuel source. I don't think many people understand that there is a limited supply of oil.

When the idea for the inter-county connector was first raised, Gaithersburg was a small agricultural town. King Farm was a farm. Burtonsville was a small crossroad. Laurel was a big city. Public transportation was used by a larger percentage of people to travel longer distances. It is a brave new world today and China and India have changed the fossil fuel consumption equation drastically.

Oil companies became more powerful. Road and paving contractors became more powerful. The influence of the dollar became more powerful. Special interests became more powerful. The interest of society and the people living in the area no longer were the prime concern for legislators.

This area is very close to the national arena. Our news and focus seems to fall on national issues. We, as a people, do not see what is occuring before our eyes.

The people that raised objections to the ICC were considered fringe elements. The 90 year old man that did not want to sell his house. Community leaders that did not want the highway in their area. Environmentalist that found every rare fish, frog , flora or fauna in jeapordy. They all spoke out and no one paid them any mind. The issue that was not raised was clearly...what about tomorrow and beyond?

No one stopped to think about 2020, 2030, 2040 and beyond. Charts were offered regarding traffic and flow and bridges and abutments. No one realized that our vision of tomorrow might have to include....no automobiles, no trucks, no buses.

Rail is rather efficient. A light rail system from here to there could accomplish the same goal. Of course, it would have to feed a central point that would be a public transportation hub. It would mean that less people might be on the road. It might even mean the cost of gas would go up more (nasty side light of decreased demand with fixed costs). I can not imagine oil companies using gasoline as a loss leader.

If Governer O'Malley does not have the cajones courage to step up and build for tomorrow, well maybe he could restrict his concrete legacy to buses and trucks.

It really is time to build the world we will live in rather than yet another monument to the world that used to be. I hate being the lonely guy in the crowd.

Why build a highway if no one can afford to use it?

Didn't your Mother tell you not to go out without protection?

When representation is at no cost to you, why would you look for a home in an unprotected (unrepresented) fashion? Did you forget?....Mother always knows best!

Visit us

www.themacarthurgroup.com

John MacArthur

Realtor / Buyer's Agent

Long and Foster Realtors

Olney/Brookeville Maryland

(O) 301-924-7620 (D) 301-537-4377