Back in 2nd grade, our teacher Ms. Williamson at John Diemer elementary in Overland Park, Kansas would pass out “purple tokens” for good behavior. Five of these tokens would equal a cherished and highly sought-after “gold nugget.”
If a certain row of students acquired an excess of this valued currency, we were rewarded with extra recess time or an extra long drink of water. In 2nd grade, what more could one ask for?

Back in 1972, dodge ball was still the game of choice and my friend Mike Seligson and I relished every opportunity to drill Robbie Lapin. Thus was our youth, and how we were so easily manipulated. I can’t boast that I was always rewarded and that we ever really received any extra time for good behavior, so we had to make due with limited time and Robbie Lapin, a good friend of ours, was spared.

It’s been quite a while since my last writing, and things have changed a bit. My youngest son Kosta turned 1 in November and Michael, now 3 1⁄2, is obsessed with Buzz “Life” Year, Batman, and Star Wars, and even claims to be Luke Skywalker at times and runs around the house fighting off the evil Darth “Skater.” Well, Ms. Williamson’s behavior manipulation has come in handy with disciplining my two boys.

“Michael, did you just sit on Kosta? No Star Wars tonight.”
“Michael, you’re such a good boy for helping Kosta eat. Let’s play with your Batman and Superman action figures.”

All this is trivial and juvenile of course, almost like the government’s new so-called Stimulus Package. As young adolescent children, we’ve come into the good graces of our government and a few chosen will receive refund checks of $600. But of course this is taxable, so the money they’ll give the fortunate few will therefore be taxed.

If the concept of giving more money back to the taxpayer is perceived as good for the economy, then the more logical step would be for said taxpayer to be allowed to keep more of the money they earn in the form of a substantial tax cut. Who knows, maybe you know what to do with your hard earned money better than the government does?

The biggest challenge facing today’s economy is a lack of confidence    in    the    mortgage industry and the need for liquidity to maintain Wall Street firms. The recent Fed rate cut aimed to inject money into the economy,    thereby    strengthening it and keeping the Wall Street firms afloat.

In times of panic, this may be necessary. However, this kind of reactionary maneuver could be harmful in the long run. Too many rate cuts could be inflationary and therefore damaging. Bailing out all firms that have made bad investments could create a risk-free environment where companies no longer take responsibility for bad decisions. The financial burden will then fall on the taxpayers.

“Michael, did you just hit Kosta? OK, here is an ice cream sandwich, just don’t do it again.”

If Ms. Williamson had taken this approach, poor Robbie Lapin would have been pelted endlessly.

The market has already responded with changes that may prevent another mortgage crisis. Underwriting guidelines have changed drastically, and banks are becoming more thorough in reviewing their loan portfolios. It takes adhering to a firm position to produce positive long term results.

In other words, the right thing to do is sometimes the most difficult. We can always take examples from our own experiences.

Here at PERL Mortgage, things are still rocking. A record year: four Loan Officers, yes four, made Mortgage Originator Magazine’s Top 200 in the country!!! In a market where everyone thinks the mortgage industry is crashing, PERL is shining.

Oh, and by the way, Michael and Kosta insisted that I tell you that I was one of those four.  Thanks to all for your support and referrals!