What could be more gorgeous than a Saturday morning in Prescott, Arizona? Hello, this is Gary Edelbrock here, and I'm talking with my friend, Dan Shaw, who's on a bit of a rant, I'm afraid... enjoy!

Of Taxes and Refi Plans

I need to do my taxes. I started to do them yesterday, but then remembered I had to do a silicone seal along the back counter around the kitchen sink, and my electric toothbrush had not been properly cleaned in a while, which reminded me to clean the garage. Of course I was also busy coordinating loans and getting docs out. This morning I started on taxes again, but then I remembered I needed to exercise, clean out the refrigerator, put out some sun tea and of course write a market update, so after I write this update for you all I will begin on my taxes!

My realtor friends in Phoenix are telling me that there is a low housing inventory situation. It seems homes under the $200,000 mark are often receiving multiple offers as they become increasingly difficult to find. Most are selling for cash to investors. Not much movement on the prices. But remember Business 101 at ASU. Supply has to equal demand. High supply or low demand = lower prices. Lower supply or higher demand = higher prices. I guess my question is this; where is all this inventory we have been hearing about for the past 2 years that the banks are supposedly sitting on? We have buyers!! Is it really there, or have they become wiser with in the past 4 years and learned to slowly release homes to better control market prices instead of dumping inventory on the market? I just wonder and I can’t help but think politics are involved.

Speaking of which, remember the widely covered “end of times” payroll tax extension in December? Did any news channels cover how that was going to be paid for? Did you see it? Sadly enough I actually read that kind of trivial garbage when putting off doing my taxes. Well, beginning next week we will all start to see mortgage interest rates impacted. Because the government had to get the money from somewhere they have implemented Government mandated fees across the board. My guess is these fees will not disappear after a tax extension final decision is reached! SO yes folks, they did raise our taxes! Both parties! Just indirectly, thinking you wouldn’t notice. These people really are clowns! To cite a few, Fannie Mae and Freddie Mac are being charged new fees which of course will be passed along in the form of higher rates to anyone refinancing or purchasing a home! And if you think that is bad, it gets better because that is not enough to feed the hogs in our nation’s capital. Air travelers will be forced to pay more in “federal security fees”. Government employees will get a new 1.2% deducted from each pay check. Military retirees will pay an extra $200 at age 65 for out of pocket Medicare expenses and will pay more for non-generic prescription drugs and the list goes on. People do you understand who these taxes are pointed directly toward? You, because You are considered the rich 1%! So You are being taxed because You can afford a home and can afford to fly on an airplane! You must be rich! Do you feel rich? Yeah, me neither! Our government is out of control on both sides! Forgetting the strays that cloud the essence of any movement, I applaud both the Tea Party movement and the Occupy People for at least making a stand!

“We’re mad as hell and we are not going to take it anymore!” That should be our mantra for 2012.

The only people not bearing the wait of our gridlocked governments indecisiveness are the politicians themselves! Isn’t it time we charged them for everyday they go past the date of a bill? I actually liked Rick Perry’s thoughts of a part time Congress and Senate. Send them back home and force them to get real jobs so they understand what we all go through on a weekly basis and how we are affected by their lackluster performance. I would add that we need a 6 month performance review of each politician as well. It makes sense. Workers are reviewed annually and have the ability to receive a raise or be fired based upon performance at work. Why do we not implement a review for our elected officials?

And while I am on a roll (and avoiding doing my taxes), I am sooooo tired of these primary elections. Do you know what Floridians were talking about on election day? Having lived there for 8 years I can tell you….they were upset because they can’t buy alcohol on an election day! The one day they would probably like to have a drink even if they don’t normally drink, is election day!

Last night I saw Senator McCain talking about how upset he is over the election ads which he says are hurting the candidates. Seriously? McCain? This is the guy who was ironically defeated by his own poorly crafted legislation, McCain- Feingold. President Obama’s Super Pacs (created by McCain- Feingold) outspent McCain 4 to 1. And now the Super Pacs are out of control in the primaries. Someone please tell Senator McCain to shut up and read his moronic legislation. Perhaps he could actually do something and repeal it before he retires in DC!

And last but not least, if you were listening to the State of the Union Speech (you were probably alone in the room) and you are thinking of waiting to refinance with the Presidents new and improved refi program… then as they say in New Jersey… fahgitabutit. Ain’t happening! Private industry analysts pronounced the plan dead on arrival in an election year. After reading it the other day, it was going to apply equally to no one on the planet that needed a refinance. Just how many bad programs can they come up with! I guess I need to start writing some of these thoughts and getting them to my pals in DC so we can get this economy turned around! But for now, I need to get started on my taxes.

In case you have read this all the way through, I apologize for upsetting you by informing you of what these political clowns have been up to. So to help sooth your nerves, here is a link to Frank Sinatra singing “Send in The Clowns”

Enjoy! I have to go do my taxes…

Dan Shaw " a distinguishable difference in service"
Castle & Cooke Mortgage

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