Kona Kohala Blog

What can you buy for under $350K?  Actually, quite a bit.  Recommended buys would be Waikoloa Colony Villas at the Waikoloa Beach Resort or Fairway Villas there.  If you're looking in North Kona, try Kona Sea Villas.

Waikoloa Colony Villas are well constructed units with all the amenities.  Inside is granite and large tile along with well built cabinets, nice fixtures and their own one car garage.  These condos are well below their peak prices of just a few years ago and are a bargain today.  The maintenance fees are still high but not as high as they were; now they run about $630 and up.  The complex has a solid association so the fees may come down even more as they tighten their belts like bundling their cable and phone along with their internet provider which cut costs recently.  Prices in there are from $285,000 to $349,000 for 2 and 3 bedroom units.

Kona Sea Villas are up above Alii Drive on Kuakini Highway.  This is one complex where ample space was allotted for the buildings.  Unlike the complexes below on Alii Drive, Sea Villas is spread out giving a feeling of roominess and openness, a real contrast to the cramped conditions felt below.  There are just 4 units for sale right now ranging in price from $199K, a short sale with an offer in, to $587K for what they're describing as a penthouse unit.  In fact it's a two story corner with very nice ocean views.  The maintenance fees range from $550/month to $1,045/month for the "penthouse".  These also include garages and there have been only 2 sales in the last 12 months.  This is also a bargain compared to 2006 prices.

Contact me if you're interested in either place and I'll get you detailed information.

Now for the good news, credit card debt is down for the second straight month.  March is down 4.5% and February was down 8.4%.  This is after 22 months of job losses so people are putting away the plastic.

The bad news, they may have put away the plastic but there's more than one way to go into debt if you're determined to do so.  Auto, furniture and consumer electronics debt is up 3.9% but still outweighs credit card debt decreases.

Credit card debt totals $852.6 billion which works out to $7,271 per household.  Non-revolving credit like those cars and Blue Ray players total an incredible $1.59 trillion or $13,447 per household.  Instead of abbreviating that number it's $1,590,000,000,000.00, a bit more than most of us will make in a life time.  Okay, more than any of us will make in a life time.

This spending is attributed to the "Frugality Fatigue" we talked about yesterday, people feel the need to spend once in a while, after all, we worked for it long and hard, darn it!

This is good in one sense, since consumer spending makes up 70% of our Gross Domestic Product, spending helps the economy.  Hopefully, you'll let others go into debt to grow the economy and you'll continue to get rid of your debt, pay off credit cards and buy cars and trucks you can afford.

The problem with redistributing the wealth, as Obama would have us do, is that it's all going to go back to where it was eventually.  It's been studied and stated that if all the money in the country we gathered up and equally spread among the people, within 10 years we would be back to where we were before it was shared equally.  It's all about habits and if you don't have a savings habit getting a bunch of money won't change that.  So all those who love to spend go to it, spend away and help our economy.  The rest of us can save our money, live within a budget and once again in the near future be able to capitalize on the frivolity of those who love trinkets and things.

Happy Memorial Day from Hawaii where most of us can still wave the American flag.  It's a sad day when our own government won't stand up and say it's okay to wave our flag, a flag that's been carried around the world to free people from oppression and bondage and to aid those in distress.  And never in all that time of flag waving have we ever taken land, instead, we have completed our tasks, asked only for enough land to bury our dead then return to our homes, lay down our arms and pick up our plows and lap top computers.

I'm so amazed that our president is so ashamed of this country that he has our flag taken down in places like Haiti where we spent so much money and human energy to rebuild the country.  How can that bastard child of foreign parents, we think that's plural, come from no where and elevate himself to the most powerful position in the world and not love this country?  What kind of mental poison must he have been given to hate a country that has given him so much and he's had to do nothing in return.  So many that run this country have never given back, only taken.  How is it that just by moving into that position of power these people can so quickly forget what it's like to be an ordinary citizen of this country?

As a veteran, believe it or not, I was excited to have to go to war in Viet Nam.  My father had gone before during both WWII and Korea and I felt lucky to have my chance to fight for this great country.  I believed the talking heads in Washington telling us about the evils of communism and how they would take over the world one country at a time starting in Southeast Asia.  It wasn't until long after that war that I was to become fully disillusioned.  I still want to believe in our country, I still see us as the ultimate good guys in the world but I so want to pop that festering zit sitting on capital hill made up of the administration and the congress.

I hope we vote them all out come November and anyone left, out in 2012.  We need to have citizen representation once again.  We need people who have had to struggle through the last few years not remain isolated and pampered "on the hill".  It's time for a change, it's time to be proud of who we are as a people and as a country once more.  It is so good to see the average American the tea party people out there raising a ruckus and letting their voices be heard.  It is unfortunate that capital hill is deaf as well as blind to our predicament but that's about to change.

Oh, right, real estate, sorry about that.  Real estate in West Hawaii, both North Kona and South Kohala, is still moving right along.  In fact, sales of condos in North Kona are up 115% over last year at this time and prices are down -23%, how's that for a perfect storm?  Sales of Single Family Residences (SFR's) are up 66% and prices down -8%.

In South Kohala, SFR sales are up just 1.75% but prices continue to drop and are down by -10%.  Condos up there have sales up 97% however, prices have crept up by 0.60% but generally holding steady.

For more news on west Hawaii real estate and the economy and other stuff, email me for the Aloha Friday newsletter.  This is a weekly newsletter that covers real estate and a little bit of everything else happening in North Kona and South Kohala.

Has anyone noticed that Joe Biden is an idiot or is it just me?  I don't call a lot of people an idiot and in this case, I've thought about it long and hard and still believe him to be an idiot.

I know he's a nice guy, he's probably as honest as any politician might even have some integrity but none the less, he's an idiot.  How could the vice president of the United States stand up before an audience of socialists in Brussels and tell them that Brussels is, "the capital of the free world."  I swear, those hair plugs got pushed in way too far, somethings not right upstairs with this man.

Biden has said some really stupid things recently, most of his life probably, but forgetting he's running for vice president instead of president in a speech, Joe being Joe they said.  When he called his running mate, Barrack America, people laughed, just Joe being Joe.  Even when he said Franklin D. Roosevelt got on TV to talk about the depression it was just Joe being Joe, Roosevelt wasn't president during the depression nor was there any TV when Roosevelt was president.

But to stand up before the leading group of socialists in the world, to read from a teleprompter that, "As you probably know, some American politicians and American journalists refer to Washington, DC as the 'capital of the free world,'  But it seems to me that this great city, which boasts 1,000 years of history and serves as the capital of Belgium (at least he got that right), the home of the European Union, and the headquarters for NATO, this city has its own legitimate claim to that title."

I've gone way beyond asking how can our president and vice president continue to slap America around like this, to constantly embarrass us to the rest of the world?  Someone needs to revisit the definition of treason, "The crime of betraying one's country."  Barrack Obama and Joe Biden have betrayed their country.  The day can not come soon enough that they are both put out to pasture.  We need strong leadership in this country and I don't see that coming from any of the cowardly liberals with their bobble heads.

Before getting into the depressing part let's look at the really good news, fall out from the bad market.  As we see the market continue it's correction direction, that's down, there are really great opportunities being created for people looking for property.  These people are the smart ones, the wise ones who didn't refinanced at every opportunity or use their home as an ATM machine.  These are the frugal ones who lived below their means, who continued to save money even as those around them went on spending sprees with all their new found wealth.  These are the people who were raised to save a little bit of every pay check, people who never bought into the "get rich quick" way of thinking but knew you had to work long and hard in order to live well at some date in the future.

These opportunities are now in the form of million dollar homes for $800,000 or $800,000 homes for $500,000.  Looking at todays MLS offerings reveals a wide selection of high quality, newer homes with many amenities for rock bottom prices.  As prices continue to come down we see more and more people coming out to buy up what they consider to be a good deal.  It's been said that they may be "frugality fatigued", tired of working so hard for so long and now ready to enjoy some of the fruits of their labors, not all but some.

I have quite a few clients who are thinking of either retiring or drastically reworking their current job routines allowing them more time off and with family and friends or maybe more time for a hobby.  Our world of technology offers us this remote work opportunity and despite the onslaught of bad news about the economy, there are plenty of people who have maintained their financial health through these bad times.

Makalei Estates is aa development located north of Kailua town on the slopes of Hualalai mountain.  The cooler 2,000' elevation offers an ideal climate for coffee and cacao among many other fruits and vegetables.  Most lots here are 3 acres on gently sloping land.  The homes that have been built are for the most part, in excess of 2,000 square feet with luxurious finishes and amenities.  Most would be considered million or multimillion dollar homes but today, many can be purchased for well under that mark.  How about a 3 bedroom, 2.5 bath home with 2,256 sq.ft. of living area and about 2 acres of Kona coffee and cacao.  Makalei Estates is a gated community and most homes are protected by at least one more gate after getting in.

This is the best in gated privacy and at the right elevation for comfortable year around living.  What was well over one million a couple of years ago can be purchased today for $895,000.  This isn't the only home like this, there are lot's of them so if you're interested in this price range and the thought of living in a luxury home in Hawaii at less than luxury prices, then shake off your frugality fatigue and call me, 808-896-0661 or email me Robert@FerrariPacificRealty.com.

Now, Freddie Mac and Fannie Mae.  Why these two wasteful giants continue to live I do not know.  These monstrosities have been bleeding tax payer money for far too long and if it weren't for all the good buddy relationships between lawmakers and the numerous CEO's and other high paid executives that move in and out of both entities taking hugh amounts of money with them, they both would have been shuttered a long time ago.

What person in their right mind would continue to operate a business that just in the last quarter lost $11.5 BILLION, Fannie Mae, and is now asking for more tax payer money, an additional $8.4 BILLION.  Little brother Freddie Mac is right behind having lost $8 BILLION and is asking for $10.6 BILLION of yours and my tax money.

This disaster was begun by Slick Willy aka President Bill Clinton, not dealt with by the pretend to be conservative, George W. Bush then bolstered by our current silver tongued rascal, Barry Obama.  I don't know if being a long time partner (that's how we say shack up in PC language) of Elmer aka Barney Frank, Fudd has slowed the dismantling of the agencies but having a boy toy in the U.S. Congress can't hurt when it comes to raping the American people.

There has been much clamor and noise making about all that's wrong but no one on either side of the congress is doing anything about it.  Sen. McCain attempted some lame legislation that was shot down by the majority democrats and so it goes on.  The Federal Housing Finance Agency when asked about the high salaries being paid to the heads of these failing companies said, "Compensation must be sufficiently high to attract and retain top talent."  Humm, where's the top talent we're paying for?

Daniel Mudd was the CEO when the federal government stepped in and seized the company.  We don't seize companies that are doing well and being run by "top talent", we seize the ones who are oh so obviously being run by less than top talent even though Mr. Mudd was paid $12.2M most of which was tax payer money.  Does this seem right?  People burning through BILLIONS of tax payer dollars, being paid MILLIONS of tax payer dollars and the companies being run further and further into the ground.  Obama's answer this year is to remove the $400 MILLION cap on bail out money and instead, allow Fannie and Freddie to ask for and to receive, any amount they think they need.

Now that's fiscal responsibility.

I've been trying to come up with ways to tie today's political events into real estate since besides being a somewhat radical conservative and patriot I am a Realtor doing real estate in Hawaii.  Today, though, I've seen so many articles requiring a comment that I quit looking for real estate relativity.  I'll go bit by bit then wrap it up with why I shouldn't have done this, you may agree . . . or not.

Last night was the second state dinner put on by this regime, this time for Mexico's president, Felipe Calderon.  This clown from south of the border, a country where immigrant abuse is documented by even the United Nations, where illegals in the south of the country are beaten, raped and robbed regularly comes to dinner and bad mouths our great country.

Not only that, buy then the little bobble head Obama stands there agreeing with him in a continuation of the bash America campaign he's been on since getting the keys to Air Force One.  As an American citizen who spent 10 years in the U.S. Navy I have really had it with this dorky little wimp and his hooligan thugs from Chicago putting down the country I love and put my life on the line for.  Not a one of this regimes sissies has come close to giving service to our country and yet they now run it.

Enough of that one, how about Fannie Mae and Freddie Mac?  Here are two bloated government supported entities (GSE's) that are losing billions of dollars per quarter, asking for more billions.  Treasury Secretary Geithner, ex king of the New York Federal Reserve Bank and good buddy with the bonus laden heads of Goldman Sachs, J.P. Morgan and the rest, says the Freddie and Fannie fiasco is not sovereign debt but the government will stand behind them.  To big to fail?  How about just the right size to fail? 

Fannie and Freddie should both be taken apart and given/sold to private entities.  There is no reason that in this time of huge banks profits, the government run "bank" aka mortgage insurer, shouldn't be making huge profits as well except for the fact that it's government run.

After bobble head speeches about the improving economy boom!  unemployment claims are up to 471,000, just a bit higher than the expected 439,000.  Surprise!  How about those Leading Economic Indicators?  Expected to be up 0.2% but instead, down 0.1%.  Not a great prediction for upcoming economic activity.

No more tax credits for housing so the number of new loan applications are down 1.5%, the lowest number since 1997.  Overall, loan applications are down 20%.  Now, 10% of all borrowers are delinquent on their mortgages in the first quarter of '10 compared to 9.1% last year at this time and 9.5% in the fourth quarter of '09.  4.6% of all mortgage holders are in some stage of foreclosure proceedings.  We're told this is less than what it has been so that's good news and I suppose it is.

Everyone including the slimeball from south of the border is upset about Arizona passing a law against "ILLEGAL ALIENS", maybe not everyone but those who are quoted in the Obama media.  The 71% who are behind the law aren't mentioned much and they certainly aren't the ones threatening boycotts of AZ.  It's funny that a 17 page law has yet to be read by the loudest opponents like United States Attorney General Eric Holder or Security Secretary Janet Napoliano.  Not even State Department Assistant Secretary for Public Affairs, P.J. Crowley has read the law but they're all up in arms damning the state for passing it . . . whatever it says.

That's enough for now.  Looking over all this I can see why people are jumping at the opportunity to start new businesses or hire new people.  They see the country going to hell in a hand basket and that basket is being carried by none other than the number one bobble head, Barrack Hussein Obama.  God have mercy on all of us.

So the summary I mentioned in the beginning is this.  In courses on Argumentation, you learn that when you are attacked you can respond to each and every point the attacker makes or you can fall back on your guiding principle and the reason for the argument in the first place.  Above, I have been countering each point, not good.  The method this regime is using is to put out so much that no one can manage it all.  They are attempting to destroy this country by attacking from every possible angle.

Instead of arguing each point, I will fall back on my guiding principle.  This is a Christian country and one of tolerance for all religions.  It is a proud country who has acted as the international policeman for many many years and all good people have benefitted from this role we've played.  As Colin Powell once said, we have never in a war with another country taken any more land than that which was needed to bury our dead, those who fought and died for the freedom of that country.

It is time people again learned the true history of this great country.  We are founded on Christian beliefs and morals.  When you come here, read the constitution and if there is any part you disagree with, get the hell out.  If you want to wear head scarves, go to one of the many countries where that's permitted.  If you want time out at work to pray (we can't do it in public schools) then work for someone who shares your beliefs, do not expect someone else to make compensatory gestures for you.

If you Obama and all your apologetic side kicks hate this country so much, then get out.  Unfortunately, you're finding that no other country wants you.  Sad that we're stuck with you for another few years, glad that the change is going to start in just 6 months.

More on real estate tomorrow.

Remember the kid in grammar school who always thought it was so funny to pass gas in class and then point his finger at some poor unsuspecting person?  I think that's what gave rise to the old saying, "A skunk always smells it's own hole first."

I've noticed recently that our president has the quickest finger in history as he whips it out to point at the auto industry, the insurance industry, the banking industry and most recently the oil industry.  Let's see, he's been in office for 16 months now and he's still not taking responsibility for anything that's going on.

Looking at just the oil spill, who is that issues the drilling permits or issues waivers for the permits?  The government.  Who is it that has passed all the safety legislation concerning oil discovery and recovery?  The government.  Who is it that's in charge of enforcing all the safety laws required of the energy industry?  The government.

The particular well that exploded and sank causing this great oil catastrophe had just passed a federal safety inspection not more than two weeks before the fire.  The waiver of the National Environmental Policy Act was also a government decision.  This had to be waived due to the onerous nature of the Act that if followed to the letter, would probably never allow any drilling because of the time required to meet all the necessary steps involved.

With all the government regulations and oversight, maybe BP had decided to wait for government intervention before going it on their own since that type of independent thinking is not highly regarded in the upper levels of government.  Whatever the case, the government and the finger pointing Mr. Obama are every bit as liable for the spill and the problem that caused the spill as BP.  Instead of pointing his finger and yelling, "He did it", Obama should be asking how do we take care of this as quickly as possible and how do we make sure it won't happen again.

Just because a couple people get food poisoning at a fast food restaurant doesn't mean we close them all and just because there was an oil spill due to negligence on the part of industry and the government doesn't mean we shut down all off shore drilling.  We fix what's wrong, that's what America's known for, and we move forward.

Whew, now that that's over with, let's talk real estate.  We're still waiting for a recovery.  In last week's newsletter we mentioned the newly coined phrase, "Frugality Fatigue."  This new phenomena will not go on long.  The same people who are feeling a little frisky right now and spending some money will retreat to their more conservative bent soon, putting money away and saving for a rainy day which is why they have money to spend today.

Expect property prices to continue downward, slowly, until we at least see a little light at the end of the foreclosure tunnel.  As long as the banks are relieving themselves of the huge shadow inventory I don't expect to see a true bottom in prices.  We're seeing the demand slow also as we run out of those who put money away for the rainy day.  There are still plenty of them out there and they will continue to watch from the sidelines, jumping in only when the best of deals are found.

Median price is no longer dropping at the 20% per annum rate we had been seeing and sales activity is no longer across the board.  Last month, Single Family Residence sales we down <10.71%> for the first time in a while after climbing for many months.  Condo median price in South Kohala actually moved up 4.84% last month, a first for price increases.

We're in the midst of change but not far enough along to know where it's going.  Maybe we'll know more this week as some interesting finance numbers come out.  More to be revealed.

It is a time of change; for the last 10 months we've looked at the market numbers showing predictable and consistent declining median prices and increasing sales activity across the board but now, now all that's changing.  The market is no longer predictable.

For example, we still see increasing numbers of sales in all west Hawaii districts except Single Family Residences (SFR's) in South Kohala where the number is down <10.71%>.  Condo sales there are up 66.67%.  In North Kona, SFR sales are up 56.32% and condos are up 78.46%.  Even South Kona is showing increases of 55.56% for SFR's and in a land with few condos we still see a 100% increase in the number of sales this year going from one sale last year to a whopping 2 sales this year.

The median price for most areas is still on the decline.  A SFR in South Kohala has a median price of $360K which is down <10%> from last year at this time.  Condos in South Kohala show an increase in median price this year of 4.88%, up to $430K.

Median price in North Kona for a SFR is down <8.63%> to $410,250 and condos are down in price to $250K, a <21.75%> drop in value.  In South Kona a SFR in down just <0.83%> to $297,500 while the median price for a condo there is $300K, down <11.76%> this year.

In the recent past, up to July of '09, we saw the number of sales fairly consistent and showing a slight increase month to month.  In July, we suddenly saw those numbers begin to shoot up.  Median price which had been averaging about a <20%> decline month to month compared to the year before was predictable.

Now we're seeing the median price declines starting to slow down with the exception of North Kona condos.  The number of sales continues to skyrocket except in South Kohala SFR's.  Things are changing but it's too early to determine where they're going.

On reason being offered by some is that boomers are showing signs of "Frugality Fatigue."  It's as if they have been pinching pennies for too long and now it's time to enjoy some of the fruits of their many years of labor.  One of the places we're seeing this change is in the homes boomers are buying.  Boomers are moving up the price scale as they choose their retirement home.

An interesting statistic that just came out of an opinion survey conducted by Dell Webb, best known for building communities that are designed for those 55 and older, is how important living near family is.  Webb has been conducting this survey since 1996, 10 surveys in all.  They have found a new propensity for moving and moving far away.

In the past, retirees considered staying near family a relatively high priority when planning where to live.  In the most recent survey, living near grand children was the next to last reason.  A little light bulb went on when reading that number; could it be that grand children aren't what they used to be?  Today's kids; on the whole, I know there are exceptions and plenty of them, tend to be more self centered and isolated with their digital friends, texting, gaming iPods, etc.  Young children today tend to be less respectful of their elders, in some cases rightly so.  Children have no sense of history and don't/can't appreciate what their parents and grand parents have lived through in their lives; we spend way to much time and energy consoling our children and making sure their world is a good place to be.  Maybe that will change along with the other changes coming down the pike as we enter the end of the tolerance age.

A follow up on the blog yesterday about the White House media program.  The official name is the White House Message Machine, it has 69 employees and an annual budget of $4.3 million.  This does not include a huge supporting staff of independent contractors and a nation wide group of input providers.

The administration has begun West Wing Week, a program described by Mordecai Lee, professor of governmental affairs at the University of Wisconsin at Milwaukee as, " . . . all about bypassing the press corps."  News photographers are barred from many events including the recent nuclear arms talks and instead, are provided photos by the White House for publication.

According to Clare Bohan, a Reuters reporter, "If they want to use blogs . . . and other media to do that, that's great.  We just don't want that to substitute for journalist access."  You know something's not right when even the brown nosing, administration supporting mainstream media become upset with White House policies.  What's next, keeping the unions out of the decision making process?  Oh my, more to be revealed.

Before we talk real estate in West Hawaii I'd like to bring up something for you to consider.  I am not attempting to draw any parallels between our current administration and any that have gone before but there are some troubling occurrences taking place.

Up until recently, the White House Press Corps was the main source of information making it's way out of the White House.  The president or various department heads would call a press conference and word would get out to wee the people about what's going on in the ivory towers we call Washington D.C.

On the surface, this new means of getting out the information may not seem scary, that is until you think about all the implications.  The Obama administration has it's own film department complete with directors, writers, cameras, sound stages and all that goes with turning out first rate movies, news clips and promo pieces.

The White House Press Corps has nothing to do with this new department and is seldom asked to participate in any of it's dealings.  An example of the new news is a piece that came out on Supreme Court nominee Elena Kagan, a well produced and directed video that was meant to introduce her to the country.  The one problem is that there were no reporters involved in this production, no questions asked from neutral parties and no answers given that weren't scripted and prepared.

This was nothing more than a pro-Kagan mockumentary put out by the White House to sway the thinking of the American public.  At the same time, the White House announced that any interviews of Kagan or her family would have to be cleared with the White House.  The one formal request that was made, a request to interview her brother, a high school teacher teaching Constitutional Law, was denied by the powers that be.

Does it bother you as much as it bothers me when the free press is no longer allowed to vette a candidate or any other public figure for that matter?  I remember reading about politics in Germany in the early 1930's when similar methods were used to "educate" the public on that leader's agenda.

When an administration takes over the media by side stepping the free press and presenting only that which they want us to see and hear and only in the format they want us to see and hear the topic in, I grow concerned.  We have been lied to for a long time by this administration and that was done through a very friendly press corps.  Now it seems that even those clearly on the side of the administration can't be trusted to paint the correct picture, now they have to rely on in-house productions to tell the story they want us to hear.  Makes me wonder what the real story is.

On to real estate; our market continues in the same vein it's been in and that is declining prices and increasing sales.  The fact that the banks have a huge "shadow inventory", properties waiting to be released onto the market, is keeping the available property numbers about the same regardless of the fact that the number of sales is on the rise.  This means the low end of the market, properties under about $250,000, will continue to be well stocked for the foreseeable future.

Interest rates remain low with 30 year fixed rates under 5% with just a point up front.  There's no sign of any increases in these rates until there are strong signs on inflation.  Don't expect to see that until the employment picture changes and don't expect that until either the administration ceases it's "spread the wealth" campaign or we have a conservative house and senate.

Now is a good time to investigate property ownership in Hawaii.  Both North Kona and South Kohala have great deals on condos and homes.  With many newer condo complexes in both districts your choice is wide open.  So now you have choice, low interest rates and low prices, a perfect storm and indications of a strong buyer's market.  Come on in, the water's fine.

The Consumer Price Index (CPI) rose 0.6% in the first quarter of 2010, good news.  This means people are spending more and since consumer spending makes up 70% of the Gross Domestic Product (GDP) things are looking up . . . or are they?

Take home pay only went up 0.3% so where did the spending money come from?  Savings accounts or credit cards or college savings, hmm?  People were saving more so there may have been money in savings to withdraw.  Hopefully, people have realized the dangers of using credit cards and if one of their kids is the next Facebook designer or You Tube creator, maybe they won't have to worry about money, or not.

The indomitable American spirit used to refer to us getting down to business, rolling up our sleeves and turning to, getting busy and producing.  Today that spirit means putting on our Manolo Blahnik's or Christian Louboutin's and slipping into an Armani Collezioni or Emilio Pucci and going shopping.  We have become more consumer than producer and sometimes that means dipping into our savings accounts, after all, how long can we be expected to be frugal?

So while this may look good to certain liberal spinmasters a conservative perspective says this can't be good.  We are once again living beyond our means.  At least when people were socking their money away in savings accounts we could pretend they were saving for a new home or retirement.

Real estate prices continue to decline in West Hawaii even though sales activity is still rising.  My guess is that the declining prices will continue while the sales activity will begin to decline, soon.  The pool of buyers we're looking at is finite, it's a group that was created in the past, those wise enough to live within their means and save their money, maybe even pay off their homes.  They're on the side lines watching the market and jumping in when what they want hits the price they're willing to pay.

There are so many foreclosures and short sales on the horizon that even once the government reports a slow down in monthly numbers among these groups, the back log will take a couple of years to dwindle down to normal market numbers.

We need to see the CPI and the take home pay reverse their relative positions, more take home and less spending.  We need to see the unemployment figures turn around, we can't have a sustained jobless recovery.

The biggest improvement in the employment figures are in the public sector, out pacing the private sector by two to one.  The last thing we need right now is a bigger federal government, more people feeding at the public trough being fed by fewer and fewer tax payers.  Please Mr. Obama, if you won't follow Ronald Reagan's example, read Atlas Shrugged by Ayn Rand or The Richest Man in Babylon by George Samuel Clason.  Either one will maybe, just maybe open your eyes to the reality of what you're doing to this country and our economy.

At least those of you smart enough to work hard and save, those of you interested in investing in real estate, you have a bright future.  With prices still dropping and interest rates being held artificially low for the foreseeable future you can capitalize on some great deals, even here in paradise.  I don't see any change coming at the top, at least not until November, but even then I think we're too entrenched in the direction we're headed.  It's going to take until 2012 since it doesn't seem that any amount of outside influence is going to change our head long plunge into debt and social dischord.  It's going to be a tough road back to where we were but at least it will give us something to do for the next 30 or so years.

There is an accepted insanity found at certain levels of government where double speak is considered the language of the day and psychobabble is considered a way of doing business.

Representative Maxine Waters, in introducing FHA modifications, suggested that the average person is paying too much for loans and that the banks are taking advantage of people with their hidden costs, etc.  She then offered changing FHA's mortgage insurance rate, almost in the same breath, from 0.55% to 1.55% . . . huh?  How is that going to stop the banks?  It will divert much of the excess money people are paying for home ownership to the government rather than the banks but how does that help we the people?

An example of the impact of such a change is this: you buy a $200,000 home using FHA at 5% interest.  Your mortgage insurance is currently 0.55% so on a payment of $1,074 per month, that adds $92 for a total payment of $1,166.  If Maxine Waters gets her way that same $200,000 home at 5% interest would have a 1.55% mortgage insurance rate which equals $258 which raises the monthly payment to $1,332.  Compared to $1,166, that's not a good deal in anyone's arithmetic book. 

Just another example of your representatives at work for you, the American taxpayer, that is if you're one of the 53% actually paying federal income tax and if you're reading this, I suspect you are.

When you combine Ms. Waters work with the socialist state of Hawaii's recent rape of the Hurricane Relief Fund you end up with expensive housing.  Those who wonder why the housing industry isn't recovering any faster than it is can look at this type of leadership for possible reasons.

The Hawaii legislature decided to end Furlough Fridays, the closing of schools on Fridays because the Department of Education ran out of money, by taking the money that home buyers have been depositing into our state's Hurricane Relief Fund.  Without that fund, you can expect to see home insurance rates rise since now the entire load falls on the shoulders of the insurance industry.

Instead of pointing that out, our state legislators tout their saving one of the country's worst school systems from further erosion.  We sure wouldn't want parents to have to deal with their children, maybe even have to teach them something.  Yes, I am a little sarcastic on the subject having grown up in the 50's and 60's before we were protected from everything from riding in the car to playing in the mud.  It really is time to vote them all out and start from scratch; it couldn't be any worse than what we have going on now.  Let's not forget come November, we need a change or those knotheads are going to take us all down.  Of course they have their futures guaranteed at our expense so do they care?