Real Estate in La Quinta

What: Larry Pughe Invites you to a free Seminar on how the recent government bail out will help La Quinta residents.

When: Oct 23rd 7-7:30 & Oct 25th 10-10:30 am

Where: The Thane Building 78140 Calle Tampico, La Quinta, CA 92253

La Quinta Real Estate: Paulson says banks will be lending again.

Paulson tells banks to lend new government capital

By Greg Morcroft, MarketWatch
Last update: 1:10 p.m. EDT Oct. 20, 2008Comments: 192NEW YORK (MarketWatch) -- Treasury Secretary Henry Paulson said Monday that banks receiving investments from the government will be expected to loan out the money to help revive liquidity in the credit market.
The news came as the Treasury and other bank regulators released technical details of their plan to purchase up to $250 billion in preferred stock in healthy U.S. financial institutions.
"Our purpose is to increase confidence in our banks and increase the confidence of our banks, so that they will deploy, not hoard, their capital. And we expect them to do so, as increased confidence will lead to increased lending," Paulson said in remarks to reporters.
"This increased lending will benefit the U.S. economy and the American people," Paulson said.
All financial institutions will be able to submit a single application form to their primary banking supervisor.
Paulson said nine major banks have agreed to participate, and "we have received indications of interest from a broad group of banks of all sizes." The program is an investment, not an expenditure, he said.
"There is no reason to expect this program will cost taxpayers anything," Paulson said.
The application process appears designed for quick execution and looks to avoid classic government bureaucratic delays.
There is a single application form for all institutions registering to participate in the plan.
It equires the applying firm to submit basic information like the amount of the perpetual preferred stock it wants to sell, as well as information regarding the amount of authorized but unissued preferred stock and common stock it has available for sale.
The deadline for application is Nov. 14. The Treasury said that it will process the applications as fast as possible but that times would vary based on several factors about individual institutions.
The Treasury also said it will announce approvals under the plan but will not disclose the names of any banks in which it declines to invest.
Moreover, the Treasury said that firms will be able to count as Tier 1 capital.
Greg Morcroft is MarketWatch's financial editor in New York.

If you are on the fence on if you should buy or not. Read the article below. Rates are on the rise.


MORTGAGES

30-year mortgage at 8-week high

Biggest weekly jump in 21 years sends benchmark loan to 6.46%

By Amy Hoak, MarketWatch

Last update: 10:36 a.m. EDT Oct. 16, 2008

Comments: 4

CHICAGO (MarketWatch) -- Average rates on fixed-rate mortgages shot up this week, according to Freddie Mac's survey released Thursday.

The 30-year fixed-rate mortgage averaged 6.46% nationally for the week ending Oct. 16, up more than half a percentage point from last week's 5.94% average. This was the largest weekly increase since the week ending April 17, 1987, when the mortgage rate went up 0.84 percentage point, according to Freddie Mac. The mortgage averaged 6.40% a year ago.

"Interest rates for 30-year fixed-rate mortgages rose this week to an 8-week high," said Frank Nothaft, Freddie Mac chief economist, in a news release.

Rates on 15-year fixed-rate mortgages also shot up, averaging 6.14% this week, up from last week's 5.63%. The mortgage averaged 6.08% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages also rose, averaging 6.14% this week, up from last week's 5.90%. The ARM averaged 6.11% a year ago.

Meanwhile, 1-year Treasury-indexed ARMs barely moved, averaging 5.16% this week, up from last week's 5.15%. The ARM averaged 5.76% a year ago.

"ARM rates, which tend to be based on shorter-term benchmarks, showed smaller gains in part due to the Federal Reserve's Oct. 8 intermeeting rate cut in the overnight lending rate," Nothaft said.

To obtain the rates, all mortgages in the survey required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Recent economic reports suggest the economy is still slowing," Nothaft said in his comments. "For instance, retail sales fell, for the third consecutive month, by 1.2% in September. In addition, in its latest Beige Book, released [Wednesday], the Federal Reserve indicated that economic activity weakened in September across all 12 Federal Reserve districts and that several districts also noted that their contacts had become more pessimistic about the economic outlook."

Recovery Bill

I think that the National Association of Realtors has the best information on the Government Bailout, and how you can use it to take advantage of this real estate market. Please visit the links below:

Click here to learn more about HR 3221 The Housing and Economic Recovery Act


Click here to learn more about The Economic Stabilization Act

Making Money is Child's play

I often have extravagant Ideas of starting some weird company. I am an entrepreneur to the max. The only problem I have is I have a family I have to support. I do not have the luxury to spend time on idea’s that may not, and probably won’t, work.

Who does have time, and crazy idea’s that might just be able to start the next fortune 500 company? I have an answer that might surprise you. KIDS!!!!!

My friend Bob once told me that he thinks one of the reasons for our poor work ethic in society, and that we are importing goods, and jobs from foreign countries more than were exporting is because kids aren't allowed to work anymore. He thinks that we can get cheaper labor from teenagers. If we did this we could stop hiring illegals to do the jobs grown up Americans won’t do, and maybe can’t do, because it doesn’t pay enough to support a family. If we let our children earn some money, learn what it means to work hard by being employed by responsible American companies, we can keep a lot of our money that is going over seas right here in America.

We should allow our kids to be entrepreneurs, work in restaurant kitchens cleaning dishes, let them work on farms picking the crop, or clean houses, or baby sit. There is nothing wrong with a little hard work, and there are lots of safe jobs kids could do. Besides working and being a contributing member of society is a much better lesson than can be learned playing video games.

If you don’t agree with me read the article below it may change your mind.

Making Money Is Child's Play
By Dallas Crilley

Calling all kids! It's time to put down the video games, stop chatting with your friends on the computer and do something more meaningful.

As a 15-year old boy, I can tell you that I'm seriously worried about my generation. It's different than any other in history -- most of my friends expect their parents to do everything for them. Their idea of being motivated is getting up the energy to ask mom or dad for money! It's ridiculous, and if things don't change this country is in serious trouble.

Think about it. Most grown-ups are in credit card debt now. Just imagine how bad it's going to be when my generation gets its hands on a few charge cards. I'm a part of the instant gratification generation, and it's only going to get worse.

We have to teach children the value of a dollar and help them understand that making money is fun. Kids are born entrepreneurs. Just about everyone had a babysitting job, ran a lemonade stand or sold cookies door to door. However, instead of encouraging the “kidpreneur” in their child, many parents send their kids to the mall to get a job in a store and suddenly work becomes a drag.

I've spent the last year studying teenage entrepreneurs and I've discovered a pattern. The ones who are successful are the ones who turned their passions into profits. They didn't start their business looking to make money. They did what they loved and the money followed.

Computer legend Michael Dell is a great example. According to his official biography, he was just 12 years old when he first started delivering newspapers. He soon discovered that the real money wasn't in delivering papers, but in selling subscriptions. He noticed that the people most likely to buy were either newlyweds or couples just moving in.

He thought to himself, “There must be a place where this information is stored.” He decided to jump on his bike and pedal down to the courthouse where he found the office of marriage licenses and real estate transactions. He started copying down names and addresses and then pedaled over to their house to close the sale. Soon it was no longer worth his time to do the research, so he started hiring other little boys to bike down to the courthouse and bring back the information. According to his bio, Michael Dell was making more than his principal by the time he graduated high school.

Here are the lessons I learned from Michael Dell and dozens of other teenage tycoons:

FOLLOW YOUR HEART

Parents should ask their children what they would do with their lives if money didn't matter. The answer is usually very revealing. If the child says they would work with pets, perhaps they would be interested in starting a pet sitting or dog walking business. If they tell you they would play video games, maybe they could start a business tutoring younger kids on how to take their game to the next level.

ENCOURAGE THE KIDPRENEUR IN YOUR CHILD

Don't discount your child's idea. Grown-ups are great at telling children why something won't work. I know that you're trying to keep your child from failing, but remember, childhood is when dreams need to be nurtured. I've always believed that for every person who is out there saying something can't be done, there's someone else who's already out there doing it.

GROW YOUR WINGS

Children will create businesses that don't work out, and that's okay; that's where the learning happens. You always learn more from the failures in life than the successes. Just encourage your child to jump from the nest and trust that they will build their wings on the way down.

Now the question is, what are you going to do with this information? We suffer from the same vitamin deficiency: Vitamin A—Action. If you want to really help your child, you'll love them enough to encourage them to go for it. Who knows? You may discover your child is born to do business and if you're lucky, they'll be able to take their passion and sell like Dell.

Dallas Crilley is a 15-year old kidpreneur from Dallas. He's a much sought after motivational speaker and the author of Kidpreneur—Genius Ways for Kids to Pay Their Way Through College. It's available at bookstores or www.kidpreneurclub.com