Fifty Year Mortgages? An awful idea.

The WSJ editorial team nailed it today: https://www.wsj.com/opinion/50-year-mortgage-donald-trump-bill-pulte-housing-prices-5ca2417b?st=N1W1Cu&reflink=article_email_share 

My online comment...

"Have we learned nothing from 2008-2009? This is a bad idea and a dangerous one. The easy answer of pile on more debt to improve affordability, hastens another meltdown. We don't have a demand problem, it's a supply problem."

Is that what heaven looks like?

Last week before leaving Thailand (more about that trip shortly), I learned that my brief reader's comment about financial advisory services, would be included in a Wall Street Journal article found HERE. 

The common practice of paying an advisor one percent (or more) of assets under management (AUM) on top of all the other fund investment expenses, is a relic and many people don't realize there are alternatives. 

This is not to say that all financial advisors who are paid a percentage of AUM never provide a valuable service, many do, but the point is that clients would do well to pay for advice about asset allocation, fund selection, tax planning etc. on a fixed fee, or hourly fee basis. Pay only for what you receive. 

I cringe when I hear commercial pitches like "We do better when our clients do better". Anyone can be a fiduciary and still overcharge for a service. The fact is, an advisor gets paid with the percentage of AUM fee model, even when their clients' portfolios don't perform well, or when the advisor delivers poor advice and/or poor service. 

Still think the traditional fee model is fair because clients are charged the same percentage? Consider two investors paying Joe Advisor 1.25% of AUM. Claude has $1,000,000 portfolio and Julian has a $2,000,000 portfolio. All other factors equal, can Joe justify charging Julian $25,000 vs. only $12,500 for Claude? Has Joe done twice the amount of work for Julian? 

Now, about my recent trip to Vietnam, Cambodia and Thailand...

The people in all three countries are generally very poor by our standards. They have little, but they are also happy and peaceful. Beautiful people. In Cambodia, a group of schoolchildren waved, called out to us and smiled so energetically that tears came to my eyes. I won't forget the moment. Most of us in the USA have an abundance of riches compared to these citizens, yet many of us remain unhappy, always wanting more.

Perhaps part of their abundant sense of well being is underpinned by the fact that there is almost NO violent crime in these SE Asian countries. I never felt safer. 

The problem of course, is a demonstrable lack of personal freedoms, freedoms which some of us take for granted. In SE Asia, one can criticize the government(s) until one has developed a group of followers. I was told by a local that initially if criticism is overheard by a party member, one might be invited to the police station for a "chat over tea". Afterwards, speech against the state will land one in jail. 

Why can't we have public safety and peaceable citizens AND ALSO enjoy personal protections afforded us by the US Constitution and our legal system? 

Is that what heaven looks like?

 

Regarding Autumn by Elizabeth K. Maddente (written 8/29/1988)

Freepik image

Everything is cyclical

Even the seasons are.

Don't let Fall depress you

As midwest nature is put on hold.

It does not die,

It changes.

The deciduous shed their leaves

Leaving the sculptured trunk

To rest

In quiet serenity, only to greet us

Again in the spring.

The coniferous endure

Proudly, stoically

Through the cold white days.

It is cyclical, like life

The perfect dichotomy

From fetal origin

We go through life's changes

And then

Only to return to our beginnings.

An awesome experience

Enjoy it!!

Everything is cyclical...........

Child of the Line

Catapulted into a summer night

I run out the door, into darkness

thoughts of youth pervade the mind

reminding me of the long line called my life.

The games once played

are mostly forgotten

the people who chased me

are all gone.

But the child is still there

The child of the line is smiling

Freepik image

Winter Whispers

Pointed, brilliant drifts of snow

pierce the evening of winter.

Curving upward they arch

to a luminous, cyclopean moon.

A guest, humble, I stand here

beneath flickers in northern skies.

Icy grains atop snow drifts, 

move obediently for winter gusts.

One drift releases grains to its neighbor.

Tumbling crystals, indifferent, brush sodden drifts.

A rabbit stops to listen.

Paul Krapf image adapted

Old man and the Park

He walks slowly to

a familiar place.

One hand on the park bench

he slowly lowers himself to rest.

He cups a flame, 

cigar smoke rises 

to his hat brim,

curls upward and over.

Frenzied grackels,

scurry over scraps with

scampering feet, 

rapidly changing.

Easily witnessed and

contented, he rises.

Image by prostooleh on Freepik

Quote of the month - Illegal immigration and "due process"

I apologize for the poor granularity of the picture below which I snipped from a post on LinkedIn (my fault not theirs). For me, Stephen Miller's quote cuts to the core of the debate on due process and lllegal migration.

"The right of "due process" is to protect citizens from their government, not to protect foreign trespassers from removal. Due process guarantees the rights of a criminal defendant facing prosecution, not an illiegal alien facing deportation."

The Atlas Society post on LinkedIn