Posts Tagged ‘blog’

More Banker Greed

Friday, December 25th, 2009

Joining their fellow banking CEO cohorts, the heads of Fannie Mae and Freddie Mac were approved for $6 million in pay each for 2009.  Fannie Mae and Freddie Mac, to refresh your memory, purchase bundles of mortgages to ensure that money is always available to lending institutions which give loans to homebuyers.  They are quasi-private companies backed by the federal government.

Fannie CEO Michael Williams and Freddie CEO Ed Haldeman each received $900,000 in salary and another $3.1 million in salary with payments deferred to 2010.  That’s $4 million apiece.  Each also is eligible for another $2 million in performance incentives.  Considering that Fannie and Freddie needed a combined $111 billion, yes billion, in federal bailout money, one wonders exactly what their performance bonus was contingent upon.  Perfect attendance?  Turning their homework in on time?  Spelling their names correctly?

CORB1687

The argument by their cheerleaders is that the former CEO’s of the two companies, who were both fired in September, 2008 when the bailout money was proposed, made a lot more money.  The Fannie CEO received $10.2 million in 2008 and the Freddie guy nailed $13.1 million.  It practically took an act of Congress to stop them from awarding themselves another combined $24 million in termination pay.

The case for Williams and Haldeman continues that each would command up to $10 million in yearly pay in the private sector.  The argument typically concludes with, “No one else would do the job for less money.”

Bullfeathers!

I’ll do the job for one year for a measly $500,000.  I’ll move to Washington, DC for one year, rent a condo, and work 365 straight days.  A lot of qualified people would do the same thing.  And I’ll donate $100,000 of that money to DC soup kitchens for the homeless.  That would make my take home pay about $250,000.  Not extravagant, but fair!

I really get tired of hearing how top company management and all government workers – federal, state, and municipal – feel justified in making a lot more money than their small business and working stiff counterparts because, “No one else would take this job.”  And the benefits they receive, including health insurance and retirement packages, are way beyond reasonable and equitable.

Is anybody mad yet?

- Mountain Man

http://www.MountainManandCityGirl.com

Banks: Tight Purse Strings

Tuesday, December 22nd, 2009

As any active realtor knows, banks are more tight-fisted with loan money now than in the past decade.  In the spirit of this Christmas season, you could even call them Scrooge.

The tried and true banking tradition is that banks took deposits from customers, paying a certain interest rate, then lent money to borrowers at a higher rate.  The difference in the interest rates was their profit.

The model has changed since the number of bank failures rose from three in 2007 and 25 in 2008 to 140 in 2009. 

Banks are now borrowing at near-zero percent interest rates to get short term loans for themselves and putting the money into Treasury notes and other higher-yielding government securities.  They make a profit with no risk (unless the United States collapses).  This practice is called playing the yield curve, or carry trade.

Loans given out to consumers and businesses in America have dropped 8% in the last year.  The banks claim that less people want loans.  Our experience as realtors tells us a different story.  We’re seeing people with solid credit and income getting turned down for loans in this vacation home market here at the South Jersey shore.  At our agency, we’ve put a lot more properties in 2009 “under contract” than in 2008, but we’ve closed on fewer than last year.

Right now only FHA-backed loans, which account for 30% of home loans compared to just 3% in 2006, seem a sure thing.  Loans for second homes and businesses are tough to obtain.  Banks literally want no risk when giving a mortgage.

When the economy finishes turning around and businesses begin hiring, maybe banks will feel comfortable again lending money.  Until then, many realtors and consumers will have to continue treading water.

- Mountain Man

http://www.MountainManandCityGirl.com

New Jersey: Not Business Friendly

Thursday, December 17th, 2009

Let’s face it.  If the economy is to recover quickly, the bottom line is jobs, jobs, jobs.  Put people to work and everything else falls into place.

Businesses, of course, are the key to creating jobs.  And two-thirds of jobs are with small and medium size businesses.  So to get businesses to hire more employees, the economic climate must be favorable.

New Jersey, unfortunately, ranks last or near the bottom of every business-friendly list generated, based on several factors. New Jersey ranks well in transportation, easy accessibility to large markets, having an available labor pool, and having the third lowest gasoline tax in the nation.  That’s the end of the good news.

New Jersey has the second highest individual capital gains tax and sixth highest corporate capital gains tax.  Property taxes are amongst the highest in the United States.  Wading through the multi-levels of government and environmental bureaucracy adds to the negatives.  Why would a business relocate to New Jersey with the high cost of doing business, plus the time delays in getting construction completed due to getting bogged down in permitting?

New Jersey – and newly-elected Governor Chris Christie – need to make some changes to spur business.  Tax rates on corporations and small businesses must be reduced.  The state will make up the loss in revenue by gaining more businesses, which in the long run makes a more stable tax base.

And as we all know, real estate property taxes must drop dramatically.  With six out of every 100 workers in New Jersey actually employed by the state, it’s not hard to figure out where the first cuts should be!

- Mountain Man

http://www.MountainManandCityGirl.com

Wildwood’s New Mayor

Tuesday, December 15th, 2009

Shortly after new Wildwood commissioners Ed Harshaw and Al Brannen were sworn in Monday night to join sitting commissioner Gary DeMarzo, the three picked the new mayor. 

Envelope, please.

And the winner is Gary DeMarzo. 

Maybe winner isn’t the correct term, considering the tough road ahead.  Wildwood is beset by having the highest tax rate in Cape May County, $1.83 per hundred dollars of assessed value.  The portion that is directly attributed to Wildwood’s budget is $1.11 per hundred, with the balance the county’s tax levy.

The first act of the new commission was to name attorney Daniel Gallagher of Atlantic City as interim city solicitor.  The current solicitor, Wildwood attorney Marcus Karavan, is still under contract to the city so that will have to be ironed out.  This appointment of Gallagher is apparently a pay back for being the attorney representing the recall committee.

They next named former Ocean City business administrator Richard Deaney as interim administrator.  The house cleaning continued by voting to solicit bids for a new municipal auditor, which is now covered by Ford, Scott, Seidenburg & Kennedy of Ocean City, and new municipal engineer, which is currently handled by Remington Vernick of Wildwood.

DeMarzo kept on as commissioner of revenue and finance, while Brannen became deputy mayor and head of public safety.  Harshaw became commissioner of public works.  The trio changed the two monthly commissioner meetings to the evening, instead of one being at 3:30pm.

The easy part is over for the new commission.  Collecting petition signatures, campaigning for election, and getting out the voters is in the rear view mirror.  Ahead lies the pitfalls of a small, mostly seasonal city with a $26.1 million budget and 225 employees.

And May, 2011, just a brief 18 months away, is the next election.  The pressure is on this new trio to reduce spending and cut the tax rate, an unenviable job.  They will now be in the crosshairs.

They wanted a shot at running the city.  Reminds me of the old adage, “Be careful what you wish for.”

- Mountain Man

http://www.MountainManandCityGirl.com

Baby Boomers will be replaced

Saturday, December 12th, 2009

Most people would agree that the real estate market of the last 15 or 20 years has been fueled by the Baby Boomers.  As you know, that’s the 80 million Americans born between 1946 and 1964, and now ages 45 to 63 years old.  They’ve had careers and saved money and invested in real estate, stocks, and retirement plans, amongst other things.

The next generation has been called “Generation X”, originally called the “Baby Bust” due to the low birthrate in America.  They were born from 1965 to 1979, with the latter half mostly children of early Baby Boomers.  They are now 30 to 44 years old, but they are just 48 million strong.  With the average age of a first-time homebuyer pegged about 33 years old, they are filling that niche right now while the Baby Boomers upgrade to add vacation homes or downsize to smaller homes as “empty nesters”.

The next group to arrive was Generation Y, those born between 1980 and 1995.  Now 14 to 29 years olds and children of the latter half of the Baby Boomers and the early Gen X’ers, they will be the next group to arrive on the real estate scene.  The exciting news for the real estate industry and the economy of the United States in general is that there are 74 million of them.  They should eventually have the economic impact equal to that of the Baby Boomers.  Tattoos and piercings and all, this generation will soon enter the first-time homebuyer market and take their place on the economic ladder until they are perhaps 60 years old or so.

As the population demographics shift from one group to another, there will always be a new generation to carry the day.  Isn’t that why we reproduce?

- Mountain Man

http://www.MountainManandCityGirl.com

A Real Jump-Start

Friday, December 11th, 2009

Nearly a year into the Obama administration I think Americans can see that the No.1 issue in the nation’s mind – the economy – is still sputtering.  Bank bailouts and all that stuff just aren’t working fast enough.

As Mighty Mouse used to say, “Here I come to save the day!”  So here’s my simplistic approach to ending the Recession.

The United States of America has the highest bond rating possible – AAA.  That rating means that the U.S. is not likely to default on debt.  Thanks to the Bretton Woods Accord back in the 1970s, the U.S. dollar is no longer backed by the gold in Fort Knox.  The American dollar – of which there are 829 billion – is backed by the government’s ability to generate revenue to pay down it’s debt.

New dollars are issued when the Federal Reserve elects to fund the purchase of debt, which is usually through U.S. Treasury Bonds.  Done in excess, this can cause inflation, but bear with me.

The net worth of Americans is currently $53.4 trillion.  Prior to the Recession, it was $64.5 trillion.  In other words, we’ve lost 17.2% of our worth.  By the way, $348 billion of our collective $53.4 trillion is household real estate holdings, i.e. your house.

That’s the background, now my proposal.

Let’s give each American household $10,000 tax free.  With 105,480,101 households, that’s $1.05 trillion.

There are 7.7 million businesses in America.  Let’s give them each $100,000 tax free.  That’s a mere $770 billion. 

So add it up and the American government can print and distribute $1.82 trillion.  This isn’t money raised by taxes.  We’re just gonna print it and give it out.  There’s just one stipulation – the money can’t leave the country.  It can’t be sent to relatives in Nicaragua or used to hire workers in China.  It has to be spent in the 50 states.

Think of the ramifications.  The boost to the economy will be incredible.  Some people will pay down debt or save their homes, while others will buy TVs, cars, and yes, useless junk.  Some might even use some of the money for booze, cigarettes, and methamphetimines, but that can’t be helped.

All this will turn into many of the 7 million people laid off from work since the beginning of the Recession getting gainful employment again.  For every dollar currently in circulation, there will now be three dollars.  Banks will start lending again and the good times will roll.  States will see an increase in sales taxes collected, easing their budget pains.

The nay-sayers will yell that my plan will cause inflation.  Sure, it will.  But it’ll be manageable, maybe 10% at most and it will be a one-time thing, just like my giveaway windfall.  But the trade-off of jobs and reduced personal debt is well worth it.  The American economy will have the jump-start it needs.

Some might call my plan crazy.  But at least I have a plan.

And I bet you’re smiling and already thinking about how you’d spend your $10,000. 

- Mountain Man

http://www.MountainManandCityGirl.com

Wildwood recall successful

Thursday, December 10th, 2009

“Surprise, Surprise, Surprise”, as Gomer Pyle used to say. 

To the surprise of many, including this ardent Cape May County observer, voters successfully recalled City of Wildwood Mayor Ernie Troiano and Commissioner Bill Davenport in Tuesday’s special election. 

The first part of the ballot asked whether voters wanted to recall the pair.  Voters went 624 to 487 to recall the mayor and 649 to 470 to unseat the commissioner.  Apparently there was enough dissent within the community to overcome the regular party machine.

The second part of the ballot then asked to vote for two of the six candidates.  With only about a dozen or so provisional ballots not yet counted, the vote went:

Ed Harshaw 600, Al Brannen 577, Troiano 496, Davenport 453, Ernesto Salvatico 45, and John Roat 42.

And so Harshaw, a real likable high school history teacher, and Brannen, who’s been a thorn in the administration’s side, take over a city with the highest tax rate in Cape May County and a mountain of debt.  They join Commissioner Gary DeMarzo, the controversial third commissioner.

The trio will decide amongst themselves who will be mayor and they haven’t hinted publicly yet whom they each will vote for. 

The outgoing mayor took a parting shot, not indicating whether or not he knows exactly who will be the new mayor.  “The only thing that bothers me is you’ll have an absolute nitwit for a mayor now.”

- Mountain Man

http://www.MountainManandCityGirl.com

Bank of America isn’t

Thursday, December 10th, 2009

If you have credit cards – and who doesn’t? – you probably got a notice in the last few days from Bank of America.  The letter said that your credit line has been reduced to a few hundred dollars.  The tens of thousands of dollars of available credit or cash you had the week before is suddenly gone!  Merry Christmas.

Chase Bank and Bank of America, which merged with Merrill Lynch in 2009, pretty much have the credit card business all to themselves.  These two giants of the financial world control the credit destiny of tens of millions of Americans.

So why would Bank of America suddenly cut off five or ten million hard-working American families from having credit lines?

 

This past Tuesday, December 8, Bank of America paid back the $45 billion it got from the U.S. Government in the big bank bailout.  It did it with about $19 billion in cash and the balance by selling off securities.  To make sure they had the cash on hand, B of A apparently needed to make sure you couldn’t borrow any of it.

Here comes the kicker.

Bank of America paid back the $45 billion to the U.S. Treasury so that they would no longer be bound by the rules that were instituted as a condition of using the bailout funds.  Since the CEO of B of A recently announced his resignation as of December 31, the board of directors has been searching for a new CEO.  It seems they feel that they can’t offer “proper incentives” to attract a quality CEO and accepting the government grant money limited the bonuses allowed to be paid to the company’s top management.

So, to make sure they can offer their new CEO $50 million or $100 million in bonus incentives, they cut off the credit of millions of American families! 

Where’s the public outrage?

- Mountain Man

Feeding at the Public Trough

Monday, December 7th, 2009

While most folks are struggling to make ends meet in this depressed economy, New Jersey government and municipal retirees are cleaning up.  In fact, 428 retirees pull in over $100,000 per year in pension money.

In 2008, the median pension in New Jersey was $61,800 for police and fire retirees, $81,700 for State Police, and $43,200 for teachers.  These figures are more than the salary – yes, salary – of the average New Jersey worker, which is $37,900.

In a state with an $8 billion budget deficit this year, the $5.7 billion in pensions is an unfair drain on taxpayers.  To add insult to injury, the state and many municipal governments have failed to keep up with fully funding these pension funds, meaning the public will get increasingly larger bills each year.

So what to do?

Obviously, the system needs to be changed.  The thought that a fireman or policeman can work from age 21 to 46 and collect substantial sums of pension money after this 25 years, then start a second career, is unconscienable.  Newly hired state employees, who could retire at age 55 as of 2001, have seen outgoing Governor Corzine increase that back to age 60.

It appears that legislators are fearful of reigning in the money grab by retirees.  So taxpayers will continue to fund this act of greed through real estate taxes, which are already the highest in the United States.

There is one group that won’t be funding the pension through real estate taxes.  Did I mention that one-third of these pensioners have moved out of New Jersey?

- Mountain Man

A Ray of Hope

Thursday, March 27th, 2008

Every once in a while when you are reading the newspaper, you digest an article that gives you renewed hope that there is a chance for humanity to survive.  Maybe more folks are beginning to see the light.

This morning, I saw two newspaper pieces that kindled such thoughts.  The first was about two candidates challenging the others to “be nice”.  The other is a suggestion by the county that they’ll recycle wastewater.  Both are the type of thinking that you wish more would adopt.

The two candidates are running for township council in one of Cape May County’s 16 municipalities.  Both are Republicans, but running as independents.  They’ll face a three-way race against the Dems and GOP.  With elections still seven months away, the pair asked their opponents to follow some “fair play” rules.  Civility in civil service, so to speak.  A novel idea!

They asked for no lawn signs.  They asked that the names or photos of opponents not to be disclosed in any campaign mailings.  They also pledged to not accept contributions from anyone doing business with the county, including engineers, architects, attorneys, etc. 

The question is whether the opponents will agree to these terms.  Certainly, the two who laid out the gameplan will abide by it.  But it takes two to dance – actually three in this case.  While the outcome is still in doubt, you have to like the way this pair have challenged the rest to not dish the dirt.

corb1673.jpg

The other piece of encouraging news is that the county will be irrigating the County Park and Zoo, the ACCC campus, and the nearby municipal playing fields complex with treated wastewater.  That is a concept used effectively in areas in California and Florida, amongst others, and it will become a natural part of our lives in the future.

Once these three local places have the infrastructure in place to handle treated wastewater pumped from the municipal utilities authority (MUA) treatment plant, the public will see the benefits.  This process not only saves on using precious water from our dwindling aquifers, but it allows irrigation water to percolate through the ground and eventually find its way back down to help replenish the aquifer.

czd50018.jpg

This wastewater recycling has been advocated by local environmentalists, like myself, since the ’90s.  Hopefully, next on the agenda would be golf courses.  On a hot summer day, the typical 18-hole Cape May County golf course uses 400,000 to 600,000 gallons of potable water to irrigate the grass.  With a dozen courses, that’s a lot of water everyday.  At the same time, the MUA is pumping billions of gallons of treated wastewater into the ocean to get rid of it.

So let’s see.  A couple of experienced politicians want to act like gentlemen and the county is pursuing water reuse.  Do I see a faint light at the end of the tunnel?

- Mountain Man

Deer Wars

Thursday, March 20th, 2008

Everything I feared about Dolly appeared to be true.  As the dominant doe in our original group of four of West Virginia’s finest whitetail deer, it was basically up to her whether the the new outsiders would be accepted.  Would she share the corn feeder with the three new deer, plus the pair she’d already intimidated, or defend it for the exclusive use of her group?

I could only hope she would share.  There was plenty for her group – Ruthie, another three year old or more (and probably Dolly’s sister), plus their two yearlings Alfalfa and Darla.  I was quite optimistic considering that 50 pounds of corn was consumed from Monday night to Thursday morning.  I had watched the four deer for nearly a year and knew they could never eat that much in 60 hours.

Hopefully that meant that bossy Dolly was allowing the other five to feed.  She was tolerating it, though somewhat reluctantly no doubt. 

No chance.  Dream on.

Thursday evening, I returned home around 6:30, just an hour or so before dark.  Six deer startled as I pulled up the 300-foot gravel driveway, but they didn’t scamper right off.  They stood and stared me down, as if wondering whether I meant them any harm.  They sent me a message, “We’re hanging out.” 

corb3757.jpg

I walked from my truck to the new pole barn under construction, never lifting my head to look the transfixed deer in the eye.  I checked out the progress on the barn, sneaking peeks now and then to see if the deer were still standing and looking at me.  They were.  This only happened once in a while in the past year – when they weren’t going to leave the feeder area for others to pillage.

I got into the log cabin and within 10 minutes the hill above the feeder proved to be a battleground for warring deer.  On two separate occasions, large does attempted to approach the trough full of corn.  Both times Dolly raised her front hoofs and made an aggressive display.  They backed off.  Two outlaw yearlings, in all their innocence, also made the mistake of approaching the feeder to eat.  They were easily and summarily rebuffed.

Dolly allowed Ruthie, Alfalfa, and Darla to eat as much as they wanted while she stood guard, her head held proudly and defiantly in the air.  I almost think she was forcing them to linger at the feeder and keep chowing down, just to show the other deer her contempt for them.  Several times the foursome appeared to be leaving the feeder area, only to suddenly turn and head back, led by you-know-who.

My hope is that the other five whitetail deer will sneak back from time to time throughout the night to feed.  Over the course of the next week, Dolly will begin to accept that she can’t defend the feeder 24 hours a day.  Let the others feed.  Have compassion for those three pregnant does, who, like you and Ruthie, will be giving birth in a month.  You’re all deer.  You’re all in this thing together.

Well, we’ll see if Dolly mellows out.  My fingers are crossed.

- Mountain Man

Progress

Thursday, March 20th, 2008

My solo visits from our home in Cape May, New Jersey to our log cabin in Green Bank, West Virginia have to be productive.  It’s these times, when City Girl stays behind to run the real estate business, that I must make progress on some of the many home projects I have underway.

I arrived in Green Bank this past Sunday, with a construction crew due Monday to build a 24′ x 32′ pole barn with metal sides.  They were scheduled to be finished by Friday.  It’s one of those companies I found on the internet that does everything but the concrete floor, which gets poured after they’re done and gone.  The barn-building folks are located just 88 miles from here, so it’s just about as local as it gets.

I was there to “supervise” and make sure that critical first-day decisions were made by me, since I tend to be somewhat of a perfectionist (some say “anal”).  And supervise I did on Monday, making sure everything was done to my satisfaction.  I had to locate bags of concrete for the crew by calling around to various supply stores, then helped pick them up.  But after that it’s pretty straight forward.  I wasn’t really needed, and I wasn’t just gonna stand there and watch them work.

corb7124.jpg

To make effective use of my time, I had two local guys – my own “crew” – work with me on a tree clearing project.  I would run the chainsaw and they’d haul the cut firewood and brush.  We’d all done it together several times in the past year, so it was kinda routine now.  We knew our roles, and how hard we’d have to work to accomplish our task.  I could check in on the pole barn guys – foreman Duane, Norman and Clint – every once in a while and still run my own gig.  All five guys – my crew and theirs – are good guys and decent human beings.  What more can you ask?

We’re located in the Allegheny Mountains at an elevation of about 2,700 feet, or roughly a half mile.  So there is very little flat land – it’s all up and down and sidehill.  Cutting and hauling trees, mostly oaks, is a challenge.  The goal of this clearing was to open a view of the mountain to the east while also benefiting from more sun in the cold months.

Lew and Clinton – my guys – started work on Monday by covering a bed of shrubs with mulch, a leftover task from October.  Then they dragged all the brush I had created on my last visit in February to the burn pile.  Tuesday found us cutting and hauling for six hours.  The view was beginning to open up, but a few remaining strategic oaks still blocked the million dollar vista.

This morning, Wednesday, we tackled the last dozen trees.  Knowing it was due to start raining by noon and then rain the rest of the day and night, we hurried along.  By 11 o’clock, we were done.  Just as we walked into the cabin to get the guys their pay, the sky opened up.  We smiled a collective smile.

Meanwhile, the pole barn trio had a much less productive day.  Their usual late start combined with the rainout made the 88-mile trip over four mountain ranges almost not worthwhile.  But still, after three days, the barn is all framed out.  Tomorrow the roof will go on and the five windows will be installed.  I can’t wait to see the cupola and weathervane.  Friday the insulation and walls go up and they are finished.  A separate contractor comes one day next week to install the two garage-style doors.

Saturday, my crew, plus my main contractor Rich and sidekick Frank – will prepare the garage floor for concrete.  That entails leveling off the gravel and dirt floor, then tying rebar in a checkerboard pattern for extra strength.  We had planned on pouring the concrete on Monday or Tuesday, but with low temperatures expected to be about 20 degrees each morning that was out of the question.

By the time I head back to New Jersey on Sunday, the barn will be standing and lacking only the two cement trucks worth of concrete which we’ll tackle in two weeks when I return.  The breathtaking view of Sunrise Mountain, so named by me due to the sun rising over its peak on winter mornings, is ready for City Girl to admire and enjoy on her next visit.  All in all, my seven days in Green Bank will be remembered as satisfyingly productive.  As usual!

- Mountain Man

Nine and Counting

Wednesday, March 19th, 2008

I arrived at our West Virginia cabin this past Sunday, March 16.  Now early afternoon Wednesday, March 19, the rain pours down and I sit reflecting on the events that have shaped the last three and a half days.  A lot has happened, which I’ll expound on in my next blog.

This is a story about the local white-tail deer that share our 19 acres.  Since moving into the cabin a year ago, we have come to recognize the individual deer.  The first regulars to the corn feeder we dubbed “Our Gang”.  There were two fawns, now yearlings, and two adult mothers.  We nicknamed the youngsters Darla and Alfalfa, and the mature mothers Dolly and Ruthie, for our own two mothers. 

We watched them interact, and quickly knew the pecking order.  It was Dolly, Ruthie, Alfalfa, then lastly, Darla.  After a few months, another mother and six-month old showed up.  They stood off 30 feet, waiting for Our Gang, the dominate group, to feed first.  When the two groups got real close to one another, it got tense.  Dolly would occasionally assert her authority with slashing hoofs.  Sometimes we’d see this new aloof pair around the feeder, and sometimes not for a while.  But it did bring the resident count to six deer.

Yesterday afternoon, the two work crews left around 4:30 after a good accomplishment day.  Ten minutes later I walked past the kitchen window and noticed three deer partway up the hill, guessing them to be from “Our Gang”.  Moments later, I looked up and saw another group coming in from a different direction.  My pulse jumped.

corb3957.jpg

Discreetly, I peered out the windows and finally settled on there being nine deer.  The trough that holds the feed corn is six feet long, with accessibility from both sides.  As many as six deer at a time were munching on corn or licking the new apple-flavored salt block located in the trough at one end.  I was grinning ear to ear.  I couldn’t wait to tell City Girl.

I stood and studied this menagerie of white-tail deer.  There were four yearlings, three two-year olds, and two that were three years old or more – Dolly and Ruthie.  The two year olds have a more immature face, with the snout still not extended like the older deer.  I pondered these three two-year olds who would each be giving birth for the first time in about a month.  They wouldn’t be teenagers anymore!

Then I saw the big picture.  Dolly and Ruthie will each have a fawn, as will the three first-time mothers.  That means pretty soon there will be five new fawns – learning, exploring, and bonding.  That brings the local population to 13 deer.  How exciting!

But then I wonder – will they all stick around?  Will bossy Dolly share her domain or drive off the others?  There’s a mountain behind our property with a few hundred acres.  Surely, they share the mountain.  Can’t they share coming to the feeder?

My attention turns back to the five pregnant does.  Oh boy, new fawns are coming.  I’m as ready as an expectant father!

- Mountain Man

Second Homers

Saturday, March 1st, 2008

The real estate market in Cape May County, New Jersey is based on second homes – vacation homes - whatever you want to call them.  The county is evenly divided – 50% of residences are primary homes and 50% are second homes.  At our real estate agency, both our island office in Wildwood Crest and our mainland office in Swainton sell about 90% second homes.  Primary homes are a small part of our business.

Cape May County has a lot going for it to attract families with the financial ability to afford a vacation home.  There’s the beaches, the boardwalks, fishing and boating, 12 golf courses, a great free zoo, bird-watching, restaurants, state parks, museums, and shopping.  Eco-tourism alone accounts for $522 million per year.  With low crime, no industry, and tolerable traffic, it’s the recipe for an inviting vacation destination.

While much of the country still suffers from a stagnant real estate market, here at the shore the market is back on the rise.  Perhaps analyzing a few numbers will help us understand not only why we are doing okay, but also why we’ll flourish in the future.

There are 6 million households in the United States that own a second home.  Numbers released from a 2007 poll indicate that 22.8 million American households (out of 105 million total US households) expect to purchase a second home in the next 10 years.  Wow, that’s a staggering number.  Let’s postulate, being very conservative, that two-thirds of those families will not realize that dream.  That still leaves 7.6 million families that will purchase a second home, more than doubling the number of vacation homes nationwide.

corb2196.jpg

What do people look for in a vacation home?  Good question.  The answer is either water – an ocean, lake, or river – or mountains.  Not too many families want their getaway to be in rural Iowa or downtown Cleveland.  Naturally, Cape May County has the Atlantic Ocean, along with wide, sandy beaches, moderate temperatures, and it’s easily accessible by car from anywhere in the middle Atlantic states.  We’re not Maine, we’re not Florida, in weather extremes or distance.  Thank heavens!

Obviously, affluence has a lot to do with where second home families originate.  The highest median home price is in California, so that would be the best market.  Hawaii and Washington, DC are second and third, but they’re too small for the home prices to mean much.  The next “real” market is Massachusetts in fourth place, then New Jersey is fifth. 

Metropolitan New York City with 18.7 million people, Philadelphia and its suburbs with 5.8 million people, along with all of New Jersey, are the primary sources for folks interested in buying second homes at the South Jersey seashore.  All are within a two and a half hour drive, the accepted norm.  That is a tremendous pool of families from which to draw potential vacation home owners.

The demographics are a strong argument why Cape May County’s real estate market will continue to grow and prosper.  One figure still sticks in my mind – 22.8 million households expect there’s a good chance they’ll buy a second home in the next 10 years.  Kinda gives me goosebumps.

- Mountain Man

Cut the Waste, Gov!

Thursday, February 28th, 2008

New Jersey Governor Jon Corzine unveiled his 2008 state budget this week, and in the land of “What’s in it for me?”, the citizens and legislators are in an uproar.  Everyone complains about how expensive it is to live here in the Garden State, but nobody seems to want to change the status quo and tighten belts.

The problem is that the state of New Jersey is carrying a $32 billion debt.  That is equivalent to $3,700 for every man, woman and child in the state.  The interest on the debt is $2.7 billion per year.  Having to pay that interest every year keeps the state from upgrading bridges and highways, and expanding and maintaining programs.  The state debt was about $15 billion in 2000, but it has increased on average about $2.5 billion per year since then.

 The Gov’s proposed 2008 budget is $33 billion, which came about after his staff trimmed $2.7 billion from what the different departments of state bureaucracy had asked for.  Notable amongst his cuts were disbanding three state departments – agriculture, personnel, and commerce.  Two are good moves, but not the Agriculture Department.  Axing it would not save much money, plus its responsibilities would shift to the NJ Dept of Environmental Protection.  They already mess up everything they touch, so why give them the farmers?

The budget would also cut state police patrols from 77 municipalities that exclusively depend on the state police.  Hurray!  In Cape May County, that’s Upper Twp, Dennis Twp, and Woodbine.  Let them hire their own police department.  Why should all state taxpayers fund their policing?  Pay for it yourselves.

The budget proposal would also trim roughly in half the state aid to towns under 10,000 population.  In Cape May County, that’s the 12 municipalities other than Ocean City, Upper Twp, Dennis Twp, and Middle Twp.  Good.  Maybe this will force consolidation, or at least more scrutiny towards their own budgets.  All these towns want to be their own fiefdom with their own patronage jobs, so pay for it yourselves.

corb1631.jpg

The Gov also wants to eliminate 3,000 state jobs.  Considering the state has 83,000 employees, maybe they should cut 5,000 or so.  Have you ever had to deal with the state hierarchy, or better yet gone to Trenton to transact business.  Whether by phone or in person, you’ll find that too many employees are on vacation, out sick, or took a personal day off.  It’s a joke.

The plan would also reduce aid to colleges and hospitals.  It would eliminate earned income rebates to those families making over $150,000 a year, and cut in half the rebate to those in the $100,000 to $150,000 bracket. Okay, no problem.

The last part of the Gov’s scheme, announced a month ago, was to boost highway tolls.  On the Garden State Parkway, they’ve been 35 cents just about forever.  So, make ‘em a buck apiece, I say.  But Corzine wants to double the toll every four years.  Yikes!  That would make a trip on the Atlantic City Expressway go from $2 now to $17 by 2022.  That’s a good way to cripple the casino industry.

The biggest overall complaint local government officials have with the Corzine budget is that it shifts more financial responsibility to their towns.  “We can’t afford it,” they cry.  I think that passing the buck to the municipalities is the right way to solve this problem.  Let the counties and towns economize.  Cape May County has an annual operating budget of $135 million.  You gotta be kidding me.  The county where we have a home in West Virginia spends $2.5 million a year.  The county needs to roll up its sleeves and get it under $100 million, for Pete’s sake!

The town I live in here in NJ has an annual budget of $21 million, not counting schools.  Of that, an incredible and unconscionable $8.5 million was for salaries.  C’mon, this is a little town of 17,000.  Do we really need 50 police officers and 40 police cars?  When the state reduces its aid, maybe the town will finally sit down and make some much needed budget cuts of it own.  Big cuts.

Residents of the state of New Jersey are being asked by the Governor to share the burden.  Pay for what you get, and get rid of what you don’t really need.  Sounds reasonable to me.

- Mountain Man

Paparazzi

Tuesday, February 26th, 2008

I have to snicker when I hear a youngster say that their goal in life is to be ‘rich and famous’.  I usually tell them, “Rich, okay.  But you don’t want to be famous.”  The reason, of course, is paparazzi.  Of all the legal occupations in the world, being ‘photographer of celebrities’ has to be one of the lowest levels on the integrity scale.

Paparazzi, as you no doubt are aware, will do anything to take the picture or video of a famous person.  Then they sell it to some junk magazine or mindless website or television Hollywood gossip show.  But the fact that they profit from such a shallow pursuit isn’t what makes them so despicable, though they are.  It’s the lengths they’ll go to capturing the photo.

corb9298.jpg

Imagine the life of a paparazzi.  Sitting in your car day and night, staking out a celebrity’s home.  Or standing on the sidewalk for hours at a time outside a restaurant that attracts movie stars or music idols.  Your whole life is dedicated to taking some schmo’s picture.  That’s no way to make a difference in the world!

If I was suddenly famous, I would definitely not want this surreal attention.  You step out your door, a half dozen guys are battling to get your picture before you make it to the car.  Go to the grocery store and they’re following you up and down every aisle.  Take a Caribbean vacation, helicopters are hovering overhead or boatloads of photographers are swarming.  Big brother is watching.

All of this clandestine photography is only made possible due to unquenchable thirst of bored and boring people who live vicariously through others.  If Jane Public didn’t watch those trashy TV shows, buy those tasteless magazines, and support those hollow websites, the paparazzi would have no market for their product and they would just go away.

I don’t care about the everyday life of Paris Hilton, Lindsay Lohan, those Olsen twins.  Not interested in Brad Pitt, Jack Nicholson or Macauley Culkin.  I don’t care who’s married to whom, who’s sleeping with whom, who’s been arrested or in drug rehab or slit their wrists.  I don’t care what dress they’re wearing, what style their hair is, or what restaurant they were spotted in.

corb9875.jpg

Don’t get me wrong.  I respect a good actor because they’re a good actor.  I like their work, but I could care less about their personal life.  Same for singers, musicians, comedians, or pro athletes.  I shared a moment with you via your craft, but I don’t need to peek inside your personal life.  You’re just a person doing your job, just like me.  Is that weird?

For a photojournalist to chase these people in their cars, rumble through their trash cans, contact high school sweethearts, and turn their life inside out is inexcusable.  Show them some respect.  Let them live peaceably.  Give ‘em a dadgum break!

With all the injustice and suffering in our world, and all the problems that need to be solved to save our planet, doesn’t chasing someone around to take their photograph seem unimportant in the grand scope of things?  Isn’t one’s dignity and privacy cherished anymore?  Is nothing out of bounds?

- Mountain Man

I Just Don’t Care

Tuesday, February 26th, 2008

I am really tired of hearing the national media spout tales of personal indiscretions by high profile people.  I don’t care about a person’s demons and misdeeds, just how they perform in the job they are entrusted with.  Let me explain.

So much has been made about Bill Clinton’s sexual snafus.  I could care less.  Those things should only be an issue between him and Hillary.  It’s their relationship, their vows, their betrayal, their problem.  The same goes for Dwight Eisenhower, Jack Kennedy, Lyndon Johnson, Wilbur Mills, Gary Hart, and on and on.  It should be between Ike and Mamie, Jack and Jackie, Lyndon and Lady Bird, etc.  Did I really need to know about the Argentine Firecracker?  I think not.

Now I see the media frantically trying to tie John McCain to some much-younger female lobbyist. Give me a break.  I am only interested in whether these guys are good at their job.  Are they effective legislators?  Do they care about the people?  Do they suck up to special interests?  Do they have solutions?

aft60102.jpg

The media focuses too much on personal stuff, which puts real issues on the back burner.  I am intensely interested in the 2008 presidential election.  I want to know the details, yes details, of how each candidate would restructure our economy, rebuild our worldwide relationships, end the budget deficit, promote alternative energy, etc.  Instead, McCain has to defend himself against the lobbyist garbage, Obama has to defend wearing a turban, and Hillary has to defend … well, you know.

I have visited the websites of each of these three candidates.  Pandering to the media and not wanting to alienate a single voter, each tells vaguely what they are going to do as president, but not HOW!  I wanna know.  Stop giving the media sound bites, and let’s talk nuts and bolts. 

I also want to know why Congress is getting involved in steroids in baseball?  Don’t we have enough serious problems in the world that need to be addressed?  Shouldn’t the steroid thing be handled by major league baseball.  They have a commissioner and their own bureaucracy.  Let them deal with it.  Why is Roger Clemens out lobbying Congressmen in Washington? 

Now I hear speculation that Congress might even stick its nose into the spygate affair concerning the coach of the NFL’s New England Patriots.  You’ve got to be kidding.  The media is making a big thing out of stuff that is inconsequential to my life.

In baseball and football, teams have tried to intercept their opponents intentions since the sports originated.  What pitch is the catcher calling for?  Is the quarterback going to throw a screen pass or run an end around?  Figuring the other team’s strategy has been an integral part of those sports, and until recently any means necessary was an acceptable part of the game.

wr927129.jpg

So when did the introspective media originate?  When did reporters stop winking and hushing up?   In my mind, it was around the time of Watergate.  Woodward and Bernstein took investigative journalism to another level, bringing down Richard Nixon.  The same can be said for the national media driving Thomas Eagleton away for psychiatric therapy in his past, or William Loeb and his Manchester (NH) Union Leader probably costing Edmund Muskie a presidential election victory, only to later find out the charges were false.

Let’s focus on issues.  Let’s have candidates and politicians talk about solutions.  Let’s bring the process back to its grassroots.  Let’s have honest debate, citizen input!

As for all the dirt, the muckraking, the philandering.  Frankly Scarlet, I don’t give a damn!

- Mountain Man

Developers Know

Monday, February 25th, 2008

Many folks are fooled by the lack of new construction activity here in the Wildwoods and throughout the island communities of Cape May County.  “I knew it would never happen,” the backseat drivers shout about new 20+ story hotel/resort projects touted in the newspapers but not yet started.  They are wrong.

In the state of New Jersey, any new construction project that is within 300 feet of water, has more than 24 units, or more than 48 parking spots, needs a CAFRA permit.  This Coastal Areas Facility Review Act, administered by the NJ Department of Environmental Protection, is a thorough and lengthy process.  It takes a minimum of two years to two and a half years to obtain the CAFRA permit, and in the case of the seven high-rise hotels in Wildwood, can take four years.

corb8458.jpg

So while developers are exerting an inordinate amount of effort and $100,000 or more in fees for their environmental attorneys, engineers, architects, and endless environmental studies, an uneducated Joe Public sits on the sidelines and proudly pronounces the project DOA.

Unfortunately, these uninformed zealots are given a public forum to make their opinions widely known.  In the local weekly county newspaper there is a gutless section called “Spout Off”.  In it, anyone can basically say anything and push it off as fact.  Right or wrong, it is printed.  The authors don’t have to sign their name.  It’s a disgrace!

The newspaper is owned by a far right, ultra-conservative snob who labels wind power and solar power band-aids, global warming a left-wing hoax, and promotes the drilling of the arctic and nuclear power.  He’s a small town version of William Loeb and his Manchester Union Leader.  You can see why he not only allows this journalistic embarrassment, he’s proud of it.

Anyway, Spout Off perpetuates the so-called decline of the real estate market and the county in general by letting these ”doom and gloom” know-it-alls have their say.  Then more naive citizens read it and believe it.  Soon they talk about it in public as if it was fact.  After all, they read it in the newspaper so it must be right.  Right?  Wrong.

The truth is that these projects, along with large hotel complexes in Cape May, North Wildwood, and Diamond Beach are moving along, slow but sure.  Rome wasn’t built in a day.

corb8457.jpg

As realtors, we see more and more developers in the area looking for tracts large enough to host more hotel or condominium projects.  At our agency, we have several conglomerates with upwards of $100,000,000 to invest in the shore area of Cape May County.  We are constantly calling them with leads on new vacant properties, along with faxing and emailing tax maps, lot descriptions, comparative market analyses, and more.

Large projects don’t happen overnight.  From concept to completion is about an eight year process.  Unknown to most local residents, that concept faze is already underway!  The developers are busy shaping the county’s future, secure in the belief that the real estate market is on the brink of another boom.

- Mountain Man

To learn more about the Cape May County real estate market, visit our website at www.JewellRealEstateAgency.com

It’s in the Numbers

Monday, February 25th, 2008

Having been a mathematics major in college, I’m understandably enamored with numbers.  Talk is talk, but numbers give substance.  There’s nothing like good, hard numbers to bring a topic into focus, to cut down on speculation and misleading conclusions.

Let’s see if the demographics support that the real estate market in Cape May County will see another boom.  Not just a rebound, which is already happening, but a boom!  It’s an interesting prospect, one that many insiders like myself support and others just can’t fathom.

The state of New Jersey has a population of 8.724 million people.  The median age is 38.2 years, with 12.9 percent of folks 65 or older.  The median household income is $64,470 and the homeownership rate is 67.3 percent, meaning two-thirds live in a home they own.  Of adults, 33.4% have a college Bachelor’s degree, and 12.4% have even higher degrees.

What this all means is that New Jerseyans, on the whole, are pretty well off.  The median household income in the entire country is $48,451, so we’re a third higher.  New Jersey has the highest percentage of millionaires in the USA.  Throw in metropolitan Philadelphia and suburban New York City, and there’s a lot of affluence in our region.  All this fuels the second home market, which comprises half of all properties in Cape May County.

Experts keep tossing out that 40,000 new employees will be needed in the Atlantic, Cape May, Cumberland county region.  Most of this is centered on Atlantic City, whose 11 casinos already employ 40,788 people.  Several casino expansions are in the works, with at least three new casinos slated. 

crb10307.jpg

MGM Mirage will be breaking ground within a year on its $5 billion megaresort, located on 72 acres next to the Borgata.  This largest resort in AC, scheduled to open in 2012, will feature 50 stories, 3,000 hotel rooms, a 7,500 seat concert arena, and a half million square feet of space for retail, restaurants, and entertainment.  Revel Entertainment has already broken ground on a $2 billion casino complex, located on the strip next to the Showboat, slated to open in 2010.  Pinnacle Entertainment, which tore down the aging Sands Casino last October, should have their new $1.5 billion casino in operation by 2012.

With 128-acre Bader Field going out to bid in the next year, the possibility of another mega-casino, or up to four smaller casinos, will add to the need for new employees.  So where will all these new employees live?  Rounded off, the current yearround populations of the three counties are Atlantic 250,000, Cumberland 150,000, and Cape May 100,000.

Let’s suppose that keeping with the statistics, two-thirds of the 40,000, or 26,680 will purchase their own home.  Forget the island communities, where summer folks have driven up prices.  I’m talking about Longport, Ventnor, Margate, Ocean City, Sea Isle, Avalon, Stone Harbor, Cape May, etc - places where a single family home would be prohibitively expensive for a working family employed by casinos, retail, or restaurants.

That leaves the mainland towns.  Arguably, Egg Harbor, Galloway and Hamilton townships, all Atlantic County towns situated in the Pinelands “growth zone”, would pick up the brunt of the new residents.  But many families will look to live a little farther from the hustle and bustle of the AC area. 

corb6227.jpg

Cape May County, just a 20-35 mile commute, fits the bill.  The mainland communities – Lower, Middle, Dennis, and Upper townships, plus Woodbine – currently have 822 single family homes listed for sale.  With the number of housing developments already approved in those towns doubling the number, that’s about 1,600 available homes.  An influx of 40,000 people over the next half dozen years or so will surely result in most of those homes being snapped up.

In the world of supply and demand, especially in real estate, this demand will create more building and higher prices on the mainland.  Doesn’t that add up?

Throw in the seven 20+ story hotel/resort projects on the books in Wildwood now awaiting NJDEP approval, and a couple big resorts upcoming in North Wildwood and Diamond Beach, and you have the recipe for another real estate boom.  Numbers don’t lie.

- Mountain Man

To learn more about the Cape May County real estate market, visit our website at www.JewellRealEstateAgency.com

American Paradise (Part 17 of 17)

Saturday, February 23rd, 2008

 (This entire 17-part story can be found in the “travel” category.)

Finally, we docked in a marina full of nice boats.  Unlike Mayaguena Island, we weren’t the only boat around.  Here in Freeport, Bahamas, were hundreds, maybe thousands of every size and description.  I eased off the onto the dock.  I had become so used to the swaying of the sailboat that the ground seemed to be swaying underneath me.  I had to fight to keep my balance and not stumble over like a drunk.

Tony spoke to the harbor master, then returned to the boat with instructions for us to stay put until customs officials arrived.  After 20 minutes, I was going nuts.  I could see the marina’s bathroom and showering facilities.  I couldn’t resist.  I had to get the salt stains off my skin, wash my cuts, smell fresh again.  I gathered up clean clothes, shampoo, soap and a towel, and headed for the shower.  I muttered over my shoulder, “Let them arrest me.  I wanna shower!”

wr924186.jpg

Once in the shower, I couldn’t wash myself.  I had to hold my arms out sideways to brace against the walls so I wouldn’t fall over.  My land legs hadn’t returned yet.  Still, I was all smiles and finally got enough of me clean to call it quits.  I dressed, then walked a hundred yards over to a casino in the first floor of a hotel.  I stood at the Coke machine and bought three straight sodas, guzzling each one like I’d been in the desert.  It was sooo nice to drink something cold again.

Returning to the dock, I saw uniformed authorities checking Tony and Lisa’s papers.  They passed.  As they eyed mine, I announced that I would not be leaving on this sailboat.  The higher ranked official didn’t like that thought.  “You have to,” he stated with a genuine smile.  I was firm in my resolve, so we began negotiations.  Soon, he relented and would allow me to fly on an airplane.  He drove me to the airport and we had a wonderful discussion.  He was a nice chap, a pride to his country.

At the airport, I bought my $79 ticket and he assigned a security cop to make sure I got on the plane.  Two hours and another three cold Cokes later, the puddle-jumper plane bound for Orlando began boarding.  Soon, we were airborne.

wr924218.jpg

By the time the hour flight was circling Orlando, just about all 20 passengers on the little airplane were thoroughly engrossed in the tales of my sailing adventure.  I showed off my cuts and bruises like they were medals.  After touch down, we departed the plane onto a tarmac.  Surrounded by a dozen of my new friends, I dropped to my knees and kissed the ground.  They applauded, causing a tear in my eye.

Needless to say, I have not stepped foot on a sailboat since that fateful adventure in 1990.  Once was enough.  But I have relived that trip a thousand times.  I’ve swayed with the waves, heard the wind, felt the seaspray, and looked longingly at the sunrises, sunsets, moonrises and moonsets.

- Mountain Man