Innovation Trio: SwapRent, FARJHO & TARELV

Shared Appreciation through Shared Cash Flows – the New Economic Owning, Renting and Own-Rent Switching Concepts as well as Business Methods for Managing Real Estate Properties –

0201 2012 Let’s give the Fed a third mandate – Avoiding income/wealth distribution inequality

A kid came home with his report card. It shows 4 F’s and 1 D. So his father in his stern face asked him “What happened?” The kid with tearful eyes fearfully murmured, “I know where I did wrong Dad, I spent too much of my time on only one subject …”

If you blame Ben Bernanke about what a mess the Fed has made to this country in terms of income/wealth distribution inequality within the last decade, he would most likely give you an answer of defense in his typical lip’s movements beneath the mustache only that it is not his job to give it a damn. It is the Congress’ fault that they only gave him and the Fed two mandates of fighting inflation and stimulating the economy/job creation only.

So forget about downgrading and removing one of the mandates and let the Fed focus on maintaining price stability only. We should ask them to upgrade and start focusing on three mandates, fighting future inflation, lowering unemployment and avoiding income/wealth distribution inequality.

Even when that happens, I am afraid that little school boy Ben would most likely come home with a report card with 2 F’s on fighting future inflation and avoiding income/wealth distribution inequality and a D in lowering unemployment/job creation so far. He most likely would have spent too much of his time on only one subject.

Let’s hope by adding this new dimension of avoiding income/wealth distribution inequality would make the Fed’s taxpayers sponsored jobs a bit more deserving than simply doing nothing but the two dimensional game of thumbs up or thumbs down on interest rates during their Federal Open Market Committee (FOMC) meetings.

P.S. Perhaps Ben deserves an A for the extra-curricular activity and self-created mandate of helping bail out the cronies?

Filed under: Economic Viewpoints, Federal Government, Uncategorized, , , , , , , , , ,

03/30/2011 Mr. Obama, Tear down this Wall … Street! – A Matrix movie fan's interpretation of the Bailout of Wall Street.

So Barack, or Barry rather, please allow me to be casual with you. I am no Ronald and you are definitely much more handsome then Mikhail Gorbachev without a piece of salami hanging on the forehead. I’d just like to have a frank talk with you about our country’s economic policies and Matrix the movie. Perhaps you wouldn’t mind if I call you Mr. Anderson? Neo?

First I’d like to apologize for calling you a puppet subprime President in my earlier blog dated 5/23/2009. I understand what it could be like to be the only Hussein among the establishments and I feel for you.

The frustration came from the expectation we had of you, the One would not reinsert the Prime Program back into Matrix at the Source one more time again back when we voted for you to be the President. But the opposite seems to be exactly what you have been doing. You started to look more like Agent Smith now. I hope you are a Matrix movie fan as I am and you know what I meant. If so, you may find the following analogies of our country’s Wall Street culture, your economic policies and the movie story lines interesting.

You see, Wall Street is the Matrix that has been controlling us the working class (the Humans). Out here on Main Street (Zion City) in the local communities our home ownership structure has been dominated and dictated by the exclusively debt-based mortgage industry (Zero One) created by Wall Street, Fannie, Freddie and their big bank buddies (the Machines). They have in the past been placing in their local branches those docile captured humans while keeping their minds in the Matrix in order to help the Machines disseminate the credit abuse culture and ensure their control of the Earth.

The Federal Reserve, the Treasury Department and their buddies (the Architects) has been engineering the bailouts of the crony riches, printing and pumping more money into the Matrix system to maintain its vitality and crony establishments the same way the Architects have been trying to bring you, the One, together with the Source in order to reboot the Matrix and destroy the Zion yet one more cycle, the same way all your five predecessors did.

From the Berlin Wall coming down to the recent Arab unrests in the Middle East (the Prophecy), we all have witnessed the unprecedented triumph of the people power (the Oracle) in our modern history. Despite the techie’s claims that technological developments of newer tools such as CNN in the early days to the Twitter and Facebook have made the information dissemination faster and more wide-spread, it is really the underlying force of this democratic movements driven by the people’s desire for Free Will seems to be on its way to unbalance the Matrix. You Neo are the One who has been led to the Source by the Keymaker, should not be swayed by the Architects’ assertion to reboot the Matrix again. Let me tell you why.

In our modern history, the Fed (member of the Architects) has been manipulating interest rates and the supply of money in our economy by using repos/reverse repos to implement their monetary policies and the unique Quantitative Easing programs through Wall Street dealers (the Martix) in a pattern of creations and destructions of Main Street (Zion) over and over again while rebooting Wall Street (the Matrix) with revitalized new life to maintain its status quo of the continuously enriched establishments. In particular, Bernanke’s QE and QE2 seemed to have made “Greenspan Put” a child play. Although the Matrix system does have many obvious fundamental serous problems and weaknesses but it somehow kept rebooting itself at the expense of our remaining Human Race who reside at Zion.

Whipsawing the economy is really what their monetary policy doctrine or the much worshipped Monetarism is all about. Inflating bubbles, deflating bubbles, jerking our domestic Main Street economy in the past seems to be not enough, now with the free flow of dollar-based capital, they have the entire global markets to jerk around with in the world and keep playing those same bubble blowing, popping, blowing, popping games all over again, under the disguise or the much worshipped theory called “Monetarism”. In these processes, the Wall Street insiders (the Matrix) get to reap obscene profits and revitalize itself at the expense of exploiting the Main Street (the Humans) over and over again.

Simply take a look at the recent history since Bernanke and Geithner took office. Ben has been a Member of the Board of Governors of the Federal Reserve System since September 2002 to June 2005 during the bubble building years. He became the Chairman of the Council of Economic Advisors from June 2005 to January 2006 and then became Chairman of the Federal Reserve on February 1st, 2006. Timothy on the other hand was holding the key influential role to Wall Street as the President of the Federal Reserve Bank of New York from November 17, 2003 to January 26, 2009 until he became the Secretary of Treasury Department on January 26th of 2009. Together they had been a crucial part of the front men of the Architects of the Matrix to reboot the Matrix when Matrix should have been totally destroyed should there had been no crony forces at work.

Knowing there was a housing market bubble, instead of finding viable soft landing policy alternatives, from June 30th of 2004 until June 29th of 2006 they raised the Fed Fund Rates from 1% all the way to 5.25% in order to throwing darts randomly to “pop the bubble” under the doctrines of “Monetarism”. Facing a crisis in 2007, they decided that they could build more bubbles than Greenspan ever did. From September 8th of 2007 through December 16th of 2008 until today they brought down the Fed Fund Rate from 5.25% to .025% again, under the doctrines of “Monetarism” and presumed prudent “Central Banking Policies”. Furthermore with the newly invented Quantitative Easing Programs, they have started to flood the whole world with dollar liquidity to build even more asset bubbles across the board and induce further global social instability. Until today nobody could really find out what the Architects’ true motives are.

Do they really know what they are doing or have they simply been making it up along the way? If they are so smart and love asset bubble building so much then Greenspan had ever been able to, why did they even bother to “pop Greenspan’s housing bubble” back in 2004 to 2006 to begin with? Wouldn’t it be just as convenient to leave the Fed Fund Rates unchanged and find other housing equity sharing based soft landing policies to cool down the economy instead? That would have led to a Paradise Matrix rather than the Nightmare Matrix they are turning us into now.

It is really funny to observe how the Architects have been busy congratulating and promoting themselves for a presumed job well done in preserving the Wall Street (the Matrix) to avoid a depression and dodging the fact that they were actually the very one who had created the Global Crisis of 2008 to begin with by blindly popping the Greenspan’s housing bubble through their hawkish policies between 2004 to 2006.

What they have really preserved was merely the previous Wall Street crony establishments. A depression it was not. The public certainly needs to know better that there would not have been a depression and that we would all have been better off now had the Architects not done the rescuing of the privileged few at our taxpayers’ expenses in 2008. Cronyism simply means there is an artificial human intervention of the natural selection process for the benefits of the privileged few at the expense of others. We all could live just fine without Goldman Sachs, really.

Given the current economic policies and an unknown and dangerous future for both the US and the world, have any academics been paying attention to analyze how the Architects’ economic policies to date have grossly polarized the American economy between the haves and have-nots while creating the biggest destruction of the middle class in America that have shaken the working class’s faith in Capitalism? The Matrix seems to be getting more and more unbalanced from its own exploitation.

Anyway Neo, for now you seem to have been cloned to just another Agent Smith. Until the next time we talk again, I await your next act.

Filed under: Uncategorized

03/09/2011 How convenient that PIMCO sold all their Treasury holdings to the American taxpayers! Thanks to the liquidity provided by Bernanke' QE2.

I refer to my earlier blog posts about Fed’s Quantitative Easing programs (you could also scroll down and read them below):

03/04/2011 Has Bernanke’s QE 2 shock-and-awe strategy to corner the bond market backfired?
03/03/2011 Right before our eyes – How the Wall Street elite minorities robbed us American citizens again with QE 2.
11/16/2010 The convenience of profit taking that quantitative easings have provided to the big bond fund players.
11/04/2010 What do Fed’s quantitative easings and Jerome Kerviel’s big bets have in common? Their last words: My bosses knew it all along and they didn’t stop me.

Well, exactly as predicted back in November, now the bond funds had sold them all, by the end of February. Buy-low-sell-high they did and Bernanke, on behalf of us taxpayers but without our permission, is holding the bag of those depreciated and soon sliding Treasury papers.

What is the net effect of Quantitative Easing programs so far? Those bond fund inner circle friends are laughing all the way to the banks and appeared to be investment gurus and heroes yet one more time again.

The sequence of events seem to have been staged so smoothly!

Was PIMCO simply as smart as I was back in November in thinking that Bernanke and his colleagues at the Federal Reserve and the US Treasury were suckers or is it rather that they and their Black Minerals brethren have been in bed with Bernanke and Geithner all along and thought we taxpayers could really be the suckers?

What exactly is the purpose of QE2 again? Irrespective of what really transpired behind closed doors, has it achieved it or anything positive for our American economy other than simply making the fat cats fatter?

Filed under: Uncategorized

03/04/2011 Has Bernanke's QE 2 shock-and-awe strategy to corner the bond market backfired?

As I kept searching for an answer to Bernanke’s perplexing QE 2 program for him, I could not help keep trying to find some more excuses for him. His own excuse that he wanted to help create jobs for Americans by hoping to bring the long term interest levels down simply was not convincing enough and sounded more and more absurd. Even a bozo knows more easy money and more flood of dollar liquidity will not help reduce unemployment for Americans before they create millions of jobs for the Chinese, Brazilians, Australians, Wall Street fat cats and big banks in America.

The long term interest rates went sharply higher instead, as explained in the previous blog post, making it more and more difficult for people to own homes and hence further depressed property value that destroyed the core of American wealth. Small businessmen found it harder and harder to create business opportunities and jobs across America.

The excess dollar liquidity would also only be and had indeed been sucked up by the big banks and the fortune 500 big multi national corporations who work only for their own share holders, not the American public and who create jobs only where it makes more sense at the least cost. So $600 million would not do it to create any significant number of jobs for Americans. Not even $6 trillion, before it turns the world upside down.

Meanwhile, this dollar liquidity has flooded the market and has created hyper inflation in food, clothing and energy for the rest of the world. Although the iPad economists like Bernanke keeps claiming that there is no inflation in the US after they have walked around Best Buy stores in their bargain hunting shopping trips, the majority of the world’s population does not live on notebook PCs, flat screen TVs or Groupon bargain deals.

When people can not get affordable food and basic living necessities to feed and clothe their family and themselves, social unrest ensues. It does not take a PhD to understand this. Bernanke simply needs to watch more of these extraordinary events unfold around the world by turning on his new flat screen TV that he bought on a bargain sale at Best Buy.

Will Bernanke be the person to unleash and bring out the four horsemen to our world by December 21st, 2012?

Filed under: Uncategorized

03/03/2011 Right before our eyes – How the Wall Street elite minorities robbed us American citizens again with QE 2

03/03/2011 Right before our eyes – How the Wall Street elite minorities robbed us American citizens again with QE 2

I refer to my earlier blog posts about my views and predictions on Quantitative Easing, 11/16/2010 The convenience of profit taking that quantitative easings have provided to the big bond fund players, and 11/04/2010 What do Fed’s quantitative easings and Jerome Kerviel’s big bets have in common? Their last words: My bosses knew it all along and they didn’t stop me.

Since then and now, major influential bond fund managers have successfully sold their long term treasuries in their portfolio holdings of fixed-income securities at historically highest prices to the American taxpayers and made the private club of the Wall Street riches even richer, thanks to the market liquidity using American taxpayers’ money provided to them by their crony connections with those self-professed genius policy makers at the Fed in Washington, DC.

Listening to the Humphrey Hawkins Testimony where Bernanke bewildered the Congressional gathering yet gain with the fancy excuses for the QE 2, I had to give him due credit as the Toastmaster Champion second only to Obama. While there were some questions about whether there are indeed evidences of run-away inflations and debates about how lower interest rates and the flood of liquidity could help create jobs and help the average Joe in America, nobody asked how his QE policy invention had polarized the American people to the extreme, making the rich even richer and the poors are getting nothing left but the bread crumbs.

Since my original blog post on November 16th, many of the SwapRent blog followers who are not very financial market savvy asked the question about how the QE 2 actually helped make this happen. Here is a quick explanation.

Unlike all the previous central bank’s normal activities in providing temporary money into our economic system through temporarily buying short term treasury securities from Wall Street dealers or called doing Repos (Repurchases, i.e. the securities will be purchased back by the dealers from the Fed later on) with major Wall Street dealers, the genius of the QE invention is very different from that. In it the Fed only buys long term securities permanently from bond funds, banks and other financial institutions.

The way the long term bonds behave is very differently from the short term treasury securities that mature earlier. Long term treasuries securities have the highest prices when the market interest rates are low. Their market prices become lower when the interest rates rise.

Among other maturities, 10-year treasuries bottomed some time around October last year with a daily average yield of 2.41% before QE 2 and they peaked with a daily average yield of 3.75% some time in February this year after QE 2 due to the massive dumping of these long term treasuries from the major institutional bond holders to the American taxpayers through the Fed’s QE 2 program at the historically highest prices ever.

Now marking to market of these securities, there would be tremendous losses on the Fed’s balance sheet derived directly from the QE related bond purchasing activities by the Fed. We, the American taxpayers, ended up holding the bag now again as usual and the interest rates will only be going even higher and higher from now on. The losses will only get even worse. It is really funny to think back on how Bernanke aggressively defended his QE 2 program back in November by touting that the QE 2 program would keep interest rate levels low!

Many of the major bond funds managers looked even more like real genius investment gurus these days by having dumped those long term bonds that they held in their portfolios back to the Fed. Without the $600 million liquidity provided by the Fed they would not have been able to do so this easily and at such attractive prices. Many even boasted that they have managed to halve their long term treasury holdings within the past few months. Genius they are indeed and suckers we American citizens have become again, thanks to the Fed.

I have to say there may also have been a case that the Fed itself is in the game using the QE 2 itself as a disguise so that they could help redress the Treasury Department’s or other related parties’ books under the cloak. It would be anyone’s guess since nobody could audit them to let them reveal the truth.

How come there were no questions to Bernanke from any of the Congressmen on these simple facts? As an American taxpayer, wouldn’t you want to find out more about these blatant abuses right in front of our eyes and what had really happened to our money from these Quantitative Easing inventions?

Filed under: Uncategorized

02/20/2011 It is not Keynesian. It is not Monetarist. Perhaps we could call it SwapRentism? Any better suggestions?

I would like to revisit the topic of “SwapRent as A New Alternative Economic Policy Management Tool for Governments” that was published at Larry Dolye’s blog, Sense on Cents – Navigating the Economic Landscape, on August 24, 2010.

The proposed concepts and methods in that article were first mentioned in my previously published article in the quarterly journal Housing Finance International of IUHF back in December of 2009. The essential points are that through the newly invented “Cash Flow Sharing” method of a SwapRent(SM) contract, Government could act as a conduit to channel private sector’s capital into local neighborhood communities as a new way of stimulating our national economy aimed directly at homeowners and small businessmen at the grassroots level.

It could bypass banks, Wall Street fat cats or any other types of financial intermediaries to avoid money being hi-jacked by them again. It could also be done totally without further leveraging with more debts. Free market based investors from around the world would get to enjoy the future partial “Shared Appreciation” of the properties in those neighborhoods that they have chosen to invest in, like a conventional equity investor on any other assets would.

This free market based economic stimulus solution is based on the true meaning of capitalism to solve the current economic ills of the Western economies by using a creative and innovative method based on the simple “Shared Equity” or more precisely, a new variation of a “Shared Cash Flow” economic concept.

No taxpayer’s money would be involved for economic stimulus so it would not increase any more budget deficits and hence, non-Keynesian.

No debt capital would be involved to inadvertently blow up further other asset bubbles either (like those unwise and fateful QEs would) and hence, non-Monetarist.

There is a need to create a new name for this kind of new economic concept and new business method to conduct economic stimulus activities to manage a country’s economy. The convenient name I came up with is simply “SwapRentism” at the moment. I would welcome any other suggestions for our consideration.

It is an unconventional and innovative method of plain equity capital based economic stimulus program for various levels (federal, state and municipal) of governments to adopt. It could also be used in conjunction of any other conventional economic stimulus programs to avoid political or personal ideological resistance.

The old time economists and behind closed door economic policy makers may have to swallow their pride, come out of their cocoons, open up their minds and learn something new, for the benefits of our human societies.

Filed under: Uncategorized

02/01/2011 Home mortgage interest deduction and FARJHO

Recently there has been a political movement brewing in the Congress to remove all or partially the home mortgage interest deduction from earned income by working taxpayers. On the first thought by many people, it would give the FARJHO concept and the FARJHO/LLC structure in the US a major boost. They are right. It will!

The economic pundits and policy makers in this country will gradually and finally wake up to the power and the benefits of FARJHO. If some of them haven’t, give them a few more years. Consumers and voters will let them know, perhaps including their own spouses and children.

As mentioned in previous blogs and the web site before, tax rules are man-made. They should not become the main reasons why people choose to alter the way they live their lives. Tax rules simply reflect the competency of the elected law makers and government admin officials of a country. Philosophically I detest all those tax oriented financial transactions and products and look down upon all those who promote them.

Therefore, although there may be many tax advantages of a FARJHO/LLC structure and it is increasingly so, we would not want to associate FARJHO with any tax advantaged financial products. We won’t have to. There are many financial, investment, neighborhood stability and social harmony aspects of economic and social merits already provided by the new FARJHO and SwapRent alternative ways for people to own homes.

FARJHO does not need the tax angle to become another motivation why consumers would embrace it.

Filed under: Uncategorized

01/25/2011 Applying life insurance policy to FARJHO – Coli'ed FARJHO

There are many variation possibilities to add on some bells and whistles to the basic form of a FARJHO/LLC structure for the benefits of sophisticated consumers under the current legal infrastructure of the US.

As a simple example of the use of life insurance policies for AHO and JPIs members of a FARJHO/LLC, we could offer a specialized product called Coli’ed FARJHO as one of the optional features for potential FARJHO/LLC members.

Since the use of Coli has been a bit controversial by many corporations in the past, irrespective of the fact that it is perfectly legal and even ethical when applied prudently, our management does not want to promote it or to associate FARJHO with it due to the image issue but we would like to consider making it available to sophisticated consumers who may choose to have it instead.

Coli is the acronym for “Corporate Owned Life Insurance” on employees. They may also be called a Boli “Business Owned Life Insurance” or an Eoli “Employer Owned Life Insurance” policy.

Although it is not for everybody, we may consider using the similar structure to have it applied to potential LLC members of a FARJHO/LLC structure when the participants are all eligible and unanimously vote for it. Our licensed insurance staff would be able to answer more detailed questions on how this could be done.

Filed under: Uncategorized

01/24/2010 Announcing InvestorsAlly, Inc.'s new corporate HQ office in sunny Southern California

We have moved into a new office space of Corporate Plaza East in Newport Center.

23 Corporate Plaza Drive, Suite 133
Newport Beach, CA 92660

It is near the Fashion Island Mall along PCH in Newport Beach. The following services will be available at this location soon.

InvestorsAlly Realty (CA DRE 01523183)
InvestorsAlly Home Loans (NMLS 397242)
InvestorsAlly Advisors (FINRA CRD 156222)
InvestorsAlly Insurance (CDI 0D61139)
InvestorsAlly Commercial (CA DRE 01342940)
InvestorsAlly FARJHO Services
InvestorsAlly SwapRent Services (Coming Soon)
InvestorsAlly Securities (Coming Soon)

Filed under: Uncategorized

12/21/2010 Giving up on the Fed – A short historical recap of efforts to persuade the Fed on adopting the SwapRent project

On the eve of 2011, many of the followers of SwapRent and FARJHO on a world-wide basis has mostly already recognized the economic merits of the new equity sharing based home ownership structure of FARJHO and the new alternative cash flow sharing based housing finance system of SwapRent and its many embedded new mortgage structures. The only missing obstacle to a wide-spread adoption seems to remain to be very personal and political.

While many people are fed up with the Fed these days ( please read the site published by Citizens for Better Government ), having deeper and deeper doubt myself about their capability to handle our country’s economy, I have finally decided to also give up on the Fed.

On the other hand, people with important political positions should have the responsibility of political accountability and respect political transparency. If some of them do not live up to what their job’s descriptions are and the American people is doing nothing about it, then economic historians should at least have knowledge of what these public servants could have done and should have done but did not do.

This blog post which was previously preserved as future memoir materials will therefore serve to provide some info for the sons and daughters or grand children of these politicians and presumably economic pundits who make decisions for our country’s economic future, to judge what had really transpired in the economic policy making process by the US administration in the beginning of the 21st century.

My contact history with the Fed started back in July 2007. I have been sharing the SwapRent proposal with the board chairman, all other board members and regional presidents as well as Treasury and many relevant Administration officials since then. There had been numerous email exchanges and personal meetings with key decision makers of the Fed, the Treasury Department and various housing and banking related agencies within the past couple of years since then. The following are excerpts of some relevant correspondences.

At 11:28 AM 11/5/2009, David E. Buchholz wrote:
Dear Mr. Liu,

This message is in response to your email of October 18 to Chairman Bernanke, Board Members, and others. I have been asked to respond to your correspondence.

First, let me thank you again for sharing your ideas regarding innovative approaches to the residential housing market. These are truly challenging times and we welcome ideas on how to address the current situation.

As you may recall, after we spoke last year I attended your presentation at the Milken Institute Lab. As I said in my message following the event, your materials and presentation gave us sufficient information to feel that we understood your proposal and did not require additional meetings at that time. I’m sorry that the response apparently struck you as insincere. That was certainly not my intent and, in fact, we devoted a fair amount of time to studying your proposal. There are many proposals and ideas coming our way, as you might imagine, and we do our best to give them all due consideration. We do not feel, however, that at this time we need additional information about the plan your company is putting forward. Should that change in the future, we will certainly contact you.

Again, thank you for taking the time to share your ideas with us.

Sincerely and best regards,

David Buchholz
Manager, Policy Analysis
Federal Reserve Board
Consumer and Community Affairs
Washington DC 20551
Ralph Liu 11/05/2009 02:49 PM
To: David E. Buchholz, cc:
Subject: Re: Replying to your message

Thank you for the clarification David. Please be assured of my sincerity in working with you guys, for the benefits of our country’s on-going economic prosperity. Thanks again.
At 03:28 PM 11/5/2009, David E. Buchholz wrote:

Thanks, Ralph. We appreciate it and will definitely keep your offer in mind.


After learning about the economic value of using shared appreciation concept to solve the mortgage default crisis back in 2007. The following was what he came up with in 2008. “HOPE for Homeowners – Examples of How Equity and Appreciation Are Shared, written in 10/01/2008 by David Buchholz (page 10 and 11)” This very basic, primitive method of applying the shared equity or shared appreciation economic concepts by him obviously wasn’t quite well received at all. It should not have been a surprise since the various British local governments and academics had already been trying to make these concepts work through similar primitive methods for over 30 years by now, of no avail.

There are plenty of lessons to be learned in that drastic innovations in new business methods to apply these old concepts are necessary to make these simple shared equity or shared appreciation concepts work. Simply copying those failed methods again without spending appropriate efforts in new research and development to create new innovative methods or adopting the research results of other people’s efforts such as the SwapRent proposal would not be able to produce any positive results. In frustration, they lead people back to beating the dead horse on more conventional debt based financing methods. To quote a popular quote widely used in the political circles these days, “Insanity is doing the same thing over and over again hoping the outcome would be different.” People do need to step back and think outside the box sometimes in order to find a workable solution.

What is worst is that David Buchholz’s casual efforts using the most primitive methodologies in introducing the shared appreciation concepts in home financing to the American consumers have all but killed the public’s, the academic’s and politicians’ confidence in the crucial economic value of shared equity/shared appreciation methods as a category to solve our country’s economic problems in time. So much precious time has been lost due to these economic policy blunders. Would it be wise for the tax payers to continue to pay money to let these incompetent government folks continue to occupy those important roles in our nation’s economic policy making? I am truly amazed at our country leadership’s tolerance of incompetency, or should it rather be at the leadership’s inability to tell an incompetency.

Since my change of mind due to the loss of confidence in their intellectual capability in handling these economic issues, I have lost many other opportunities in working with other research individuals at the Fed as well. Here is one example. Upon the suggestion of one city housing professional back in July this year, I have submitted my published article on the SwapRent solutions in the quarterly Journal of Housing Finance International (December 2009) of the International Union of Housing Finance back in August this year to a relevant conference next year hosted by the SF Fed. After reviewing many of my blog postings speaking out against the Fed’s QE and various misdirected interest rate policies, Caroline Reid at the San Francisco Fed who works for David Buchholz finally pulled the plug on the chance for many housing finance professionals throughout the country to learn about SwapRent and FARJHO. Oh well, I wasn’t really expecting she would accept my paper after reading my blogs anyway.

At 05:29 PM 8/31/2010, Carolina Reid wrote:
Thank you very much for your submission to the 2011 Federal Reserve Community Affairs Research Conference. The review committee will begin reading submissions at the end of September, and we hope to be able to notify authors of their decisions before Thanksgiving. I will also let you know if the review committee has any questions about your research.

Best wishes,

Carolina Reid, Ph.D.
Manager, Research Group, Community Development
Federal Reserve Bank of San Francisco
101 Market Street, MS 215
San Francisco, CA 94105
At 09:14 AM 11/19/2010, Carolina Reid wrote:
Thanks again for your submission to the 2011 Federal Reserve Community Affairs Research Conference. Although we had hoped to be able to finalize the selections before Thanksgiving, it looks like it will take us a couple more weeks than planned to sort through all the submissions and reviews. Thanks for your patience! We will notify you of the review committee’s selections as soon as possible.

Happy Thanksgiving,
At 09:49 AM 12/20/2010, Carolina Reid wrote:
Thank you very much for offering to present a paper at the “The Changing Landscape of Community Development” research conference sponsored by the Community Affairs offices of the Federal Reserve System. We apologize for the delay in getting back to you. Unfortunately, we did not select your submission for the program. We received nearly 100 submissions, making it very difficult to select among all the high quality ideas and research topics. The typical reasons for not including submissions were because other papers meshed more closely with our needs, we felt we could not combine certain papers into a cohesive session, and/or papers were sometimes too preliminary.

Nevertheless, we greatly appreciate your interest in the conference, and hope that you will keep us updated on your research projects and papers going forward. If you are interested in attending the conference, please visit the conference website,
for more information. The complete agenda will be up on the conference website starting on January 10, 2011.

Please let me know if you have any additional questions. Many happy wishes for the New Year,


Understandably, it seems to be another political decision, rather than one on academic merits. It is the same familiar issue or concern on “political tractions” that many not-for-profit foundations, banks, VCs and industry groups had openly expressed within the past few years about the SwapRent proposal. It was indeed difficult to compromise by pulling my true feelings and critical opinions in my earlier blog posts about the series of Fed’s unwise actions and policy blunders so that I could get selected by them to introduce my SwapRent paper and FARJHO in their conference under their terms.

To see what damages of these misconceived economic policies of the Fed have already created, one does not have to look further than what the increasing polarization of the American economy with the rich getting richer feasting on a near zero interest rate borrowing cost and the poor getting more and more desperate with a near zero access to credit or equity funding in America as well as the growing global unrest, famine and social instability in poor countries introduced by the hyper inflationary price levels of food and commodities introduced by the Fed’s dollar flooding policies so far. The worst is yet to come while most people seem to still haven’t waken up from their infatuation of the Fed cult.

Three years ago I jokingly predicted in my blog posts about the omen of 12/21/2012 that would coincide with the end of Obama Administration’s legacy, it seems a scaring thought to think that it might indeed become a reality.

With many displaced American once homeowners continue to suffer and our country’s economy continues to deteriorate, let’s see how much longer the Fed as an institution will get to keep on squatting on the important positions without producing any new real conducive economic policy alternatives while keeping whipsawing our economy with feasts and famines using their simple interest rate up-and-down decisions and the enigmatic but much more disturbingly troublesome quantitative easing methods.

Filed under: Uncategorized






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