Alright, something is happening on the Hill! The House approved legislation that would institute a consumer's "Bill of Rights" regarding the credit card industry's unfair practices. The credit card companies are finally being reined in!  (If you believe that, I have a wonderful bridge for sale. Interested?)

House bill: H.R.627

Senate bill: S.235

The House, by a vote of 357/70, adopted a series of amendments, some of which were pushed by the White House, that increases restrictions on industry practices. The bill, dubbed the "Credit Card Holders' Bill of Rights," wouldn't take effect until a year after enactment. For sure, there are some much needed reforms addressed by this bill, such as prohibiting retroactive rate hikes and double cycle billing (Double-cycle billing eliminates the interest-free period for consumers who move from paying the full balance monthly to carrying a balance). Also, companies would be prohibited from giving cards to people under 18 years of age. Good rules, but what I don't understand, is why these rules, if the bill passes the Senate, would not take effect for a full year, July 2010.

If it were left to some legislators, the bill would never even become law. Opponents tried to weaken the bill with amendments that would have given credit card issuers some openings to raise rates within the new proposed restraints.

"We shouldn't take credit opportunities away," insisted Rep. Jeb Hensarling, R-Texas. "I just want consumers to have choices. I want there to be a competitive marketplace." (Trust me, this bridge is a deal!!) 

Last week President Barack Obama met with executives of the credit card industry and made clear he wants to sign a bill into law. He reaffirmed it as a priority that legislation was a must to protect consumers from "abusive fees and penalties." Earlier Wednesday, Rep. Carolyn Maloney, D-N.Y., the bill's chief sponsor, and Treasury Secretary Timothy Geithner met with representatives of consumer and civil rights groups to discuss the credit card overhaul.

At least something appears to be happening. Still, the fact remains, the credit card companies have powerful lobbyists. The Senate still has to work on their version of the bill, and pass that. In the meantime, we need to take the driver's seat, and do what we can to free ourselves from the tyrranical influence of credit card abuse.

During this next year, the credit card companies will be able to wreak as much havoc as they please! The only exception in the House bill, is that customers receive 45 days notice before their interest rates are increased; this provision will take effect in 90 days.

When the FBI said in mid 2008, that they would be making more arrests for cases they had been investigating since 2004, they weren't kidding! Originally when I first blogged about this in June, 2008, the FBI announced that they had arrested five people who all worked together perpetrating a scam that I detailed in that post. Then, just three days ago, I reported on the latest FBI bust, involving a couple who owned a mortgage financing company here in Honolulu.

Now today, the FBI has announced that yesterday they have arrested five more people associated with four lending companies, for participating in alleged foreclosure bailout schemes. The lending companies named were: 

• Asian Pacific Funding
• New Horizons Financial
• Accel Mortgage LLC
• Walter P. Yim and Associates

The five persons arrested have all pleaded not guilty to multiple charges of mail fraud, wire fraud, money laundering, conspiracy  and making false statements on a mortgage application. To date, more than 17 people have been arrested on similar charges. The FBI investigations have been active for the past 18 months.

I hope that all of those shady individuals that have perticipated in these kinds of fraud, who have not yet been arrested, are shaking in their boots! I believe there are many more perpetrators out there. I know I met a few lending agents, whom I refused to do business with because they were not shy about their willingness to stretch the truth on mortgage applications. A couple of them even went so far as to say that if the borrowers were willing to sign the applications, they could care less if they lost the property later!

Well, now it looks like the day of reckoning is about to land on their heads! More arrests are surely on the way. If any of those loan officers are reading this blog, what do you think about that?

Of course, I would rather hear from everyone else regarding their thoughts about these arrests!

The day has come. The Honolulu City Council, by a margin of 6 to 1, has passed a ban on using mobile electronic devices while driving. Personally, I'm split down the middle.

I applaud the ban, because how many times has my blood pressure risen because of some other idiot, slowing down the single lane of traffic behind them, because they can't drive at the speed limit and talk at the same time? I wonder, do they talk slower while they're driving, too?

I resent the ban, because I need to use the phone for my business! I can't pull off the road just to answer a call! Oh yeah, the ban exempts users with handsfree devices, like my cherished Bluetooth! Whew! Nevermind!

The bill also allows for other exemptions:

c) The following persons shall be exempt from the provisions of subsection (a):

1. Emergency responders using a mobile electronic device while in the performance and scope of their official duties:
2. Drivers using two-way radios while in the performance and scope of their work-related duties:
3. Drivers holding a valid amateur radio operator license issued by the federal communications commission and using a half-duplex two-way radio.

All in all, the bill looks like a straight forward and well written piece of legislation. The problem will be in the area of enforcement. The Mayor has stated his intention to sign it, after he reviews it further and consults with the Police Department and the Prosecutor's Office regarding any issues they may have regarding enforcment of it's provisions.

The bill will become law on July 1, 2009 after the Mayor signs it. Hawaii will join California and New York with such bans. First time offenders will face fines of between $40.00 to $100.00.

Finally, the Obama administration is trying to rein in the credit card companies. Because congress is at the beck and call of the credit card lobbyists, they have been stalling on enacting any credible credit card reform. Even though the U.S. Federal Reserve has already drawn up new rules to protect consumers, they aren't scheduled to take effect until July 2010.

Get this quote from Edward Yingling, president of the American Bankers Association, the banking industry's lobbying group. "The [banking] industry understands the concerns about credit cards, but the administration should fully recognize the impact of the Federal Reserve Board regulation, which is one of the strongest consumer- protection regulations ever adopted". Yeah, right.

In the meantime, the credit card companies are having a field day! They are cranking up rates to usurious levels, Many people who have been stellar credit users are suddenly finding that, because of actions taken by the credit card companies, their credit scores are being destroyed, their credit histories being compromised. In effect, the credit card companies are destoying peoples financial reputations. 

All of this is happening while the American, indeed the world's economy, is in a fragile state. People whose finances are being strained due to current circumstances, are finding that their "last resort" source of security, their credit ratings, are being furtively stripped from them. The credit card users who have played by the rules, been responsible, and proactively constructed a credit history in the proscribed manner, are having the rules changed on them, to their extreme detriment.

Particular criticism is due to those Banks that raised rates on some existing card holders even as the banks received federal bailout funds. The lame excuses put forth by the banks, is that  "credit-market conditions" and "changes in borrowers' credit scores" necessitated the increases. Let us remind them: the "credit-market  conditions" and "changes in borrowers credit scores" are for the most part due to the shenannigans and deceptive practices of the credit card companies themselves. They created the problems, then want to punish the consumers by increasing rates and lowering credit limits, because of the effects their policies have had on the credit consumer.

President Obama is taking action now! On Sunday, on NBC's "Meet the Press", Larry Summers (Pres. Obama's top economic advisor) quoted Obama's statement that "people have been deceived into paying extraordinarily high rates that they wouldn't have paid if they knew what they were getting themselves into". Tomorrow, (Thursday, April 23, 2009) President Obama, Summers, and several other key economic officials, including Treasury Secretary Timothy Geithner, are meeting with top executives at banks with large credit card divisions. Let us hope that some real reform comes out of this meeting.

During his presidential campaign, Obama laid out a pro-consumer credit card reform plan. Currently, the administration is backing legislation to crack down on credit card companies, including major players like VISA and MasterCard, that hike interest rates on unsuspecting customers. Obama also wants to establish a credit card "bill of rights" that would ban universal default, prohibit unilateral changes to contracts and also prohibit credit card issuers from charging interest on fees.

There's a great newly revised website, that lets you find all kinds of information having anything to do with Hawaii. It's called e-Hawaii.com.

I just had to share that with you, as well as this piece of Local Style Hawaiian humour:

"U Know U Local Eef" - e-Hawaii Joke

1. You have a separate circuit breaker for your rice cooker/warmer.
2. Only NOW you know that cilantro is the same as Chinese parsley.
3. You measure the water for the rice by the knuckle of your index finger.
4. You know which market shave poi on which days.
5. You know that Char Hung Sut is closed on Tuesday.
6. You can handle shoyu with green mango, li hing gummy bears, raw egg on hot rice and pearl tea (Carnation milk in hot water with sugar) with creme crackers.
7. Your refrigerator has a half-empty jar of mango chutney from the 1993 Punahu Carnival.
8. The condiments at the table are Shoyu, ketchup, chili peppah watah and kimchee. Also, takuwan, Hawaiian salt, slice onion and pickled onion.
9. You go to Maui and your luggage home includes potato chips, manju, cream puffs and guri-guri for omiyage (gifts).
10. You think the four food groups are starch, Spam fried food and fruit punch.
11. A balanced meal has three starches, rice, macaroni and bread.
12. You know 101 ways to fix your rubber slippers...50 using tape, 50 using glue and one using a stick to poke the strap back in.
13. You sometimes use your open car door for a dressing room.
14. You wear two different color slippahs together and you no mind.
15. Nice clothes means a T-shirt without pukas.
16. You are barefoot in most of your elementary school pictures.
17. You have a slipper tan . . . an upside down "v" on top of both your feet.
18. Your only suit is a bathing suit.
19. You drive barefoot.
20. You have at least five Hawaiian bracelets.
21. You never, ever, under any circumstances, wear socks with slippers, or an aloha shirt that matches your wife's muumuu.
22. You still call the Blaisdell Center, the HIC and its Sandy's, not Sandy Beach
23. You say "I going for lawnmower da grass" when you mean "I'm going to mow the lawn."
24. You can understand every word Bu La'ai says and you know what his name means, too.
25. You have a sister, cousin, aunty or mom named "Honey Girl" or, someone in the family named "Boy," "Tita," "Bruddah," "Sonny," "Bachan," "Taitai," "Popo" and/or "Vovo."
26. You still chant "Hanakokolele" when a friend or co-worker goofs up.
27. You say, "Shtraight," "Shtreet," and "Shtress."
28. You say "Da Kine," and the other person says "Da kine" and you both know what is "Da kine."
29. The "Shaka" and the "Eye Flash" are worth 1,000 words.
30. You're shopping at Epcot Center at Disneyworld and you may say something to your sister and a complete stranger says, "you're from Hawaii, aren't you?"
31. You feel guilt leaving a get-together without helping clean up.
32. The idea of taking something from a heiau is unthinkable.
33. You call everyone older than you "Auntie" or "Uncle" and you kiss everyone in greeting and farewell.
34. You let others cars ahead of you on the freeway and you give shaka to anyone who lets you in.
35. Your philosophy is "Bumbai."
36. You'd rather drag out the compressor and fill that leaking tire every single morning than have it fixed at the local gas station.
37. The only time you honk your horn is once a year during the safety check.
38. If a child needs a home, give him one. He becomes "Hanai."
39. You can live and let live with a smile in your heart.
40. Your male best friend's name is either Kimo, Kaipo,  or Big Al.

Finally, the long, slow arm of the law has thrown one of the local mortgage fraud scammers into the slammer. This case began in 2005, and the perpetrators won't be sentenced until September 17, 2009. Still, they have been convicted, and the day of reckoning has come!

Back in mid 2008, I posted a blog about a Mortgage Fraud Bust in Honolulu, which involved five people, including loan officers and middlemen, basically run with the "We Buy Houses" signs, used as bait to find distressed homeowners. Back then, the FBI had said that they were investigating several more cases that were run during the years from 2004 through 2006, and that there would be many more cases to come.

This particular case involved a husband and wife team, owners of a mortgage company. The founder of Mortgage Alliance LLC, one John M. Dimitrion, and his wife, Julie A.B. Dimitrion, pleaded guilty in federal court. Mr. Dimitrion Faces a maximum prison sentence of 45 years and $1.5 million in penalties; Mrs. Dimitrion faces a maximun of 15 years and penalties of $500,000.

The scam this couple, and their cohorts ran, was basically one where they used the "subject to" clause in a contract, a technique taught in many of those so called "Investment Seminars". The clause is legal, but it is fraught with danger. By using the subject to clause, a homeowner signs the title of their home over to the "Rescuer", who claims they will save the home from foreclosure (by the way, the term "Rescuer" could be considered to be the type of person the "Distressed Property Consultant" regulations are meant to protect homeowners from). The "Rescuer" then owns the property, "subject to" the underlying mortgage, which the original homeowner is still liable for. The "Rescuer" promises to make the mortgage payments, while temporarily renting the home back to the homeowner. In the meantime, the "Rescuer" can secure a new loan on the property, using a third party "straw" person as a new purchaser.

The twists and turns to this scam can become complex. The "Rescuer", in this case the Mortgage Alliance company, never told the homeowners they were signing away the title to their home. Instead, they thought they were simply refinancing their home. The Mortgage Alliance company then went on to create a fake escrow account, made fraudulent loans on the property, greater than the home's actual value, and stole the proceeds. Often in cases like this, the underlying mortgage is never paid, and eventually the original homeowner gets foreclosed on and evicted, which also occurred in this case.

One thing I want to mention is that this type of fraud and mortgage scam has been happening for years. The obvious malfeasance should be easy to spot and avoid, but the scammers manage to gain the homeowners trust. The homeowners are desperate, and fall victim to these scams because they are hoping for a miracle. In a way, this is not unlike the subprime mortgage fiasco, which bears similarities to this type of fraud.

The plethora of subprime mortgages that many homeowners unwittingly signed onto, in many cases, caught many unwitting buyers unaware of the pitfalls they were falling into. Often, they were looking for a miracle, the chance to own their own home, and trusted greedy, unscrupulous lenders.

Unfortunately, most of those situations will not result in any criminal prosecutions. 

This Sunday, I held an open house in Mililani Mauka. Mililani is my area of expertise, a pre-planned bedroom community in Central Oahu. I have lived here in Mililani since 1977, and own investment property here as well. I litterally saw Mililani sprout out of the pineapple and sugar cane fields, and grow into the suburban community that it is today.

The townhouse, a unit in Northpointe Terrace (in Hawaii it's a townhouse; on the mainland it would be an apartment), is on the second floor. 3 bedrooms, 2 baths, and 2 open parking stalls. The unit is in average condition for a 14 year old building; carpets are a  little faded, but clean. Paint is good, but not bright.

The most important character about this unit though, is that it is an REO (Real Estate Owned, by Countrywide financing). Previously foreclosed on, now owned by the bank.

Traffic was steady at the open house, a welcome change from the previous few months, and as spring moves into summer, traffic should continue to be good. What struck me at this open house as different, was that just about everyone coming through was looking for an investment property. Some came with their agents, some knew what an REO was (believe it or not, I'm refering to the agents!), some didn't know anything, other than they wanted to find an investment property.

I want to tell you, I love educating inexperienced homebuyers! I was in hog-heaven at this open house!

I met two young couples that are homeowners, but neither has any experience being an investor. One of the couples told me they were just starting out, exploring the idea of buying an investment property. Why? Tempted by the extremely low interest rates, and the depressed prices. It's all over the news, so they wanted to see what's going on.

The other couple, same story. Their biggest question, can they use VA financing? I said they could. Before you knowledgeble readers throw knives at me, let me explain! They could use their VA financing if they move into the unit they purchase, and rent out their present home. As most, but not all of us know, VA and FHA finacing is for owner occupied purchases only. Just a little detail that the inexperienced might not know.

There is a lot more to know about becoming a first time investor. I explained a few of the details about investor financing options, setting the criteria for their investments, and quite a few other details. I set up automatic property searches on my laptop, right there at the open house, so they will be notified as soon as any new listings which meet their criteria come on the market. I am eager to help them get started in their quest, and I am excited about helping them learn the ropes about becoming landlords, and real estate investors!

Everyone wants to become a real estate investor! Why not?

Just a little bit about me: I have been an Accredited Buyer's Representative for 5 years, as well as a Certified Residential Specialist. I also recently earned the designation as a Resort and Second-home Property Specialist. I love helping first time homebuyers and investors of any degree of experience, or lack therof. Please give me a call if I can be of any assistance! 808-780-7043

This is a re-blog of a very informative post by Pat Killeen.

Good information about credit scoring.

I want to pass on this blog by Matt Listro. This is an exceptional review of a few ways to deal with credit card debt, as simple as 1,2, 3.

Very good advice. Thank you Matt!

Yesterday's business section of the newspaper had a headline that broke a story about a fraudulent investment scam allegedly perpetrated on the Big Island, in Hilo.

Basically, it was another Ponzi scheme, dealing with fraudulent securities trading. The perpetrators, two gentlemen, were living large, driving leased Jaguars and BMW's. One of them, who I will just call 'James', even rented a $25,000 a month Big Island beachfront home, presenting it as his own, and using it to hold presentations to would be investors. 

What I want to mention, is that I was reading this article with great interest, because in the recesses of my mind, I remember a close call I had with a gentleman who had recently located in Hilo, on the Big Island. The situation was, about a 18 months ago I met this fellow at a real estate investment 'seminar', which I attended more for the purpose of making contacts than for gaining any investment knowledge. This gentleman impressed me with his stories of investment coups that he had engineered, dazzled me with stories of his contacts on the Big Island, and how he was hoping to team up with a knowledgable real estate professional such as myself, to continue building his empire in Hilo.

Within a couple of weeks, we were discussing plans for a new venture, and busied ourselves with getting our corporate documents filed, drawing up our bylaws, issuing stock and all that good stuff. Then one day, out of the blue, I get a phone call from some unknown person, who askes me if I know Mr. 'X' (James). This mystery caller gave me his name, and identified himself as someone whom 'James' had swindled out of more than $250,000.00 in a real estate deal.

He went on to tell me more horror stories, about how 'James' had emptied a young womans trust fund, and liked to drive brand new Jaguars, along with numerous sordid details. He asked me to meet him downtown, where he handed over to me a two inch thick file from the State Attorney Generals office, documenting complaints, filed by residents that 'James' had run a "Foreclosure Rescue" scheme on. There were at least 5 people who had lost their homes, and untold sums of money, because they had trusted 'James' to save them from financial ruin. There was testimony from one young man who had worked with 'James', and been duped into committing fraud on his friends and neighbors.

Needless to say, thanks to this good samaritan's warning, I bailed out of this venture before any harm was done. I was even contacted by the state prosecutors office, which was very interested in learning of 'James' whereabouts. What happened after, I have no clue.

I only had to read less than three column inches before 'James' name popped off of the newspaper.

The U.S. Commodity Futures Trading Commission (CFTC), in addition to action taken by the state Commisioner of Securities, described their complaints against 'James' as portraying his corporation as having a proprietary software that "never lost money" and "automated the trading of commodities".

The state has issued "cease and desist" orders aginst the firm, along with 'James' and the corporations officers. The case alledges that the firm was selling unregistered securities to investors in several states, promising 20% monthly returns using the automated trading system. The firm also issued false account statements, and lied to investors about the firms success.

The newspaper went on to explain that "the firm started up last year in Hilo, first looked at the real estate business before deciding in investing in off-exchange foreign currency contracts, though none of the principals had extensive experience in the business."

Three of the firms workers, who were not participating in the fraud, became  suspicious about the firms promises, and in February reported their suspicions to state regulators.

By the way, 'James' was contacted by the newspaper, and declared "We're not criminals", and declined further statements until he can retain an attorney.

How's that for a close call?

"Complaints rise about interest rate hikes" was scrolling across the bottom of the screen on CNBC's Power Lunch show this morning. That piqued my interest, so I waited for the discussion to follow. When Bill Griffith and his cohorts finally brought up the story, the discussion, although brief, covered a variety of viewpoints. There were arguments made both against, and in defense of the banks. These are the highlights that I noted:

Arguments criticizing the Banks: 

• Banks that have received TARP money are raising interest rates on Credit Cards
• Responsible consumers are targeted for increased fees
• Rate hikes are arbitrary and indefensible
• The "Consumer Bill of Rights" is still merely a pipedream, no action seen yet
• Banks use creative ways of charging for services that are already being provided for free

Arguments supporting the Banks:

• Banks should charge whatever they need to in order to stay profitable
• Consumers don't have a "right" to borrow; it is a privilege provided to them
• Consumers know that Banks are going to charge them outrageous fees: "Caveat Emptor"  
• Consumers can shop for a better deal if they don't like the one they are getting    

After seeing this newscast, I was left with a smug feeling of satisfaction. You may have noticed, I am on a mission to unify a movement to counter the way banks treat credit card customers. Practices, such as arbitrary rate hikes and credit limit reductions, and the current way they are administered are unacceptible.

The reason this issue is so important to me, and to you as well, is because of the wide ramifications these actions have on our individual financial well being, as well as the economy overall. For an illustration of how this impact is felt, please read Who's Stealing Your Dreams, a post I put up yesterday.  The point of that post was to show how this small, everyday part of our lives can destroy our hopes of becoming a homeowner.

In that post, one commentator wrote that he did not like the comparison I made between Banks, a lawful enerprise, and thieves, clearly lawbreakers. I feel quite comfortable making that comparison, because a law is not necessarily just simply because it is the law. The laws that allow banks to literally steal your money, such as by unilaterally increasing interest rates to usurioous levels, using very questionable rationale, should be a crime. One of the panel on the Power Lunch program said as much also.

There are many victims who have become more vocal about this "criminal" activity as well, hence the news crawler I mentioned at the beginning of this piece.

I will not use this monologue to argue for or against the viewpoints I saw discussed on the Power Lunch program (I do want to mention that the last point, shopping for a better deal, sounds good; but the deals all have the same pitfalls, so there is no real "choice"). However, I do hope that everyone will pay attention to this subject, and become more aware of the need to take proactive steps to bring about change to this system. The current system that allows such abuse of credit card users is totally unacceptable. For that reason, I would encourage everyone to take steps to stop using them.

Please consider joining the Credit Card Revolt group. Share your experiences, good or bad, with the credit card companies. Together, we can bring about positive change!

The funny thing about thieves is that they are so darn clever. They are sneaky, and most of the time you don't even know that you've been robbed until they have taken your goods, and gotten away clean. The image we most commonly conjure up when we think about being robbed is a thief who comes in the night, who stealthily enters our private domains, and makes off with our our precious valuables.

Lately, we are being bombarded with images of a change to that image, because of the explosion in the number of white collar crimes. First, it was Enron and the like. Then came Bernie Madoff. Though we haven't seen any prosecutions yet, and maybe we never will, I would include the financial institutions and insurance giants that have taken our tax dollars (aka, the stimulus package) and thrown themselves a party with multimillion dollar door prizes.

We all know that these crimes of theft have cost us dearly, and we have a nebulous idea of how this is going to impact us for years to come. Still the idea is a little absract, because we can't really measure how many actual dollars have been taken out of our own pockets.

If we truly knew the dollar amount of our vulnerability, we would be shocked, and much more likely to find a way to take action to protect ourselves. That is why I am humbly asking you to read on, so that you will become more aware, and outraged, and angry enough to take action, to simply protect yourself from the biggest thieves of all.

I am talking about the thief who steals your dreams.

In the true fashion of classical burglary, these thieves are diabolically sneaky. They lure you into their trap, by seducing you with images of comfort, and riches.

Simultaneously, they are maddeningly brazen as they go about their task. When the trap is sprung, you are trapped like the proverbial fly caught in the web. The more you struggle, the more entrapped you become.

Who is this thief? None other than the Credit Card Companies. How many of you have been silently victimized by their actions, such as the sudden increase in interest rates, outrageous service charge fees, lowered credit limits, payments not credited until after debits have been charged, causing more charges, and on and on and on. And this is what happens to those of us who have stellar payment histories!

One of their more outrageous practices is to penalize creditors who may be having difficulties, by increasing interest rates, which requires the debtor to make higher payments. Struggling gets you more entangled.

The most dire consequences of their actions is not just the money they charge, but the fact that they could be stealing your dreams and your future as well. Planning on buying a home? If you are, then you know how important your FICO score is to fullfilling that dream. All it takes is for one credit card company to significantly lower your credit limit, and your dream can dissappear in a flash. That one credit limit reduction could lower your score by as much as 40 points, making you ineligible for the loan that could make your dreams of home ownership come true.

That one limit reduction can change your ratios of debt to avilable credit, which may cause other credit issuers to change your rating with them. The company that lowered your credit line may also decide that with your lower credit limit, your debt ratio on their account is too high, so they will now need to increase your interest rate. Then, the other credit companies are alerted, and the cycle repeats itself. Now, what just happened to your dream of homeownership? 

 Sadly, the thief who steals your dreams is not just an abstract idea.

What can you do to protect yourself from this outrage? You can fight back! The time has come for everyone to stand up, sound off, and take action! Right now, the credit card companies have had free reign to do as they please. Congress says that yeah, they have plans to pass some legislation to make the bad boys behave, eventually. Do you believe that? I guess we could wait and see. And wait. And wait.

If change is going to happen, it is going to be up to each and every one of us to take action. The first action I am taking, and encourage each one of you to take, is to just stop using credit cards as much as possible! The best action, is to not use any of them at all! It is not easy, but it is worth it. Imagine a world where the credit card companies are so desperate for you to use their service that the actually provided a service model that we would want to use! The only way that is going to happen is when we stop using the despicable disservice that they are providing now!

It might seem like an impossible task right now, but what great thing has ever been accomplished, if at first the task did not seem to be impossible?

You are not at the mercy of this devilish system. YOU can have a voice, and YOU can make a difference! The choice is yours, to continue being duped, taken advantage of, and silently remaining a helpless victim; or You can take a stand, voice your frustrations, and help to slay the beast that steals our dreams.

Please share your frustrating experiences, your victories, and even your defeats with us. By sharing our thoughts, and ideas, we can begin to take the actions that will change the system! Also, please join the Credit Card Revolt group, and post your stories there!

I am looking forward to hearing from you!

 Today I started a new Active Rain Group, and I want to invite Everyone to join.

The group is called Credit Card Revolt, and the name basically says it all. This group is a call to action, and a forum for support, to get everyone to fight back against the oppresion that the major credit card companies have imposed on America.

Congress has said that they will begin changing the rules that allow credit card companies  the free reign to terrorize consumers that they have enjoyed for so long. Have you noticed, there is no sense of urgency on their part to do so. In the meantime, the credit card companies are doing what they please, as they please. Arbitrarily increasing interest rates, reducing credit limits. Punishing responsible credit users, to cover their losses from delinquencies and charge offs. Ruining peoples credit histories in the name of profit.

The purpose of the Credit Card Revolt is to take back the power over our own lives. Right now, our lives are immeasurably controlled by FICO scores, which are largely driven by credit card use. Our credit history, available credit to debt ratios, available credit amounts and so on. The effect of one credit card company lowering your credit limit has a cascading effect. First, your debt to available credit ratio increases, lowering your score. Your lower score triggers other credit companies to review your credit, possibly lowering your limit as well, increasing your interest rate, or both. When the interest rate is increased, your minimum payment usually goes up, making it harder to make the payments, and increasing the time required to pay off the debt.

I could continue in this vein, and I am sure that many of you have experiences that can relate to this kind of mis-treatment. How did we get here in the first place? Madison Avenue sold it to us. Using credit cards makes us smarter, sexier, better looking, modern, all around better people. Remember the Visa ads, where everyone is moving in synchronicity, until some dodo pulls out cash to make his purchase? We could see that we had become part of the futuristic cashless society, and now we had better join or get out of the way.

No one mentioned that one day the credit card company might decide that, even though you have only used about 50% of your credit limit, they can call you up, tell you they think you should make an extra payment of two or three thousand dollars. Or just as suddenly, invalidate your card for further purchases without warning. If you think this is nuts, you are right. If you think it cannot happen, well, it happened to me.

 Well, I'm mad as hell, and I'm not going to take it anymore! 

From what I hear, most of you are mad as hell too. And you don't have to take it anymore either! There is strength in numbers. We can take action. We need to share ideas, and take steps to begin a fundamental change to release this stranglehold that the credit card companies have over our lives.

The first step that I have taken is to simply stop using credit cards, period! It's not easy, and not everyone can take this step, at least not as a first step. But if more of us, and enough of us do so, it will have an effect on the way credit companies do business. They are a service business, but the only ones being served by them is themselves. Now, don't worry that the economy will collapse by not using credit cards. I still spend money, but I don't use credit cards. I use many of the available alternatives: cash, debit card, checks, e-checks and so on.

Long term, I envision that eventually, enough consumers refusing to use credit cards under the current terms, will force the companies to create a better product that consumers will want to use, or go out of business. It may sound ridiculous to say so now, but as the movement grows, and the voices grow louder, change is inevitable. That's what a revolution can accomplish.

So again, I emplore you: please join the Credit Card Revolt, and share your horror stories, your triumphs, and your support with the rest of us. Together, we can make a difference.

Okay, I admit that I can be somewhat of a conspiracy theorist, and at the same time I can be extremely skeptical about conspiracy theories. Here is the latest dilemna that has my undies all tightened up in a wad.

I sat an open house a few weeks agao, during which I met the next door neighbor, and had exchanged some friendly chat. Before the open house ended, he came back and asked me to stop by his home after I finished the open house. "Great" I thought. "Maybe he's thinking about selling, and he wants to talk about listing his property with me." We Realtor's are always so optimistic, aren't we?

I won't drag this story out. What he wanted to talk to me about was my cellphone. He noticed I keep my Bluetooth on my ear, and my phone snug on my belt. He asked me to take a little test. He had me take off my Bluetooth, dial his phone number and hold my phone up to my ear. At the same time, he had me keep my other arm straight down at my side, with that hand palm out and palm up, holding my arm and hand as strongly as I could. Next, after his phone began to ring, he pulled down on my open palm, and I nearly fell over, losing my balance instantly. Then, he had me do the test over, with the phone at my ear again, but without dialing so the phone was not "on". No problem, I could resist his pulling and maintained my balance. Repeat the test, with the phone on again. Again, I nearly fell over.

The third time we did the test, with the phone on, again I called his number, but this time he placed a little "chip" device on the phone. His phone was ringing, he pulled down, but this time I maintained my balance.

I was mystified, and somewhat impressed. Also, very curious.

He went on to give me information about electromagnetic pollution, cell phone radiation and on and on. He told me about how in Europe and Australia, the public outcry has grown so loud that there is pending legislation to address the issue. He and his wife loaded me up with literaure and websites to check it all out. They referenced numerous Doctors and "scientific" studies, publications, websites and web links that document the growing body of information documenting rising brain tumor rates, due to increased cell phone usage. It was a plethora of information and documentation.

They both told me about how the U.S. government has managed to keep all of this information "hidden". Why don't we hear about all of this in the U.S.? Conspiracy, obviously. Just like the tobacco industry. The payoffs. The denial. The money.

Now I was captured. I love conspiracy theories, if only for the entertainment value. Now I was motivated to do my own research. I went on the internet, read all that I could find regarding this so called "electromagnetic polution" and such. Most of what I found debunked all of this as so much nonsense. No double blind studies that verify and connection between brain cancer and cell phone usage. Almost all testimony supporting such theories are anecdotal, no "valid" studies that have any statistical significance, or are able to be repeated if they do.

Now I was convinced. The whole point of this couple scaring me about cell phones, was so that I would buy into the product they are selling, an anti-radiation super-duper-save-your-life BioPro "chip". That was it. No way am I going to become one of those lunatics protesting cell phone towers on my block, like those parents fighting having cell phone towers near the schools or recreation centers in my neighborhood.

Since that day two weeks ago, I continue to get emails from them, full of Doctors testimonies about the validation of the scary fact of electro-pollution. So far, I'm still not buying it.

Then today, I got this link to a story done on 60 Minutes, from the broadcast in Australia on Friday, April 3, 2009. It's just under 14 minutes long. The news anchor 's dialogue begins with "An international team of doctors, including two of Australia's finest surgeons, have just released their latest comprehensive research..."

After you watch this, tell me what you think.  

Okay, I admit that I can be somewhat of a conspiracy theorist, and at the same time I can be extremely skeptical about conspiracy theories. Here is the latest dilemna that has my undies all tightened up in a wad.

I sat an open house a few weeks ago, during which I met the next door neighbor, and we had exchanged some friendly chat. Before the open house ended, he came back and asked me to stop by his home after I finished the open house. "Great" I thought. "Maybe he's thinking about selling, and he wants to talk about listing his property with me." We Realtor's are always so optimistic, aren't we?

I won't drag this story out. What he wanted to talk to me about was my cellphone. He noticed I keep my Bluetooth on my ear, and my phone snug on my belt. He asked me to take a little test. He had me take off my Bluetooth, dial his phone number and hold my phone up to my ear. At the same time, he had me keep my other arm straight down at my side, with that hand palm out and palm up, holding my arm and hand as strongly as I could. Next, after his phone began to ring, he pulled down on my open palm, and I nearly fell over, losing my balance instantly. Then, he had me do the test over, with the phone at my ear again, but without dialing so the phone was not "on". No problem, I could resist his pulling and maintained my balance. Repeat the test, with the phone on again. Again, I nearly fell over.

The third time we did the test, with the phone on, again I called his number, but this time he placed a little "chip" device on the phone. His phone was ringing, he pulled down, but this time I maintained my balance.

I was mystified, and somewhat impressed. Also, very curious.

He went on to give me information about electromagnetic pollution, cell phone radiation and on and on. He told me about how in Europe and Australia, the public outcry has grown so loud that there is pending legislation to address the issue. He and his wife loaded me up with literature and websites to check it all out. They referenced numerous Doctors and "scientific" studies, publications, websites and web links that document the growing body of information documenting rising brain tumor rates, due to increased cell phone usage. It was a plethora of information and documentation.

They both told me about how the U.S. government has managed to keep all of this information "hidden". Why don't we hear about all of this in the U.S.? Conspiracy, obviously. Just like the tobacco industry. The payoffs. The denial. The money.

Now I was captured. I love conspiracy theories, if only for the entertainment value. Now I was motivated to do my own research. I went on the internet, read all that I could find regarding this so called "electromagnetic polution" and such. Most of what I found debunked all of this as so much nonsense. No double blind studies that verify and connection between brain cancer and cell phone usage. Almost all testimony supporting such theories are anecdotal, no "valid" studies that have any statistical significance, or are able to be repeated if they do.

Now I was convinced. The whole point of this couple scaring me about cell phones, was so that I would buy into the product they are selling, an anti-radiation super-duper-save-your-life BioPro "chip". That was it. No way am I going to become one of those lunatics protesting cell phone towers on my block, like those parents fighting having cell phone towers near the schools or recreation centers in my neighborhood.

Since that day two weeks ago, I continue to get emails from them, full of Doctors testimonies about the validation of the scary fact of electro-pollution. So far, I'm still not buying it.

Then today, I got this link to a story done on 60 Minutes, from the broadcast in Australia on Friday, April 3, 2009. It's just under 14 minutes long. The news anchor's dialogue begins with "An international team of doctors, including two of Australia's finest surgeons, have just released their latest comprehensive research..."

After you watch this, tell me what you think.  

I wish I could take credit for the Credit Card Revolution. But that is beside the point. When I wrote the blog "Days of Our Fathers" a few weeks ago, I was hoping to start a mini-revolution. I decided that I had taken enough abuse from the credit card companies, and I wasn't going to take it anymore.

The big picture however, went beyond the credit card companies. The real problem that needed correcting was my dependence, indeed, my addiction to using credit. I am not alone either. Americans nationwide are addicted as well. Like the tobacco industry, the credit card companies have gotten us hooked. They have wiggled their way into the fabric of our economy, into the core of our beings. We have been seduced into the "Buy Now, Pay Later" scheme that has grown into a destructive monster more frightful than Godzilla. Cash rewards, mileage plus rewards, free hotel rooms; the pusher man has tricked us, taken advantage of our weakness, fooled us by giving us something for free.

Finally, we have begun to sober up. We aren't going to take it anymore!

It was with great satisfaction that I read the news. Consumer borrowing has plunged! Of course, the Wall Street pundits predicted that the economic slowdown would have a somewhat stifling effect on borrowing, but they didn't anticipate what may become, hopefully, a revolution!

A survey by Reuters predicted that consumer borrowing would decline by an annual rate of $1 billion.

Since January, consumer borrowing has declined by an annual rate of $7.48 billion!

The decline was led by a record drop in consumers borrowing on credit cards, which fell at an annual rate of $7.8 billion, or 9.7%!

So let the credit card companies know, we are taking back our dignity. We won't be cowered by threats of lowered credit limits, or timidly accepting of arbitrarily imposed interest rate hikes. Americans are taking back control of our economic welfare!

The revolution has started! To the credit card pusher man, we say, "We don't need your stinking credit cards!"  America, stand up and fight! Reclaim your freedom to be fiscally solvent, and exercise your right to practice economic discipline. I am doing it, and I hope you will too!

It's time we finally showed the credit companies what the score really is!

I wish I could take credit for the Credit Card Revolution. But that is beside the point. When I wrote the blog "Days of Our Fathers" a few weeks ago, I was hoping to start a mini-revolution. I decided that I had taken enough abuse from the credit card companies, and I wasn't going to take it anymore.

The big picture however, went beyond the credit card companies. The real problem that needed correcting was my dependence, indeed, my addiction to using credit. I am not alone either. Americans nationwide are addicted as well. Like the tobacco industry, the credit card companies have gotten us hooked. They have wiggled their way into the fabric of our economy, into the core of our beings. We have been seduced into the "Buy Now, Pay Later" scheme that has grown into a destructive monster more frightful than Godzilla. Cash rewards, mileage plus rewards, free hotel rooms; the pusher man has tricked us, taken advantage of our weakness, fooled us by giving us something for free.

Finally, we have begun to sober up. We aren't going to take it anymore!

It was with great satisfaction that I read the news. Consumer borrowing has plunged! Of course, the Wall Street pundits predicted that the economic slowdown would have a somewhat stifling effect on borrowing, but they didn't anticipate what may become, hopefully, a revolution!

A survey by Reuters predicted that consumer borrowing would decline by an annual rate of $1 billion.

Since January, consumer borrowing has declined by an annual rate of $7.48 billion!

The decline was led by a record drop in consumers borrowing on credit cards, which fell at an annual rate of $7.8 billion, or 9.7%!

So let the credit card companies know, we are taking back our dignity. We won't be cowered by threats of lowered credit limits, or timidly accepting of arbitrarily imposed interest rate hikes. Americans are taking back control of our economic welfare!

The revolution has started! To the credit card pusher man, we say, "We don't need your stinking credit cards!"  America, stand up and fight! Reclaim your freedom to be fiscally solvent, and exercise your right to practice economic discipline. I am doing it, and I hope you will too!

It's time we finally showed the credit companies what the score really is!

Click here to join the group, Credit Card Revolt.

 I was frustrated with my attempts to load excel files data on the last posting I made on Mililani resale statistics. In order to make amends, I am posting less data here, but with graphs which I hope will make the data more useful.

Month to Month Price Changes show that prices rose in Mililani (+4.1%) for Single Family Residences, while overall prices for Single Family Homes on Oahu declined (-7.1%).

 

	Mililani SFR's	Overall Oahu SFR's
Feb-09	550000	628000
Mar-09	572500	600500

The Month-to-Month comparisons for Condos in Mililani was not as cheerful. Prices declined for both Mililani (-13.6%) and Oahu (-7.4%) overall.

	Mililani Condos	Overall Oahu Condos
Feb-09	320000	329300
Mar-09	276500	305000

Month-to-Month data is essentially a snapshot of the market for a specific window of time. Drawing conclusions from monthly or weekly data is simply a thumbnail sketch of overall activity. More accurate inferences, such as Market Trends are made by analyzing longer periods, such as 3, 6 and 9 month activity.

Year-to-Year data is a common tool used to compare the snapshot analysis at a certain time to the same period a year earlier. A useful analogy is to think of it as looking at market activity in the rear view mirror. It tells you where we were, but not necessarily where we are headed.

	Mililani SFR's	Overall Oahu SFR's
2008	550000	620000
2009	585000	570000

Just as the Month-to-Month data showed, the Year-to-Year price changes are again favorable for Mililani. Mililani SFR prices rose 6.4%, while on Oahu overall SFR prices dropped 8.1%

Year-to-Year	Mililani Condos	Overall Oahu Condos
2008	316000	330000
2009	314500	300000

Condominium Price are down from a year ago both for Mililani (-0.5%) and for Oahu (-9.1%). However, comparatively speaking, Mililani condominium prices are doing well.

Mililani Market Statistics        Comparison Between March 2008 and March 2009

The Planned Community of Mililani continues to be one of the more resilient neighborhoods on the island of Oahu., Although the volume of sales is lower by about one third compared to a year ago, the sales prices of Single Family Homes is actually up slightly (+6.4%) compared to one year ago, and Condominiums prices are nearly flat, declining by a mere 0.5% from the same time last year. Here are the numbers:

I apologize for the chart, It's been awhile since I posted a chart here, and the functions seem to have changed. I will have to re-format this next time.

Single Family Homes

2009		2008		Year-to-Year Percentage Changes
Year-to-Date
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
24	$585,000	36	$550,000	-33.3%	6.4%

2009		2008		Month-to-Month Percentage Changes
Monthly Sales
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
12	$572,500	13	$550,000	-7.7%	4.1%

Condominiums

2009		2008		Year-to-Year Percentage Changes
Year-to-Date
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
49	$314,500	80	$316,000	-38.8	-0.5%

2009		2008		Month-to-Month Percentage Changes
Monthly Sales
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
23	$276,500	25	$320,000	-8.0%	-13.6%

Overall Oahu

Single Family Residences

2009		2008		Year-to-Year Percentage Changes
Year-to-Date
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
439	$570,000	673	$620,000	-34.8%	-8.1%

2009		2008		Month-to-Month Percentage Changes
Monthly Sales
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
188	$600,500	282	$628,000	-33.3%	-4.5%

Condominiums

2009		2008		Year-to-Year Percentage Changes
Year-to-Date
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
567	$300,000	1,037	$330,000	-45.3%	-9.1%

2009		2008		Month-to-Month Percentage Changes
Year-to-Date
Number Sold	Median Sales Price	Number Sold	Median Sales Price	Number Sold	Median Sales Price
248	$305,000	392	$329,300	-36.7%	-7.4%

Well, it finally happened. The protestors got their way, and the Hawaii Superferry is no more.

Yesterday, the Hawaii Superferry set sail, leaving the State of Hawaii for good. Even as the ferry headed out to sea, there is the perhaps misguided hope that one day she will return.

After investing millions of dollars in building harbor landings on the islands of Oahu, Kauai, Maui and the Big Island, and millions developing the superferry craft to suit the waters here in the Hawaiian Islands, a small vocal minority of self-absorbed critics of the Superferry has won the day. The Hawaii Supreme Court, in it's latest vaccillation on the issue, has now decided that the Superferry did not have the right to operate while compiling its environmental impact statement.

The Superferry could not afford to sit here idle, waiting for the EIS to be completed. They could not find a suitable use for the ferry during that waiting time either. The only choice was to leave, and seek another more friendly location in which to operate.

Gone with the ferry's departure are the 276 jobs of the ferry's employees. In the short time of it's operation here, untold numbers of businesses had come to benefit on the cost savings of transporting goods between the islands. That benefit is now gone. Other businesses had begun to expand their territories to other islands, being able to simply drive onto the ferry and drive off onto another island, and return to their home base the same day. Gone. Families could afford to visit relatives on the other islands, driving their own cars and saving the cost of car rentals and the higher priced airfares. All gone.

The Superferry and its benfactors have lost, and what have the protestors gained? Some nefarious, but dubious claim that the waters are now safer for whales in the Hawaiian waters. Based on the fact that there has NEVER been a whale strike by one of these ferries anywhere in the world, I doubt the validity of this claim. They also achieved the goal of lessening the amount of traffic on their islands. The overwhelming impact of one to two hundred vehicles added to the tens of thousands already on the roads is sure to be a tremendous benefit to them. As if.

They also benefit by not having additional clients spending money at their stores, restaurants, shopping malls, etc. The main goal, of slowing down the number of visitors who might stay on their islands permanently, may also have been accomplished. After all, the protestors themselves, like the mayor of Kauai, are transplants themselves, and they know how tempting that is, since they are guilty of doing so themselves.

Well, now that their wish has come true, let's see how they live with it.

Hawaii Superferry, R.I.P.

With the slowdown in the economy, the only response I can think of is to market, advertise, and market some more. Of course, that means spending more money, of which less and less is coming in. That means I have to be careful to get the most bang for the buck, to get a measureable return on the marketing dollar.

I don't know what works for you, and in fact, I'm not sure what works for me. I can tell you with absolute certainty what has not worked for me in the past. Here's a partial list of what doesn't work, for me:

• Lead providers - I listed them first, because this is akin to snake oil.
• Internet Listing Services - ranked just below the snake oil.
• SEO services - The ones I have tried have not been worth a dime. 
• Doorknocking - Cheap, but worthless; akin to looking for a needle in a haystack.

Some things that work, but give very small percentage returns, and require consistent participation:

• Postcards - For listings, just solds, personal promotion, farming.
• Neighborhood newspaper/circular print advertising.
• Passing out businesscards everywhere.
• Joining Clubs to network; e.g., Toastmasters, Lions, Rotary, etc.
• Big Name Magnets on the car. It can't hurt. It's like wearing your nametag. If you are out in public, let it be known what business you are in.

Lastly, here's what I'm adding to the list of marketing tactics that I am using. I say adding, because I will continue doing those things that have given small returns, and continue looking for new things that might work better. Of course, anything that works exceptionally well will replace things that may no longer be worth continuing.

1.) Shopping Cart Riders

This is expensive - If it doesn't give returns that at least pay for itself, it will be gone in a flash. Test period is six months.

( by the way, the area code is 808) I like the concept, in that it helps anchor me in my area as a Neighborhood Expert. I was told at the time I purchased the advertising that I would be the only Realtor on the carts in this particular Supermarket, with a total of six different advertisers. Next time, (if there is a next time) I need to have that added to the contract in writing, as I am one of two. Two other agents are sharing a rider, splitting the cost.

2.) Doorhangers

In someone else's blog about what works for them, someone commented that doorhangers was their ticket, so I decided to give it a try. Coupled with the local supermarket cart riders, I decided to canvas the neighborhood around the shopping center. I ordered 5,000 cards, have given out about 1500. So far I had one call, from some deranged individual asking me if I could give him a loan.

If any of this works out for me, I'll be sure and follow up to let you know.

In the meantime, please share what you are doing, what you have found that works, and just as importantly, what didn't work. There may be a few reasons why things work or don't, and I would like to hear what you think about that as well.

Well, if there is a silver lining to the mortgage meltdown, this has got to be it. My 25 year old nephew, who will remain anonymous, just scored the dream home that I am still dreaming about.

He is in California, I am in Hawaii, so I had nothing to do with his purchase. I might add, I don't think my family back on the mainland even believes that I'm a Realtor,  because they always tell me what their real estate agents tell them about what's going on, forgetting that I had told them months before that is what was going to happen. Anyway, before I start sounding like I'm full of sour grapes...

My 25 year old nephew told me about how his first real estate agent screwed up the first short sale offer he had submitted, how the lender who promised he could get him funded on the next property just stopped answering his phone, how the third property went to foreclosure even when the bank had indicated they would accept his offer. In essence, he went through a lot of the drama we real estate professionals go through all the time, although from the clients perspective. As he related his story, I just wanted to tell him that his agent should have prepared him for all of this in advance.

Instead, he told me how he had to put his 35+ year old agent straight, and his 50+ year old lending agent, to get them to stop arguing and pointing fingers at each other, and get back to representing him and his interests, before he dropped them both. He actually had to arrange a conference call with these two and the bank in order to get everyone on the same page, and it worked. He ended up with this beautiful house in Corona, the historic Circle City district (It's called that because the homes are located around what was once a racetrack back during WWll).

The home was originally built in 1940...totally redesigned and rebuilt in the last 4 years. It appraised for a little over a million in 2006. It is 4,600sq ft, under roof, 14,000 sq ft lot, 7 bed, 5 bath, 5 car garage, SS Kitchen Aid appliances, Wolf 6 burner stove, travertine floors, custom cabinets, plantation shutters throughout, taupe paint (20 foot ceilings).

This is a house that a 25 year old bought? Terms are 30 year fixed @ 4.375 w/ buy down of 1.5%. He paid $500,000 for it. Not bad, Kid.

Once again, a very vocal minority of extremists have managed to gum up a vital service in the islands. The Hawaii Superferry has suffered enormous financial strains because of delays in launching it's interisland services, which finally began in April of 2007. Due to a vocal minority of protestors that created legal hurdles to the Superferry's operation, the Superferry has once again had to cease operation.

The Superferry has been operating under a law that allowed the Superferry to operate while the EIS, or environmental impact statement, was being compiled. The EIS can take years to complete, and the State saw fit to allow the Superferry an exemption to operate whie the EIS was being completed. Unfortunately, the legal challenges have managed to stop the operation while the exemption is being challenged on constitutional grounds.

The legal challenges that have stopped the Superferry in it's wake are supeficially based on requirements for the EIS. The actual protests against the Superferry's operation stems from the protestor's belief that the ferry will bring increased population, traffic, congestion and so on to their less populated outer islands. It is interesting to note that the majority of these protestors are themselves transplants from the mainland, and they themselves have created the exact impact on the islands that they are purportedly trying to prevent.

In the interest of preventing increased tourism and a few more rental cars on the roads, the effect is a compounding of detrimental effects on their own economies. The protestations can be summarized as a compounding of ignorance.  They ignore the fact that the Hawaiian Islands are the only major archipelago in the world that is entirely dependent upon the aviation industry for passenger travel. They ignore the fact that the Superferry provides an alternative civil defense capability to provide emergency relief in the event of natural disasters, such as we experienced after the 6.7 earthquake in October 2006. The national guard found it more expedient and cost effective to transport their heavy equipment to the outer islands on the Superferry than on military ships. The Superferry has reduced transport costs for local businesses, and has created more opportunities for outer island businesses to expand to Oahu, and vice versa.

The Superferry has similar operations throughout the world. There has never been a negative environmental impact  by any of these similar operations. The Superferry did a stellar job of preparing for operating safely in Hawaiian waters, and have procedures in place that go well beyond the requirements of an EIS to maintain their safety record.

A while back, on Dec. 8 2006, I had posted a blog about the Dec. 7, 1941 attack on Pearl Harbor. The point of the post was to share a little bit of trivia, about a Japanese Zero pilot who had crashed on the tiny island of Niihau, was captured by the locals, tried to escape and...well, if you want to know that story, click the link and read that blog.

Today, the local paper ran a story that I had never heard about, and thought it an interesting history lesson to share with you.

On May 4, 1942, the Japanese launched a second attack on Pearl Harbor, called Operation K.

The operation was originally planned duing the opening weeks of the war, and was part of a larger operation that consisted of several attacks on Pearl Harbor, and would have eventually included attacks on California and Texas. In fact, I will have to do more research on that later, because there is some historical evidence that Japanese planes were sighted over the west coast during World War ll. But I digress.

Operation K involved two 4-engine Kawanishi H8K flying boats which could be refueld by submarine. The attack on March 4 was planned for using 5 planes, but only 2 were available. Their target was the "ten-ten" docks at Pearl Harbor, with the intent of disrupting salvage and repair operations after the Dec. 7th attack.

The U.S. Navy had intercepted  some broken Japanese code that some indications of an attack were possible, and the planes were picked up by radar on Kauai. However, there was a heavy overcast that prevented P-40 fighters from seeing them. Fortunately, that same overcast prevented the Japanese from effectivly finding their targets, and they eventually dropped their bombs in several non-targeted areas.

One plane dropped four 550 lb bombs just above Roosevelt High School in the forested areas of Tantalus (where there is a famous Lovers Lane lookout). The other plane dropped his four bombs into the sea either south of Waianae, or near the entrance to Pearl Harbor.

In the confusion and aftermath, the Army and Navy accused each other of jettisoning bombs over Tantalus. The craters are still visible today, albeit overgrown with vegetation.

My father used to tell me when I was a young boy, "Pray that there never is another Great Depression!". He would go on to say things like, "A loaf of bread would only cost 5 cents, and boy, how we wished we could get our hands on a nickel." No doubt about it, the depression was a tough time to live through, and my parents generation never forgot the lessons they learned from it.

They learned to be frugal, to the point of pinching pennies until they screamed. They didn't buy things until they had the money to pay for it, and they didn't believe in debt. My parents were in that club that canned the vegetables they grew in the  old 'Victory Garden", who went  to the bank every month to make the mortgage payment, and had a party where they actually burned the paid off note. Compare their lives to the generations that came after them; the Yuppies, the Generations X and Y, the Internet Generation and whatever else we've spawned in recent times.

Being a Baby Boomer myself, I have a much better sense of how the depression era generation approached life than those that followed us. I remember how frugal my parents used to, even had to be. With the economy being characterized as being in the worst shape since the Great Depression, the national debt ballooning to  the largest in history, all of us are going to be making changes in our attitudes about debt, money, and consumerism. The time has come for all of us to remember how to live like my parents generation lived. 

Unfortunately, the stimulus plan is designed to have us perpetuate the lifestyles of the present, rather than to emulate the discipline of our forebears.

In spite of the urging of the pundits for Americans to begin borrowing and spending our way out of the economic slowdown, I am making personal vows to change the way I live, and spend, and consume:

• I will not use credit unless absolutely necessary
• Before I make any kind of purchase, I will determine if the purchase is absolutely necessary
• I will pay off my debts
• I will reassess my spending priorities. I can give to a charity before buying unneeded junk..
• I will use my savings account to actually save
• I will be responsible for the financial consequences of my decisions

That being said, I hope that by sharing my personal reassessment and lifestyle choices, you might be moved to make changes of your own. I am sure that if everyone made the choices I am making, the economy would probably go into a steepr decline, and take even longer to recover. However, I am just one person, and the decisions I am making will require commitment and discipline to have any results.

I really think there aren't enough of us that have the discipline and resolve to make these choices, to result in a noticeable negative effect on the larger dynamics of the nations economy. After all, discipline, responsibility and resolve...these were qualities of the generation of our fathers, not ours.