We Need the “Congressional Reform Act”

The Constitution is not an instrument for the government to restrain the people; it is an instrument for the people to restrain the government – lest it come to dominate our lives and interests”. ~ Patrick Henry.

*The 26th amendment (granting the right to vote for 18 year-olds) took only 3 months & 8 days to be ratified!  Why?  Simple!  The people demanded it. That was in 1971…before computers, before e-mail, before cell phones, etc.

Of the 27 amendments to the Constitution, seven (7) took 1 year or less to become the law of the  land…all because of public pressure.


Congressional Reform Act of 2011

1.   No Tenure / No  Pension.
A  Congressman collects a salary while in office and receives no pay when they are out of office. They can fund their own 401 k like the rest of us.

2.   Congress (past, present & future) participates in Social Security.
All funds in the Congressional retirement fund move to the Social Security system immediately.  All future funds flow into the Social Security system, and Congress participates with the American people.  It may not be used for any other purpose.

3. Congress can purchase their own retirement plan, just as all Americans do.

4. Congress will no longer vote themselves a pay raise.  Congressional pay will rise by the lower of CPI or 3%.

5. Congress loses their current health care system and participates in the same health care system as the American people.

6. Congress must equally abide by all laws they impose on the American people.

7. All contracts with past and present Congressmen are void effective 1/1/12.

The American people did not make this contract with Congressmen. Congressmen made all these contracts for themselves.   Serving in Congress is an honor, not a career.  The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.

If each of us takes 1 hour this weekend to write our congressmen demanding these changes as fair and just. We can create huge change in this country.

Please pass it along.


As Clouds move away, it reveals the LIGHT

More than 28 percent of U.S. homeowners with mortgages owed more than their properties were worth in the first quarter as values fell the most since 2008, Zillow Inc. said recently. Homeowners with negative equity increased from 22 percent a year earlier as home prices slumped 8.2 percent over the past 12 months, the Seattle-based company said. About 27 percent of homes with mortgages were “underwater” in the fourth quarter, according to Zillow, which runs a website with property-value estimates and real-estate listings.

Home prices fell 3 percent in the first quarter and will drop as much as 9 percent this year as foreclosures spread and unemployment remains high, Zillow Chief Economist Stan Humphries said. Prices won’t find a floor Nationally until 2012, he said.

“We get tired of telling such a grim story, but unfortunately this is the story that needs to be told,” Humphries said in a telephone interview. “Demand is still quite anemic due to unemployment and the fact that home values are still falling. And that tends to make people more cautious about buying.”

The U.S. unemployment rate rose to 9 percent in April, up from 8.8 percent in March, the Department of Labor reported May 6. Home prices have fallen almost 30 percent from their

June 2006 peak, wiping out more than $10 trillion in equity, including $667.5 billion in the first quarter, Humphries said.

Remember, the Government doesn’t count the people who haven’t looked for work in the last 90 days in their numbers, or the millions of TEMP workers, so the unemployment rate is actually much higher. Some leading economists suggest the real rate is closer to 18%.

Dropping Home Values

Other analysts also expect homes to continue losing value this year. Oliver Chang of Morgan Stanley expects prices to fall as much as 11 percent, according to an April 25 report. Prices may fall “another 5 or 10 percent,” Robert Shiller, an economics professor at Yale University, told Fox Business on April 26. Prices will continue falling as more houses are lost to foreclosure, flooding the market with distressed properties, Humphries said.


Foreclosures fell to the lowest level in three years in the first quarter as lenders worked through a backlog of flawed paperwork, according to RealtyTrac Inc., an Irvine, California- based real estate information service.

Las Vegas Highest

In Las Vegas, 85 percent of homes with mortgages were underwater, the most of any city tracked by Zillow. Other metropolitan areas in the top five were Reno, Nevada, at 73 percent; Phoenix at 68 percent; and Modesto, California, and Tampa, Florida, both at 60 percent. Zillow has tracked negative equity since the first quarter of 2009, when more than 22 percent of homes were underwater.

Property values rose in only three of the 132 regions tracked by Zillow: Fort Myers, Florida, where they gained 2.4 percent; Champaign-Urbana, Illinois, up 0.8 percent; and Honolulu, up 0.3 percent. Fort Myers prices increased after falling more than 60 percent from their 2006 peak because they “over-corrected,” Humphries said.

Prices were propped up in 2009 and early 2010 by federal stimulus programs, such as tax credits worth up to $8,000 for first-time homebuyers, Humphries said. That program “was stealing demand from the future,” weakening shoppers’ appetites now even as housing affordability is at its three-decade high, he said.


Nearly 70 percent of all homes with a mortgage in Phoenix area were under water at the end of 2010, according to Zillow.com. The company’s latest data shows 69.9 percent of homes the Valley had negative equity in the fourth quarter, while the national negative equity rate is 27 percent.

The Phoenix housing market has suffered severely since the onset of the Great Recession. A separate housing report from CoreLogic also shows a large percentage of underwater mortgages in the Phoenix area. Accelerating home value declines, as well as a slowdown in the nation’s foreclosure rate following the late-2010 robo-signing controversy, contributed to the increase in negative equity.

Phoenix-area home values dropped 11.6 percent to an average of $129,300 at the end of 2010, according to Zillow.com. That marks a 53.6 percent drop from the Phoenix real estate market’s peak.  It is evident that the LOW END market cannot go much lower. However, the HIGH END homes still have a lot of room to fall depending on economic factors. 


Here in Phoenix, there is a plethora of decent homes at super low prices and investors are swooping in to buy at auction and put contractors to work fixing up the homes. Everywhere you turn you see renovations. This is great sign of recovery and the opportunity to find a home on the HUD website or http://www.Homepath.com ( Fannie Mae’s online data base ) or http://www.Homesteps.com ( Freddie Macs online database ) is just a few clicks away.

Real Estate has always cycled and it appears to many of us that we are approaching the “BOTTOM” if we are not already there. Do your research, choose wisely, reduce your debt, lower your expenditures and soon you’ll be living the dream again. There is light at the end of this tunnel. The key for each of us is…what have we learned from the last 5 years?