money – Page 7 – Observations Along the Road

It’s the end of the week, Chum. Smile!

Posted onFriday, February 6, 2009Authorcahwyguy

Today lunchtime perusal of the paper brings some interesting tidbits to chew on, mostly locally related, for some definition of local:

From the “We All Need To Save Money” Department: The LA Times is reporting that AAA (actually, ACSC) will be lowering car insurance rates by 5.4% starting April 1. This is good news for us, as we use Auto Club insurance for both home and auto. The auto club cited a drop in policyholder loss claims during the last two years as well as its tight controls on operating expenses for creating the flexibility to lower premiums (and of course, people are driving less).
From the “Maybe They’ll Move Back Here” Department: It appears that NY’s tax credit program that grabbed TV/Film production from LA has run out of money. If we’re lucky, perhaps we’ll see production move back to Los Angeles–that would certainly be good for the local businesses that depend on it.
From the “Maybe They’ll Move Back Down” Department: Alas, mortgage rates have gone up again, slightly. Still, they are below our current rate. Our refi appears to still be progressing along with the credit union: we had the appraisal this week, so hopefully we’ll know where we stand in terms of LTV next week. Of course, in order to get a loan-to-value, you need a value. The Mercury News is reporting how the assessors office up there is doing a massive reappraisal of properties this year — almost half of all properties. The article notes that in Los Angeles County, the largest single expanse of California property, negative property-tax growth is expected, County Assessor Rick Auerbach said. The number of Los Angeles County properties to be reviewed for reassessment this year has grown significantly: Last year’s review included 318,000 homes and condominiums, of which 128,000 had their tax assessments lowered. This year’s review includes 500,000 homes and condos. For 2008-09, our property (per the assessor) actually saw a rise in value — which we successfully appealed. I’m going to keep the appraisal from the refi just for that purpose — I expect to have to appeal again for 2009-10.
From the “25 Random Things” Department: Yup, it is still making the news — this time, the Washington Post. But of more interest is this blog from the Contra Costa Times, where you can find out Jerry Brown’s 25 Random Things. Nothing about Linda Ronstadt, but he does has a special dispensation from the pope.
From the “A Southern California Institution” Department: The LA Times is reporting how landmark status may soon be granted to the original site of See’s Candy Kitchen. Evidently, it is on Western near Beverly — a location I drove by regularly as a teenager on my way to Wilshire Blvd Temple. Never knew of its significance. Neat.
From the “Another One Bites The Dust” Department: For the folks from the SF Bay Area, a tidbit of interest: the last known survivor of the 1906 SF Earthquake has died at age 106. Even more interesting, he was also the oldest known grocery clerk in San Francisco, punching a clock until a week before he died at a local hospital of complications from pneumonia. Down here in Los Angeles, we’re noting the death of the longtime shoeshine man at Santa Anita Park at age 98, and the death of the drummer for the band Buffalo Springfield.

And speaking of deaths, I want to publically pass on condolences to ixixlix, who lost her little puppy of 10 years (if either word can apply to a Newfie) yesterday. Rocky was sweet and lovable (although he stank when wet :-)), and was there for her through thick and thin. We share in her loss, and would be there to hug her if it wasn’t for this damn cold going around.

Ain’t That The Chum?

Posted onWednesday, January 14, 2009Authorcahwyguy

Some accumulated news chum for the week:

From the “Where Do We Go From Here?” Department: This is mostly for bdot, who I seem to recall has a soft space for this place. The LA Times has a nice article today on where the Mt. Calvary Monastary will go next. The spiritual retreat was destroyed in the recent Tea fire in Monticito, and the monks are contemplating its future in a fire area, in light of the aging of the monastic order’s members.
From the “Pappy Parker’s Noodley Appendage” Department: The LA Times has a nice “Column 1” piece (which they rarely do anymore) about a former Bob’s Big Boy in Alhambra that has been converted to a noodle restaurant. The founder always loved Bob’s, and when the Alhambra location closed, purchased it for his noodle restaurant. In homage, however, he has retained a Big Boy statue, and pays $1/year to license it. That reminds me… I need to go out to Burbank, home of one of the original restaurants (still operating) designed by Wayne McAllister.
From the “And The Economy Keeps Rolling Down…” Department: Today brings news of both Nortel Networks and Gottschalks filing for bankruptcy. Closer to home, we’re seeing a victim of the collapse of the auto industry: Superior Industries is closing their Van Nuys Factory next to the Van Nuys Flyaway. 290 workers will lose their jobs. Superior supplies aluminum wheels to Ford, General Motors, Chrysler, Audi, BMW, Jaguar, Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Seat, Skoda, Subaru, Suzuki, Toyota, Volkswagen and Volvo.
From the “You Knew It Was Coming” Department: Come the end of March, WaMu will be history, its brand replaced by Chase. Chase plans to invest $300 million in refurbishing and renaming the 708 California branches and another $75 million to open 20 more this year. The Chase logo will also appear on 1,900 ATMs across the state by the end of the first quarter. Of course, as with the side effects of the auto industry, this cost California jobs: both at the Pleasanton and San Francisco operations centers, as well as earlier cutback at the loan operations departments in Chatsworth. Chase said it will honor the free checking WaMu offered to existing clients. For now, customers can also continue to use their WaMu checks and debit cards. Dimon said the company is studying how it will alter or combine the product offerings of the two banks.
From the “10101010 10111000: The TV Series” Department: There’s more information coming out about the push to delay the DTV switch. Yes, the coupon program has run out of money, and there’s no quick fix… but there are costs to the delay as well, both in the electricity for operating two transmitters, the staffs coordinating the switch, etc. Quite interesting to see the background. However, in some markets the switch is already starting: On Monday in St. Louis, KNLC Analog 24 will go all digital, freeing its analog channel for use by KMOV Analog 4’s digital channel, which is now on Digital 56. The article notes how boxes will need to rescan for signals, which makes sense for us but will probably confuse most folks. As this transition comes closer, I’m even more thankful I have DirecTV, although I’m curious whether DirecTV will ever broadcast some of the Digital subchannels that are now available in local markets.
From the “He’ll Have Pie With That” Department: Wednesday’s paper brings news of the death of Don Callender, the man responsible for bringing us the food of his mother, Marie… especially her pies. Waistlines will stop their expansion for one minute in his honor. Even after selling Marie Callender’s he remained in the business: in fact, the day after he died his Jackalope Ranch restaurant in Indio, Calif. opened.
From the “Secret Asian Man” Department: Alas, Number 6 has died. Star of Danger Man, Secret Agent, and The Prisoner, he was one of those great actors. I remember watching the Prisoner when KCET ran it in the 1980s, and having intense discussions about it in the UCLA Computer Club. I just hope that the recent post from the mayor_of_tv about the planned remake of The Prisoner TV Series didn’t send him to his grave prematurely. Haven’t heard about it. Later this year, AMC is planning to present a six-hour miniseries adaptation of “The Prisoner”. All together now: But why?
ETA: From the “That’s Two” Department: We also lost Ricardo Montelban. 80’s TV folk will instantly go “Da Plane, Da Plane”; SF folks will go “Kahhhhhn”. But that’s two. Who’s next in our SF actor trifecta?

‘Tis The Season To Be Chummy

Posted onThursday, December 4, 2008Authorcahwyguy

Today’s lunchtime news chum seems to all be connected to marketing and advertising. I have no idea why.

From the “Creative Financing” Department: Tired of the mundane school fundraiser? Have enough greeting cards? Don’t need another magazine subscription? An instructor in Rancho Bernardo (near San Diego) has a novel idea: Sell advertising space on the exams. The teacher, Nick Farber, started letting parents and local businesses sponsor tests this fall after learning budget cuts would limit his in-school printing allowance — tracked by the school’s copy machines — to $316 for the year. The cost of printing quizzes and tests for his 167 students will easily be more than $500, he said. So Farber, who says he’d never asked for money from parents in his 18 years of high school teaching, pitched the ad idea to parents at a September back-to-school night. For checks made to the math department — $10 a quiz, $20 a test or $30 for a final exam — they could insert an inspirational quote — their own or someone else’s — or a business advertisement at the bottom of the first page. He’s already collected more than $300, and is on track to top $1,000.
From the “Valley of the Dolls” Department: There has been an interesting legal verdict in the battle of Barbie vs. Bratz. The judge banned MGA from making or selling the Bratz doll. Note that this is almost 30% of the business of MGA (HQed in the San Fernando Valley). The LA Times gives more details: the judge ruled that Mattel (HQed in El Segundo) is the legal owner of the edgy toy line and has the right to recall all unsold Bratz. The order says that MGA may no longer manufacture, sell, advertise or license its core lineup of Bratz dolls or any other product with the Bratz name. However, the order does not take effect until February, and an appeal is expected. My expectation: Mattel will keep manufacturing the dolls under their imprimatur, and there will be more job losses in the valley.
From the “Notice how Saturn wasn’t in the conjunction of Venus and Jupiter?” Department: As we all know, the “Big 3” are all in DC ~~pleading for their lives~~ (oops) ~~asking for a handout~~ (oops) groveling. One piece of information coming out of this is that the one division truly GM created, Saturn, may be on the chopping block (most of the brands came in with the mergers that created GM). According to the LA Times, Saturn may be on the chopping block, be sold, or be merged. It has evidently not been profitable, they’ve abandoned most of their original core ideas, and their cars are either rebadgings or imported Opels that the exchange rate is killing. Instead of being a model of how to compete with the Japanese and other imports (the original goal of Saturn), it has become a drag, and didn’t provide ideas to improve the other divisions. This is highlighted in the NY Times article on the subject. Could perhaps GM be too hidebound, and this be the reason for its failure? Nah. GM knows it isn’t their fault.

Three for Some, Fun for All

Posted onMonday, November 24, 2008Authorcahwyguy

Observation the First. There’s a new Austin Lounge Lizard’s Video/Song, done for Consumer’s Union: The Balance Transfer Switcheroo
Observation the Second: Well, we’re now in a relationship with a failed bank. Our mortgage is with Downey Savings, or should I now say U.S. Bank. Still, it might provide us an opportunity. We’ve been wanting to refinance out of our 5/25 variable before it goes variable in 2011, but the rates haven’t come down as fast as the house’s value, making the refi harder. I can hope they might want to renogotiate the terms knowing what we had invested (we bought with more than 20% down)… all we are looking for is a fixed at our current rate.
Observation the Third: Working the conference, I think I’m beginning to see a generational difference. I’m at the age I like paper. Paper final programs. Paper At-a-glances. But we have a number of younger folks (OK, in their 30s) involved with the conference who seem to think that if it is on the web, we’re good to go. The presumption seems to be that everyone surfs the web with their phones these days, so why print. I’ve never had internet on my phone (I don’t even text): I use my phone to make calls. Am I wrong? Is this generational?

Banking on History

Posted onFriday, October 3, 2008Authorcahwyguy

Today’s announcement that Wachovia has spured Citi and is having a shotgun wedding with Wells Fargo instead has started me musing on some banking memories. Let’s start with the first ones in the news.

Wachovia, of course, was unknown in California until they purchased World Savings and Loan. I remember World Savings well from the nice two-story building they had with the globe in front of it at Wilshire and San Vicente, where I had a savings account in my high school year. They later tore that building down and put up an ugly high-rise. Now, as for the suitor, Wells Fargo Bank, there are more memories. The first is of Crocker National Bank. Crocker was where I had my first checking account — at their Wilshire and Stoner branch, near my parent’s accounting office. Remnants of that account still exist, for my Wells Fargo Credit card can be traced to that account. I also remember that Crocker had multiple branches in Westwood, and that I usually used the one at Kinross and Gayley near UCLA. Crocker was merged into Wells Fargo in 1986. Also in Westwood was an office of United California Bank, which if I remember was later renamed into First Interstate Bank (there was a second UCB (formed from the merger of Sanwa and Tokai Banks) that was later merged into Bank of the West). In 1996, Wells Fargo took over First Interstate Bank.

The previously bank acquisition in the news was Chase’s purchase of Washington Mutual. WaMu, as we all know, had previously swallowed two major Los Angeles banks: Great Western Bank (remember the John Wayne statue in front of their office on Wilshire Blvd near Beverly Hills), and HF Ahmanson’s Home Savings and Loan, which had these beautiful marble buildings with detailed mosaics of California life on the front of them. One of those buildings was donated, and is now a satellite student store at CSUN. I’ll note that Home Savings swallowed Coast Savings.

Before that we had Bank of America’s acquisition of Merrill Lynch. Most folks think of BofA as a North Carolina Bank, but that’s only because NationsBank took over San Francisco-based BofA a number of years before, and took over the name. BofA was originally Bank of Italy in San Francisco (and used American Building Maintenance for their first janitorial contract–I know this because my dad was heavily involved with ABMI in the 1960s and 1970s). BofA had also swallowed a major Los Angeles Bank: Security Pacific National Bank. Who remembers SPNB?

Those following the election should know that John McCain was involved with the Keating 5. The Keating 5 refers to Charles Keating, who was the head of Lincoln Savings and Loan. Now, I never had an account at Lincoln, but I do remember that their building across from the Fashion Square Mall in Sherman Oaks used to have a gigantic display on Abraham Lincoln that LAUSD used to take students to see. That building is now a Downey Savings. I guess it must be cursed.

Where did I have my first savings account? Centinela Valley Savings and Loan, which I don’t think exists anymore. It was the office on Manchester Blvd, just west of Falmouth in Playa Del Rey.

OK, so what are your banking memories?

More Bailout Bill Stuff

Posted onTuesday, September 30, 2008Authorcahwyguy

A lot of folks in the eithersphere are arguing the pros and cons of the recently failed bailout bill. Many are arguing from outdated information, believing it would have given $700B immediately, that it had no limits on executive pay, or that it included nothing to guarantee that funds wouldn’t be lost.

This page from the Wall Street Journal provides a great summary of the differences between the 3-page Paulson bill of two weekends ago, the version developed by Dodd and Frank in the middle of the week, and the final version that was voted on yesterday. If you are going to argue, please make sure you know which version you are discussing.

One other note: This article from the LA Times shows why the vote really failed: worries about joblessness. Specifically, representatives were worried about losing their jobs. Of note from the article:

Pleas from a president may not work either — especially if the president’s public standing has fallen to record lows. White House spokesmen said Bush called dozens of GOP members of Congress. His efforts appeared to bear little fruit. Rep. Joe L. Barton (R-Texas) said the president called him, but the lawmaker explained that he preferred to listen to his constituents.

In such a situation, even a powerful vice president such as Cheney can no longer command votes from members of the House. “Cheney lived up to his reputation as Darth Vader . . . talking about all the terrible things that were going to happen,” said Rep. Christopher Shays (R-Conn.). “People weren’t afraid of Darth Vader.”

Nor did Republican members appear to pay much heed to their presidential nominee.

Over the weekend, aides said, McCain spoke to at least 11 House members to try and round up votes. On Monday morning, he told a rally in Ohio that his intervention had helped aid the expected deal.

Of the 11 lawmakers that the McCain campaign said the nominee talked to Saturday, seven voted for the measure, although five of those were members of the House GOP leadership. Four, including two from Arizona, did not.

As for Obama, he “lobbied gently”, but Pelosi had done much of the work for him. Still, many Democrats listened to their constituants more than their party leaders.

And Another One Bites The Dust

Posted onMonday, September 29, 2008Authorcahwyguy

This morning’s NY Times brings news of the demise of the banking operations of Wachovia, which have just been sold to Citigroup. What does the Wachovia web page say again… oh…. “We’re here for our customers”, doth say the Wachovia CEO. But I digress. Citigroup has apparently won the bidding for Wachovia over Wells Fargo (whose win would have created a bit of overlap in California), and gives Citigroup the national network it has already covered. Wachovia is a new name in California, but recently became known here because of its purchase of the former World Savings (where I had one of my earliest savings accounts).

As we all know, this comes on the heels of the purchase of Washington Mutual by Chase. Washington Mutual entered the California market through its purchases of Great Western Bank and Home Savings. A third big bank failure out here was IndyMac, which although still operating, is yet to be acquired to my knowledge.

So, the questions are: Whose next? Will the bailout bill prevent the next victim? Johnny Olsen, who are our candidates? According to the LA Times, there are three: Downey Savings, FirstFed Financial, and National City Bank. The first two are in Southern California, the last in Chicago. The first two I know to have problem Option ARM loans, so the real question is: will there be a run (as there was in WaMu’s case), or will they just run out of capital? For now, we’ll have to wait and see. My bets are on Downey (which is lukewarm news, as they have our mortgage).

Politics and Poker – The News Chum Edition

Posted onThursday, September 25, 2008Authorcahwyguy

Politics and Poker, Politics and Poker
Playing for a pot that’s mediocre
Politics and Poker running neck and neck
If politics seems more predictable..
That’s because usually
You can stack the deck

Today’s news chum deals with the political and economic (hence the reference to poker) arena. And just like with poker, just when you think you are winning the game…

From the “And The Only People Who Make Money Are The Ones Making The Signs” Department: The Wall Street Journal is reporting that J.P. Morgan has struck a deal to take over Washington Mutual. While the exact structure of the transaction wasn’t immediately known, J.P. Morgan is expected to acquire Washington Mutual’s deposits and branches, as well as other operations. The deal isn’t expected to result in any hit to the Federal Deposit Insurance Corp.’s bank-insurance fund, according to a person familiar with the arrangement. But it’s likely that another arm of government would have to pick up the tab. Some analysts have worried that a WaMu failure could cost more than $20 billion. In other WaMu news, it will now cost you $5 to cash a check on a WaMu account at WaMu if you don’t have account there.
From the “But You Said You Could Convince Them” Department: Remember today how a bipartisan deal over the bailout had supposedly been hammered out before the “big meeting” — the deal bringing together the Senate and the House, the Republicans and the Democrats. Remember how Bush called McCain and Obama together to convince their parties to support the deal. Well, Democrats are behind the deal. But House Republicans are balking. Wasn’t it McCain that called for bipartisan leadership on the issue? Let’s see if he can bring his party along. It should be noted it is only the House Republicans that are balking; the Senate Republicans as well as both House and Senate Democrats agree with the revised proposal.
From the “Paranoia” Department: I’m finding it interesting how cynical the Bush administration has left the supporters on the other side. I’m seeing more and more people that think elections are going to be suspended, that training some troops to support NorthCom means were going to have a military coup. Have the bad actions of the Bush administration led people to doubt the fundamentals of our political system? Perhaps I’m naive, but we’ve been in dire straights before… and elections and campaigns have gone on. We’ve had power-hungry presidents before… and elections have gone on and our system has righted itself. We must have faith in our system of government folks.