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My life is for the most part pretty boring, but sometimes whacky things happen.  Yesterday was one of those days.

I left work last night and realized that I left my purse at my cube.  So I drove back to retrieve it.  I usually don’t park in the underground garage because it is always full, but at that time many people already left work so I figured I would park there since it is the closest parking lot to my building. It has one of those arm gates that raises up after you swipe a keycard.  Then after the arm gate there is another metal sliding gate.

I have always had a problem with these gates because my arms are very short and oftentimes I have to stretch out pretty far to activate the keycard.  Yesterday this happened again and stretched out just a bit too far and my foot went off the brake for a second.  Unfortunately, the lane to the gate is on a downward incline so gravity took my car straight into the gate arm and made contact with the metal gate and then stopped.  The distance from the keycard station to the gate is less than ten feet so it wasn’t a huge impact, but the car still managed to break off the wooden gate arm and made a dent in the metal gate.

Amazingly enough the car just had a few scratches in the front bumper and was not damaged at all, but the metal gate to the garage stopped opening.  So I called building security and a pretty nice old security guard came out and took my information.  Today the property management called me and said that they have repair people out there and if the damages are not extensive I don’t have to file a claim.  They were actually quite nice about it and thanked me for informing security quickly and giving my information.  They also said they will keep me updated on the repair costs and possible claim.

In case you work in the former Siebel buildings in San Mateo and you were inconvenienced by the south garage gate closing today, I’m really sorry!  I felt pretty dumb after the incident so I went home and Googled garage arm gate accidents, and what do you know, other people have the short arm problem too. 

After watching these videos I actually felt a bit better.  Then I started sorting a bag of mail I got from my parents’ house this weekend, and I found a check for $200.13 from a class action settlement.  Apparently a law student named in the 2002-2003 school year and after five years of legal battles the students won and the Regents paid out a $33.8 million settlement.  It is kind of sad because I completely understand why the Universities of California had to raise fees at that time.  The economy was in the ruts, and the fees were really quite cheap.  I entered Berkeley in 2001 and I think I paid less than $2000 for tuition for each semester, and then the next year they increased the fees dramatically for international students, but the resident tuition did not change all that much.  Here are the webpages from and .   The real fee hikes actually started from the 2003 to 2004 school year where the fees went from $2100 to $2900.  Now it costs over $4400 for resident tuition. I actually feel bad for receiving this money because I don’t feel cheated by my Berkeley education. I’ve already earned my all four years of my tuition money back in less than a year after college.  I also found out that the University of California barely raised its fees from the late 80′s until 2002 after I met an alumni that graduated in 1988.  He told me that he paid around $1500 a semester in 1988.  Basically, it is a public school system that tried to keep its fees down for many years but just couldn’t do it any longer and it is understandable.  I am  just going to donate this $200 back to UC Berkeley’s engineering program and I encourage other UC grads who are comfortably employed to do the same because our alma maters probably need the money more than we do now.  I really want the UC system to remain the best public universities in the world for generations to come.

So that’s the entire story of my stupid accident, and the $200 of found money.  Hopefully my car insurance will not be adjusted and the owners of the building will fix the gate.  In the future, I will always park my car in front of those keycard swipers first so there is no chance of sliding down into a gate.

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I’m sure you have heard about President-Elect Barack’s Obama’s new push to pass a stimulus package.  I couldn’t find a a comprehensive article about the details of the plan, but what’s being reported the most in the media are the tax cuts which make up about 40% of the package.  Here they are, and here is why I think they are mostly nonsensical and probably would not do much to lift the economy.

cialis order online canadacialis order online canada- I know that every bit of money helps, but is this really the best way to spend billions of dollars in stimulus money?  $500 per person works out to be about $40 per month.  I guess it’s good for a cable bill, but will $40 per month stop a family from going into foreclosure?  Will $40 per month be enough to stop local shops from closing?  Another thing is, didn’t we just have a round of stimulus like this from the Bush administration?  That one was actually $600 per worker or $1200 per couple plus $300 per kid.  Just look at how much that helped and you’ll see how much this one will help.

cialis order online canada – This one has so many holes that it’s like a piece of moldy Swiss cheese.  First of all, if a person lost a job at business A and then finds a job at business B, is business B really cialis order online canada a job? It seems like that would be a net gain of 0 jobs to me.  Additionally, some businesses are doing well and some are doing poorly.  The ones that are doing poorly are very unlikely to hire someone just for the tax benefit because adding an employee is very expensive and it would only make sense to add an employee if the employee’s output of work can bring a profit.  On the other hand, the businesses that are doing well may already be planning to hire people and they will get stronger due to the tax rebate, but they probably did not need that money to begin with and again this tax rebate would have been pointless.    Another thing is that it’s unclear how long a company needs to keep an employee to claim this tax benefit and what type of employment it would be.  If those details are not clear I can see shady businesses exploiting this by hiring some person part time for half a month and then claiming the credit for a profit.  Anyway, I don’t think this tax stimulus will actually be an incentive for any logical business to add to their payrolls and I highly doubt that this will bring about a net gain in employment numbers.

cialis order online canada- This particular item isn’t mentioned a lot on the big news sites probably because it’s just bizarre.  I see this particular clause benefiting the giant financial firms the most because they have had the most significant losses in the last year, and they also had the biggest profits in the years prior.   A lot of companies in other industries did not suffer as badly, and the good responsible companies that were still making a profit in 2008 will not get a boost.  Again, there is no guarantee that the companies that receive this benefit will create jobs and expand the economy.  In fact, I think in this economy only the strong companies that still have a profit are still hiring because they know that they can get discounted labor and they are in a good position to use the extra labor effectively.  It is almost like Obama wants to punish the companies that had good management to make a profit despite difficulties by giving their tax dollars to those who may have been extremely irresponsible and I think it’s plain stupid.

Finally, there is a question that everyone should be asking “WHERE THE  (insert your favorite expletive here)  WILL ALL THIS MONEY COME FROM?” Oh that’s right, they will just add it to the national debt, and that will be paid by Americans for generations to come.  I know that Obama’s plan isn’t finalized, but so far I haven’t heard a single good idea from him, yet.

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When I was in Southern California there was a truly bewildering story of a man who dressed up as Santa and murdered nine members of his ex-wife’s family, and when I came back to the Bay Area I read about something even more disturbing. In the past week the most bizarre and tragic story in the Bay Area has been the shooting of 22 year old Oscar Grant by a young BART police officer.  I only saw the more “conclusive” cellphone videos today and I have to say it is truly incomprehensible.  The young man was clearly on the ground and secured by more than one officer, and then the second officer stands up and pulls out his gun and fires into the victim’s back.  It took several seconds for the officer to take out the gun and the whole thing really looked like an execution and it is just unbelievable.

A lot of people including myself are wondering why the officer did what he did.  Apparently in the past there had been two more incidents where BART police blew away unarmed people, but this is the first time when citizen reporting with cellphone cameras have brought so much attention to a BART shooting.  According to the police immediately started to confiscate cameras after the incident, but a few people managed to keep their phones since their traincar left the station just in time.  Technology has made it possible for everyday folks to watch the watchmen, and that is comforting and yet disturbing at the same time.

The aftermath of the incident is yet to be played out.    Right now there is a protest at the Fruitvale BART station and trains are passing the station in both directions. more than 500people have showed up around 6pm and the station was closed since protesters blocked the fare gates.  The protest is scheduled to last another 2 hours.

Then there is the lawsuit a lawyer filed on behalf of the family.  The family is seeking $25 million dollars from BART, and it’s sad to say that this will be a Pyrrhic victory at best since no amount of money will bring Oscar Grant back.  BART could probalby cover the costs of the lawsuit with their liability insurance, but I am sure more public funds will be spent and ridership might even decrease a bit.  This is not good for the public since BART is such a vital service for so many people here in the Bay Area, but there has to be some accountability.

These horrible stories just show that you may never know when you will meet your maker, and you are never as safe as you think.  The police are supposed to be peace keepers, but some people let power get to their heads.  The classic showed that ordinary people who are put in positions above others stepped over the boundaries and I am sure it happens every single day.  Thankfully the internet gives the people a little bit of power back.

Finally, I offer my condolences to both the families of Oscar Grant and the officer.  I hope noone else gets hurt in the midst of this and we don’t have  full scale Rodney King-esque riots here.

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A year ago I wroteabout the government’s plan to freeze mortgage rates and how ridiculous it was. I also suggested that people should just walk away from their gigantic loans and buy something cheaper. A lot has happened since then. There were countless attempts by the government to revive the housing market with very little success, and many people did walk away from their underwater loans and buy cheaper homes. Yesterday, showed that more than 50% of borrowers who received loan modifications end up defaulting again anyway.

When I read the news I thought to myself, “well, what did you expect?” Many of these loan modifications either changed the loan term from 30 years to 40 years or lowered the interest rate, but the borrowers still owe a gigantic debt on a depreciating asset. There is no incentive for them to pay the debt if they can find a place to live in for even less money than the reduced mortgage payment.   Seriously, who would want to pay a $400,000 debt on an asset that is worth only $200,000?

Additionally, all of these loan modifications encourage bad behavior.  The borrowers probably think that if they don’t pay they will be bailed out again because bailouts are all the rage right now.  Everyday the news is reporting some kind of government action to deal with foreclosures.  So if you already got free housing for 3 to 4 month and then got a modification on your loan, then you have another 3 to 4 months until a foreclosure comes.  That’s 6 to 8 months of no housing payments even if there is no second modification, and that seems like a good financial incentive to default.

Another driver in re-defaulting is the worsening economic state of the world.  , and perhaps a lot of people no longer have the amount of income they had when they received the loan modification.  For now, I think the unemployment situation is only going to get worse.

I think the lesson in this is that the government should stop messing with the free market and let foreclosures happen naturally.  These modifications and bailouts are just prolonging the pain for everyone involved.  I suppose that more than 40% of these borrowers are still paying for their modified loans,  but they really  may be better off by renting and saving for a down payment on a cheaper home.  Home prices have come down more than 25% in many parts of the country, and it is slated to go down even further.  It would take a while for a foreclosure to come off someone’s credit report, but that might be the perfect time for that person to build up a sizable down payment.

I think home prices will go down for at least another 4 to 5 years and recover if the government stops with the interventions.  If they continue to manipulate the market through interest rates and loan modifications then it may take the housing market a longer time to recover precisely because the bad apples will still be hanging on.  For example, if a person gets a foreclosure now then  it would take seven years for it to come off their credit report.   So in seven  years this person would be a prime borrower again.  However, if he hangs onto the mortgage through various bank and government deals and then redefaults after two years, then it would take nine years from now for that person to become a prime borrower again.  The sooner people get foreclosed on, the sooner they can rebuild their credit and become suitable homebuyers again.  The housing market will only recover when the demand returns, and I truly believe that  all of these government polices to prevent foreclosure will simply stall the recovery of the housing market.

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I am sort of a documentary junkie and I like watching them on Netflix’s instant play. Two documentaries I have reviewed on this blog include and . Today I heard about an interesting documentary called documenting the threat of America’s ever growing national debt. Yahoo has that talks about billionaires Warren Buffet and Pete Peterson endorsing this documentary and speaking out about how the government should work on borrowing less, and encourage the citizens to save more, but will anyone listen?

A few days ago I wrote an article called on Wise Bread and it was a comment on Knight Kiplinger’s article about how Americans themselves are the culprits for the nation’s economic problems. The American people like lower taxes, and more services. The politicians get elected by making expensive promises, and they fulfill their promises by borrowing money. This has been going on for quite a while. One of the commenters on my article wrote an extremely long comment that ended with,

“Fed a steady diet of corporate-controlled advertising which manipulates quirks of the human brain (read Jerry Mander’s ““) to increase consumer spending and pro-corporate news, is it any wonder the average American is a mess? Sure, they’re stupid for continuing to stare at the boob-tube and not noticing that they get the urge to order out a pizza after the TV ad, but hey, most people just don’t have as high IQ’s as the average tightwad (read ““), especially as many of today’s consumers are from the post-Reagan/cut-education-to-the-bone generation. It’s not that the more aware people aren’t writing to their Congressman demanding solutions, the problem is that those Congressmen aren’t listening because they’re beholden to their corporate sponsors.

STOP telling people they’re stupid and it’s all their own fault. A) it’s only 25%-30% their fault; B) the minute you tell someone it’s all their fault they stop listening to you; and C), the originator of this article is quoting a non-credible source. If you want to change things, take clueless consumers by the hand, gently explain the situation to them and what they can do to fix it in a non-blaming way, then unleash them on Congress to throw the bastards out of office. Educate people that they have been brainwashed and teach them there is another way to live.”

I think this commenter is pretty blunt and cuts to the heart of the problem. Most people don’t care or know enough to learn about the national debt. Most people keep on electing the officials that promise the most to them. How does a politician make “reduce the national debt” sound more sexy than “tax cuts for the middle class”? Sure, I.O.U.S.A may be a great documentary, but how many people will watch it? Now that billionaire endorsed it, I am sure that those in the government who love class warfare and spending all they can would dismiss it as another piece of propaganda from “the rich”.

Here is what I find absolutely fall-off-my-chair hilarious. China is one of the biggest creditors to the USA. Actually according to the Treasury, China . So basically the $40 billion extravaganza of an Olympics could be just funded by the interest payments America is sending to China. I am sure some of you Americans might be calling China evil now, but if China didn’t loan the money to the United States then your lives may be a lot worse. Treasuries carry a fairly low yield, and that’s what kept inflation low in the United States for decades. However, if China stops buying so many treasuries from the United States sometime in the future or demand higher rates then that would affect government funds in a significant manner.

I really don’t know how Americans can fix this because there doesn’t seem to be a politician that doesn’t love to spend and get more debt. I guess they’re not spending their own money so it doesn’t matter to them. Young sensible professionals are not the majority in America, and most people who vote are baby boomers and seniors who love the government sponsored freebies so politicians pander to them. One prime example is that Obama is proposing no taxes for seniors making $50,000 a year and below. It makes sense for the more elderly because the debts incurred by the government will be paid by generations to come, so they’re not spending their money either. I’m not saying that all elderly people are leeches, but selfishness tend to lead people to vote a certain way especially when the incentives are so large.

Finally, here is another funny and ironic fact. When people who work in the government apply for Top Secret or Secret clearance they will be screened for the amount of debt they have. If they have too much debt they may not get clearance because they are more likely to be blackmailed or accept bribes. Right now, the United States Government’s national debt is so large and owned by so many foreign nations that it may not pass for its own security clearance if it applied. I think the Department of Homeland Security should probably get involved as soon as possible because the United States Government’s finances is a valid security risk.

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