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Vol. 28, No. 10 • October, 2010 / www.Freeman-Spicer.com
Understanding - Where Did The TARP Money Go? . . . . . .
$700 Billion - 10/2008: TARP law passes, $700 Billion allocated.
$475 Billion - 7/2010: The regulatory reform law shrinks TARP to $475 billion and imposes a ban on starting new bailout programs.
■ $50 Billion - 9/2010: The Administration latest ballpark estimate of losses is an improvement on the Congressional Budget Office’s August estimate of $66 Billion.
Major TARP Programs:
• Bank Bailouts - $250 Billion Committed: About $200 billion has come back to the government so far, including repayments, dividends, interest, and warrant sales. Expected Repayments = $250 Billion / Expected Profits so far = + $16 Billion.
• Auto Bailouts - $82 Billion Committed: Expected Repayments = $55 Billion / Expected Profits so far = - $27 Billion.
• AIG Bailouts - $70 Billion Committed: Expected Repayments = $60 to $70 Billion / Expected Losses = -$10 Billion to $0.
• Housing Bailouts - $30 Billion Committed: The funds were never intended to be repaid. They are meant to bail out homeowners by encouraging banks and loan servicers to refinance troubled mortgages. Expected Repayments = $0 / Expected Losses = - $30 Billion
• Public-Private Partnership Investment Program - $22 Billion Committed. Purchases of toxic assets from banks. Expected Repayments = $21.5 Billion / Expected Losses = -$0.5 Billion. (Bloomberg)
Never Be Late . . . . . . . A Priest was being honored at his retirement dinner after 25 years in the parish. A leading local politician and member of the congregation was chosen to make the presentation and to give a little speech at the dinner. However, he was delayed, so the Priest decided to say his own few words while they waited. “I got my first impression of the parish from the first confession I heard here. I thought I had been assigned to a terrible place. The very first person who entered my confessional told me he had stolen a television set, and, when question by the police, was able to lie his way out of it. He had stolen money from his parents, embezzled from his employer, had a affair with his boss’s wife, taken illegal drugs, and sold his sister’s jewelry to buy a gun. I was appalled. But as the days went on I learned that my people were not all like that and I had, indeed, come to a fine parish full of good and loving people.” Just as the Priest finished his talk, the politician arrived full of apologies at being late. He immediately began to make the presentation and gave his talk: “I’ll never forget the first day our parish Priest arrived,” said the politician. “In fact, I had the honor of being the first person to go to him for confession.” (Fournier)
“In the final analysis, it is not what you do for your children, but what you have taught them to do for themselves, that will make them successful human beings.” (Ann Landers)
Paraprosdokian Sentences . . . . . . A paraprosdokian is a figure of speech in which the latter part of a sentence or phrase is surprising or unexpected in a way that causes the reader or listener to reframe or reinterpret the first part. It is frequently used for humorous or dramatic effect, sometime producing an anticlimax. Examples:
► I asked God for a bike, but I know God doesn’t work that way. So I stole a bike and asked for forgiveness.
► Do not argue with an idiot. He will drag you down to his level and beat you with experience.
► I want to die peacefully in my sleep, like my grandfather. Not screaming and yelling like the passengers in his car.
► Going to church doesn’t make you a Christian anymore than standing in a garage makes you a car.
► The last thing I want to do is hurt you. But it’s still on the list.
► Light travels faster than sound. This is why some people appear bright until you hear them speak.
► We never really grow up, we only learn how to act in public.
► War does not determine who is right - only who is left.
► Knowledge is knowing a tomato is a fruit; Wisdom is not putting it in a fruit salad.
► Evening news is where they begin with “Good Evening”, and then proceed to tell you why it isn’t.
► To steal ideas from one person is plagiarism. To steal from many is research.
► Women will never be equal to men until they can walk down the street with a bald head and a beer gut, and still think they are sexy.
► A clear conscience is usually the sign of a bad memory.
► Some people are like Slinkies . . . not really good for anything, but you can’t help smiling when you see one tumble down the stairs.
► I saw a woman wearing a sweatshirt with “Guess” on it . . . . so I said “Implants?” (Foti)
FICO Scores . . . . . . . 0.5% of Americans reportedly attain a perfect 850 on their FICO credit score. But experts say its not worth pursuing the elusive 850. The more practical goal is to reach the score threshold that will get you the lowest possible rate on any kind of loan. Today that’s 780 and up; it used to be around 720 in the pre-credit crisis era. Roughly 18% score above 800 with a combined 37% above 750. You may have a sense of whether you are over the threshold, but it you want to know your exact score, you’ll have to shell out $16 at myfico.com. You’ll also find a free Score Simulator tool there to see how actions affect your score. (Money)
Mail Packaging Important . . . . . Here’s a simple tip you already know but may want to utilize more often: Mail arriving in plain, flat, small/large business envelopes may sit unopened for days, but who can resist opening a package the moment it arrives? During a meeting in my manager’s office, he interrupted our meeting to open a single piece of mail: a 24-inch mailing tube with no return address. Inside he found a handwritten thank-you note from a salesperson he’d recently met with, plus a handful of hard candy. This incident revealed the power of packaging to me, and I’ve had great success with the idea. The “tube” helped me cement relationships with existing clients and get an audience with prospects who wouldn’t give other letters a second look. (Selling Power)
The Awesome Power of a Wife’s Love . . . . . . A very old man lay dying in his bed. In death’s doorway, he suddenly smelled the aroma of his favorite chocolate chip cookie wafting up the stairs. He gathered his remaining strength and lifted himself from the bed. Leaning against the wall, he slowly made his way out of the bedroom, and with even greater effort forced himself down the stairs, gripping the railing with both hands. With labored breath, he leaned against the door frame, gazing into the kitchen. Were it not for death’s agony, he would have thought himself already in heaven. There, spread out on newspapers on the kitchen table were literally hundreds of his favorite chocolate chip cookies. Was it heaven? Or was it one final act of heroic love from his devoted wife, seeing to it that he left this world a happy man? Mustering one great final effort, he threw himself toward the table. The aged and withered hand, shaking, made its way to a cookie at the edge of the table, when he was suddenly smacked with a spatula by his wife. “Stay out of those,” she said, “They’re for the funeral.” (Novechek)
Dealing With Gangs . . . . . . This is a letter to the Chicago Tribune Editor (September 17, 2010) by George Hoeksema from South Holland....... “The meeting of police Supt. Jody Weis with several gang leaders reminds me of the following story: A father walked into the post office with his little daughter. The girl saw a picture of “America’s Most Wanted,” so she asked her dad who that was. He explained that it was a picture of the man the police really wanted to capture. The girl asked her dad, “Why didn’t they keep him when they were taking his picture?”
No Garage - Great Idea . . . . . . On the Food Channel the other day I saw a recipe that will help all those drivers with no garages. When you get up in the morning on a crisp cold day - do you spend the first 10 minutes scrapping your windshield? OR - you can mix 1 part vinegar with 3 parts water in a spray bottle. Spray your windshield the night before and no frost will form on your windows. (Levy)
Building Wealth in Young Adults . . . . . Young adults may need convincing that saving for retirement is the best use of their limited dollars. One way to convince them is to show that time is a powerful factor in building wealth. You may know that, but do they? Demonstrate with numbers: A 25-year-old saving $250 a month before taxes will have $656,000 by age 65, assuming a 7% average annual return; if he instead waits until 35 to start saving, he needs to stash more than $500/month to get the same amount. Use the calculators at “cnnmoney.com/tools” to run more scenarios. Share your own experiences too - both good and bad! (Money)
How Do Squirrels Climb Head-first Down Trees? . . . . . . . Squirrels can easily climb down trees headfirst because they can reverse their hind feet to point backward, which allows them to anchor themselves with the hind claws. Unfortunately, domestic cats do not have the same ability, hence the reason they are always getting stuck in trees. (Uncommon Goods)
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