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Nov 2011 Dean Vlamis Newsletter

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DEAN VLAMIS

The document summarizes the current state of the US economy, noting that it has been challenging for over three years. While recessions are necessary for market corrections, the Fed has increasingly intervened to prevent them through low interest rates and money printing. This disconnects achievement from success and wealth creation from human action. The premise that giving people money and things will make them better off ignores that success comes from self-regulation, willpower, and earning possessions through work rather than receiving handouts. The document advocates returning to principles of individual responsibility and competitive free markets that have historically driven American prosperity.

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deanvlamis MARKET NEWS 2936 W. Belmont Avenue Chicago 60618 773.612.2666 | dean@perlmortgage.com www.deanvlamis.com It’s the economy, stupid! I was truly hoping that I could write about and to avoid a slow-down. Subsequently action and success. (Success is vilified and something new in this edition, but it throughout the past decade the Fed has class warfare has become the norm). appears that for the last few years there is become the savior of all things, making a constant theme. It’s the economy stupid! money incredibly cheap and continuing What is focused on then is not living in a So it appears that once again I will have to to pump or print money to try and create fashion that creates wealth, but rather the stick with the basic underlying theme. growth. In the past two years the Fed has concrete material products of those who taken unprecedented action in this case to live well. (It now matters what you have, Things are challenging in today’s economy no avail. rather than what is earned or created). to say the least, and it has been going on for over three years now and it is This brings me back to my original theme This was the problem with the mortgage understandable why people are getting of America and American exceptionalism, policies that lead to our present financial impatient. In years past the US has hit or what has happened to it. collapse. It was observed that people recessions and economic slowdowns, but who owned their own homes were more has always bounced back, pulling out of Before I start reminiscing again about successful than those who did not. So it and coming out stronger and for the yesteryear and the days when America the busybodies in government decided better. Traditionally this growth will take and Americans took care of themselves, that more people should own their own a few years and although recessions can let’s break down the current climate in this homes, and then more people would be be tough, at times they are necessary. country and how the perception of success more successful! and wealth has changed. Yes, necessary. Banks were then “encouraged” to make Instead of focusing on past success and easier loans to people who could not really All a recession is doing is letting the market how America and the American people manage that debt, so that they could own correct itself from bad investments or have been able to prosper and withstand homes, too. The government implored over exuberance. Remember the late 90’s hard times, we now focus on material Fannie Mae and Freddie Mac to loosen when everyone was buying .com stocks possessions as a measure of success. guidelines so more people would qualify of companies that made no money, but for a home (a New York Times article from it was all the craze? It was easy money There is a connection between the 1998 states the dangers of easing Fannie and the mass investors, just like a herd of discipline of thrift and earned achievement Mae and Freddie Mac guidelines and the cattle, followed the lead. When this didn’t that is vital to the creation of wealth, and potential horrific fallout that would occur pan out the market simply corrected itself, to overall success in life; but these are in a downturn…very prophetic). So, by slowing things down a bit and dipping virtues that require acts of will. One has becoming homeowners they were now into a recession. Banks restricted their to actually go out and stake a claim and successful. lending to make sure that any companies earn what they want. they lent to could actually turn a profit. Divorced from this wacky idea is any This, coupled with the shock of 9/11 a It’s very important to understand this: appreciation that it is not the home itself few years later, triggered the Fed to take that makes a person more successful, but actions never before seen. Not leaving The cultural disconnection between the habits and practices that create a life market forces to fix things, they decided willpower and success has been a constant and a lifestyle which enables a person to that they would make money cheap and theme in the past years. accumulate enough wealth that they can basically free. What the Fed was doing was afford to buy and maintain a home. basically taking the stance that recessions The very idea of “spreading the wealth are no longer tolerable or should not be around” denies any relation between wealth The home, or any material possession, is allowed to ever happen. They lowered the and human action. (Who is spreading the not the virtue - the home or any material Federal Funds rates in order to “avert” a wealth and how?) The ethical behavior that possession is a byproduct of the virtues recession. In doing this they were making it leads to wealth should be applauded and which lead to it. cheap for banks to borrow from the Fed in emulated, but instead they are sidelined as hopes that these large banks would in turn insignificant background noise. Thus the What actually leads to success is not continue to lend to “spur” the economy disconnect between achievement, taking the stuff you have, but the capacity of www.deanvlamis.com | www.perlmortgage.com
Dean Vlamis | 773.612.2666 page 2 willpower, self-control, and self-regulation It was none other than Rocky Balboa. that it is not OK to work out in spandex that allows you to earn that stuff. Yes, I know that there have been so many shorts!), Joanie Loves Chachi, Boy George, Rocky movies that it has diluted the The Love Boat, mood rings (wore one The whole premise of throwing money at original meaning. Surprisingly enough this proudly in 6th grade), disco, Dirty Dancing, problems is based on the idea that people quote is actually from the very last entry, Vanilla Ice…you get the idea, we let this need stuff, and if people have stuff, they Rocky Balboa. In this movie, Rocky, now happen!!! will be better off. And this is the basis for nearing 70 years old or something like most of the government’s actions. that comes out of retirement to fight the current champ…and almost wins!!! Yes, Liberty requires the capacity for self- very believable. So before you laugh, try regulation. It is the freedom to live as and remember the first time you actually you choose, without imposition by the saw the first Rocky. If you were in the state. When you abandon your own theaters back in 1976 when this came willpower and self-responsibility, you are out then you could easily remember a surrendering yourself to the control and packed audience cheering wildly as Rocky custody of others. fought back against the unbeatable Apollo Creed. An underdog from nowhere with a Seriously? Production, not consumption, drives the chance to make it for himself, he took his economy; risk-taking creates growth, not opportunity and used his own action and But we fixed it and moved on, and didn’t subsidies. These were basics concepts that willpower to succeed. People were literally take any of it seriously. Hopefully we can America understood in the past. jumping out of their seats. So if we skip get back to the basics and realize that the middle five Rocky’s and simply use the we have been here before and relied on Whew… first and last, you can see that this is truly ourselves to get us through these times. an inspirational great American story. When I was young and impressionable I was always inspired by people of action, This is what America loves; why? Not people who overcame the odds to make because we are underdogs and the “little their mark. Who wasn’t? guy” winning. No, it is the will, strength and determination to succeed that we Of all my childhood heros I came across have always appreciated. Think Steve this inspiring quote; can you guess who Jobs, Hank Reardon, or John Galt. That this is? is why as far back as 1937, the race horse Seabiscuit was a national phenomenon. “Let me tell you something you already Seabiscuit was the Rocky of his time. A know. The world ain’t all sunshine and horse no one thought could run. But when rainbows. It is a very mean and nasty place left to his own competitive nature, it was and it will beat you to your knees and keep said that never was a horse so competitive Parachute pants you there permanently if you let it. You, and determined to succeed. This is what me, or nobody is gonna hit as hard as life. America gravitates to. But it ain’t how hard you hit; it’s about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That’s how winning is done. Now if you know what you are worth, then go out and get what you are worth. But you gotta be willing to take the hit, and not pointing fingers saying you ain’t where you are because of him, her or anybody. Cowards do that and that ain’t you. You’re better than that!” Seabiscuit Don’t get me wrong, America has made Joanie Loves Chachi mistakes before, plenty of them, and I would have to admit that I fell for a lot of these. Who can forget the following? Duran Duran, Right Said Fred, The Pet Rock, stonewashed jeans (yep, had a pair), parachute pants (never), perms for men, Abba, flower power, spandex shorts for men (can someone please help me on this Rocky! Rocky! and come to my gym to let them know Nobody makes Baby sit in the corner. www.deanvlamis.com | www.perlmortgage.com Illinois Residential Mortgage Licensee MB0004358 and Equal Housing Lender. Licensed by Department of Corporations under the California Residential Mortgage Lending Act. NMLS #19186, 194442 (IL, MI, WI), 31.0007455 (IL), 16882 (IN).

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Nov 2011 Dean Vlamis Newsletter

  • 1. deanvlamis MARKET NEWS 2936 W. Belmont Avenue Chicago 60618 773.612.2666 | dean@perlmortgage.com www.deanvlamis.com It’s the economy, stupid! I was truly hoping that I could write about and to avoid a slow-down. Subsequently action and success. (Success is vilified and something new in this edition, but it throughout the past decade the Fed has class warfare has become the norm). appears that for the last few years there is become the savior of all things, making a constant theme. It’s the economy stupid! money incredibly cheap and continuing What is focused on then is not living in a So it appears that once again I will have to to pump or print money to try and create fashion that creates wealth, but rather the stick with the basic underlying theme. growth. In the past two years the Fed has concrete material products of those who taken unprecedented action in this case to live well. (It now matters what you have, Things are challenging in today’s economy no avail. rather than what is earned or created). to say the least, and it has been going on for over three years now and it is This brings me back to my original theme This was the problem with the mortgage understandable why people are getting of America and American exceptionalism, policies that lead to our present financial impatient. In years past the US has hit or what has happened to it. collapse. It was observed that people recessions and economic slowdowns, but who owned their own homes were more has always bounced back, pulling out of Before I start reminiscing again about successful than those who did not. So it and coming out stronger and for the yesteryear and the days when America the busybodies in government decided better. Traditionally this growth will take and Americans took care of themselves, that more people should own their own a few years and although recessions can let’s break down the current climate in this homes, and then more people would be be tough, at times they are necessary. country and how the perception of success more successful! and wealth has changed. Yes, necessary. Banks were then “encouraged” to make Instead of focusing on past success and easier loans to people who could not really All a recession is doing is letting the market how America and the American people manage that debt, so that they could own correct itself from bad investments or have been able to prosper and withstand homes, too. The government implored over exuberance. Remember the late 90’s hard times, we now focus on material Fannie Mae and Freddie Mac to loosen when everyone was buying .com stocks possessions as a measure of success. guidelines so more people would qualify of companies that made no money, but for a home (a New York Times article from it was all the craze? It was easy money There is a connection between the 1998 states the dangers of easing Fannie and the mass investors, just like a herd of discipline of thrift and earned achievement Mae and Freddie Mac guidelines and the cattle, followed the lead. When this didn’t that is vital to the creation of wealth, and potential horrific fallout that would occur pan out the market simply corrected itself, to overall success in life; but these are in a downturn…very prophetic). So, by slowing things down a bit and dipping virtues that require acts of will. One has becoming homeowners they were now into a recession. Banks restricted their to actually go out and stake a claim and successful. lending to make sure that any companies earn what they want. they lent to could actually turn a profit. Divorced from this wacky idea is any This, coupled with the shock of 9/11 a It’s very important to understand this: appreciation that it is not the home itself few years later, triggered the Fed to take that makes a person more successful, but actions never before seen. Not leaving The cultural disconnection between the habits and practices that create a life market forces to fix things, they decided willpower and success has been a constant and a lifestyle which enables a person to that they would make money cheap and theme in the past years. accumulate enough wealth that they can basically free. What the Fed was doing was afford to buy and maintain a home. basically taking the stance that recessions The very idea of “spreading the wealth are no longer tolerable or should not be around” denies any relation between wealth The home, or any material possession, is allowed to ever happen. They lowered the and human action. (Who is spreading the not the virtue - the home or any material Federal Funds rates in order to “avert” a wealth and how?) The ethical behavior that possession is a byproduct of the virtues recession. In doing this they were making it leads to wealth should be applauded and which lead to it. cheap for banks to borrow from the Fed in emulated, but instead they are sidelined as hopes that these large banks would in turn insignificant background noise. Thus the What actually leads to success is not continue to lend to “spur” the economy disconnect between achievement, taking the stuff you have, but the capacity of www.deanvlamis.com | www.perlmortgage.com
  • 2. Dean Vlamis | 773.612.2666 page 2 willpower, self-control, and self-regulation It was none other than Rocky Balboa. that it is not OK to work out in spandex that allows you to earn that stuff. Yes, I know that there have been so many shorts!), Joanie Loves Chachi, Boy George, Rocky movies that it has diluted the The Love Boat, mood rings (wore one The whole premise of throwing money at original meaning. Surprisingly enough this proudly in 6th grade), disco, Dirty Dancing, problems is based on the idea that people quote is actually from the very last entry, Vanilla Ice…you get the idea, we let this need stuff, and if people have stuff, they Rocky Balboa. In this movie, Rocky, now happen!!! will be better off. And this is the basis for nearing 70 years old or something like most of the government’s actions. that comes out of retirement to fight the current champ…and almost wins!!! Yes, Liberty requires the capacity for self- very believable. So before you laugh, try regulation. It is the freedom to live as and remember the first time you actually you choose, without imposition by the saw the first Rocky. If you were in the state. When you abandon your own theaters back in 1976 when this came willpower and self-responsibility, you are out then you could easily remember a surrendering yourself to the control and packed audience cheering wildly as Rocky custody of others. fought back against the unbeatable Apollo Creed. An underdog from nowhere with a Seriously? Production, not consumption, drives the chance to make it for himself, he took his economy; risk-taking creates growth, not opportunity and used his own action and But we fixed it and moved on, and didn’t subsidies. These were basics concepts that willpower to succeed. People were literally take any of it seriously. Hopefully we can America understood in the past. jumping out of their seats. So if we skip get back to the basics and realize that the middle five Rocky’s and simply use the we have been here before and relied on Whew… first and last, you can see that this is truly ourselves to get us through these times. an inspirational great American story. When I was young and impressionable I was always inspired by people of action, This is what America loves; why? Not people who overcame the odds to make because we are underdogs and the “little their mark. Who wasn’t? guy” winning. No, it is the will, strength and determination to succeed that we Of all my childhood heros I came across have always appreciated. Think Steve this inspiring quote; can you guess who Jobs, Hank Reardon, or John Galt. That this is? is why as far back as 1937, the race horse Seabiscuit was a national phenomenon. “Let me tell you something you already Seabiscuit was the Rocky of his time. A know. The world ain’t all sunshine and horse no one thought could run. But when rainbows. It is a very mean and nasty place left to his own competitive nature, it was and it will beat you to your knees and keep said that never was a horse so competitive Parachute pants you there permanently if you let it. You, and determined to succeed. This is what me, or nobody is gonna hit as hard as life. America gravitates to. But it ain’t how hard you hit; it’s about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That’s how winning is done. Now if you know what you are worth, then go out and get what you are worth. But you gotta be willing to take the hit, and not pointing fingers saying you ain’t where you are because of him, her or anybody. Cowards do that and that ain’t you. You’re better than that!” Seabiscuit Don’t get me wrong, America has made Joanie Loves Chachi mistakes before, plenty of them, and I would have to admit that I fell for a lot of these. Who can forget the following? Duran Duran, Right Said Fred, The Pet Rock, stonewashed jeans (yep, had a pair), parachute pants (never), perms for men, Abba, flower power, spandex shorts for men (can someone please help me on this Rocky! Rocky! and come to my gym to let them know Nobody makes Baby sit in the corner. www.deanvlamis.com | www.perlmortgage.com Illinois Residential Mortgage Licensee MB0004358 and Equal Housing Lender. Licensed by Department of Corporations under the California Residential Mortgage Lending Act. NMLS #19186, 194442 (IL, MI, WI), 31.0007455 (IL), 16882 (IN).