then and now.

I have a new listing in Ross. A Bernard Maybeck vintage gem. When the property was last on the market, something like 50 years ago, the classified ad below was used. There’s something about it that cracks me up; I hear the voice of an old radio announcer while I read it. But interestingly, or perhaps unfortunately, real estate print advertising hasn’t changed all that much over the years. (If you click on it, the ad will appear larger.)

Fortunately there are alternatives to promoting properties other than using soley print advertising. As the saying goes, a picture is worth a thousand words: www.rossmaybeck.com

Where do you look for information about homes for sale?

new life, new home

My favorite thing about being a realtor is working with great people and becoming intimately involved in their lives, if only for a while. I recently received a call from newlyweds Caitlin and Cyrus after they found themselves at an open house and decided on the spot that it was the house for them. Twenty one days later the house became theirs. Just before the closing, Caitlin got her first look at her wedding photos, and being thrilled by them, she sent me the link. The images captured by photographer Ben Chrisman are magical. Their wedding and their imminent move into their new home (and its imminent redesign thanks to 2009 Designer of the Year nominee Caitlin’s interior design talent) is a real life fairy tale that I enjoyed being a part of. And knowing what I know about them, they will indeed live happily ever after.

emotional, indeed

I previewed a house yesterday that brought me to tears. Somehow it got me: the charm, the details, the artfulness. This wonderful home is located in Mill Valley, but seems as if was imported from the hills of Mexico! Last year i went to Los Cabos hoping for an aesthetic like this, but saw nothing that compares, especially in its artfulness. One of my favorite architectural features of the Mill Valley home are the three windows exquisitely trimmed in picture frames that ingeniously frame a million dollar view of the redwoods.

My visceral experience during my preview of this home reminds me how very emotional home buying can be!

Take a look: 300 Summit, Mill Valley

donations taken here…

Did you know:

More than 16% of Marin’s children live in poverty and more than 35% of households live below the basic self-sufficiency income for a family of three (one parent and two children).

Food pantries have seen increases as high as 70% in the number of people in need of food compared to the same month last year.

That’s why now through December 31st, all Alain Pinel Realtors of Marin offices will be accepting donations of non-perishable food, as well as new or gently-used coats and other clothing items. Donations can be made during business hours at any of our APR Marin County offices in Mill Valley, Corte Madera, Ross or Novato. Or you may also drop off your donation at any of our Sunday open houses and one of our Realtors will deliver your items to a donation center for you.

For more information about this program, please call 415-755-1111 or email my Marin County manager, Steve Dickason at sdickason@apr.com.

Nobody can do Everything, but Everyone can do Something

up in smoke

I have a few clients that have donated their homes to the fire department and in return have benefited from a whopping tax deduction for a home they were planning to tear down anyway in order to replace it with a new home. Looks like the IRS is challenging this practice. Here’s a link to the first article I’ve ever seen about this:

http://www.wral.com/news/national_world/national/story/6078418/

now in ross.

Alain Pinel Realtors (APR) is pleased to announce further growth in the Marin County real estate market with the opening of a new boutique office in Ross. This comes on top of the opening of two offices in Marin County earlier this year, with new branches opening in both Corte Madera and Novato in March. There are now 31 APR offices in Northern California and approximately 1,300
agents.

The new APR Ross office, a space shared with SL:ID STUDIO, founded by principal designer Samantha Lyman, is a place where Ross Valley homeowners and prospective homeowners can obtain information and advice about Ross Valley real estate. Visitors can view a slide show of Ross Valley homes for sale as well as samples of Lyman’s furnishings and accessories. In the conferencing area, real estate counselors will provide information about the Marin marketplace, Ross Valley amenities such as schools, shopping, police and fire protection, parks and recreational facilities. “We’re very excited to announce the opening of our third Marin office,” said Larry Knapp, President of Alain Pinel Realtors. “It establishes a stronger presence in the luxury Marin market where our plans include more offices in the future.” Steve Dickason, Vice President of Alain Pinel Realtors Marin office, will oversee the Ross office and ensure delivery of our comprehensive services and support to local agents and clients. “We are delighted to be opening an office in Ross and, with Samantha’s vision, to be able to provide such a uniquely pleasing, living room environment for our local clients to meet with their agents,” said Dickason.

Alain Pinel Realtors (APR) is the largest privately-owned and independent residential real estate company in California. APR was ranked the eighth largest residential real estate firm in the United States based on its sales volume in 2008, and has been consistently ranked in the Top 10 firms in the country. The firm has approximately 1,300 agents in its 31 offices throughout the Bay Area. APR was founded in 1990 by Chairman and CEO Paul Hulme, and is based in Saratoga, Calif. For more information about APR, please visit our website at apr.com.

Founded by Samantha Lyman in 2005, SL:ID STUDIO is an interior design practice based out of Ross, Calif. The studio offers comprehensive interior design and interior architectural detailing for both new construction and renovation projects, primarily in the San Francisco Bay Area. Although relaxed modernism is the signature of SL:ID STUDIO, Lyman and her partner Sam Penman are fluent in several styles and periods. Projects evolve from a client’s personal style, the architecture and the site itself. Lyman studied journalism at NYU and launched her career at fashion magazines in New York. This early experience continues to exert a major influence on her work today.

interest-ing

The following is a recent statement from the Federal Open Market Committee:

“the Federal Reserve is in the process of buying $300 billion of Treasury securities. To promote a smooth transition in markets as these purchases of Treasury securities are completed, the Committee has decided to gradually slow the pace of these transactions and anticipates that the full amount will be purchased by the end of October.”

An analysis of the Committee’s statement by Mortgage Daily News:

Plain and Simple: Instead of abruptly ending the program, the Federal Reserve will gradually ease their way out of it. The broad based perception of mortgage and real estate professionals is that housing remains very weak. Most believe the expiration of the Treasury purchase program will result in higher Treasury yields and consequently rising mortgage rates, which will further dampen the housing recovery. The gradual phase out of Fed Treasury buying should serve to alleviate some of the stress of lost demand side support. Furthermore the Fed’s MBS and Agency Debt purchase program remains in tact. In the coming weeks we should see the market’s reaction to the termination of the Treasury purchase program.

And here is what Warren Buffet has to say about inflation:

“the US economy is in uncharted fiscal territory because of massive government spending to avoid a deep recession. Enormous dosages of monetary medicine continue to be administered, and before long, we will need to deal with their side effects. For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself.”

The Bottom Line:

1. The Fed will discontinue its purchasing of Treasury Securities by the end of October but the Treasury will continue to flood the market with Securities.
= HIGHER INTEREST RATES.

2. As the economy improves and the job market stabilizes, inflation will return.
= HIGHER INTEREST RATES.

Of course, no one knows how much interest rates will increase in the next 6 months, but 0.5-1% is likely.

The Point:

If you’re planning to buy or sell this year or early 2010, sooner is probably better.

marin market update

We are starting to see more homes sales in Marin and interestingly some areas are getting more action than others, with some areas a buyers market and others more balanced. Will we soon be seeing a sellers market anywhere? If only I had a chrystal ball!

What kind of activity do you think we’ll be seeing in your town over the next year and why?

yard sale rules:

There are laws governing yard sales! I didn’t know that (but now I do and so can you): It’s illegal to sell recalled items. Check out today’s article in the WSJ for more information:

real estate market update

Home sales are starting to finally pick up! Not necessarily prices, but activity indeed and even in the higher price ranges. Many buyers are once again facing multiple offers on homes of their choice. (Interestingly, just because a home receives multiple offers, it doesnt necessarily mean the home ends up selling above the asking price. Sometimes it does and sometimes it doesn’t.) ‘Tis the season to buy and sell!

Ross Garden Tour

Saturday May 9th is the annual Ross Garden Tour. Totally worth checking out and a wonderful way to spend the day.
I do the photography for the tour and can tell you the gardens are all fabulous and each one special in their own unique way. For more information go to:
http://www.rossgardentour.org

LIVING ROOM

Stay tuned for details about the new lifestyle salon, LIVING ROOM, opening at 3 Ross Common in downtown Ross. It’s an exciting venture between my real estate company Alain Pinel Realtors—the largest independently owned real estate brokerage in the Bay Area and the seventh largest residential brokerage in the US by volume—and Samantha Lyman’s hot interior design studio SL:ID STUDIO, LLC. LIVING ROOM is an innovative integrated retail concept offering an entrée to dream residences and the information, resources and goods to transform them into homes.

mortgage news.

Just in from my mortgage friends at www.cleanapproval.com:

WOW! Today was one of those rare days when it’s ‘OK’ to ‘pop the corks’ and do a little celebrating. Mortgage Bonds gained a whopping 138 basis points!!! This means that conforming interest rates (loan amounts below $625K – we do not yet have guidelines and rates for loan amount $625-729K) decreased today and should (hopefully) continue to do so…

As widely expected, the Fed kept their target for the Fed Funds rate at 0.00% to 0.25%. For bond traders, expectations were running high that the Fed would offer new programs or expand existing bond buy-back programs. And the Fed delivered on both counts in a huge way. In a new move, the Fed said they would spend up to $300 billion during the next six months to buy long-term Treasury bonds. They also stated they will expand the existing $500 billion buy-back program for mortgage-backed securities with another $750 billion, bringing their total commitment to a staggering $1.25 trillion. The Fed will also raise its buy-back of direct Fannie and Freddie debt to $200 billion. All of these moves are designed to lower interest rates for mortgages and other forms of consumer debt to help the economy recover from a deep recession. We should now see conventional 30-year rates stabilize near historic lows providing excellent refinance opportunities. The stock market also reacted favorably with the Dow reclaiming 90 points to close at 7,486. The broader S&P 500 Index added 16 points to end at 794 while the NASDAQ Composite Index picked up 29 points to close at 1,491.

Best Jumbo Interest Rates
(Loan Amounts $625,550-$3M!!!)
720+ FICO, 20-25% Down Payment, FULL DOC, SFR, 1 Point
15 Yr Fix/40 Yr Interest Only 6.375%
7/1 ARM Interest Only 5.750%
5/1 ARM Interest Only 5.250%
3/1 ARM Interest Only 5.000%

Best Jumbo-Conforming Interest Rates
(Loan Amounts $417K – $625,550…soon $729,750)
720+ FICO, 60% CLTV or below, FULL DOC, SFR, Purchase or RT Refinance
30 Year Fixed (0 Point) 5.625%
30 Year Fixed (1 Point) 5.125%

Best Conforming Interest Rates
(Loan Amounts up to $417K)
720+ FICO, 60% CLTV or below, FULL DOC, SFR, Purchase or RT Refinance
30 Year Fixed (0 Point) 5.000%
30 Year Fixed (1 Point) 4.750%
15 Year Fixed (0 Points) 4.875%
15 Year Fixed (1 Points) 4.250%
5/1 ARM (1 Point) 4.125%

Sofia Nadjibi, Doris Le & Michael J. Peck
Sr. Loan Consultants
Guarantee Mortgage Corp
2257F Larkspur Landing Circle
Larkspur, CA 94939
W: 415-462-2775

http://www.CleanApproval.com

Ross School

2009 KINDERGARTEN & FIRST GRADE INVITATION
You are cordially invited to attend a presentation at Ross School to
learn about our Kindergarten and First Grade programs.
March 11, 2009
AGENDA (Adults Only)
9:00 – 9:20 am Staff Introductions
9:20 – 10:30 am Presentation
10:30 –11:00 am Question & Answer Session
Registration Packets for the 2009/2010 school year are available in the
Ross School office. Children who will be 5 years old on or before
December 2, 2009 are eligible to attend Kindergarten in 2009. Birth
certificate, immunization records and a physician’s report will be
required before your child enters school in the fall. For further
information about the school, please call the school office at 415-457-2705,
or visit the website at:
http://www.rossschool.net

home loans & economic stimulous stuff.

This just in from the folks at Clean Approval:

Best Jumbo Interest Rates
(Loan Amounts $625,550-$3M!!!)
720+ FICO, 20-25% Down Payment, FULL DOC, SFR, 1 Point
15 Yr Fix/40 Yr Interest Only 6.375%
7/1 ARM Interest Only 5.750%
5/1 ARM Interest Only 5.375%
3/1 ARM Interest Only 5.125%

Best Jumbo-Conforming Interest Rates
(Loan Amounts $417K – $625,550)
720+ FICO, 60% CLTV or below, FULL DOC, SFR, Purchase or RT Refinance
30 Year Fixed (0 Point) 5.750%
30 Year Fixed (1 Point) 5.375%

Best Conforming Interest Rates
(Loan Amounts up to $417K)
720+ FICO, 60% CLTV or below, FULL DOC, SFR, Purchase or RT Refinance
30 Year Fixed (0 Point) 5.125%
30 Year Fixed (1 Point) 4.875%
15 Year Fixed (0 Points) 4.875%
15 Year Fixed (1 Points) 4.625%
5/1 ARM (1 Point) 4.125%

‘Stimulus’ and ‘Stability’ Equal Help for Homeowners
Here is an overview of some benefits of the Economic Stimulus Plan for 2009 and the Homeowner Affordability and Stability Plan that may impact you.

Stimulus Plan – Tax Credit for Homebuyers
The $787 Billion stimulus bill is made up of tax cuts and spending programs aimed at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II. One of the major benefits of the plan is a tax credit for new homebuyers. According to the plan, first-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.

It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.

Better still, the tax credit is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you’re liable for $4,000 in income tax, you can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying “homes” include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.

While details are sketchy – we will expect to get some clarity soon as to an additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans would be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

Homeowner Affordability and Stability Plan
President Obama unveiled his plan to help stabilize the housing market and keep millions of borrowers in their homes. The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. Many of the plan’s details are still being worked out and will not be announced until March 4. Here is an overview of the plan’s main components.

Refinancing Initiative
Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac, and who owe up to 5% more than their home is worth.

According to the plan, “credit-worthy” or “responsible” homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost refinancing may help reduce their mortgage payments by up to thousands of dollars per year.

As with the rest of the plan, details about this initiative will be released at a future date–including what, if any, credit score requirements will be included.

Stability Initiative
This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.

The goal of this initiative is simple: “reduce the amount homeowners owe per month to sustainable levels.” To accomplish this, lenders are encouraged to lower homeowners’ payments to 31% of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.

Homeowners who are current on their mortgages but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.

This initiative also includes a number of additional elements and incentives, including an extra incentive for borrowers to keep paying on time. The initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify.

Sofia Nadjibi, Doris Le & Michael J. Peck
Sr. Loan Consultants
Guarantee Mortgage Corp
2257F Larkspur Landing Circle
Larkspur, CA 94939
W: 415-462-2775

http://www.CleanApproval.com

piano notes

I love pianos and often find myself searching for a spot to put one in homes where a piano isn’t already in place beckoning me to admire it. I am particularly drawn to grand pianos, matte black, to be specific. I don’t play the piano (very well, anyway), so I haven’t the experience to claim a favorite make. But I do take notice and feel lucky when I am able to see the manufacturer’s nameplate on a piano I find sitting patiently in a home I tour.

Pianos are attractive to me on many fronts, perhaps though, it’s mostly the shape and space they take for themselves, readily inviting one to come and play. To me, pianos are both a fine piece of furniture and a delightful musical instrument. I imagine what the home might feel like while the piano is being played. To me, one of life’s most wonderful things is to have a home filled with music. And the talent it takes to make the music.

Recently I came across, and enjoyed reading, two books that are somewhat similar in theme: searching for the perfect piano. Before I read the books I had no idea that a piano could be tuned or toned in different ways, or that it can take some people years to find their ideal piano, and that a piano’s tone and touch is likely impossible to recreate from one piano to the next. I also learned a lot about music, piano stores, piano manufacturers, pianists, and that there are people that hear in a way I never will.

I got caught up in the drama of the writer herself in Grand Obsession: A Piano Odyssey by Perri Knize and very much enjoyed learning about Steinway developing its brand and the many interesting people supporting the brilliant pianist Glenn Gould in A Romance on Three Legs: Glenn Gould’s obsessive quest for the perfect piano by Katie Hafner.

Over the last two years I’ve shown many of my $2 – $3 million listings to a buyer looking for a house that would perfectly suit her grand piano. She’s not my client, but I wish she were. I’d enjoy helping find a home for her. And her piano.

great reasons to buy a home…now!

Less competition means a better chance of getting the home you want.
Interest rates are low by historical standards.
Values have decreased over the last 2-3 years making homes (finally) more affordable.
Sellers are motivated.
For the first time in more than a decade the buyer has the upper hand over the seller in negotiations.
The gap between rent vs. own is closer than it has been in years.
The best time to buy any valuable asset is when the headlines are the bleakest.

winter ready

Special thanks to Adrianne Peixotto of Costello And Sons Insurance for providing this handy list for maintaining your home through the winter months.

Maintain gutters
Remove leaves, acorns, sticks and other debris from gutters so melting rain can flow freely. You may also consider installing gutter guards. Available in most hardware and home stores, gutter guards are screens that prevent debris from entering the gutter and direct the flow of water away from the house and into the ground.

Trim trees and remove dead branches
Rain and wind can cause weak trees or branches to break, damaging your home, car or injuring someone walking on your property.

Check insulation
Add extra insulation to attics, basements and crawl spaces. Ideally, the attic should be five to ten degrees warmer than the outside air. Well-insulated basements and crawl spaces will also help protect pipes from freezing.

Maintain pipes
Wrap pipes with heating tape and insulate unfinished rooms such as garages that frequently have exposed pipes. Also, check for cracks and leaks. Have minor pipe damage fixed immediately to prevent much costlier repairs in the future.

Keep the house warm
The temperature in your house should be at least 65 degrees. The temperature inside the walls where the pipes are located is substantially colder than the walls themselves. A temperature lower than 65 degrees will not keep the pipes from freezing.

Check heating systems
The proper use and maintenance of furnaces, fireplaces and wood-burning stoves can prevent fire and smoke damage. Have furnaces, boilers and chimneys serviced at least once a year. Make sure that smoke and fire alarms are working properly and consider installing a carbon dioxide detector.

Maintain steps and handrails
Broken stairs and banisters can become lethal when wet from excess rain. Make repairs now to prevent someone from falling and seriously being injured.

Get to know your plumbing
Learn how to shut the water off and know where your pipes are located. If your pipes freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent the pipes from bursting.

Hire a licensed contractor
Have a professional survey your home for any structural damage. If damage is discovered, have it repaired immediately so further damage will not occur during the winter. Plastic coatings for internal basement walls, sump-pumps and other methods can prevent damage to your home and belongings.

Plan for being away
If you are not going to be in your home this winter for an extended period of time, have the water system drained by a professional to keep pipes from freezing or bursting. Also, have someone check on your home on a regular basis. If there is a problem, it can be fixed quickly, thus lessening any damage. Activity at your home will also reduce the likelihood that it will be burglarized.

Loan Modifications

No doubt about, all the bad news about the economy and the real estate market is stressful.

For many of us, our mortgage is our largest monthly nut. I’ve been wondering when help will be available for homeowners who are at risk for losing their homes. As such, I’m intriqued by Governor Schwarzenegger’s plan to put a 3 to 6 month “stay” on foreclosures.

Hopefully, his plan will be a welcome and winning solution for the many people already in crisis. But what about the homeowners who are finding it harder and harder to pay their mortgage each month? Apparently some lenders are starting to see the light and are willing to, on a case by case basis, renegotiate mortgage terms for people who anticipate not being able to stay current.

The California Association of Realtors (CAR) website has additional information including a reference chart outlining some programs from different lenders that is worth reviewing. CAR recommends that prior to contacting the lender or loan servicer, you have on hand the following:

. Loan number

. Income information and documentation

. Most recent mortgage statement

. Bank statements

. Letter demonstrating financial hardship

The good news is, I understand that should the lender agree to modify the loan, it’s fairly inexpensive and might not negatively impact your credit score.

What’s now.

IRWIN KELLNER

Don’t call it a bailout. Or a depression

Commentary: The nattering nabobs of negativism have it wrong. Here’s why

By Irwin Kellner, MarketWatch

PORT WASHINGTON, N.Y. (MarketWatch) — We are nowhere near a depression, so let’s stop talking ourselves into one.

Spiro Agnew’s words of the Nixon era ring true today. The politicians, pundits and, yes, the press, are nattering nabobs of negativism.

For example, in recent weeks, the broadcast and the print media have filed stories replete with scare words. You don’t even have to look at the tabloids to see what I mean.

The front page of the New York Times recently described what it called “chaos” in the financial markets.

Not to be outdone, most of the first section of The Wall Street Journal one day last week was devoted to articles describing the “spreading crisis” in our economy.

And both newspapers have run stories using the word “depression” more times than I care to count.

Now, don’t get me wrong, I am not saying things aren’t serious out there, but another Great Depression? I don’t think so.

If you look at the data, you will see more differences than similarities between the 1930s and today:

In the crash of 1929 the Dow Jones industrials (plunged 40% in two months; this time around it has taken a year to fall 22%.
The jobless rate jumped to 25% by 1933; it is little more than 6% today.
The gross domestic product shrank by 25% during the early 1930s; it is up over 3% during the past year.
Consumer prices fell by about 30% from 1929 to 1933; and the last time I looked they were still rising.
Home prices dropped more than 30% during the Depression vs. about 16% today.
Some 40% of all mortgages were delinquent by 1934 compared with 4% today.
In the 1930s, more than 9,000 banks failed compared with fewer than 20 over the past couple of years.
Remember also it was policy errors, not the stock market crash, that caused the Great Depression:

Instead of increasing the money supply, the Federal Reserve of that era reduced it by one-third.
Instead of lowering taxes, Herbert Hoover raised them.
And to channel whatever demand was left into U.S.-made goods, the government enacted the Smoot-Hawley Tariff Act to keep out foreign products; this only provoked our trading partners to do the same.
Add to this today’s automatic stabilizers such as unemployment insurance and Social Security, the FDIC to insure bank deposits and circuit breakers to keep stocks from falling too quickly, and you can see why this is not a depression in any way shape or form.

While I am at it, I would like to take issue with the almost ubiquitous use of the word “bailout” to describe the government’s rescue package.

Folks, this is not a bailout of anyone, not Wall Street, not Main Street, and certainly not the so-called “fat cats.” It’s an infusion of liquidity, designed to unclog the financial markets. In doing so, it will benefit everyone, business and consumers alike.

Also, the $700 billion bandied about will not be immediately handed over to the Treasury secretary; he will simply have a line of credit, similar to what the typical business might have.

Finally, this package may not even cost $700 billion. For that matter, it may wind up costing nothing. It all depends on the price the government pays for these distressed assets and what it winds up selling them for.

As for whom to blame for this mess, there is plenty to go around. In the words of that great philosopher, Pogo: “We have met the enemy and he is us.”

Irwin Kellner is chief economist for MarketWatch, and is Distinguished Scholar of Economics at Dowling College in Oakdale, N.Y.