Throwback Thursday

TBT. Networking at the Obama White House near the Map Room. However, don’t get it twisted- the White House was built by black slaves. Slaves didn’t get a salary, they got a whip. https://www.whitehousehistory.org/questions/did-slaves-build-the-white-house #staywoke #wblendingsolutions

Be there- online 6/20/20! Event.

“COVAD19 Reopening!

The Economy and Real Estate.

Challenges/ Opportunities.” Community radio station KPOO FM 89.5 San Francisco with radio personality Lawrence Chew Saturday 6/20/20 Saturday at 10am PST

Guest: Walter Brown Jr. DE – Urban Financial Services Coalition.

“COVAD19 Reopening. The Economy. Real Estate. Unemployment relief changes 7/31/20. Stacking. Families and individuals -challenges and opportunities.”

Also listen online at http://www.kpoo.com/listen or Facebook at “Larry Chew” — Walter Brown, Jr. DE

Urban Financial Services Coalition #ufscnet

#ufscmswc

— — — wblendingsolutions

Since 1972

925-256-1144

ONLINE EVENT Saturday 6/20/20

ONLINE EVENT 6/20/20.

“COVAD19 Reopening! The Economy and Real Estate. Challenges/ Opportunities.”

Community radio station KPOO FM 89.5 San Francisco with radio personality Lawrence Chew Saturday 6/20/20 Saturday at 10am PST

Guest: Walter Brown Jr. DE – Urban Financial Services Coalition.

“COVAD19 Reopening. The Economy. Real Estate. Unemployment relief changes 7/31/20. Stacking. Families and individuals -challenges and opportunities.”

Also listen online at http://www.kpoo.com/listen or Facebook at “Larry Chew”

Walter Brown, Jr. DE

Urban Financial Services Coalition #ufscnet

#ufscmswc

— — —

wblendingsolutions

Since 1972

925-256-1144

Client comments…

WE GOT THIS NICE NOTE LAST WEEK:

#wblendingsolutions

wblendingsolutions

Heyyyy Walter!

Hope all is good with you and family.  This means mentally as well as physically.

Sad, but I thought about you when they started ‘Shelter-In-Place back in March and people were getting laid-off and businesses where shutting down. I said, “All those people will be without income, therefore, they’re rent and mortgages will have to be paid.”

That’s when your face, including that smile, popped into my head again. “Walter to the rescue!”

Thanks for the nice email, however, you taught me a valuable lesson when it comes to my mortgage. You negotiated a great modification rate, 3% for me 10+years ago and told me not to ever refinance again?? and I have lived up to that. It was adjustable but now the rate will remain the same until loan is paid off. Fixed, $1,148 a month. My Financial Planner, Ms. …  is talking about possibly paying loan off. Don’t know about that now, especially, since stock market is not too stable right now.

Anyway, because of your hard work, knowledge, reliability, persistence, and care for mankind, tons of people will sleep good knowing you and your team are there for them.

Seriously, whenever I see the commercial about Human Kindness, I think about you.

Take Care Walter and tell Sabrina I said, “Hi!”

Sincerely,

Mary…

Throwback Thursday

Throwback Thursday…

“Beauty is not in the face; beauty is a light in the heart.” ~ Kahlil Gibran

Throwback Thursday

TBT – ”JUST DO IT” – UFSC Western Regional Vice President Lizzie Evans – Martinez Alvarez and me over a decade ago at the World Trade Center – Seattle Washington. I was UFSC Western Regional Representative reporting to Liz, a FDIC Auditor. I learned a lot and made a lot of powerful international national financial contacts (Private, Government, International) in that role that I use today.

See you at the Atlanta Federal Reserve Bank September 23-26, 2020! RSVP now!

#ufscnet

@ufscnet

#ufscmswc

#ufscmctf

#ufsclifestyle

#ufscculture

#ufscphilosophy

#hcp

#wblendingsolutions

-URBAN FINANCIAL SERVICES COALITION-

Vision

To ensure the full and equitable participation of people of color at all levels in the financial services industry.

Mission

To be the pre-eminent financial services organization that provides professional development programs, supports educational advancement and promotes economic empowerment for its members and minority communities at large.

keywords

National Association of Black MBAs, National Association of Black Accountants, National Coalition of 100 Black Women, 100 Black men, National Medical Society, National Bar Association, US Black Chamber of Commerce, Hispanic Chamber of Commerce, American Bankers Association, Financial Planning Association, CFA…

“You’ll know it when you see it.”

“You’ll know it when you see it.”

#wblendingsolutions

#ufscnet

https://www.wsj.com/articles/on-coronavirus-debt-heed-the-wisdom-of-scarlett-ohara-11589498243

On Coronavirus Debt, Heed the Wisdom of Scarlett O’Hara

‘I won’t think about that now. I’ll think about that tomorrow.’ The crisis is today’s urgent priority.

By Alan S. Blinder

May 14, 2020 7:17 pm ET

The Federal Reserve building in Washington, March 19, 2019.

PHOTO: LEAH MILLIS/REUTERS

Ever since the Federal Reserve and Congress embarked on their extraordinary monetary and fiscal responses to the pandemic, I have been asked two sorts of questions repeatedly. First, is running such a massive federal budget deficit wise? Is it even sustainable? Aren’t there limits? Second, what about the Fed’s massive balance-sheet expansion? Can the central bank keep creating money without limit? Won’t that be inflationary?

I call these “Scarlett O’Hara questions.” The tempestuous heroine of “Gone with the Wind” famously insisted, “I won’t think about that now. I’ll think about that tomorrow.” When it comes to fiscal and monetary response to the coronavirus, “tomorrow” is well into the future.

Though the questions about debt and money are logically separable, they are linked these days because the Fed has been buying up the debt the Treasury issues. In round numbers, the Treasury issued about $1.5 trillion in new debt securities during March and April, and the Fed purchased an almost equal amount on the open market.

Let’s start with the national debt. How large can it grow before it becomes worrisome—or worse, unsustainable? No one knows for sure. But we can take comfort from five facts.

First, at least for now, the Fed is buying as many debt securities as the Treasury is selling. On net, the investing public doesn’t have to buy any.

Second, the U.S. borrows in its own currency. Sovereign debt crises almost never arise in such cases.

Third, if the U.S. Treasury starts to supply more bonds than the world’s investors demand, the markets will warn us with higher interest rates and a sagging dollar. No such yellow lights are flashing.

Fourth, interest rates on government debt in several advanced countries—notably but not only Japan—are superlow today even though their national debts are far higher, relative to gross domestic product, than seemed prudent a decade or two ago.

Fifth, the U.S. public debt topped 100% of GDP at the end of World War II with no adverse consequences. After that peak, we managed to whittle the debt down to only 22% of GDP over the next 28 years or so. To accomplish that feat, we didn’t need to run budget surpluses year after year. We just kept deficits small enough that the debt grew slower than GDP. Which is not that hard if the interest rate remains below the economy’s growth rate—as has been true for years.

The Congressional Budget Office recently estimated that U.S. government debt held by the public will reach 101% of GDP by the end of the fiscal year (on Sept. 30)—up from only 79% at the start of fiscal 2020. That’s quite a leap, and there’s more coming.

But the CBO treats the Federal Reserve as part of “the public” and, as mentioned, the Fed is buying up most of the newly issued Treasury debt. We certainly don’t need to worry about debt sustainability until the volume of public debt held by private investors gets much larger.

But what about all that money created by the Fed’s actions? Don’t we know that huge increases in the money supply cause inflation? Actually, we don’t.

Identical questions arose over the Fed’s unprecedented responses to the financial crisis in 2008-09. Since then, however, monetary-policy makers have worried more about inflation being too low than too high. Here’s what actually happened:

Over the seven years from August 2008 (the month before the Lehman catastrophe) to August 2015 (after quantitative easing had ended), the Fed’s balance sheet soared by a factor of five. Bank reserves ballooned from a negligible sum (roughly $10 billion) to a mind-blowing $2.8 trillion—roughly, a 280-fold increase. Huge fodder for inflation, right?

Apparently not. The M2 money supply did rise, but only by 54% over those seven years—during which time the Consumer Price Index rose less than 9%.

Can we be sure this aspect of history will repeat itself? Well, not sure, but I’m not very worried. If inflationary storm clouds gather, the Fed will shrink its balance sheet gradually. Indeed, it was doing precisely that from March 2018 to August 2019, when it reduced its asset holdings by roughly 14% in 17 months. It wasn’t hard.

Today’s profligate monetary and fiscal policies would be irresponsible in normal times. But given the urgent problems we’re dealing with, they are badly needed today. There will be plenty of time to worry about the public debt and the money supply “tomorrow.” These are Scarlett O’Hara questions.

Mr. Blinder is a professor of economics and public affairs at Princeton University and a former vice chairman of the Federal Reserve.

.