Bastyr University Day at the Washington State Capitol

State Legislators Honor Bastyr University

Recognizing Bastyr University’s accomplishments in the areas of education, research and clinical service, Washington state legislators presented resolutions on February 24, 2010, honoring Bastyr in the chambers of the state Senate and House of Representatives in Olympia.

Sponsored by state Sen. Paull Shin (D), and Rep. Roger Goodman (D), the resolutions acknowledged Bastyr’s commitment to a sustainable health care model, the University’s role in minimizing its environmental impact through green building practices, and its instrumental role in increasing research activity in the natural health sciences. The resolutions were presented as part of the first annual “Bastyr University Day” at the state capitol.

Kenmore Mayor, Dave Baker and Bastyr President Daniel K. Church PhD

Joining Bastyr University President Daniel K. Church, PhD, at the event were University founders, members of the board of trustees, faculty, staff and student representatives. City of Kenmore Mayor David Baker also attended in support and recognition of the University and its achievements. The following legislators spoke on behalf of Bastyr University: Rep. Ruth Kagi (D), Rep. Bill Hinkle (D), Rep. Jan Angel (R), Sen. Karen Keiser (D), Sen. Cheryl Pflug (R), and Sen. Dan Sweker (R).

“We are honored that the Washington State Legislature recognizes Bastyr University’s dedication to enhancing the health and well-being of the human community, and we are grateful to Sen. Shin and Rep. Goodman for their leadership in sponsoring the important resolutions that were read at ‘Bastyr University Day.’ We are especially grateful to Mayor David Baker and other representatives from the City of Kenmore who attended in support and recognition of the University’s achievements,” said Daniel K. Church, PhD. “The day’s events further inspire our mission as we continue to educate future health care leaders. We look forward to making ‘Bastyr University Day,’ an annual tradition celebrating the University’s contributions locally and globally.”

Located in Kenmore, Wash., Bastyr University is a nonprofit, accredited institution internationally recognized as a pioneer in natural health arts and sciences education. Founded in 1978 as the John Bastyr College of Naturopathic Medicine, the University integrates the pursuit of scientific knowledge with the wisdom of ancient healing methods from around the world. Today, Bastyr University is the largest university of its kind in the United States, combining a multidisciplinary curriculum with leading-edge research and clinical training. The University offers 14 accredited degree and certificate programs in the fields of naturopathic medicine, acupuncture and Oriental medicine, herbal sciences, health psychology, exercise science, and whole food nutrition.

This article was submitted to me by Jordan Lindstrom of Bastyr University. I’d like to thank him and all the highly talented and dedicated people at Bastyr University as well as those Washington State Legislators who support our local institutions and communities.

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The Newest Disturbing Trend: Walking Away from a Mortgage

Is Walking Away from Your Mortgage Just a “Business Decision?”

Over 11 Million Families are "underwater" in their mortgages!

A quick disclaimer: The discussion below regarding “strategic defaults”(walking away from your mortgage) is a serious matter. This post is not to be considered legal advice in any way. Nor am I encouraging anyone to walk away from a mortgage. It is intended to help readers understand a disturbing and, I fear, growing trend in the housing market. If you or anyone you know is considering walking away from a mortgage CONSULT BOTH A CPA AND ATTORNEY FOR FINANCIAL AND LEGAL ADVICE.

Last year over 1 million home owners walked away from their mortgages. This is 4 times the number who did so in 2008 and experts believe the number of “strategic defaults” will rise as more and more families find themselves “under water” in their mortgages. According to an article entitled Underwater Mortgages Continue to Rise in The Bulletin (a Philadelphia area paper):

First American CoreLogic reported today that more than 11.3 million, or 24 percent, of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009, up from 10.7 million and 23 percent at the end of the third quarter of 2009. An additional 2.3 million mortgages were approaching negative equity at the end of last year, meaning they had less than five percent equity. Together, negative equity and near-negative equity mortgages accounted for nearly 29 percent of all residential properties with a mortgage nationwide.

Over the last several months I have been reading quite a bit about home owners walking away from their mortgages. It’s a subject that is both disturbing and compelling given the tough times many home owners are experiencing today. And truly, if you find yourself out-of-work, paying a mortgage on a home that is “upside down” (worth less than the mortgage) what should you do?

There are a lot of  strong opinions regarding this. They stretch across a continuum of beliefs from the notion that it’s “unethical” to not pay one’s debts on the one hand to “hey, it’s just a “business decision” on the other hand. And believe me, if you read through the commentary in on-line discussions, you’ll encounter a huge amount of speculation, misinformation and many writers “practising law without a license.” One fact stands out: most people believe it’s just plain wrong to walk away from one’s debts, especially a mortgage.

Most People Agree Walking Away is Un-ethical!

But…….and it’s a big but

BUT, there’s also a growing number of economists who feel that attempting to do the right thing by paying back a mortgage (for decades) on a depreciating home is, simply put, a bad business decision not in one’s own self interest. One of the most controversial writers on this subject is Professor Brent White at the University of Arizona whose recent paper entitled ““Underwater and Not Walking Away: Fear Shame and the Social Management of the Housing Crisis,” has been creating quite a debate about the “business decision” angle of home ownership. If you click on this picture you can read it:

Click on this picture to read this paper

Dr. White is not giving advice in this academic paper but he is sending a clear message that individuals sometimes need to make hard-core decisions about paying for a home with little hope of ever making up for lost equity. Sometimes, it’s in the borrower’s best interest to put aside the morality of walking away from a mortgage and focus on one’s long-term financial interests. He suggests that taking the hit on your credit score and several years of higher interest rates may be a small price to pay compared to paying back hundreds of thousands of dollars on a depreciating home. If you want to hear an interesting interview with Dr. White go to: http://www.npr.org/templates/story/story.php?storyId=121911468 which was broadcast on NPR on December 25, 2009.

Some Consequences of “Walking Away”

I’ve had some heated “debates” with a number of writers who are quick to point out that “Wall Street” doesn’t play by the same rules that it expects of the public. Indeed, recently there were several huge corporate entities (Morgan Stanley and Tishman and Speyer Properties) that basically walked away from their multi-billion dollar mortgages. Sure, these corporations aren’t setting the best example; however, when it comes to your financial world I’d like to point out some things you must consider before walking away from a mortgage:

• First and foremost, seek the professional advice of your CPA and Attorney. There are a lot of legal and tax consequences involved in walking away
  
• Know that your credit score may drop close to 200 points by walking away from your mortgage. This is going to result in you paying higher interest rates for loans and may disqualify you from obtaining unsecured credit. Purchasing a car may become problematic
  
• If your home is in a “recourse” state, the lien holder can (and most likely will) sue you for the deficiency between what you home is worth and your mortgage. They can put a judgement on your credit report and possibly seek a garnishment of your wages and other punitive actions
• Many employers disqualify job seekers based on their credit history Worse yet, many employers terminate current employees if they file bankruptcy, experience a foreclosure or walk away from financial obligations

I hope this post has helped you understand some of the issues connected with “strategic default.” If you’re interested in learning more, here are other articles that are informative:

The Wall Street Journal – When It’s OK to Walk Away from Your Home

The Wall Street Journal – Debtor’s Dilemma: Pay the Mortgage or Walk Away

The Huffington Post – Don’t Look Back: Major Players Continue to Walk Away from Poor Mortgages

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The Best of Both Worlds – Print Media and the Internet!

Find Your Favorite Newspaper on “Newseum”

Click on this picture to visit Newseum

OK, I admit it, I’m an information junky! I love current events, cultural/political debate and I’m endlessly fascinated with languages and human communication. I remember how much I enjoyed “current events” assignments in school. I also remember how little information the average person had at his/her fingertips before the advent of the Internet. Ironically, we are now BOMBARDED with so much information (a lot of it questionable) that it’s sometime hard to wrap one’s head around all the interesting/important things going on in the world. How does one get grounded anymore?

I have found that in most of the world today, the majority of people still obtain information via local newspapers. Even though print journalism in the U.S. has suffered the loss of some 40,000 professional journalists in the last several years, most bloggers and “citizen journalists” rely heavily on professional publications of record such as the NY Times (just one example) . So I was excited when one of my college buddies sent me the link to Newseum. Not only can you read daily publications in the U.S., you can find newspapers from around the world:

Newseum Hosts Global Newspapers

Pick a continent, then click on an city to find a newspaper!

If you’re interested in Europe, Asia or the Middle East you can find publications:

LIVORNO, ITALY

BEIRUT, LEBANON

TAIPEI, TAIWAN

It’s humbling to see how many different languages, cultures and world-views there are on our planet. I can read a bit of Italian and some German but most of the world communicates in non-Indo European languages: Arabic, Sino-Tibetan (Chinese and other Asian tongues) and many others. I wish I had another life to learn a few more languages!

I would encourage you to check out this fascinating resource. You can spend forever here!

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An Antidote to Stupidity – Naomi Klein and Barbara Ehrenreich

Quit Listening to Stupid People

My wife and I were in Italy when Sarah Palin was chosen as John McCain’s running mate in the 2008 elections. My relatives turned to us and asked, Chi e’? Who is that? Of course we had no idea then and, frankly, after over a year of undeserved attention and overexposure, I’m still not sure who she is. Even tonight, as she addressed the “Tea Bagger Convention” all she can seem to parrot are worn-out clichés and political half-truths. I am sure of one thing: She’s not the fastest bullet in the chamber. In fact, what so disturbs me about Mrs. Palin is that anyone takes her seriously as a politician, leader or thoughtful person.

In the brilliant book “Outliers,” by Malcolm Gladwell, the author identifies what he calls the 10,000 hour rule. Studies suggest that the key to success in any field has nothing to do with talent. It’s simply practice, 10,000 hours of it — 20 hours a week for 10 years. And you know something, it’s clear listening to Mrs. Palin that she has spent very little time cultivating her intellect (or much else it seems).

So, as an antidote to stupidity, I invite you to watch the  clips below that feature two of the smartest kids in the class, Naomi Klein and Barbara Ehernreich. Both of these brilliant thinkers are not only accomplished authors and lecturers but women who have addressed some of the most important and provocative issues of our time. Ah, it’s nice to listen to smart people:

Naomi Klein – The Shock Doctrine

Barbara Ehrenreich – Bright Sided

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A Conversation On Body, Mind, Spirit, Nature and Medicine

Don’t Miss this Fascinating Conversation at Bastyr University

Warren Etheredge

A series of conversations on Body, Mind, Spirit, Nature and Medicine - Feb. 8

Bastyr University is proud to host a series of conversations examining the intersections of science, spirituality and medicine. The events are presented by the Bastyr University Center for Spirituality, Science and Medicine and will be moderated by Warren Etheredge of The Warren Report.

Event Details:

Where: Bastyr University Chapel, 14500 Juanita Dr. N.E., Kenmore, WA 98028
When: Musical conversation begins at 6:30 p.m.
Moderated conversation is 7 – 8:30 p.m.
Advance Tickets: $15/night, $40 for series
At the Door: $20
Students: $10/night, $25 for series
Dine in Bastyr’s award-winning, vegetarian cafeteria before the conversation. Open until 6:30 before the event.

Spirit conversation:

When: Monday, February 8, 2010
With: Rabbi Ted Falcon, PhD, Terrill Gibson, PhD, and Leanna Standish, ND, PhD, LAc
Music: By Thomas Arthur
Register online for this lecture.

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The Omnivore’s Dilemma – What We Eat Matters…A Lot

You Will Never Experience Food the Same Way Again

Most Americans have no idea how food is produced in the U.S.. Would it surprise you to know that almost everything on the American menu today is based on corn and petroleum? Michael Pollan, the author of The Omnivore’s Dilemma, examines the various food chains that bring food to the American dinner table. What he reveals is both interesting and downright disturbing. A warning: If you read this book, you will never look at what you eat the same way.

Here’s a short video clip of Pollan discussing some of the ideas behind “The Omnivore’s Dilemma”:

Lest you think this book is all about “going vegetarian” and swearing off the modern world, I assure you that the point of the book is nothing of the sort. In fact, Pollan acknowledges that we are, indeed, omnivores which makes our food choices that much more important. It’s how our food is “manufactured” and manipulated by food scientists, large agribusiness and genetic engineering that so disturb him. We have become so far removed from our food sources that we no longer know how it is produced or how far it travelled to arrive on the dinner table.

I hope you can make some time to sit down and read this important book. It will enlighten you and it may even change your relationship to the food you eat.

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The Great Recession – Let’s Review How We Got Here

This Investment (of 15 minutes) Will Pay Off

The populist anger that has been so much in the news lately is certainly justified. It seems as if our elected officials (all of them) have been pussy-footing around with Wall Street far too long and now the public is out for blood. Yes! A revolution is on the way, right? Well, not exactly. Don’t get out your pitch forks and machetes yet.

When the Glass-Steagall of 1933 was repealed in 1999 and investment banks were allowed to speculate (gamble) with your money and mine, these emblematic institutions of capitalism threw caution (and our money) to the wind. In the last several days, there’s been a lot of fighting talk coming out of Washington DC and from the public about reinstituting Glass-Steagall-like legislation and holding the “fat-cats” of Wall Street accountable for their recklessness. Well, I’m not holding my breath.

Now that this issue is back on everyone’s mind, I thought you might benefit by reviewing the Vimeo video entitled Financial Crisis – Meltdown what brought about our current financial crisis. I think it’s important for us to be clear about the fundamentals so that when the politicians, pundits and pseudo-experts talk about the problem, you’ll be prepared to agree or challenge their arguments for yourself.

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Why Buy a Home? It’s a Good Investment, Right?

Buying a Home for the Right Reasons

I am writing this post as a follow-up to my comments back in November of 2008 (Readjusting or Priorities: What’s a House For?) in which I explored the importance of having the proper perspective when buying or owning a home. At that time my neighbors were coming to me concerned about the drop in real estate values. I recall the distinct feeling that instead of speaking with me as a neighborhood Realtor®, they were questioning me as if I was a stock broker!

I’ve been a Realtor® going on 9 years and many people are shocked when I tell them that A HOME IS NOT AN INVESTMENT°. Quite the contrary. In the current market a huge number of homes homes have losing value since 2007 and the most current reports show that almost 25% of home mortgages are “underwater” which is a nice way of saying that the owners owe more than the mortgage is worth. Not exactly what I’d call a good “investment” and I’m not even a stock broker. So for those of you who are planning to buy a home this year, I’d like you to repeat the following:

My 2010 Resolution: I will not buy a home as an investment!

Here’s why: In a recent Wall Street Journal article by Karen Pence, Chief Federal Reserve Economist in charge of the Household and Real Estate Finance Section, summarizes why homes are a lousy investment:

1. It is an indivisible asset. If you own stocks and bonds and suddenly need a little cash, you can sell some of your stocks or bonds but not all. With a home, on the other hand, “you can’t just slice off your bathroom and sell it on the market.”
2. It is undiversified. You can buy stocks or bonds in industries or countries all over the world. A home is a bet on one single neighborhood.
3. Transaction costs are very high when you buy or sell a home because of real estate agent fees, mortgage fees and moving costs.
4. It is asymmetrically liquid, meaning it’s easy to get money out when home prices are going up. (You just take out a bigger mortgage.) But it’s hard to take money out when prices are going down because refinancing becomes more difficult. Put another way, the leverage that you have in your house with a large mortgage means your investment does well in good times but could be lousy in bad times.
5. It is highly correlated to the job market, meaning that home prices in a neighborhood tend to rise when the job market is improving in the area and fall when the job market is worsening. This means that your main financial asset provides the smallest cushion to you when you might need it most.

So Why Buy a House?

Please allow me to revisit an important idea expressed by Steve Kerch, the award winning real estate journalist of Market Watch. This persistent drop in home values should remind us that houses aren’t really “investments.” In his article, entitled Core Values, Mr. Kerch asks us to consider the following:

“At its core, a house is a shelter. Unless the roof caves in, there is always some economic value in that. But most people when they dream about a house or start looking for a house or actually buy one think about value in a whole different way: they think about the fireplace they can gather around with their families, the kitchen where they can show off their culinary skills, the bathroom that they won’t have to share, the schools they will be able to send their kids to, the neighbors they will be able to entertain in the backyard, the parks they can bike and hike and the community events they will be able to attend.”

I believe most people hope that their homes will gain value over a number of years. We all want to believe that it’s “worth it” to buy a house. I also believe that we are connected to our homes by values and emotions that transcend monetary gain. For all of you “bean counters” this may be too foofy a concept so you would do better to continue renting or living with your mother. Just remember that when you’re ready to march out and buy a home, do it for the right reasons. Oh, and get a good Real Estate Professional to help you.

°A home is technically an “investment” when it is revenue positive; that is, one is actually making a profit at the end of the month. This basically means it’s a rental property.

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Mr. Freeze, the Financial Curmudgeon – A Special Report on the New Credit Card Law!

A Victory Against the Credit Card Industry!

Credit Card Companies are SATAN!

I, Mr. Freeze, the Financial Curmudgeon have been waiting many years  for meaningful changes to the Credit Card Industry in America, an industry that is, by its very nature “legalized, usurous loan-sharking.” Today, Mr. Freeze is a happy curmudgeon because the Credit CARD Law of 2009 (officially known as The Credit Card Accountability, Responsibility Act of 2009) goes into effect in February; however, one of its main protections began yesterday: Any notice of a rate increase to existing balances under the new credit card law must be dated no later than yesterday (January 8, 2010), 45 days before the February 22nd enactment of the bulk of the Credit CARD Act.

Let’s Revisit the Law

The Credit CARD Act of 2009 was passed by Congress and signed into law on May 22, 2009 and is one of the most sweeping, consumer credit friendly laws passed since the late 1970’s. Simply put, it is going to end a great deal of the abusive, predatory and unethical practices by the Credit Card Industry which, as you all know, Mr. Freeze  considers SATAN HIMSELF.

In order to help you better understand the provisions of the law, I, Mr. Freeze, have compiled several resources to help you understand the new law.

The first is a list of the law’s provisions presented in Wikipedia:

Cardholders Deserve Protections against Arbitrary Interest Rate Increases.

• Requires card companies give cardholders 45 days notice of any interest rate increases.
• Gives cardholders the right to cancel their card and pay off their existing balance at the existing interest rate and repayment schedule if they get hit with an interest rate hike; gives cardholders 3 billing cycles after the rate increase to say no to these new terms.
• Prevents card companies from retroactively increasing interest rates on the existing balance of a cardholder in good standing for reasons unrelated to the cardholder’s behavior with that card (the so-called “universal default” rate increase).
• Prohibits card companies from arbitrarily changing the terms of their contract with a cardholder, banning the so-called practice of “any-time, any-reason repricing.”

Cardholders Who Pay on Time Should Not Be Penalized.

• Prohibits card companies from charging interest on debt that is paid on time during a grace period. This prevents the so-called “double-cycle billing” practice.
• Prohibits card companies from slapping fees on the remaining interest-only balance of a cardholder who has paid his/her bill on time.

Cardholders Should Be Protected from Due Date Gimmicks.

• Gives cardholders time to pay their bills by requiring card companies to mail billing statements 21 calendar days before the due date (14 days is the current minimum).
• Requires that payments made before 5 p.m. EST on the due date are considered timely.
• Requires the due date to fall on the same day each month. If the fixed due date normally falls on a Saturday, Sunday or legal banking holiday, then the due date shall be pushed back to the next business day after the date. This measure prohibits due dates to fall on a weekend or holiday.
• Directs card companies to provide on every statement, a phone and internet address that a cardholder can access for payoff balances.
• Prohibits card companies from charging late fees when a cardholder presents proof of mailing his/her bill within 7 days of the due date.

Cardholders Should Be Protected from Misleading Terms.

• Prevents card companies from using terms such as “fixed rate” and “prime rate” in a misleading or deceptive manner by establishing single, set definitions of those terms.
• Gives cardholders who get pre-approved for a card the right to reject that card up until the moment they activate it without having their credit adversely impacted.

Cardholders Deserve the Right to Set Limits on Their Credit.

• Requires card companies to offer consumers the option of having a fixed credit limit that cannot be exceeded.
• Prevents card companies from charging over-the-limit fees on a cardholder with a fixed credit limit.

Card Companies Should Fairly Credit and Allocate Payments. (Title I, Sec 104 (4))

• Requires card payments to be applied to the debt with the highest interest rate first (after minimum payment). Most card companies currently require cardholders to pay off a lowest interest rate balances first.

Card Companies Should Not Impose Excessive Fees on Cardholders.

• Limits the amount of “over-the-limit” fees card companies are allowed to charge to 3. Some card companies currently charge limitless fees for going over credit limits.

Vulnerable Consumers Should Be Protected From Fee-Heavy Subprime Credit Cards.

• Requires that all fees for subprime cards, whose total fixed fees over a year exceed 25 percent of the credit limit, be paid up front before the card is issued. These cards are generally targeted to vulnerable consumers.

Finally, Mr. Freeze believes you’ll find Frontline’s superb documentary entitled:

THE CARD GAME. Just click on the picture to watch this informative and provocative story:

Click on this picture to view THE CARD GAME

THE LESSON IS – DON’T USE CREDIT CARDS

Mr. Freeze, the Financial Curmudgeon has been preaching about the EVIL OF USING CREDIT CARDS for the last 20 years. Let’s face it, as a culture Americans have been living on debt for far too long. Now, in the first decade of the 21st Century, we have come to a precipice of never-ending servitude to the venal and cynical power of the Credit Card and Banking Industries. So much for land of the free……I’m afraid that all the preaching, yelling and educating will not solve our collective debt crisis. A huge number of Americans will never learn the wisdom of living within their means and they will plunge off that precipice with their families. Tragically, everyone will suffer…..except the corporate loan sharks.

For more information about the new Credit CARD Act of 2009, here are a number of other helpful links:

• The Wild West of Credit Cards Can’t be Tamed by Laws Alone
• 8 Major Benefits of the New Credit Card Law
• The White House Fact Sheet regarding the Credit CARD Law
• Credit Card Reform Timeline

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Bastyr University – Kenmore’s Greatest Asset!

Thinking Out Loud about Bastyr University

In a recent press release by Bastyr University, it was announced that the City of Kenmore approved a master-plan which will nurture a greater level of cooperation between this famous University and the city. Click on the link below to read the whole press release:

KENMORE CITY COUNCIL UNANIMOUSLY APPROVES BASTYR UNIVERSITY MASTER PLAN

To me, this is really good news. There is no other institution in the City of Kenmore that commands national and, indeed international recognition as Bastyr. I feel it’s time to take the relationship one step further and have the city leadership approach Bastyr with a plan to create a satellite campus in the current Kenmore Village. This is not my idea. I’ve spoken with a number of residents who believe this would be both feasible and beneficial to everyone.

Think of the possibilities: The University could offer classes and also have a “store front” that might offer acupuncture, homoeopathic or herbal medicines and other products/services that are a reflection of Bastyr’s mission!

I would love to hear any other ideas Kenmore residents have about forming a deeper relationship with Bastyr University. Oh, and for some other Bastyr news:

BASTYR UNIVERSITY HOSTS 12TH ANNUAL SPLASH AND DASH
Students, faculty and staff plunge into new year with icy swimming tradition

These are some tough honchos and honchettes!!!!

ATTEND THE INNOVATIVE SERIES: BODY, MIND, SPIRIT, NATURE AND MEDICINE

BASTYR HOSTING SERIES ON SPIRITUALITY AND HEALTH
Events presented by the Bastyr Center for Spirituality, Science and Medicine

The Bastyr University Center for Spirituality, Science and Medicine is pleased to present “Body, Mind, Spirit, Nature and Medicine: A Series of Conversations.” This innovative series brings together Bastyr experts and leading local authorities on physical, mental and spiritual health to discuss how each focus area is vital to whole-person health and health care. Presented in early 2010, the three talks will focus on “body,” “mind” and “spirit” respectively. They will be moderated by Warren Etheredge, founder of The Warren Report.

The Jan. 11 talk will focus on “Body” and include the perspectives of Seattle physicians Christine Adams, MD; Cathy Rogers, ND; and internationally recognized mind/body expert Joel Levey, PhD. The Feb. 1 event will cover “Mind” and feature Bastyr University faculty member Brad Lichtenstein, ND; Seattle naturopathic physician Sheila Dunn-Merritt; and Robert V. Taylor, author of I’m Spiritual Not Religious: Making Sense of Finding Meaning. The discussion on Feb. 8 will revolve around “Spirit” and include Rabbi Ted Falcon, PhD, co-founder of Bet Alef Meditative Synagogue in Seattle; Terrill L. Gibson, PhD, pastoral psychotherapist; and Leanna Standish, ND, PhD, LAc, FABNO, medical director of the Bastyr Integrative Oncology Research Center (BIORC).

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