In the past month I have seen two movies on DVD that I thought were exceptional, both in the information that was communicated and in the easy-to-understand and interesting manner in which it was presented.

The first is “FOOD, INC.” This is a look at our modern day corporate food chain and the impact it has on our personal freedom and our agricultural heritage. It also provides a logical reason for our government’s failure to stem the tide of illegal immigration. After seeing the movie I had a much greater appreciation and sense of gratitude for all of the people in the North Valley who provide the weekly farmers’ markets in our local communities.

The second movie on DVD is Michael Moore’s new film, “CAPITALISM: A LOVE STORY.”

I have made a point of investigating the current financial meltdown that has had such a devastating affect on all of us in the North Valley, and I thought Moore’s film was a very good summary of the power and impact a few people have had on the everyday lives of each and every one of us.

I think anyone concerned with what is happening to those of us who live in the North Valley should see both of these films.

There is new legislation being considered in our nation’s capital that would affect the way you purchase securities and insurance products like annuities. The Senate Banking Committee sent a massive Wall Street regulatory bill to the full senate after a vote of 13-10. This is the same committee that led the fight to repeal the Glass-Steagall Act. The Glass-Steagall Act prohibited the banking industry from conducting the very business that created the current financial disaster.

The group Consumer Watchdog reports that in the first nine months of 2009, 2,567 lobbyists for the financial sector spent $336 million to lobby congress. The same group reports that the Senate Banking Committee members have received $41.9 million dollars in campaign contributions from PACs and individuals in the financial sector since 2005. I believe that the contributions to the Senate Banking Committee beg for the question to be asked: What would you be willing to do for 40 million dollars?
Much to the benefit of us all, the economy is still improving. The U.S. equity market has increased by 70 percent during the past 12 months. Nationwide, home prices declined by only 1.2 percent in 2009. This is the lowest decline in the past two years.

Freddie Mac has decided to stop accepting interest-only loans beginning in September of 2010. Approximately 70 percent of Freddie Mac’s existing interest-only loans were made in 2006 and 2007. The estimated current loan-to-value ratio on the existing interest-only loans at Freddie Mac is 106 percent. That means the average interest-only loan at Freddie Mac is 6 percent higher in value than the value of property it encumbers. Having a loan value greater than the value of the property is not a great incentive to continue making one’s mortgage payments.

My hope for all of us is that the current improvement in the economy will continue long enough for those of us in business in the North Valley to begin to both feel and experience a sense of security and optimism about the future, rather than the fear and pessimism that seem so prevalent in our business community. I believe with all my heart that “attitude is everything,” and I further believe that everything in our world will begin to change for the better as the attitudes of the people in our community turn more positive.

Jack Van Rossum C.C.I.M. is an independent real estate broker in Chico. He can be reached at 530-342-6915 or at jrossum@sbcglobal.net.

By Jack Van Rossum