The Power of One...Everyone can Make a Difference!
Posted in Real Estate Trends By Stefan Swanepoel, Monday, October 13, 2008.Despite congressional passage of the historic $700 billion bailout legislation, which was signed by President Bush on Saturday, Oct. 4, the Dow Jones Index tumbled 22% last week; the worst week in its 118 year history.
Some calculations indicate that since the beginning of the year U.S. corporations have declined about $8 trillion in value ($20 trillion to $12 trillion) and we have seen giants stumble and fade like Countrywide, Washington Mutual, Indy Mac Bank, Lehman Brothers, AIG Insurance and Wachovia.
The current headlines read: Credit Crisis, Financial Meltdown and Stock Market crash.
It all reminds us so much of the year 1906; 102 years ago.
The city San Francisco had just been savaged by a major earthquake measuring 7.8. Over 30 fires caused by ruptured gas mains destroyed approximately 25,000 buildings in 490 city blocks causing a firestorm that lasted for four days and nights.
The event became the greatest loss of life from a natural disaster in California's history.
In the wake of this calamity one man took a stand and on behalf of his bank to help rescue the situation. He was Amadeo Giannini, the founder and President of Bank of Italy. Following the earthquake he sent out a telegram to his clients stating:
“Building Destroyed – Vaults Intact – Credit Unaffected.”
The following day he opened for business and despite circumstances loaned money to as many people as he could to facilitate rebuilding the city, the businesses and thousands of people’s lives.
He continued to create the first state-wide branch banking system and in 1920 renamed his bank, Bank of America. By 2008 Bank of America had become one of the Top 10 banks on the world, and according to assets the largest in the U.S.
What an inspirational story of success and the difference one person can make.
Who do you think, person or company, will be the success story of the current crisis?
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Submitted by Carmen Multhauf on October 13, 2008 - 1:25pm.
What a difference 100 years makes. Giannini had a "vault" where money was kept. Today the lender sells the loan before the ink is dry. And over the last few years it was "parts" of the loan that were packaged into MBS's and split up all over the world. So to whom do we go to modify the loan? The billion dollar question is "How do you unravel an MBS to get to the loan in trouble?"This does not even touch on the fairness of helping some homeowners but not those who are sacrificing to make their payments. It was much easier in the San Francisco of 1906.
Carmen Multhauf, CEO
Generational Housing Specialist Council
Submitted by Shannon Ziccardi on October 15, 2008 - 11:19am.
It seems I have become a cheerleader lately for those offering up positive and inspirational posts v.s. those who hammer readers with the often heard lately drumbeat of doom and gloom. Thank you so much for your addition to this sometimes hard-to-find gem I call GOOD NEWS!!
"A Quick Note"
www.aquicknote.net
Submitted by Glenn Ginsburg on October 16, 2008 - 11:20am.
Interesting tidbit of information about Amadeo Giannini - one does have to ask the question of who or what company will emerge as a hero during or after this crisis.
Glenn Ginsburg
A Delta Realty
Bonita Springs Florida