My 401(K) Statement Came Postage Due; Is That a Bad Sign?

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‘Tis the season; like many folk I’m getting statements in the mail with the bad news about our retirement (I’m guessing that I’m not alone in getting multiple statements: I have a Rollover IRA, Nancy and I both have Roth IRA’s, I have a 401(K) from Vitas and a 403(B) from SDHIPM, and Nancy has a 403(B) from UCSD).

I’m certainly not the only one who’s portfolio is bleeding copious amounts of money, but it is upsetting to see that while we’ve been contributing generously, the value of the funds have gone down. I don’t see either of us retiring for at least another 12 to 15 years and in that sense we’re in good shape. As a matter of fact, this is a good time to buy stocks and I’m confident we’ll look back on this and be happy we stayed the course.

The financial meltdown that we’ve all be watching is troubling because it happened, but also because of the reaction. There’s enough finger pointing to go around, and let me add my two cents: It’s everyone’s fault. It’s not just the greedy investors, it’s not just the politicians who demanded that all this stuff be deregulated, it’s not just the people who lied on their mortgage applications, it’s not just the mortgage brokers to told first time buyers not to worry about the adjustable rates, and it’s not just the buyers who didn’t have a plan if the rates went up. It was all of them.

Now I’ll freely admit that Nancy and I have been lucky: we bought our house in 2001 with a fixed rate and refinanced in 2003 to get a better interest rate. We live in a wonderful house in a wonderful neighborhood that we could only have afforded because Nancy’s father lives with us and owns half the house. BUT we bought what (actually less than) we knew we could afford. I saw the monthly house payment and knew that every month for the next 360 months I would have to have enough money in the bank to write that check and I didn’t sign anything until I was sure I could do it. Not everyone did this.

Now come the recriminations, and I have to say that I have the right to be screaming the loudest. As a taxpayer I’m partly on the hook for a $700,000,000,000 bailout when I did nothing wrong. And yet I support this. There is a quotation I love (but whose source I can’t find) that states: “Not everyone is at fault but everyone is responsible.” In other words, despite the fact that I’ve followed the rules and done what I’m supposed to do, I do feel a responsibility to be part of the solution.

I do believe that we can’t do nothing. For better or for worse our economy depends on the availability of credit and we can’t function without it. To allow this to “take its course” would lead to massive layoffs and unemployment. Both Nancy and I work in healthcare and our jobs would be pretty secure but that’s of little comfort if we see friends who work in retail or service jobs lose everything.

There is no way to talk about this without acknowledging the long shadow of the Presidential campaign. We choose a new leader in 23 days and we must choose wisely. I honestly believe that Senator Obama is better able to deal with this than Senator McCain. He and his supporters (Phil Gramm being the most obvious) have been the architects of the problem. We now need architects of the cure.

Some Days It Doesn't Pay to Think Congress Can Get It Right

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I’m writing this as I watch the news about the failure of Congress to approve the $700,000,000,000 bailout plan. This morning it looked like it would narrowly pass but when the votes came in, it was 12 votes short.

Now, of course, both parties are running for cover and looking for ways to blame the other side of the aisle. I’m an unabashed Democrat and I see this through that lens, but the most incredible part of this for me is the Republican spin that some Republicans voted against the measure at the last minute because of Nancy Pelosi’s remarks. Here is the paragraph from the CNN web page:

House Republican leaders blamed Nancy Pelosi, the Democratic Speaker of the House, for the bill’s failure, saying she had scuttled a bipartisan compromise with a “partisan speech” shortly before the vote. Pelosi started her speech by citing “the Bush administration’s failed economic policies — policies built on budgetary recklessness, on an anything-goes mentality with no regulation, no supervision and no discipline in the system.”

You can see Speaker Pelosi’s words here; regardless of what you think of her remarks, it’s hard to imagine that this bill died because Nancy hurt the feelings of the Republicans. By the way, as we listen to the Republicans blaming the Democrats, it’s helpful to note that 95 Democrats voted against the bailout, while 133 Republicans did.

But that’s what we have. Meanwhile, the party that demanded deregulation of the banking industry is doing its best to say nothing is their fault. Whatever happens is going to be of little value to those who lose their jobs and aren’t high enough to have golden parachutes.

Barack, we need you now.

The Democratic Covention: It's a Good Listen

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I’m writing this just after listening to Hillary Clinton speak at the Democratic Convention. There’s no shortage of cynicism about these conventions and how they are tightly scripted for television. No argument. But I love these things because it’s a good place to hear good oratory. This says a great deal about my past as a priest but I love the power of the spoken word and there’s nothing like a good sermon or speech to stir my blood.

It was four years ago at the 2004 Democratic Convention that I first heard Barack Obama speak and I still have that speech on my iPod. When I heard him speak I knew someday I’d vote for him for President and four years later I will. There are a number of reasons I support him, but his ability to speak and inspire is certainly among the top reasons.

He has yet to speak at this convention but the speeches I’ve heard so far continue to inspire me. I appreciate that Hillary made a point of saying that she will vote for Barack.

Enough for now.

It's a Dodger Weekend

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Many of you know, and others have suspected, but Nancy and I are a mixed marriage. Baseball didn’t mean much to me growing up as the Washington Senators moved out of town in 1971, but I’ve rediscovered the game since moving to San Diego and I’m a Padres fan. Alas, even though Nancy grew up in San Diego she has always been a Los Angeles Dodgers fan. I have a hard time rooting for a team I can’t see play often and Nancy can’t buck all the years of bleeding Dodger blue.

Most of the time she has to resign herself to watching the Padres play but this weekend we are in Los Angeles and have just come home from seeing the Dodgers resoundingly beat the Washington Nationals. It was a terrific game on many levels. Our seats were wonderful, the people around us were fun, and best of all, the Dodgers won. Their starting pitcher Derek Lowe can run hot or cold depending on the day but tonight he was hot. He pitched 8 innings and allowed only one hit and one walk. His sinker was sinking like crazy and he was almost unhittable. This was combined with strong hitting by the Dodgers and it made for a game that was not ever really in contention.

It’s also fun being in LA for the weekend. Work has been crazy for the both of us but I can’t take any time off right now; this quick trip was the best we can do. But it’s a nice break from the routine.

Final Score: Skunk 1, Cat 0

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As many of you know, Nancy and I are supervised by an 18 year old cat, Kirby. Lately he’s been showing his age and now every morning I have to give him blood pressure medication. Lovely. Anyway, last night he decided to “make friends” with a skunk who had gotten into the backyard. It didn’t go well for anyone, except perhaps, the skunk.

If anyone is interested, the old standby, tomato juice, does not work. The recipe for getting rid of the smell is not, as you may think, tomato juice. Here’s what you do: 4 cups Hydrogen Peroxide, 1 cup Baking Soda, 1 teaspoon dish soap. Now for the fun part: mix them together and rub them into the cat’s fur. That’s right: mix a liquid into the cat’s fur. It combines all the fun of giving the cat a bath with the added benefit of using a liquid that burns his eyes. Fortunately the skunk did most of his damage on Kirby’s paw and we didn’t need to do much to his face.

Now to get the smell out of the house….

Thoughts on $4.50 per Gallon for Gasoline

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In the last few months there’s been a great deal of publicity concerning the high price of oil and other fossil fuels. Maybe I’m treading in dangerous waters as a Prius driver, but it’s hard to see what part of this is surprising.

Since World War II the incidence of private car ownership has skyrocketed; before then you really had to have some wealth to own a car (and during the War there was essentially no production of cars). Also since the 1950s this country has build the greatest network of interstate highways in the world. This combines to make it remarkably easy to drive to nearly any part of our country; for my part I’ve driven cross country 3 times and found I could easily do this in about 5 days.

Additionally plane travel has gone mainstream. From 1937 to 1978 the Civil Aeronautics Board regulated routes, fares, and schedules. There were relatively few airlines and air travel was so expensive that it was reserved only for the wealthy or business travelers. Since then the government stopped regulating air travel; this has led to a dramatic drop in prices and an increase in the number of airlines. Air travel is much more affordable to a much larger population.

These two changes have led to dramatic changes in our lifestyles. We Americans are used to going to Europe or Hawaii on vacation, buying timeshares as a way to see new areas, and move away from family secure in the belief that we can be there in a matter of hours if necessary.

Now that oil, which everyone agrees is a limited and nonrenewable resource, is getting expensive, this may change. We may find in the next few decades that we are going back to being limited in our mobility. We are already seeing the growth of “staycations” instead of vacations (admittedly an easy thing to do in San Diego).

Meanwhile, our President and his cronies, continue to fiddle and count their money. Their solution is to find new places to drill for more oil. The amount of oil they will find is negligible and won’t make much of a difference. The idea of conservation or alternative sources of energy simply aren’t on the table.

This is not a good time to own a Hummer.

Happy Loving Day!

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Today is an important anniversary in the world of love, as well as the history of Virginia, where I grew up. On June 12, 1967 the Supreme Court ruled that states cannot prohibit couples from different races from obtaining marriage licenses. Sounds obvious now? It wasn’t once upon a time.

In 1958 Richard Loving married Mildred Jeter. Richard was white and Mildred was black; they lived in Virginia and could not obtain a marriage license so they traveled to Washington D.C. and married there. Upon their return to Virginia they were arrested; it seems it was against the law for them to even be married in Virginia. They violated the “Racial Integrity Act” (it wasn’t called the “Defense of Marriage Act” back then). In 1959 they were found in violation of the law and sentenced to prison but were granted a suspended sentence if they left Virginia for 25 years. They moved to Washington D.C. and filed suit. Finally it was heard by the Supreme Court and on this day the Court ruled unanimously that laws prohibiting interracial marriage are unconstitutional. You can read the opinion here.

Tragically Richard was killed in a car accident in 1975. Mildred passed away last month and they are buried together in Saint Stephen’s Baptist Church Cemetery in Central Point, Virginia.

God Bless them.

Old Men Dream

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No, the subject of this post does not acknowledge the fact that my gray hair and beard allow me to order from the senior’s menu at Coco’s Restaurant and Denny’s without being asked if I qualify.

Old Men Dream is the title of the book I’m currently reading. It was written by and old and dear friend, Pete Fullerton. If you’re of a certain age you may remember him as the bass guitarist of the 1960s folk group We Five. I first met Pete and his family in 1983 when I was a student at St. Patrick’s Seminary. After some hesitation I got involved in the Youth Ministry Program at St. William’s and St. Nicholas’ Catholic Churches in Los Altos, California. The two parishes combined and hired Greg Kremer as the Youth Minister. Pete and his wife Sue were an integral part of the ministry and I soon became friends with them and their 5 children. It’s hard to believe that it’s been 25 years.

When I first met Pete and Sue he was working for Lockheed and doing some charity work as he had time. A few years later they made the decision that Pete would devote his full time to the charity, Truck of Love. They do incredible work and I’ve been blessed to be able to support it; please check out their website. In 1997 after much prayer and discussion, Pete decided he wanted to live as a homeless person for a few months; Old Men Dream is his chronicle of this experience. Pete has always been a deeply spiritual man and he took the name “Old Man” from the Biblical Book of Joel: “Old men shall dream dreams and young men shall see visions.” As I read this book I’m finding that it’s surfacing all sorts of memories, and thoughts about his journey. Here they are in no particular order, save the order that they come out of my brain:

  • I’ve always been amazed at the simple courage Pete shows. We all claim to believe that God will take care of us and has our back, but Pete lives like he believes it. I’m ashamed to admit how much time and energy I spend making sure my stuff is safe. There is a point in his book where he is robbed of a few dollars and some food; it’s not much in the grand scheme of things, but when you’re living on the lowest rung it doesn’t take much to be devastating. Rather than act with anger or seeking revenge Pete reflects on what he can learn from this and how he can use this experience. There is a unique cruelty in the homeless from stealing from each other but other homeless people provide the easiest, and perhaps the only reasonable targets.
  • I can’t even begin to list all the thing Pete has taught me but the lesson I use the most is this: everyone has eyes and I try to look everyone in the eye, no matter the encounter. Think it’s obvious? OK, next time you’re at a restaurant and the server reaches around you to remove your empty plate (so he can wash it), see how deliberate you have to be to see what he looks like. I try to pick up the plate and hand it to him; sometimes it works and sometimes it doesn’t. If Pete were a priest he would excellent at hearing confessions because he has the ability to extend his trust and love within the first few words.
  • This is related to the previous point, but he has the gift to make anyone feel important. I’ve done some work with the homeless and I know that for many of them the most crushing part of life isn’t hunger but loneliness. I find much the same in hospice. Just today one of my patients joked that several people don’t call her anymore because they assume she must be dead by now. Many patients feel the crush of loneliness because they are too sick to go out, but are also not visited as often because they are seen as “not quite as alive as the rest of us.” This is particularly true with people who suffer from Alzheimer’s or other dementia. They can’t carry on a conversation anymore and may not be the person we once knew, but they still have not lost their need for connection.

More later, I’m sure. If you want to buy the book, it’s available only through the Truck of Love website.

Pausing to Remember Those Who Served (and Those Who Still Serve)

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Today is the annual commemoration of Memorial Day. It used to be celebrated on May 30th but now it has been moved to the last Monday of May. When I wrote this tribute last year, we had lost 3455 troops in Iraq. As I write this we’ve lost 4083. I pray next year the number will be dramatically smaller. It’s a good day to thank a vet.

Presidential Candidate Shuffle

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OK, several months ago I started keeping track of who is running for President this year. I wanted to list not only the Republican and Democratic major candidates, but (to the best of my ability) anyone who is running. Simply put, this has appeared to have gotten away from me.

Republican Party Since I started this, John McCain has appeared to have wrapped up the Republican nomination. His major opponents have withdrawn and endorsed him but this hasn’t stopped some of the other candidates. I’ve removed their webpages; Alan Keyes moved to the Constitution Party but he lost the nomination there too.

Democratic Party Conventional wisdom has Barack Obama winning the nomination though it appears that Hillary Clinton is not entirely out of the race. It’s a close call but I’ve left both of them on.

Constitution Party This is where Alan Keyes went when he realized he wasn’t going to win the Republican nomination. They held their nomination on April 26th in Kansas City and nominated Chuck Baldwin. I’ve removed all candidates from the party except Chuck.

Green Party Their convention is scheduled for July 10th to 14th in Chicago. So far the frontrunners are Cynthia McKinney and Ralph Nader. They are so much ahead of the other candidates that I’m listing only them.

Libertarian Party They will hold their convention later this month in Denver. On their website they list the top four candidates: Bob Barr, Wayne Root, Daniel Imperato, and Michael Jingozian. I’ve removed the other candidates.

The other parties (Socialist, Prohibition) don’t appear to have conventions, or at least have chosen their candidates by acclimation. Independent candidates, by definition, don’t need to be nominated and I’ve left them alone.

Stay tuned, and let me know if I’ve made any errors.