Spotlight 05-03-11, Vol. 73, No. 16

Posted by Elizabeth Walker 
on May 03, 2011
 

Program:

Program Host Scott Griffith discussed “The Mortgage Crisis.”

 

Brighton Rotary Spotlight

Jeremy Jones, President

May3, 2011, Vol. 73, No.16

 

Guests:           Rachel Bhathena, wk4; Carol Griffith, Howell Rotary; Kathy Bradbury, Guest of Brian Parsons.

 

Announcements:

District #6380 Conference in Traverse City was a success last weekend.  Jeremy Jones, Jane & Mike McManus and Pam McConeghy represented our Club well and shared highlights from the weekend, including that the Polio Plus efforts have entered the home stretch, but that we still need to work to finish the job of eradicating polio.  Next year’s conference will be in Holland, MI, from April 20-22, 2012.

Great Job Rotary Raiders with the Labor of Love projects at the Coy house!! A nice article and photos documenting everyone’s hard work appeared in Sunday’s Livingston County Daily Press & Argus.  Two more ramps are on the horizon, so stay tuned for details….

Mark your calendars for the next Red Linenkugel New Member orientation on May 18th at Leaf, Barley & Vine from 5:30-7:30pm.  Julie Blankenship circulated a signup sheet.

The Scholarship Committee will meet at the Brighton High School Counseling Office on Monday, May 16, at 12:45pmto interview the top candidates. All Rotarians interested in joining this committee to select the 2011 scholarship recipients should contact Cathy Riesterer.

March of Dimes Walk for Children was May 1st at Kensington MetroPark, and several Rotarians were on hand to make our checkpoint one of the most popular.  Special thanks to Bill Anderson for all of his organizational efforts!!  Raffle Tickets for a Ford GT Mustang are available from Bill today for Friday’s drawing at a cost of $10 for one chance, $20 for three.

The Brighton District Library is hosting a “Stroll Around Town” event on Saturday, May 14th, beginning at 9am to benefit Early Childhood programs and activities. The walk will begin at the Library, proceed down Grand River to the Chamber of Commerce’s “Trinkets & Treasures” event on Main Street, past the Farmer’s Market, and back to the Library.  Nancy Johnson shared flyers and registration forms at today’s meeting, and more information can be found by emailing stroll@brightonlibrary.info or calling 810-299-6571, ext. 211.

Guest Kathy Bradbury shared information about the “Take Steps, Be Heard, Walk for Crohn’s & Colitis” on Sunday, May 15th, from 5-7:30pm at Camp Dearborn.  Sponsors, volunteers, and participants can register at www.cctakesteps.org or contact Kathy at 810-599-0906 or Stephanie Gregory at 248-737-0900..

The Rotary Youth Leadership Awards  (RYLA) 2011 registration forms are available for young leaders in our community from the district website www.rotary6380.org.

Upcoming Events:

05/16/11    12:45pm          Scholarship Interviews at Brighton High School

06/28/11                            President’s Night

 

Program:

Program Host Scott Griffith discussed “The Mortgage Crisis.” In an attempt to help us understand the history behind the mortgage crisis, Scott discussed how Fannie Mae and Freddie Mac were created in a government attempt to ensure mortgage liquidity for consumers.  As time passed, Freddie Mac & Fannie Mae grew larger and larger such that legislators wanted to have approximately three percent of funds retained as reserves, just as a bank is required to maintain to protect investors.  Freddie Mac & Fannie Mae ignored this desire and began to view themselves as a private business—making riskier loans in 2006 & 2007 to capture close to 90% market share.  When the “bubble burst,” the government had to rescue the two entities, and several new laws were passed to prevent a reoccurrence.   The market has tightened considerably at this point, and it is difficult to get the ‘pendulum moving again.’ Current government initiatives encourage ‘housing opportunities,’e.g. renting rather than owning, especially if inflation continues to rise.  The current administration faces three options: 1)  allow large banks to handle all mortgages, but this could be a problem when money gets tight and no mortgage money will be available;  2) allow the government to control the whole industry, or 3) keep Fannie Mae & Freddie Mac, but maintain an explicit government guarantee that will help maintain a secondary market for mortgages.

 

Progressive 50/50 Drawing:  $1,085 pot and 21cards remain.  George Moses drew an Eight of spades, Greg Strouse drew a Two of hearts, and Beth Walker drew a Queen of spades.