OK, President Obama--Let's Get Moving!

I've been reading a lot about the TARP program (giving capital to banks so that they'll lend it out). One commentator today in the Times was saying that the banks aren't using the money to lend any extra; they're just holding onto it in case they have losses and need to boost their capital ratio. As Homer Simpson would say, "Doh!". If you give me some money to buy a present for myself, and, at the same time, warn me that I may have unexpected expenses over the next year, would you be surprised if I didn't spend it?

I think it's time to bring back the "bad bank" concept, used successfully in the late 80s and early 90s with the Resolution Trust Company, and even used in the Great Depression, as the Homeowners' Assistance Corporation. If the government took the rest of the TARP money and "bought", for some number of cents on the dollar, bad assets of the banks, then investors wouldn't be so skittish about investing in banks, stock prices and confidence would go up, and credit might start to flow a little faster. If you remember, those entities came out fine in the end; it just took some number of years to dispose of the troubled assets. We may not even be talking about a permanent loss, just a fix for the peace of mind of bankers and stockholders.

While we're waiting for something to happen, why not see some theater? We saw the world premiere of Athol Fugard's new play at Long Wharf Theatre this week. Coming Home is a beautifully acted, beautifully directed production. Although it's sad, it tugs at the heartstrings in unexpected ways. This makes two stellar premieres in a row for LWT, following the unforgettable Civil War Christmas, by Paula Vogel. I may not be objective on LWT, but I certainly am in the majority on these two shows. Treat yourself--see something warm on a cold night!

2009 Can't Come Too Soon

We real estaters are eagerly awaiting the drop of the ball in Times Square, so that the page can turn from 2008 to 2009, when we fervently hope that consumers will start buying real estate again. On my run this morning, I was explaining to one of my friends that it DOES make sense to trade up, since he will save more on the new house than he will "lose" selling the old one in this market. When will people stop putting their lives on hold? Of course, I'm biased.

I've been thinking a lot about consumer behavior over the past few days. We went to see Frost/Nixon in the Connecticut Post Mall, and discovered that the world is indeed still flocking to malls, or at least they were there, searching for bargains, on the day after Christmas. Movies seem to be attracting crowds, as we've seen on our movie binge after Christmas. In addition to Frost/Nixon, we saw Milk and Doubt. Of the three, Milk stands out as an amazing film; of course, I did see the play versions of the other two, so the suspense wasn't there. We saw all those movies after seeing several plays in a row at the start of the month. We loved A Civil War Christmas at Long Wharf Theatre, Rough Crossing at Yale Rep, and Mamma Mia at the Shubert, plus I also enjoyed Sister's Christmas Catechism at Long Wharf. It's amazing to be able to live in a small city like New Haven and see such a broad diversity of great theater. A Civil War Christmas, in particular, I expect to see popping up all over the country in the next few years--but we saw it here first!

According to other friends, liquor is selling, beauty salons are doing well, and restaurants seem to be holding their own. The last fact really puzzles me, and maybe it's not true. It seems as though eating out would be the first luxury to go, before you stop buying cars and clothes. I went into a clothing chain store yesterday, and the clothes seem to be selling for less than the cloth alone would cost. I'm glad that all you need to run is a pair of sneakers!