Soundings (8/3/10)
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Flag Salute and Invocation by Bill Gorman
Visiting Rotarians: Julie Something from the Big Club, and Zachary Jones!
Guests: Zachary introduced local Whidbey bank branch manager George Alvarez, and also Carina Something (works with Zachary in Lynwood). Scot Swanson introduced a coworker.
Announcements:
Trivia: There are 34 Rotary zones in the world, only 10 of which reported membership growth. Eastern Europe and Korea are two of the fastest growing zones.
Next week there will be no meeting at Northwood Hall, the meeting will be a box lunch tour at Hospice House. Parking will be a problem! Please carpool if possible.
Golfun District 5050 event on Aug 21 on Whidbey Island.
Committee sign up sheets on the tables. Please make sure you are on at least one committee!
Eddie Hansen – Our annual Crab Feed coming up Thursday Aug 12th at his home. Please sign up to attend - bring the kids!
Reminder: The International Services committee is organizing trip to Copan, Honduras in January for our school lavatory construction project. Please see Bob Moles if you are interested to partake in the trip and volunteer. There is a $500 non-refundable deposit.
Connie Lewis from Everett Port Gardner club sent us the following message regarding the "District 5050 ShelterBox Program": On Saturday August 7th through 8th, a group of Seattle architects will be riding their bicycles from Seattle to Vancouver B.C. via Chuckanut Drive with an overnight in Fairhaven. at about 7pm they will be eating dinner at Mambo Italiano. Please announce this 'passing through' at your next club meeting to see if any of your members would be willing to be at the restaruant when they show up and simply thank them for their efforts?ShelterBox was founded in 2000 by a Rotary Club in the UK as its Centennial Project and is an international disaster relief organization that provides shelter, warmth and dignity to survivors of natural and other disasters. Contact: Connie Lewis, NW Region Manager/ShelterBoxUSA 425-471-4222.
Bucks in the Bay
- Bill says good to see Zachary again;
- Lynn Templeton's new grandson born 9 lbs!
- John Sleeth finished the primary season mailings!
- Matt Rose for missed meetings while on Lummi Island, some urban farming stories;
- Pete Rittmueller on new crabbing rules, back from Sitka, and upcoming birthday!
- Tonja Myers glad to see Zach, St. Francis celebrating 25 years on the 15th with BBQ and antique car show;
- Steve Kimberly also back from Sitka;
- Barry Kramer sad for passing of John Powers;
- Alan Stockbridge back from Utah and CA;
- Jim McCallum said Curt Smith got through surgery successfully;
- Stan Dyer also visited Curt, and reported the passing of his brother-in-law's mother who lived in the same house for all of her 105 years;
- Patti pround of new grandson George Paul Kimberly, hopes to get new Sergeants on her list!
- Gordon Plume sad for John Powers;
- Zachery Jones has $80 for missed meeting, sad to leave Bellingham;
- Donny Rubinack back with son baseball in Montana, long road trip!
- John Templeton says "No jouney is long when travelled with friends".
Sergeant at Arms with Denise Bosman
Her cat got attacked by a hawk, went wakeboarding with Matt Hassleback and Josh Brown while having larengitis. Fines for Hawaii flights, having a sister, who Ally picked? Cadillac Escalade the number one car to be stolen, fines for Dannon re. skateboarding, Scott Walker, and we miss Zach.
Program
Dennis serves on the board of Bank of the Pacific; he introduced CEO Dennis Long. Dennis gave a slide presentation "What's going on with banking today?" There were 140 bank failures in 2010, but 534 failed during the recession in 1989! But there were a lot more banks then. There are currently about 800 "problem banks" nationally. WA State failures there have been 12 so far with probably 8 to 10 to go. The "Texas Ratio": There are 16 banks in WA State currently with "problem ratios" over 100%. As for percentage of banks in trouble, WA is in second place behind only Arizona!
How did we get in such trouble?
1) Real estate;
2) Ease of credit;
3) Investment banker greed;
4) Global demand;
5) Credit default swap;
6) Collateralized debt obligations;
7) Greed of mortgage bankers;
8) Borrowers' greed;
9) Political capital for politicians (everyone should own a home);
10) Inadequate regulatory oversight;
11) Everyday bankers allowed over-development;
12) Sorbanes-Oxley proved to be of little value to prevent all of this;
13) Rating agencies blew it.
In 2001 recession it took 47 months to get jobs back (unemployment rate) to normal. This time, Dennis prdicts another 7 (SEVEN) years to get jobs back to where we were.
Interest rates? They will not go up in forseeable future. Usually the Treasuery only raises rates 20 months after unemployment peaks.
WA banks that have done well? Whidbey, Bank of Pacific, and several Eastern WA ag banks.
Lending? Banks will be more careful towhom they lend, and costs will be higher (because bank expences have gone up).
Respectfully submitted,
Stowe Talbot