Good news, bad news on home front

The good news is that existing home sales are up 9.2 percent from last September. The bad news is that average sale prices are down 8.5 percent. So it seems that if you're looking to sell your house you might have a better luck now in finding a buyer. But don't expect to get top dollar.

I think many potential sellers in an area like Northern Virginia are feeling some relief knowing they can unload their homes if they have to in this still-struggling economy. Home ownership has many benefits, but mobility isn't always one of them. If you lose your job or have to move out of state for personal or professional reasons, a mortgage can be like a ball and chain.

Homes don't always appreciate in value, regardless of the economy, and aren't always easy to sell. Mortgages can potentially create a nasty trap. I owned a modest townhouse in Florida for five years in the 1980s and didn't make a dime on the sale of it. Yet, I had to move before it was even sold. Talk about pressure.

We owned a condo in Manassas, Va., in the 1990s that took nearly seven years before it modestly increased in value. The second it went up, we sold for fear of never being able to get out of the tiny, apartment-like dwelling if we didn't strike while the market was hot.

Today's news of existing homes selling faster is good to hear. As the future appears more cloudy by the day, one needs options in order to simply survive. Being able to sell our house gives us an out, allowing us to move to cheaper digs if the job market continues to worsen. Perhaps it's not an ideal option, but at least it's not another impassable obstacle. Of course, if prices continue to fall, there will come a time when selling is no longer financially feasible. So as I mentioned in an earlier post, the pressure is on to figure out whether to stay or go.

It appears that this recession is creating a vicious vortex in many ways. Once you get caught in it - through job loss, real estate issues or other hardships - it's difficult to find your way back to a relatively sane existence. For the first time in my life, traditional methods of getting back on my feet aren't working. I find myself clinging to every piece of good news that I can find, including today's real estate report. Unfortunately, each tidbit of positive news seems to be followed by a wave of new disappointments. It gets tiring to say the least.

Is your boss worth 500 times more than you?

Source: United for a Fair Economy, Executive Excess 2005, based on annual CEO pay studies conducted by Business Week (1990-2004) and the Wall Street Journal (2005).

This chart shows how many times more CEOs at large companies earn than their employees. Some fairly bright folks believe that this out-of-balance pay scale is yet another reason for the current economic collapse. It is also believed that the lack of jobs and layoffs are somewhat due to greed at the top of these companies.

When you consider the numbers in the chart above, it's easy to see why we are potentially heading for class warfare. There have always been rich and poor people. But the middle class has almost always been dominant in numbers and gotten its fair slice of the pie. Now, however, the middle class is being shut out with greater frequency by modern-day corporate kings. Jobs that could be generated simply by the elite being a little less greedy are nowhere to be found.

Capitalism works best when everyone shares in the riches. Everyone does not need to be paid the same amount of money. I am not a proponent of socialism. Those who work the hardest and are the smartest should have salaries that reflect their worth to a company. But at the same time, does anyone believe a typical CEO, regardless of his or her competency level, is worth 500 times more than your average middle manager or hourly worker? Does anyone with any sense of fairness support a company laying off 100 viable employees while dishing out million-dollar bonuses to top managers who drive their businesses into the ground? Why do certain board of directors keep rewarding failure?

I am certain there are very smart people in this world who can manage companies far better and for far less than some current business leaders. One of the keys to solving the unemployment problem is in getting these intelligent, fair-minded visionaries into leaderships positions. They will create efficiencies and level the playing field so that businesses operate in a more productive and honorable manner. They will help generate new products and new jobs. Simply sticking with the greed-laden, "business as usual" model, where failure and mediocrity are rewarded, will not get us out of this economic mess. We need innovation from our CEOs, not more vacations homes in Palm Springs. Throwing endless streams of money at these guys will not make them better managers or elevate them as human beings.

The big question being debated is whether government should have any oversight of CEO pay. It appears in cases where taxpayer money was used for large corporate bailouts, the Obama administration is going to try to limit the greed at the top. Good luck with that. The worst corporate offenders are experts at finding loopholes in everything from tax laws to zoning regulations. Until they start going to jail, nothing is likely to change.

Twenty years ago I would have been against any sort of government meddling in the salaries of any business. Of course, 20 years ago, CEOs were only making 100 times more than the average worker. Prior to that, the gap was even more narrow. Maybe if CEOs and board of directors can't restrain themselves, some government regulation is necessary. It's either that or watch millions of more Americans lose their jobs, homes and dignity.

NYT article shows job openings are still rare

For anyone who thinks the job market is getting better, or that employers are becoming more willing to hire people who want to make a transition from one field to another, read this New York Times article:

http://www.nytimes.com/2009/10/22/us/22hire.html

Unemployment statistics for the D.C. metro region were released this week. The numbers showed another slight increase in joblessness. Even in Northern Virginia, which remains relatively healthy compared with the rest of the country, unemployment was up. One has to wonder how long this will gone on before our entire society is transformed into something unrecognizable.

Even casual sports fans can see through this

Note: This post was updated (below) on Oct. 23.

If you listen to sports talk radio in the D.C. area, the soap opera that is the Washington Redskins is fairly entertaining, particularly on FM 106.7, which is the non-Redskins-affiliated station. No pulling punches on that station. But even more than being a show, the team's misery is quite an example of what happens when fairly direct, honest people collide with masters of spin in the world of business. Doesn't seem to matter what the business or issues are. Frankness does not mix well with deception.

Coach Jim Zorn was, in a sense, demoted this week when the team's quasi general manager, Vinny Cerrato, "suggested" Zorn not call plays anymore. According to Zorn's old teammate and former congressman, Steve Largent, Zorn was given an ultimatum. Stop calling plays or else. However, Cerrato denies that claim by Zorn's old pal from the Seattle Seahawks. Zorn himself stopped short of calling the suggestion an ultimatum.

It is clear to most people what is going on in D.C. It's the oldest game in the book and it's not played on the field. It's most likely management/ownership wanting to force someone out without having to pay them. In Zorn's case, he has about $4 million owed to him if his contract is terminated now by Cerrato or team owner, Daniel Snyder. If he quits, however, the team wouldn't have to pay Zorn. Even for a rich guy like Snyder, this is not the time to be throwing away millions. In addition, I think Snyder and Cerrato want to save face and not fire another coach, which is in essence would be an admission that they keep hiring the wrong people.

You have to wonder how Snyder and Cerrato have gotten as far as they have in life. Their antics have become so transparent that any casual fan in D.C. can see right through them. One doesn't even have to be a sports fan to understand this game.

To make matters worse, the new play-caller for the team is a 67-year-old retired coordinator who hasn't coached in five years. In fact, Cerrato in a recent interview didn't seem to know what the coach was doing when summoned by "the Dan" a couple weeks ago. The coach, Sherman Lewis, was calling bingo games when the offer was made to act as a consultant for the Skins. Now, out of retirement, he's going to be calling plays for the Redskins. This was Cerrato's decision and a ploy, some allege, to humiliate Zorn into quitting. After all, Zorn was originally hired specifically to run the offense as a coordinator, not a head coach. Then when Cerrato and Snyder couldn't find anyone to coach their team, they offered the head position to Zorn.

There are times when sports businesses practices mirror other industries. This is truly embarrassing because it's so public, but not that unusual if you consider what has gone on in corporate America recently with sketchy leadership. It's as dysfunctional in some ways as anything that has occurred at GM. But the results for the 'Skins are easier to judge. It's seen in the win-loss column, which currently stands at 2-4 against five of the worst teams in the NFL.

The majority of fans calling talk radio want an end to this nonsense and for Cerrato to be canned and for proven football people to run the front office, hire the coaches and pick the players. It's a mystery to many why Snyder retains Cerrato, but one theory is that Cerrato is weak and won't challenge "the Dan," who is the man really calling all of the shots, according to local commentators. Boy, talk about another typical trait of poorly run businesses. When ownership surrounds itself with yes men, nothing good can result in any business. Things will eventually deteriorate.

Hall of Famer, John Riggins, blasted ownership this week in a YouTube video. The ex-Redskin echoed many of the same charges heard from fans about incompetency at the top. Riggins is never at a loss for fightin' words, so some took big John's remarks with a grain of salt. But when former Indianapolis Colts head coach, Tony Dungy, took issue with what is going on in Washington, specifically with the manipulation of Zorn, people took notice. Dungy, now a television broadcaster, is far from a controversial figure. He's one of the more mild-mannered people to have ever coached in the league. He was also a winner.

The Redskins are part of the fabric of the D.C. area. I live a few miles from their headquarters and training facility in Ashburn, Va. While not a fan, I do root for them on occasion because Redskin wins do seem to lift the spirits of many people in these parts. But I also have been around the block a few times and realize no business can be successfully run by micromanaging bosses who play smoke and mirror games with personnel and the public.

Zorn is known to be an honest guy. He's not the most charismatic coach, but he won't spin things the way Cerrato does. And he won't hide in the shadows like Snyder, who essentially doesn't talk to the media during the season. Some say Zorn is too positive and should get angrier when things go south. But I get the sense his optimism is honest and real - not contrived. If he's a little naive, so be it. Better than being sneaky and insecure.

There have been a lot of not-so-great stories told about Snyder on the radio this week. Stories about him as a human being, not just an owner. Even a relative of the team's previous owner said some unflattering things about "the Dan." At least one story I know is true because it made the news a few years ago. Bucking area regulations, Snyder cut down trees on his property so he could have a better view of the Potomac River from his home. I guess, among other things, he's not a big environmentalist. That's not to say he doesn't do good work in other areas of his life. I just never hear about any potentially positive things from the media when it comes to the team's owner.

Where there is smoke there usually is fire. And the fire is burning bright at Redskins Park. Snyder has taken quite a publicity hit this week. Fans are literally screaming for him to sell the team. Even fans who aren't thrilled with Zorn are beginning to feel sorry for the guy. It seems people are not only thirsting for wins, but they also want some integrity restored to operations. They want a more fan-friendly owner who provides a better game-day experience and who rewards their longtime loyalty.

The worst fear is that Redskin fans will go from angry to apathetic. While the games are sold out years in advance, many fans aren't showing up on Sundays anymore, and some are selling their tickets, often to fans of opposing teams. Makes for an embarrassing home-game atmosphere when the opposition receives louder cheers than the Skins.

You can bet that next Monday night, when Washington hosts the Philadelphia Eagles on national TV, there will be even more talk about this latest fiasco. Philly fans will make the trek down I-95 to try to buy tickets from fed-up Washington fans. Plays will be called by a man who was calling out bingo numbers two weeks ago. And the Skins are finally playing a decent team that could destroy them. It could get very ugly. Many believe Zorn will be fired next week.

UPDATE. Team executive Vinny Cerrato announced on Oct. 23 that Jim Zorn would remain the head coach of the Washington Redskins for the remainder of the season. Stay tuned!

You can't escape technology

I like technology for the most part - particularly when it works. I know some folks my age or older stay clear of anything related to computers and can't even craft an e-mail. But I generally find technology to be just another creative tool at my disposal. Another way to communicate or receive information. As practical as a toaster in a sense.

Though I am far from the engineering type, I am fortunate to have always had an intuitive understanding of new software and various gadgets. While my budget doesn't allow me to buy every new thing that comes down the pike, my curiosity helps prevent me from feeling like I am ready for the glue factory and saves me some time when executing every-day tasks like job searching.

If, however, your comfort level with gadgets is limited to old 45-adapters (pictured), you probably aren't in a field that requires you to paginate a page or convert documents to PDFs. Or at least you shouldn't be.

There continues to be an ongoing struggle in many workplaces where older workers are resisting new technologies. That bothers me because folks over 50 are being painted with a broad brush as technical illiterates by young whipper-snappers who grew up with Nintendo controllers in their hands. In some cases, it's a deserving label. Everyone knows of someone who seemingly is always at war with their laptop or the printer. Usually, it's the old guy or gal in the corner cubicle, next to the coffee machine, with the foot-long calculator on their desk.

While technology can raise frustrations, it is also a huge time saver when used properly. That is very important in an age where companies need greater efficiencies with fewer employees. Unfortunately, some people never learn to use the scanner or the web cam. These folks tend to bog down operations because they insist on using "Stickies" rather than Instant Messaging. They want to scribble something you can't read on a faded message pad rather than send you an e-mail. And it gives all of us "baby boomers" a bad rep when it seemingly is always the people over a certain age. It's even worse when it's your boss! They don't seem to understand that their reluctance to enter the 21st century is making your work life miserable.

In an time when companies are looking for technical skills, it's good to know what an MP3 is or a JPEG. Having a skill like digital photo or video editing can open doors and it can also provide you with some pretty cool images of your grandchildren or your dream vacation. And all of this stuff is available to the "average Joe" on any home computer.

There really is no excuse not to be technically proficient. It doesn't mean you have to give up your vinyl records, but you should know what a Podcast is and how an iPod works if you want to stay relevant. These aren't cultural things like movies and clothing and other passing fads, which change with each generation. These are essentials of the workplace and items becoming as common as a 45-adapter was in 1965.

Now, some may ask, "What is a 45-adapter?"

Making music: A journey back

This six-minute video shows images - some dating back almost 35 years - as well as audio tracks of two of the rock bands I have played in. Crystal Legend was a garage band from my high school days that occasionally has reunited in recent years. The Clueless Bandits is a more recent band I helped form in Virginia. While we obviously never made it big, music was and still is an important hobby to everyone who is shown in this video. The photographs and video clips are not professional grade. They are just a collection of images and audio made by various folks over the years. Enjoy.