SUNDAY IN THE PARK WITH DALLAS REALTOR BILL CHERRY, 14th Edition

If it's going to warm-up today in Dallas, it had better get busy doing it.  Although the day is clear and crisp, it's a bit brisk on the bench here in the park.  Thanks, though, for stopping by for our weekly Sunday after church visit.

THIS PAST WEEK one of my blog subjects dealt with those whose marketing is primarily devoted to stating that they are Number 1. The Top Realtor, the Best OB-GYN doc, they sell the most fried chicken, or whatever.

Several hundred have read the piece thus far, and about eighty or so have taken the position that they feel those ads are usually deceitful and objectionable.  I think if the ads stretch the truth or are blatant lies, they are totally unethical.  And that they are used without audit shows that professional organizations that claim to monitor their members have serious flaws, flaws they obviously don't want to address.

Here are the thoughts and things that we might want to ponder today.

J.M.W. TURNER.  19th Century English artist, J.M.W. Turner gained his fame as a landscape artist working in oil and watercolor.  The Dallas Museum of Art will show 140 of his works, the most comprehensive retrospective of his career ever held in the U.S.  The show will be hung from February 10th through May 18th. For information call 214 992-1247.

CHUCK WILLIAMS.  This is the guy who took what he learned about repairing cars in his dad's repair shop, and became an airplane mechanic for Lockheed in India and Africa during World War II.

After the war, he moved to Sonoma and for a number of years was a successful builder.  Then seven years or so later, he bought a hardware store and began adding French cookware to its inventory. 

But it was when he imported the Cuisinart food processor that his store hit real pay dirt and transformed it into America's most famous cooking supply store, Williams-Sonoma.

Approaching 93-years old, Williams still contributes recipes to the company's cookbooks and catalogs. 

WILLIAMS-SONOMA FEBRUARY CATALOG.  Among the culinary hardware and gifts are many pages dedicated to "preserving the culinary traditions of New Orleans.  Peppered throughout are authentic Crescent City recipes for gumbo, Brennan's chef Lazone Randolph's famous bananas Foster, Chef Leah Chase's red beans and rice, Central Grocery's muffuletta sandwiches, and my favorite, Antoine's eggs Sardou.

NEW ORLEANS.  After spending a couple of years living in New Orleans as a college student and a radio host for American Airlines' famous "Music ‘til Dawn," I admit that I have always fantasized about going back as a permanent resident.  But my wife Patty wants to remain in Dallas, and her happiness is more important to me than living in New Orleans. 

WORLD WAR II.  In the spring just before the war was over, I was playing with my friend Butch, when a military officer rang the doorbell of his mother's home.  The soldier was there to tell her that her husband, Lieutenant Walter A. Kelso, Jr., had died as a captured prisoner of the Japanese aboard the merchant vessel Oryoku Maru on December 13, 1944.  More than sixty years later, I remember what each of us was wearing and where we were standing in Mrs. Kelso's living room.  I didn't understand then why that had happened, and I admit I still don't fully understand today.

                                                                             Lt. Walter A. Kelso, Jr.

A couple of years ago, Butch's son Mark, who I call my surrogate nephew, began and completed an enormous research project to find out once and for all the history of the American soldiers who had been aboard the Oryoku Maru, but especially that of his grandfather.

Mark, a computer wizard, and a Galveston Realtor launched a web site that you must visit.  Oryoku Maru.  You will see the callousness of our enemy in a way that is quite different than it seems I learned it  All of those accounts were diluted, and I don't know why. 

There are many photos as well as the story itself.  Interestingly, Mark discovered that entertainers Tom and Dick Smothers' father was also a prisoner on the Oryoku Maru.

HILLARY CLINTON.  A friend of mine emailed this photo.  I pass it on to you just for the heck of it, not as a political statement one way or the other. 

I will say, though, that I'm not sure I can endure another nine months of this campaign.
   

And further, there is a very interesting article in this week's (1-21-08) The New Yorker by Ryan Lizza titled "Minority Reports."  (To the right is the accompanying editorial cartoon)  If you have the opportunity, be sure to read Mr. Lizza's piece.

McShan Florist.  When we were teenagers, three of us chipped in to help our friend J.E. who worked in a local flower shop after school.  The Cagnolas, who owned Elbert's Flower Shop, were fabulous designers, and they taught us well.  I can still do it, and I can still make the plush bows.  So Patty insists that I take care of the arrangements we make up for the tables here at home.

I've remained very picky about who I buy flowers from because of that experience.  In Houston, there were none better than Harry Rice's and Leonard Thorpe's shops.  No one even came close. 

Here in Dallas, it's Bruce McShan's floral designers.  Bruce's family has been serving Dallas since 1948.  Here's their phone number.  800 627-4267.  Tell them how much you want to spend and turn them loose to make your gift enormously memorable. 

Do not under any circumstance ask to do one of the wire service designs.  Those things, in the main, are miserable and they use that fan configuration that hasn't been in style since Dorothy Lamour, Bob Hope and Bing Crosby made the first Road picture ("A Road to Singapore" 1940).

It's fun to explore with you the things I've thought about and learned since our last visit.  So, I hope to see you next Sunday after church, and remember that...

GOD Blesses!

Pen and ink drawing of Bill in the park by Galveston artist Carlotta Barker

Copyright 2008 - William S. Cherry

All rights reserved

Bill's Town Hall Column  Bill's Texas Escapes Magazine Column

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NETWORKING IS THE MOST IMPORTANT SALES TOOL THERE IS

By Dallas Realtor Bill Cherry

Jan Evett, a fine agent in Panama City, Florida, and I were discussing the information she found on the CD "A Realtor's Secret Weapons" that I sent her. 

It’s a radio interview Dallas’ famous Money Doctor, W. Neil Gallagher did with me as his guest.

(You can have one too, if you want.   Heck, you can even order one for your friends in Philly who's thinking about selling their house. I'll send it directly to them as a gift from you.)

But the people who can probably most benefit from "A Realtor's Secret Weapons" are:

1. The person who is trying to pick an agent to list his home or who is, perhaps, trying to decide whether or not to try to sell it himself.

2. And the person who listed their home with an agent, it's been on the market for more than three months, and it hasn't sold.  This CD gives them a good way of evaluating that agent's effort on their behalf. 

Jan commented on the breadth of my past clients.  You see, before me moved from Galveston, Texas, a town of some 60,000 people, I represented television personalities, recording artists, wealthy trusts, insurance companies and zillions of ordinary people.

I got to thinking that how this occurred might be of interest to you, whether you're a salesperson or you're trying to pick a Realtor to represent you.  Here's my response.

1. As far as the breadth of my past clients, that was solely from having and maintaining a "program" of networking....keeping up with people I met along the way.  Everyone can and should do that.

2. And the second part of that was the understanding that my job for anyone is always to be a problem solver. That's what all good Realtors are and that's how I think they should present themselves.

HERE’S A STORY…

One time -- I was about 30 years old at the most -- a huge insurance company found itself as the lender and joint-venture partner with a developer.  They were stuck with a zillion unsold condos, a hotel and ski lift at what is now a very famous Colorado resort. 

They wanted to know whether the project was viable or should they just kiss their investment goodbye. 

They hired me to go out there and figure it out.  "For goodness sakes, why? Have they lost their minds," I thought?

Well they hired me because one of my networking friends told them I was the guy to decide what they should do.  (And also I suppose they hired me because they wanted to have someone to blame the decision on if it turned out wrong.)

"But I'm only 30 years old!" I thought.  "I've only had a license for six years!  Surely there are zillions who are more likely to be better qualified than I." 

Networking is the most powerful tool for sales people that there is.  This story in itself is proof.

And just so you'll know the end of the story, I told them it would work.  I guessed right, they stayed the course and made millions upon millions, and every time I hear that one of my friends is going there for the holidays I grin.  If you ski in Colorado, the chances are almost overwhelming that you have skied those slopes.

Some goofy 30 year old kid caused that place to be there, and that kid was I.  Absolutely amazing!

If the real estate agent you're planning to retain is not an active and knowledgeable networker, his chance of finding the best and most qualified buyer for your property within a reasonable time is dramatically hindered. 

It costs not a dime more to hire a networker.  Why would you be satisfied with less?

For those of you who are interested in a copy of the CD "A Realtor's Secret Weapons,” which is a forty-five minute radio interview famed money manager, W. Neil Gallagher, Ph.D. did with me, you can have one at no charge...not even postage.  But you’ll need have to email me or call for it. 

BILL CHERRY, REALTORS

214 503-8563

cherrysells@aol.com

www.billcherrybroker.com

Copyright 2008 - William S. Cherry

All Rights Reserved - No reproduction all or part without permission.

REAL ESTATE ABERRATIONS By Dallas Realtor Bill Cherry

Many of those who ran the big braggadocios ads about their real estate sales expertise are evaporating into thin air.

In reality, their real estate prowess was nothing more than their own aberration.

You know why they are leaving? Well, it's because they can't deliver the goods in markets like this. They never developed the tools to do it.

So now it's time to go back to using Old Faithfuls when you need a Realtor.

Hands down, we are the most HANDS ON Realtors serving Dallas and its Park Cities, Lakewood and Lake Highlands areas.

Our Comparative Market Analyses are both free and reliable. We've been doing this for forty-three years, and have helped thousands.

Many meet us in person at one of the Dallas area free dinner seminars of the famed KAAM-AM Money Doctor, W. Neil Gallagher, Ph.D. For the schedule reservations, click here, or telephone at 1-800-434-4DOC. 

If you're planning to retire safe, happy and in the chips, you'll want to hear Doc's solutions.  I'm there to help with the real estate questions.

Meanwhile, call or email for our CD titled "A Realtor's Secret Weapon." It's free, there's no obligation, and I'm holding a copy for you no matter where you live in the United States or Canada.  You need this information if you are plannning to sell your home.

Bill Cherry, Realtors
214 503-8563
Our 43rd Year!

TEXAS DID WELL IN HOUSING MARKET SURVEY, By Dallas Realtor Bill Cherry

Business Week is reporting interesting statistics this week.  Their cover story shows the Twenty Top Housing Markets in the US, contrasted with the Twenty Worse Housing Markets in the U.S.

            Texas had four of those Top markets and none of the Worse Markets:

7  Austin 1.5 million Median Price $188,000

8  Beaumont  379,640 Median Price $128,000

15  San Antonio 1.9 million Median Price  $154,700

18  El Paso 746,310 Median Price $135,800



BILL CHERRY REALTORS WORLD HEADQUARTERS*

            Interestingly, as so frequently seems to happen, there are so many cities in California and Florida that over-built, that they share the award for the states with the largest number of bad markets.

            California has nine of them; Florida has eight of them; and Michigan, the only other state with a mention in the list of bad markets, has three of them.

            Overall, Texas remains in a rather enviable position.  And contrary to Man on the Street Wisdom, now is an especially good time to buy a home in the upper price ranges of the Dallas market.  Call 214 503-8563 for further information.  This is our 43rd year serving Texas.

*Just a dream

Copyright 2008 - William S. Cherry
Dallas Homes  Highland Park Homes
All Rights Reserved

Remember Savings & Loan Associations? By Dallas Realtor Bill Cherry 

            When my wife and I had saved the required 20% down payment for our first home, the next step was to apply for a loan from a savings and loan association.  In those days, unless you qualified for a VA or FHA loan, the maximum that could be loaned you was 80%. 

             The lender expected you to have real equity. There was no mortgage guaranty insurance because the lending laws didn't recognize it.

            The US's banking system was set up in those days where savings and loan association made the long-term loans for homes, and banks made and oversaw commercial loans.

            I called Mr. Raymond C. Mensing at Guaranty Federal from my office cubical, told him we'd signed an earnest money contract to buy a home, and asked if he'd make the loan.  He asked me what my salary was and what my wife was making.

            "I'm sure we will, but let me ride the bus by the house tomorrow, and I'll let you know," he said.  And sure enough, that's how Guaranty Federal appraised our intended purchase and what they used to approve our loan.  He never went inside the house or measured a room, and I surmised that the most he did otherwise was call the local credit bureau to see if we paid our bills on time.

            Neither my wife or I ever went inside the doors of the Guaranty Federal office until we stopped in to make our first house payment.  The brief required loan application had been nothing more than one of the very few documents we completed and signed at the time the Stewart Title Co. escrow officer, Bill Meyer closed our deal.  It was 1970.  The loan application was a one page sheet with lots of white space.

            Most savings associations were insured by the Federal Savings and Loan Insurance Corp., the "FSLIC," a governmental agency that had been established as a part of the National Housing Act in 1934.  It was administered by the Federal Home Loan Bank.

            Savings associations attracted long term deposits, so that they could comfortably make long term loans because by law they were able to pay savers a slightly higher rate than banks could.

            However, beginning in the 1970s, yielding to pressure, congress began letting FSLIC insured associations invest in the ownership of commercial real estate that was home related.  Associations did this through newly established arms called service corporations.  Money was funneled into subdivision development and home building.  And before long, associations'  authority was broadened again, this time so they could loan money on commercial real estate, real estate that had nothing to do with housing. 

            By 1989, savings and loan associations, as a whole, were in such a financial mess and so many claims had been filed with the FSLIC during the previous eight or so years, that the FSLIC became insolvent.  In fact it became so insolvent, even after being recapitalized with taxpayer money to the tune of more than $25 billion, that its responsibilities were merged with the Federal Deposit Insurance Corporation, the entity that insures deposits in commercial banks.

            The savings and loan associations that were able to be salvaged became banks; those that weren't merged their accounts with commercial banks and closed their doors entirely.  Guaranty Federal was one of those that became a bank - Guaranty Savings Bank, it's now called.

            But the lesson seems to be this.  Mr. Mensing's riding the bus and appraising the home a customer was planning to purchase from the bus' window as it passed by was not the problem. 

           
            The problem came when savings and associations were able to broaden their scope to loaning and investing in exotic business, using their customer savings and loans from the FSLIC to do it.  It was not only something they didn't know how to do, but something that didn't conform to their purpose to be in business in the first place.

            As my high school English teacher, Miss Yvette Rosenthal, used to say, "It's time for us to compare and contrast.  To what current situation can this knowledge be transferred?"

Copyright 2008 - William S. Cherry

All Rights Reserved

Dallas Homes Highland Park Homes Lake Highlands Homes Dallas Real Estate

Sunday in the Park with Bill Cherry, 13th Edition 

Thanks for stopping by and joining me on the park bench for our Sunday afternoon chat.  I look forward to these visits, especially when we reminisce about old times.

IN TODAY'S PAPER:  "St Louis AP - Powerful racial tensions have divided the St Louis Fire Department and spilled over to city hall.  In October, the city's white mayor demoted the black fire chief and replaced him with a white man.

"Since then, the FBI has investigated two incidents---one involving a stuffed monkey hung by the neck; the other, a noose tied around a cracker box----and concluded neither was racially motivated."

Isn't that a sad commentary on the total lack of sensitivity of all involved.

"HOLD ME, THRILL ME, KISS ME."  First performed in the ‘50s by a rhythm and blues group, the Orioles, Mel Carter covered the record in 1965.  To hear Mel sing the song is enormously nostalgic for me.  To see him perform it in person is totally magical.  It really is.

MOULIN ROUGE (The Red Windmill).  While a popular Paris cabaret that's still operating and dates back to 1889, the 1952 film of the same name chronicles a vignette of the life of painter Toulouse-Lautrec.  

Toulouse-Lautrec's famous post-impressionistic paintings of scenes at the Moulin Rouge are what brought to him extraordinary artistic notice.

This past week Patty and I watched the original "Moulin Rouge" film with Jose Ferrer and Zsa-Zsa Gabor and directed by John Huston.  This is a true masterpiece in every detail.  I had forgotten what a phenomenal actor Jose Ferrer was, and the extraordinary talent of Mr. Huston. 

But I can't leave this subject without noting that Mr. Ferrer was Rosemary Clooney's husband twice and he was Debbie Boone's father-in-law once and for all time.

OLD TESTAMENT.  For whatever the reason, most Christians' knowledge of the Old Testament is seriously lacking.  I've never quite understood why Christian ministers and teachers overlook explaining to their flocks what a big deal the stories and lessons of the Old Testament are.  One of the best explanations of the testament's characters and stories is Walther Zimmerli's Old Testament Theology in Outline.  Buy a copy.  I promise it will not only enrich your life, but you are sure to find his writings totally fascinating.

DALLAS JEWISH COMMUNITY CENTER.  This huge facility built through the benevolence of many Dallas Jewish families, is located off Royal a block from Central Expressway.  The exercise and gym facilities, the huge indoor pool, racket ball courts and on and on are open to the public, regardless of religion.  Until the end of January, individuals and families can join with no initiation fee.  The monthly dues for Patty and me are less than fifty bucks. 

TEXAS ESCAPES MAGAZINE.  This is a monthly Internet magazine about Texas.  It's totally about Texas - from places to visit, to pictures of how it used to be, to stories and lore written by Texas authors.  I contribute a piece each month about the days gone by of Galveston.  Texas Escapes Magazine.

THE FIVE BROWNS.  You've seen these young people on TV.  Five accomplished brothers and sisters who play pianos as a quintet.  Their latest CD is called "Browns in Blue."  You simply must hear it.  At Barnes and Noble, Amazon.com or download it on line.  It's a real winner.  Several beautiful renditions of Gershwin compositions.

THE EXPRESSIONS. One of Dallas' best night club acts of the ‘60s and ‘70s was called The Expressions.  They frequently played shows at a club here called Gringo's.  The members were Bob Kelly, Bill Medley, Kirby St. Romain and Jerry Brown.  Patty and I went to college with Kirby.  It would be nice to see them in a reunion performance.

In this picture, from left to right Bob Kelly, Bill Medley, Kirby St. Romain and Jerry Brown appear as old dudes

THE HI-FI CLUB.  This is my favorite running program of nostalgia.  My friend and Dallas radio legend, Mike Shannon joins other legends, Chad Hoker and Mike Whitworth each Sunday night from 6-9 on KMNY - AM 1360.  They talk about and recreate the Top 40 radio of the past. 

Some night I swear Brokenhearted Bill is going to crash their party and show them what a real radio voice from the past sounded like.

Tonight their guest is another friend of mine, Bill Mercer.  Bill is a famous Dallas sportscaster, but he is also the television newsman who, with mike in hand, told the world on camera that Jack Ruby was the guy who seconds before had shot Lee Harvey Oswald.  Bill, who will be 82 next month, is still blowing and going.

<<==Bill Mercer

Thanks so much for stopping by and visiting with me in the park on this cold Dallas Sunday after church.  In just a smidgen of time, the leaves will begin to fill in the trees, the birds will rejoin their park choir, and we'll be able to take off our shoes and socks and wiggle our toes in the warm earth.  I can't wait, can you?

GOD Blesses!  See you next Sunday.

Dallas Homes   Highland Park Homes Park Cities Homes Galveston Historical Homes

Pen and ink drawing of Bill in the park by Galveston Artist Carlotta Barker

Copyright 2008 - William S. Cherry
All RIghts Reserved

SOVEREIGN WEALTH FUNDS, A PENDING ECONOMIC NIGHTMARE

BY Bill Cherry

            Many students of economics are questioning with great concern the impact that a relatively new investment vehicle is beginning to have on the United States' economy, and what its future holds.  I am a member of that camp.

            Called "sovereign wealth funds" they, in essence, are huge capital funds that are owned directly by governments like China, Japan and the countries of major oil producers.  They represent an unmeasurable amount, but an amount that totals in the trillions of dollars.

            They are not comprised of the wealth of the countries' citizens, but the governments themselves.

            Within the last year or so, these funds have been courted by American banks, equity funds, and private businesses and also to broker the sales of major real estate investments. And that's because it became obvious to greedy equity investors that these countries, mainly exporters of oil in the Persian Gulf, were losing interest in just keeping their trillions of dollars as deposits in banks and in U.S. Treasury debt instruments.

            So now, it's been announced that sovereign wealth funds are where the money will come from to bail out Merrill Lynch from the sting of their $15 billion in losses that are directly related to bad real estate mortgage investments, a lot of which is secured by sub-prime mortgages.

            And it's where a good deal of the capital will come from that will assist Bank of  America in the capital it will need to keep afloat its acquisition of Countrywide Financial Corporation with its huge laundry list of defaulted mortgages.

            Why do sovereign wealth funds have such an interest in making the huge, often times billion dollar investments in United States financial institutions - institutions that need money because of terribly poor performance and bad decisions? 

            Why are sovereign wealth funds willing, ready and anxious to take risks in United States companies when the equity funds domiciled in the U.S. aren't?

            Think of it as "cross-border nationalization;" that is, it's a way for foreign countries to have the ability to eventually exert great power over the capitalization and health of United States banks, brokerage companies, financial institutions and the United States itself.

          The federal government has seen no need to restrict these cross-border sovereign wealth fund investments on American soil.

Copyright 2008 - William S. Cherry

All rights reserved

William S. Cherry is a Dallas real estate broker with a wide education in economics and banking.  In addition to his real estate career, he has served on the board of directors of two banks and was a registered financial principal for a broker-dealer.  He has written pieces on banking, real estate and economics for Forbes and Fortune Magazines as well as the Houston Business Journal and local and regional newspapers.  Dr. Cherrry is 67-years old.

RADIO IS A SUPERB MEDIUM FOR BUILDING BUSINESS - By Dallas Realtor Bill Cherry

Many retail companies and their commissioned sales people, for some reason and for the most part, have never learned the value of radio advertising. 

I think that is primarily because they have never been properly shown how it will work for them.

Radio does wonders when collateralized with print marketing reinforcement, whether it is newspaper and magazine ads, consistent mail-outs or a combination of all three. 

One radio spot run one time, two times or three times has little chance of bringing success.  But when they reach the proper level of frequency, the results can be staggering.  Radio marketing experts can accurately tell you what that level is at a particular station.

And the message needs to be repeated over and over, and then over and over some more.  Rewriting a good spot is a worse idea than continuing it until you think boredom has not only set in, but probably sent the audience over the brink.  It hasn't.

There is an air conditioning contractor in the Dallas area, Avery Air Conditioning.  They have one minute spots running on several stations (including KSKY) throughout the day, every day.  Their spokesman is an old dude like me with a crackly voice and with little expression in it. 

He tells you that he's Ray (Setzer) the owner of Avery.  He's so un-pitchman sounding that he's the perfect pitchman.  And he's a genius at understanding the value of radio and precisely how to use it to sell his company's service.  He's built his company and its reputation via radio.

With the retail market going through one of its quivering cycles, my sense is that radio would be a far better choice for marketing our companies and services than what we traditionally use. 

Properly handled, it will set us apart and dramatically increase our credibility.

Your public relations consultant can help you determine and make the proper "buy."  Since this is a commissionable transaction for them with the radio stations you pick, the public relations cost to you for the service should be at no charge or minimal.

If you'd had experiencing marketing your services using radio spots, I'd like to hear from you. 

Have I used it?  Yes, I have.  Between it and newsletters I built from scratch the largest real estate company in an area that was already overrun with Realtors.  Everyone including my competition was amazed.  I wasn't.  As an old radio man myself, I knew its power.

Copyright 2008 - William S. Cherry

Dallas Homes Highland Park Homes  Dallas Radio Advertising

 IF YOUR AGENT DOESN'T KNOW AN FOLLOW THESE RULES....

I'D SAY IT'S TIME TO TELL HIM TO TAKE A HIKE

By Bill Cherry

One of the things I've learned over and over throughout the years is the importance of following a thorough marketing formula.  That means cut no corners.  Modify nothing. 

            This morning I looked through the listings in neighborhoods that I am interested in, homes whose listings have expired since the first of the year.  Far more than half of them have been on the market for more than six months.  No reasonable offer.  No sale.

            I studied the listing sheets, looked at the property tax rolls, did a quick CMA (Comparative Market Analysis), and in most cases I am totally convinced they didn't sell because the listing agent left marketing/advertising stones unturned. 

            And that is so easy to do, especially with the cost of marketing listings and the amount of personal time it consumes.  Nevertheless, to rationalize why it will be alright to cut corners "this time" is not only false economy but poor representation of the agent's clients.

            Henry Pomeroy was one of my mentors when I first went into the business.  He insisted that to succeed there are two very important rules. 

The first one is to never calculate how much your commission will be if the property sells.  Be surprised when the title company's escrow officer hands you the check. 

The second rule is to never try to anticipate where the buyer is going to come from or who it's likely to be.  Market to the world, and almost every time you'll be surprised who buys it, and what message they saw of yours that encouraged them to consider it.

So those people who pick me to be their Realtor can always be assured that the marketing campaign I'll use is tried, true and will be full-blown.  There is no other way.  It's so often why an expired listing I take will sell within a couple of week and not at some fire-sale price.

BILL CHERRY, REALTORS

SERVING TEXANS FOR 43 YEARS

IN DALLAS AT 214 593-8563

Bill Cherry, Realtors on the Web

 Dallas Homes  Highland Park Homes  Galveston Historical Homes

THE SPIKE JONES OF FINANCIAL ADVISORS by Dallas Realtor Bill Cherry

When the Radio Act of 1927 became law, Congress made it a point that it noticed everyone that the United States airwaves were to be for the “public’s convenience interest and necessity.”

For the following forty years or so, commercial broadcast frequencies were licensed by the Federal Communications Commission to those who applied for and were willing to do business under those parameters.  And every time the station’s license came up for renewal, the station had to prove up that they had, in fact, operated properly, and the public was given the opportunity to formally give reasons as to why the license shouldn’t be renewed.

You couldn’t have a city with three licensed AM stations with all of three wanting to program rock ‘n roll, for an example, because that made sure that only one part of that city’s population was being served.  To do so would have been an obvious violation of the congressional mandate, the mandate that the licensee had agreed to abide by.

This mandate was taken seriously by the licensees and the FCC.
 

As time has past, the FCC's rules and policies and interpretations have become more and more lax.  That is why today, quite frankly, all of the public isn’t served in a market, and stations' frequencies, for all practical purposes, are no longer leased to broadcasters, but virtually owned by them.

What has become a concern to me are the infomercials that stations line up to fill-in the times of the week and days when listenership is at a minimum.  Usually that’s throughout the daytime on Saturdays and Sundays.

These periods are usually filled by companies pushing proprietary patented medicines, financial and real estate investment advisors, and mortgage brokers.

The radio stations begin and end each of these programs with the station’s own disclaimer saying, in affect, that the station ownership may or may not agree with what the program will promote or contend.  After that, it’s easily thirty minutes of thinly documented claims and oftentimes direct falsehoods.

For an example, there is a fellow who buys thirty minutes each Saturday on at least one Dallas station, who reports that he is certified as a financial advisor.  In addition to his advice which he freely gives throughout his thirty-minutes, he has all sorts of Spike Jones type noises, canned applause, and so forth interspersed. 

What he is promoting is for the listener to attend one of his seminars.  Even better, if the listener’s net worth is a million bucks or more, the host will see him one-on-one in his office for a short period at no charge.

Here’s what bothers me.  He makes two claims over and over throughout every broadcast.  First, he says that his program on financial planning is the most listened to in the Metroplex.  Second, he says that he has recently been voted one of the top ten financial advisors in the United States.

There are no credible, independent market studies that show that his program or any other infomercial is the most listened to.  Second, exactly who is it that decided he was one of the top ten financial advisors, and what are their credentials to make that claim?

Since this troubled me, I thought I should give him a chance to explain.  I emailed the fellow and told him that it wasn’t for the purpose of being adversarial I just wanted to know his sources for his two claims.  He didn’t respond.  I wasn’t surprised.

It seems to me that radio stations should be more cautious about what claims are made to their listeners, regardless of the disclaimers they insert at the beginning and end of each program.

It seems to me that the FCC should let its oversight pendulum swing back in the other direction.  Like it or not, the airways do belong to the public, and they should be operated for our convenience, interest and necessity.

NOTE: Free-meal investment seminars are frequently where seniors hear exaggerated investment product claims.  Before attending or becoming in any way involved go to www.nasaa.org then click on "Contact Your Regulator."  You will be able to check the credentials of the sales person with your state securities and insurance regulators.

 Copyright 2008 - William S. Cherry, Ph.D.
All Rights Reserved

Bill Cherry is a former radio and television personality and was a licensed
1st Class Radio-Telephone Engineer

Thanks for stopping by for our weekly Sunday visit in the park  Have you noticed that Dallas is starting to get a glimmer of an early spring?

It is a beautiful day and the temperature must be in the low 70s.

Here's what I've been pondering on the park bench.

Shopping.  It is so interesting to me that retailers, who depend on Christians shopping for Christmas gifts for as much as 40% of their annual sales, are falling into the trap of pandering to the teeny number who want them to dismiss the word "Christmas" in their ads and decorations.

Happy Holidays seems to be their political choice for the reason people will buy gifts from them.

This past season, big box stores already knew their 2007 Christmas sales and profits were in trouble the night they went home for Thanksgiving dinner leftovers. 

Foot traffic in their stores had dramatically fallen every single month since April.  And Thanksgiving weekend was lack-luster.

So by 10 AM Monday, December 3^rd, mark-down tickets were already on Christmas inventory.

Oddly, though, it didn't seem to occur to them that their giving in to Happy Holidays and banishing the kettles of the Salvation Army could have also played a significant part in some stores' lack of sales. 

At least in my case, I didn't buy from those who were advertising their merchandise as holiday gifts.  It was Christmas gifts I wanted.

Dr. Kevin Frye.  My friend of many years, Dr. Kevin Frye, died in his sleep of a heart attack just before Christmas.  He was 60.  At Thanksgiving he had emailed me that he thought his health was deteriorating and that he didn't have much longer on earth.  It made me sad.

In addition to his many ministries, Kevin devoted most of his time to helping reconcile the problems of the homeless and disenfranchised of Eugene, Oregon. 

Some years back, Kevin emailed me a brief message that he had written in Greek.  To be a smart Alec I emailed back in Latin telling him I didn't know Greek.  He didn't say anything.

However, from then on, when he wrote, at least a part of his letter to me would be in Latin.  Kevin was one of those people everyone should have had the opportunity to have had in their lives.