It’s official: the wave of defaults sweeping California and the nation is the result of irresponsible lending practices, which peaked in late 2006, according to a just-released report.

MDA DataQuick, a real estate analyst, reports that three lenders were on the tip of that wave, making a stunning number of bad loans. Between 65 percent and 75 percent of the loans made by the three—ResMAE Mortgage, Master Financial and Ownit Mortgage Solutions—have since gone south, DataQuick reports. They sold almost all of these loans to other banks, which then repackaged them into the now-familiar house-of-cards arrangements that have since collapsed.

Schools could never make it without the dedication and generosity of their volunteers. From booster clubs to parent governance organizations like PTA, from tutors in math to builders of a school theater set, from career day speakers to cooks at a spring open-house barbecue, schools are enriched by volunteerism.

Although I was born and raised in San Jose, my visits to the East Side were not commonplace. As a kid, I was advised of general safety issues about the East Side and was warned not to go “there” at night. My father taught English to adult immigrants on the East Side for about half his teaching career, and I used to accompany him when my school was closed. I would sit in the back and meet his students from all over the world. In high school I would go to East Side high school sporting events, remembering that I needed to be careful—at least that is what I was told.

This week a variety of issues were raised for discussion on San Jose Inside. What else is on your mind?

Weighing in on the huge payouts for unused sick leave that the City of San Jose has been paying to some public employees, the Mercury News Editorial Board argued that the expenditures are “a public employee luxury that taxpayers should not have to bankroll.” And, the editorial board rightly placed the blame where it belongs. 

By Diane Solomon

I had no idea that President Obama switched us to socialism. The signs at San Jose’s April 15th anti tax tea party at Plaza de Cesar Chavez Park told me this. Among the 1,000 mostly middle aged and white demonstrators wearing American flag regalia were lots of homemade signs saying, “Socialism Kills,” “Revolt Against Socialism,” “Capitalism is Being Undermined” and more personalized messages.

San Jose City Councilmember Sam Liccardo sent this letter in response to last week’s Metro cover story about SJPD Chief Rob Davis, which was excerpted on SJI.

Perhaps due to space constraints, last week’s story about San Jose Police Chief Rob Davis (“Can Davis Survive?”) incorporated only one aspect—the most negative—of the views that I expressed about the chief’s performance.

Grading is the bane of most educators’ lives, in elementary through university institutions. In fact, giving accurate feedback to a student when it comes time for evaluations is a dreaded task in most cases. Yet evaluators who give specific and accurate feedback are providing an important service to students. The more accurate and specific the feedback, the more a student can adjust and move forward in executing a particular skill, procedure or knowledge area…hopefully to relevant, real-world situations.

...I did not actually eat breakfast with members of the Chamber of Commerce last week, but I met with them early in the morning—which is a challenge for me since I normally go to bed at 1am. The Chamber, as many of you know, is an interest group that advocates on behalf of small and large businesses. They invited me to attend their meeting for some Q-and-A.

The Chamber, like labor unions, the Democratic Party, the Republican Party, or the League of Conservation Voters, typically endorses candidates running for political office. Endorsements carry clout with some voters, but more importantly, endorsements come with monetary donations, plus independent expenditures for political mail to voters, and volunteers to walk door-to-door on your behalf. In my Council election, the Chamber endorsed my opponent and as a result, they did four independent expenditures on his behalf in addition to donating money to his campaign.

This is San Jose Inside’s user-driven open forum, where regular bloggers and / or casual visitors set the agenda. What’s on your mind?

“City officials…are allowed free use of a special box at Sharks games.” (Mercury News, April 7). Why? And, why do members of the San Jose City Council get a car allowance?  Do you get a car allowance from your employer? I don’t.

NOTE: San Jose City Council member Sam Liccardo is circulating this letter in response to allegations that he illegally accepted tickets to a Sharks game.

Dear Friends,
I ran for office on a platform of open government and honest communication with my constituents. That means acknowledging when I am wrong, as well as standing up for what I believe is right. Since taking office in January 2007, I have relied on this newsletter to provide information to neighbors about what is happening at City Hall and how that affects each of you. Today, however, I write to provide background about a story that has been in the media over the past week, regarding my improper acceptance of free admission to two hockey games.

The City of San Jose and the County of Santa Clara annually allocate hundreds of millions of dollars for public safety. We all benefit significantly from well-thought-out police, sheriff and firefighter planning.  When a new plan is envisioned, experts and ordinary people are invited to contribute. When planning efforts are shortsighted, hurried, or do not include all stakeholder groups, a less- than-desirable outcome is reached. Safety is compromised.

Education is not necessarily thought of as a public safety investment. But it emphatically is.

Our County Assessor was quoted on Friday as saying the downturn in real estate values is “worse than expected,” and that more than 90,000 residential parcels will be valued at less then their purchase price. We are living through historic times, with unprecedented negative growth in real estate. That has happened in Santa Clara County only a handful of times: in 1932,1933 and1936, and again in 1978 (after Prop 13) was passed. So what does that mean, other than many depressed homeowners? Well, it means that the City of San Jose’s deficit just catapulted to $77 million.

The City Manager announced Friday that we will have an additional shortfall of $14.3M due to lower property tax revenues on top of the sales tax decline which added another $3M to the deficit. I believe we will also see a sharp fall in our TOT (hotel tax) this quarter. This means less city services starting July 1, 2009 for you. But there is more…

It’s SJI’s weekly open forum, and all lines are open.

Last week, the San Jose City Council unanimously approved an official Cesar E. Chavez walkway, a five-mile route beginning downtown at the park named after the civil rights hero who founded the United Farm Workers of America. The route will continue east all the way down Santa Clara Street, almost to 680, and then south before looping back up and around to the Mexican Heritage Plaza.