The state of California ushers in an expected $7 billion industry next week with legal marijuana, criminals hit local churches to steal and break into cars and animal control officers capture some wild dogs on the bike path

 * ... LEGAL CANNABIS: While the city and county have opted out of regulating the legal sale of cannabis beginning next week, the emerging $7 billion state industry is moving forward. One of the

latest developments: Bill Lockyer, formerly California's top cop as Attorney General, has co-founded a company to distribute marijuana concentrates and edibles to retail outlets. That's right, the same person who was in charge of California's "war on drugs" is now hoping to cash in on the medicinal and recreational use of pot. As Lockyer told The Los Angeles Times:  “For me as somebody who was on the law enforcement side for so many years, I saw the inadequacies of the effort to regulate something just by calling it illegal. I think legalizing will help stabilize and help legitimize this industry and result in better consumer protection and other public benefits. This whole industry has to come from the dark side to the light."

 * ... CRIME: Not sure if this is a trend but car thieves seem to be singling out local churches to steal and break into cars. At least two friends had their cars stolen this Christmas, right from the parking lot of their local churches. Yet another left the service to find his car had been broken into and his wallet stolen.

 * ... DOG POUND: It was nice to see two Bakersfield animal control officers on the bike path near Manor Drive on Christmas Day looking for a pack of wild dogs that has been chasing cyclists and runners. So far they have captured six dogs, mostly pit bull mixes, while two or three remain loose.

* ... SHOPPING MAYHEM: On Christmas Eve every single shopping cart at the Target on Stockdale Highway was in use, not to mention every checkout line was open with a line. I wasn't the only shopper to wait to the last minute.

 * ... CHRISTMAS LAMENT: I spotted this on a friend's Facebook page: "I really hope to wake up to a brand new car with a huge red bow, but I’m pretty sure my husband just got me socks."

 * ... SPOTTED ON TWITTER: "I’m pretty sure that it’s easier to leave most street gangs than it is to cancel a membership to a gym."

 * ... SPOTTED ON FACEBOOK: "Everyone is talking about Star Wars and I'm here thinking about tamales."

 * ... ALARM CLOCK: Local appraiser Gary Crabtree wonders if he is alone in noticing a new alarm clock about town. "Is it just me or has anyone else noticed the new town alarm clock in the form of the 'pile driving” taking place for the Centennial Corridor project over the Kern River. For the last two weeks I’ve been awakened by the 'gong' that starts around 6:30 to 7 a.m.  I can hardly wait for them to begin on the California Avenue and Stockdale Highway’s bridges."

  * ... GOOD FORM: Sandra Morris was dining with friends at Joseph's Italian restaurant recently when a kind looking man eating by himself picked up her bill. "A friend from Nigeria is here for the holidays and we were giving her a going away party and an Italian food experience... My friend from Nigeria always says how good and generous Americans are and she got to see a fine example today."

Wednesday Bako Bits: a trip down memory lane with Maison Jaussaud, Saddle and Sirloin and that time when the Shah of Iran stopped by for some food and libation

 * ... MEMORY LANE: My mailbox has been full with notes from readers about a walk down memory lane. Today's blog is a tribute to just that. Enjoy.

* .. THE BLUFFS: Supervisor Mike Maggard wrote to talk about the early days of Panorama Drive and the bluffs, so he turned to his mother Neta to remind him of a story told by his late father Bill. "Around 1951-1952, there used to be an air strip along the bluffs near the cemetery. Mom remembers the gas station at the corner of River Boulevard, and the liquor store next to it to the east, but few if any homes were in the area. No bar, as far as she recollects. Anyway, the airstrip was used by 'brave' young east side car enthusiasts to stage drag races. My father raced there often and when he began courting my mother during her senior year of high school, she would hop into the front seat of his “flat head ’40 Ford” with him and they would drag race up the runway. When he and his buddies, who we called the 'Original Brat Pack' (Bill Maggard, Bob Martin, Jack Saba, Bob Peabody and Eddie Wright) were a bit younger, they used to play football in the center median on Beale, near the corner of Quincy."

 * ... MEMORIES: The recent posts about the elegant old Maison Jaussaud's restaurant triggered this memory from Gary Crabtree: "Along with the Saddle and Sirloin, there used to be another small restaurant called the Crystal Inn, I believe located around South Union and Planz Road. It was a small place with great food and top notch entertainment. I remember my parents taking me to dinner there for my 10th birthday. The entertainment was a piano player and a female singer named Margaret Whiting who was about to explode on the national recording scene. I’d be interested if anyone else remembers the Crystal Inn."

 * ... MORE MAISON: Ronal Reynier brought some historical content to Maison Jaussaud (JoSo's) with this missive: "It was built by my cousins Martin and Babe and yes the Shah of Iran was there for lunch. I believe it was in the early 1970s. Martin and Babe's cousin Henri, from France, worked as maitre d'. It was his day off but they had him come in. The Shah must have enjoyed his
lunch; he gave Henri $1,500 to be divided by the staff on duty and today it would be equal to a $9,500 tip; Henri's tip was a nice Rolex watch. People from the French Embassy stopped for lunch at JoSo's twice a month when traveling between San Francisco and Los Angeles. They left a $300
tip each time. I have no idea why they traveled by car and not by air; maybe just to eat lunch at JoSo's."

 * ... FAMILY TIES: And if you wanted more proof, check out this note from Gary Jaussaud,  son of one of the brothers that founded Maison Jaussaud's."I can tell you first had, in fact the Shah of Iran and his group did in fact have lunch at Maison Jaussaud’s during that period of time. I remember because I was there and saw it with my own eyes. Two things I remember the most is, once our chef found out they were coming he went out and bought all kinds of interesting items they might like, and when it was said and done, the Shah wanted an American hamburger. The second thing was, the U.S. security team with the group, paid for the lunch with a federal check, as the Shah was the guest of the United States. The event realty happened, so you can tell your readers, you got the information from the source."

 * ... MORE MAISON: And Hank Webb chimed in with this memory: "I was home on leave from the Navy wherein I was a navy hospital corpsman. As a treat for my 21st birthday,  my brother-in-law, Denny Haynes, who was later finance director for the city of Bakersfield, my sister Elizabeth, and my mother Benita took me to Jaussuad's to see Sally Rand, the world famous 'fan dancer.' She was an ecdysiast, aka a stripper, who used two huge ostrich feather fans in her act. At one point Ms. Rand exposed larger quantities of her physique than my mother could tolerate, so she tried to put her hands over my eyes and cried out, 'Oh don't look!"'I calmly replied, 'It's ok momma, I'm a medical man.' Thus making me one of my family's enduring jokes."

Bakersfield home sellers pushing prices higher, Jeff Gutierrez suffers a mild stroke and recognizing some outstanding women about town

* ... HOME PRICES: Earlier this week I speculated that - judging from some of the asking prices on local homes - we may be entering another mini real estate bubble. Not so, says appraiser Gary  

Crabtree, who told me the market has been basically flat since last September with the average media sale price being $218,000 at $134 a square foot. "On the other hand," he said, "the average median asking price over the same period was $255,500 with an average unit price of $143.50 per square foot. Your observation is correct, sellers are unrealistic in their asking prices. The issue is the economy. There is virtually no market above $300,000 and that is where the majority of the unsold inventory sets. Why? Forty five percent of the Bakersfield buyers must rely upon the low down payment government financing which has established the maximum loan for our community and much of the Central Valley of California at $271,050 while the Los Angeles and San Francisco have government loan limits at $625,500 or 130 percent higher, thus the federal government is in 'de facto' control of the real estate market. Where is Congressman McCarthy when we need him?"

 * ... MORE HOMES: And local Realtor Michael Richert added this: "Unless it comes with a famous chef who stays with the property, the overpriced house won’t likely sell. There are a lot of homes on the market because the seller is dictating the purchase price instead of the Realtor.  All those hard working, laid off oil field workers and those who benefit from their income, aren’t buying.  However, a clean, updated, well-priced home will sell to a very limited group of buyers. "

 * ... FRIENDSHIP: Al Gutierrez gave me a call to share a story of kindness and having your friend's back. It turns out his son, Jeff Gutierrez, owner of DeWalt Corp., suffered a mild stroke last Friday in Fresno and found himself alone in a parking lot unable to drive. After an Uber driver took him to a local hospital, it was his friend Jeff Green (general counsel Grimmway Farms) who drove to Fresno and spent two days in the hospital with his close friend, never leaving his side and bringing him back to town. "Now that's a true friend," Al Gutierrez told me.

* ... SPOTTED ON INSTAGRAM: ""Everything happens for a reason. Sometimes the reason is you're stupid and make bad decisions."

* ... HOMELESS: A reader dropped me this note: "Every day we drive through downtown on 24th Street. Heading west just past Pep Boys is a homeless camp on the front 'porch' of the building just on the right. Looks like a group of maybe six or seven permanently camped out.. Hasn't anyone else noticed? They are there day and night.. this building will not win a Beautiful Bakersfield Award."

 * ... WOMEN: Hats off to Cynthia Icardo, Tracy Walker Kiser, Danielle Wade and Nomra Rojas-Mora on being selected at Garden Pathway's 'Women with a Heart for Bakersfield.' The organization's  High Tea will honor these women next Wednesday, May 11.

 * ... VOLUNTEERS: We have moved into the prime fund raising season, and you don't have to look far to see folks volunteering for good causes. Recently, more than 50 women showed up to support the Power of the Purse campaign at the home of Wes and Tracey Bradford. Said Darlene Mohlke of Castle and Cooke: "Included in this group of volunteers were local business owners, community partners and 18 of the best and brightest from the CSU Bakersfield swim and dive team. These young adults come from all over to not only represent their sport, our college but give back to our community. The event raised over $120,000 and went to The Alliance Against Family Violence and Sexual Assualt. Our community really knows how to support each not only with their generous donations but with their wiling spirit to do what is needed to put on a great event."

West Point graduate gravely injured in Afghan suicide bombing shares his story on First Look, and Bakersfield's beleaguered housing market starts to show signs of life

 * … HOUSING: There is some good news about our local housing market. According to appraiser Gary Crabtree, last year was a "watershed" year with the median price jumping from $162,000 to $208,00 by the end of the year. Said the Crabtree Report: "Based upon a 12 month running average, the citywide appreciation rate is 30 percent or 2.4 percent per month.  Housing supply is increasing

with the total current listings on the market at 930 or 81 percent above the same period last year." In addition, the volume of sales decreased by 8.5 percent year over year. "Overall, the market is defined as in recovery with a trend towards declining price increases due to increasing inventory, interest rates and housing affordability."

 * … VAN KOPP: I had a chance to catch up with Lt. Samuel Van Kopp, the 26-year-old Bakersfield High and West Point graduate who was gravely injured in Afghanistan during a 2012 suicide bombing. Van Kopp still has a ball bearing lodged in his head and is living in the residential facility at Walter Reed Hospital. He will learn in a few months if he is fit to remain in the Army or serve on the staff of Rep. Kevin McCarthy under a program for wounded soldiers. Van Kopp appeared with me on First Look with Scott Cox on KERN NewsTalk 1180, talking frankly and eloquently about the bombing that injured him and killed two members of his platoon. When asked how he reacts when people call him a "hero," he quietly (and humbly) reminded me that there are many others who have served longer and suffered more. This is an impressive young man who is a testament to the good that lives in this community. He has two younger brothers, one who graduated from Dartmouth College and the other who is enrolled at West Point. (picture of Van Kopp in the First Look studios with me)

 * … RIP BARBARA: Most of you probably never knew Barbara Perry, who lost a five year battle with cancer this week. She was not famous or flashy or important in the way society bestows celebrity on some people, and that was perfectly fine with her. Barbara didn't need recognition to be happy; instead, like most of us who call Bakersfield home, she led a quiet life, devoted to her family and friends. But it was an exemplary life and her presence brightened everyone she came into contact with. I met Barbara a decade ago out at the Kern County Gun Club, where Barbara and husband Johnny would often hold court during skeet tournaments, doing all the work that made folks from out of town feel so welcome. She would cook and clean and help manage the club while Johnny put his impressive mechanical skills to work on the clay target machines. Born in Texas and one of 11 children, Barbara could be tough as nails but her true character was a cocktail of generosity, kindness and extreme wit. Life is better when people like Barbara Perry come into your life. Thank you, Barbara, for sharing your grace with me.

 * … SPORTSMANSHIP: Another reader post on sportsmanship at youth baseball games. From Stephanie Apsit: "Yes, you can be an example of poor sportsmanship by yelling cruel comments to young children trying to do their best for their team or you can be an example of supportive sportsmanship and offer kind and accepting comments to these young vulnerable children. Let's be the ones who educate our children by offering encouragement and care to them, thereby teaching them to also be kind and caring towards one another."

Crabtree Report says the local housing market is improving with demand up and prices rising.

 * … HOUSING: Good news for our local real estate market. According to the Crabtree Report, it appears that the "mini bubble" in waning and 2014 should bring more of a moderate recovery. Said market expert Gary Crabtree: "Based upon the above, the Bakersfield market is quite stable for the

winter marketing season.  Supply decreased slightly from last month and demand remains constant, leaving the market with a little over two months unsold inventory. (Historically, the Bakersfield market has averaged a 3.1 month unsold inventory from 1999 to present)." Crabtree said the demand for housing is creasing and the media price increased $5,000 last month and almost 27 percent over the same period next year.

* … BAD FORM: Hard to find an example of bad form worse than whoever dropped off a box of new born puppies in the cold at the SPCA. This message was posted on Facebook by the SPCA: "We want to thank the person who dropped off a box of 15 puppies (eyes not even open yet) at 12:42 a.m. outside the Bakersfield SPCA this morning in freezing temperatures in a damp box. Perhaps the time may come when you cannot take care of yourself an someone will return the favor of dropping you off in the middle of the night in freezing temperatures in an empty parking lot. Happy Holidays!"

 * … SPOTTED: From a Facebook post: "Child Protective Services needs to have a mobile office at Wal-Mart."

 * … SMALL WORLD: So you don't think it's a small world? Then listen to this from Barry Rosenfeld, who spent Thanksgiving with his wife Pat in Ireland. "On Sunday evening (December 1) we were admiring the lights, vendors and happy faces at the Christmas Market in the town square in Galway. And standing right in front of us were Barry and Theresa Goldner! They told us their daughter is a university student in Galway and they too were touring Ireland. But that's not all. The very next day Pat and I were in line to purchase tickets for the tour of the Old Jameson Distillery in Dublin and sitting in the bar was Elaine McNearney. She was having a drink with her cousin from New Zealand prior to a family reunion in Ireland that week. Wow, it is a small world, after all."

 * … MEMORIES: Nelda Oldham remembers the old military housing near the airport. "I believe they are referring to a WW II Veterans' Housing Project of 90 units built following the war under the Veterans' Emergency Housing under Title V. Due to an acute housing shortage after the war, the government passed legislation to build these complexes. The one referred to was called Veterans' Square, was designed and built strictly for veteran families, was of minimum design with concrete floors, plywood walls, etc. and the demolition was provided for in the legislation following the lack of need. The Housing Authority County of Kern built and managed a number of these projects, the largest of which was located on the north side of 34th Street and totaled 140 duplex apartments.  I'm sure there are many people in Bakersfield who lived in this housing as children. I still remember the names of some of the managers so I, of course number among the old-timers."

Is Bakersfield headed for a new real estate bubble? And Texas leads the country with the most cities that are best for jobs

 * ... HOUSING: Is Bakersfield's housing market headed for yet another bubble? That's the warning from Gary Crabtree, a respected appraiser and a thoughtful analyst of our local real estate market. Crabtree shared a story from HousingWire that noted in markets like Bakersfield that have never "fully unwound" from the last bubble, "rapidly increasing price levels are a potential cause forconcern." Added Fitch Ratings: "The supply is also artificially low, as recent regulations have limited the pace of foreclosure sales and the large percentage of underwater borrowers continues to hope for future price increases to be able to sell their homes at a profit?" Sounds like Bakersfield. Stay tuned.

 * ... JOBS: What are the best cities for jobs in this economy? According to Forbes, the business-friendly state of Texas placed four cities in the top ten: Fort Worth (4), Houston (5), Dallas (6), and Austin (10). Others making the list included San Francisco, Salt Lake City, San Jose, Charlotte and Denver.

 * ... RODEWALD: Our community lost one of its great characters with the passing of longtime TV personality Don Rodewald. One reader, Joe Stormont, shared a memory of Rodewald's afternoon show, also known as Matinee. One feature was called Dialing for Dollars. "Don had a rotating bin with the telephone white pages cut into little strips. Don would spin the bin, then open it up and draw out a piece of the phone book. Count up or down a pre selected number of names from the top or bottom, and call that phone number... If the person who answered knew the 'count and the amount,' they would win the money. The prize amount started at $23 and increased by a few dollars each time he didn't have a winner. Sometimes the jackpot reached over $100."

 * ... OVERHEARD: A prominent local educator, recently retired, is telling a friend about moving into The Greens, the popular 55-plus gated community at Seven Oaks. "We love it," he said. "But the first day we were there a new neighbor came up to me and said, 'Didn't you used to be somebody?' I guess that says it all!"

 * ... AIRPARK: Reader James Irwin dropped me a note to ask about the airport that once existed on the Panorama Bluffs. That landing strip, James, was called La Cresta airfield and was located between Bakersfield College and where Greenlawn Mortuary Cemetery now stands. It was built duringWorld War 11 and planes took off over the Panorama Bluffs. The place has quite a storied history, and it was there when a young Mary K. Shell (a former mayor and supervisor) met her future husband, Joe.

 * ... KCUHS: Bill Deaver of Mojave remembers the two-headed calf that resided in a science room at the old Kern County Union High School. "I remember that two-headed calf," he said. "My grandparents, Henry Mack Sr. and educator Addie Mack, lived on Chester Lane, and we frequently drove by 'KC,' as my mom, former Californian East Kern correspondent Marion Mack, an alumnus, called it! This was in the 1940s and later."

Bakersfield College appeals the punishment for its football program, and local folks wonder if someone will have to pay the price for it

 * ... ALARM SYSTEMS: Here is an important tip about home alarm systems in the city of Bakersfield, compliments of reader Gary Crabtree. "Saturday evening we returned from dinner about 6:30 to find our alarm activated and a message from our alarm company on our answering machine that our front door had been breached." he wrote. "We found nothing missing. A call to the alarm company indicated that they
had called the police. At 9:30 p.m. an officer arrived at our front door. He indicated that he just got the call from dispatch. We were told that if we didn’t renew our alarm permit with the city every year for $30 they may or may not respond.  So a warning, if you expect BPD to respond to your alarm system, better cough up $30 a year to the city."

 * ... THE BUZZ: It's good to see Bakersfield College appealing the punishing sanctions against its football program, but folks are wondering if someone will be sacrificed because of the harsh penalties. If BC Athletic Director Ryan Beckwith is fired over all this, it won't be because he has lost the support of the BC Helmet Club. Paul Pavletich, president of the booster club, made it clear on First Look with Scott Cox that the club supports Beckwith and would not agree with his dismissal. Stay tuned as this story unfolds.

* ... ACHIEVER: Another local Bakersfield product has gone on to make quite a name for himself in the healthcare industry. Dr. Jason Dinger has been identified as one of the top 300 most influential people in U.S. health care, according to a recent survey by ModernHealthcare.com. Dinger graduated from Bakersfield Christian High School and went on to Vanderbilt University in Nashville. He is currently CEO of Mission Point Health Partners in Nashville. His father, Steven Dinger, is president of BCHS and his mother Nancy is a social worker at Koinonia Family Services.

 * ... GIVING: Yet another example of the generosity of our local Rotary clubs. The Waterman Foundation of the Rotary Club of Bakersfield (the downtown club) has awarded nearly $40,000 in capital improvement grants to nine local non profits. Among the recipients were the Alliance Against Family Violence, the Bakersfield Music Theater, the Buena Vista Museum, the Boys and Girls Club, CASA, the Golden Empire Gleaners, the Kern County Museum, MARE and San Joaquin Community Hospital.

 * ... HOSPICE: If you are looking for a way to support a good cause and enjoy a nice glass of wine, mark this Thursday, May 23, on your calendar. That's the date of the "Optimal Cares Wine Tasting and Concert" set for the Bakersfield Museum of Art at 5:30 p.m. It is a fund raiser for the Optimal Hospice Foundation. Tickets are $75 each and can be purchased by calling Cherie Shoemake at (661) 716-8000.

  * ... MEMORIES: Brian Landis said his 85-year old grandmother, Elizabeth "Bette" Crume, wanted to share this memory about when everyone would leave their back doors open so Wayne's Dairy could deliver fresh milk to your refrigerator while you were either sleeping or away from home. She is, thank you, a faithful reader of The Bakersfield Californian and said she enjoys reading Herb Benham's column but worries for his kids. "She wanted to be sure to let you know that she thinks John Arthur is a smart-ass!" Brian said. I will make sure both Herb and John get the message, Brian.

Former House Ways and Means chairman Bill Thomas will discuss the fiscal cliff Monday on Californian Radio, and good news in the local housing market

 * ... BILL THOMAS: Bill Thomas, the longtime congressman from Bakersfield who once steered the House Ways and Means Committee, will join me Monday morning on Californian Radio at 9 a.m. to discuss the fiscal crisis and where the country goes from here. Before retiring in 2007, Thomas was widely known as one of the smartest men in the room, a tax and budget expert who knew how to get things done in a divided Congress. We will talk about the current congressional deadlock and get his views on what our country needs to do to resolve our fiscal mess. Join us at 9 a.m. on KERN 1180.

 * ... HOUSING: Good news on the local housing market. Gary Crabtree, one of the foremost local real estate experts, said the December market showed "amazing strength" due to a shortage of supply and fewer distressed homes on the market. "This comes as very good news for the new construction sector who continues to gear up to meet the lack of supply, which also results in job growth," he noted in his Crabtree Report. The report said the median price had risen 6.6 percent month over month and almost 19 percent over a year ago. "With the continued decline in REO (real estate owned) saturation rate and the foreclosure rate, the market has nowhere to go up up!" Now that is good news.

* ... HOMELESS: The number of street people in Bakersfield is simply staggering, overwhelming the good work our homeless shelters do to provide for the needy. According to the U.S. Census Bureau, only New York tops California for the number of homeless people living in emergency or transitional shelters. California had more than 27,000 people living in shelters while New York topped 36,000.

 * ... ABANDONED DOGS: Deanna Haulman witnessed an event that is all too common these days. "We live on College Avenue and there are many stray dogs. Today we would like to thank the Hispanic man in a light blue pickup who stopped and dropped off a small white dog right on the street.  We hope when you are no longer wanted by your family, they do not dump you along the roadside.  We tried to get the dog to come to our house but it was too frightened. Don't worry within a half hour the dog was hit twice and died. We hope you are proud of yourself.  A nice young man that hit the dog a second time stopped and was very concerned because he hit the dog after it was struck the first time.  Another young lady also stopped and check to make sure the dog was dead, bagged it so we could call the county animal control the next day."

 * ... SCOUTS: Mark Saturday, Jan. 26, on your calendar for the annual Grand Slam Pancake Breakfast Fundraiser put on my Boy Scout Troop 147. It runs from 6:30 a.m. to 9:30 a.m. at the Olive Knolls Church cafeteria on Fruitvale Avenue. You get eggs, sausage, pancakes, orange juice and coffee all for only $5.

Housing values drop for sixth consecutive month, and bidding farewell to Gordon Johnson and Gaylen Young

* ... HOUSING: More sober news on the  housing front showing new home construction is nearing all-time lows and more than half of existing mortgages are now under water. The lack of new construction is good news for sellers, who no longer have to compete with new homes on the market, but terrible for the overall economy in the loss of jobs. Gary Crabtree, a local appraiser and one of the foremost experts on housing, told me on SmartTalk 1230 Californian Radio that a home should no longer be considered an investment where the asset always rises in value. "It's an emotional decision," he said, noting that the average house has lost value each of the last six months. My take: I love the idea of walking into my 100-year-old bungalow knowing I own it and don't have to answer to a landlord, and am cognizant that its value can go down, as well as up.

 * ... PADRE: From my mailbag: Reader Ginny Espinoza wrote to say she too heard the false report that Padre Hotel was going out business and is glad it isn't true. "We went to the Padre to celebrate our 45th anniversary, our first time at their restaurant. We had a wonderful time! The food was absolutely first class, our waiter (Pedro) was outstanding and we just happened to visit on Wednesday when bottles of wine were half price!" She later heard the rumor that the Padre was going out of business (it started with a brief on "Kern's Past" in The Californian noting that the hotel went out of business a half century ago) and was thrilled to hear it was not true. "Thanks for correcting the record!"
 

 * ... PERMENTER: Marlene Morales, head of marketing over at Chain, Cohn and Stiles law office, ran into legendary Foothill Coach Ned Permenter the other day. "I never realized how long he and Bob Ezell coached together," she told me. "They coached together for 37 years of varsity football, and that might be a record for two coaches at the same high school! Ned stated that you will never find a more loyal and dedicated guy than Bob Ezell, and he was so blessed to have him all that time. What is even more amazing is the fact, he never missed one day of school during his entire career at Foothill. Coach Permenter is a legend himself too."
 
 * ... RIP GORDON: Was sorry to hear of the death of Gordon Johnson, a retired orthodontist who truly was one of our community's kind souls. I met Gordon more than a decade ago when I joined the downtown Rotary Club, where he never missed a meeting. Always engaging and smiling, he was one of the first to welcome me into the club and always had a kind word to say. Condolences to his family.

 * ... GOODBYE GAYLEN: We lost another good soul when former KGET anchor Gaylen Young was killed in a Utah traffic accident. Turns out Gaylen was in town and at the downtown Post Office just two days before his death, chatting up the postal workers as he always did. He had moved to Utah but was still doing work for local companies at the time of his death. Gaylen endeared himself to audiences with his  upbeat attitude and his constant cheer leading for local businesses.


* ... OLD TIMER: Realtor Patsy Sadler wrote to say you know you're from Bakersfield "if you were in the first four-year graduating class at Foothill High School."

More warnings of mortgage fraud "flopping" and local kid heads to Stanford

* ... HOUSING RISK: Local real estate appraiser Gary Crabtree is once again warning about mortgage fraud, this time regarding a practice known as "flopping." A flop occurs when an agent helps investors obtain distressed properties at deflated prices. Said Crabtree: "A very interesting anomaly was noted last month. The median price of the REO (real estate owned) sales was $130,000 while the median price of the 'short sales' was $120,000. This raises the question, are agents working the short sale market playing games with their BPOs (broker price opinion)? The new mortgage fraud of property flopping continues to rear its ugly head costing lenders and taxpayers untold losses of millions to the 'floppers.'" Lastly, Crabtree said that last month marked "the first month we saw an increase in foreclosures. Could this be the precursor to the 'second wave' of foreclosures causing a 'double dip' in the market? Only time will tell."

* ... STANFORD BOUND: Kudos to Melissa Hamilton, a Stockdale High School senior who is heading to Stanford University in the fall. Melissa is the high-achieving daughter of Dr. Chris and Susan Hamilton, who also happen to be Stanford graduates. And to keep it in the family, older sister Jennifer is a sophomore at the prestigious Palo Alto campus and reportedly thrilled her sister will be joining her.

* ... MORE BAD TASTE: This from a reader who responded to my post about the fake bull testicles hanging from pickup truck trailer hitches around town. "Somehow the lovely bull testicles have escaped my attention - must be  hanging out with the wrong crowd or driving the wrong streets. But enough about testicles. The truck accessory /decoration that is really tacky is the silver nude female silhouette - provocatively posed and one with a devil with horns and the other an angel with wings and a halo. They come in vinyl for your back window (bracketing your 12 gauge) or as attractive mud flaps. Classy."

 * ... BHS ARTS: Yvonne Cavanagh asked me to spread the word on an event that will raise money to support arts programs at Bakersfield High School. Yvonne is not only a BHS graduate but also owner of Surface Gallery, where the event will be held next Saturday, April 10. BHS Friends of Fine Arts (FoFA) is hosting the show, which will raise money for arts, dance, ceramics, forensics and other programs. Tickets are $25 and that includes one glass of wine, appetizers and a live band. Call parent Diana Ripepi at 661-327-5429 for details, or you can visit their Facebook site here.

 * ... BAKERFIELDISM: You know you're from Bakersfield when "your neighbor moves from the Southwest to the Northwest to be 'closer to the grandchildren.'"

Bako bits: an explosion of swine flu cases locally and the local ties to Citizens Business Bank

* ... SWINE FLU CASES EXPLODE: Heard some alarming news regarding the swine flu Wednesday from Dr. Raj Patel, a co-owner of Preferred Family Care Physicians off Truxtun Extension and my personal doctor. Patel said his office has seen a virtual explosion of the swine flu (H1N1) in recent weeks, going from two to three diagnosed cases a day to 20 to 25 a day in just two weeks. These numbers far outstrip the  number of swine flu cases that the Kern County health department reported earlier this week, but Patel says the cases are real and frightening. "We've stopped counting," he said. "Every day it is more and more and more. We are swamped." Patel received his first shipment of the H1N1 vaccine but went through it in a couple days and is awaiting a new shipment. Now comes word that the U.S. health authorities are warning there will be shortage of the H1N1 vaccine (read the story here) and that there may not be sufficient quantities to cover everyone until December. Patel said the Centers for Disease Control estimates that 8 percent of all Americans have the swine flu now, and by the end of the year fully 60 percent of us will have some kind of flu: either a regular version of the flu or the H1N1.

 * ... THE LOCAL CONNECTION TO CITIZENS: Had a nice chat the other day with Ray Dezember, the retired banker who knows just about everybody in town. Ray reminded me that Citizens Business Bank, which took over the failed San Joaquin Bank, has a strong connection to Bakersfield. For you local history buffs, Ray was running the old American National Bank when it was absorbed by Wells Fargo Bank back in 1990. Working with Ray at American National was D. Linn Wiley, who shortly thereafter went to Ontario to become CEO of Citizens Business Bank. Linn has since retired but remains as vice chairman of the board at Citizens. Other American National alumni now working at Citizens Business Bank include Harold Hanson, John Ivy and John Tait. Ray said it was Linn Wiley who actually recruited Citizens CEO Christopher Myers.

 * ... WHERE'S MIKE OLAGUE? Speaking of local bankers, lots of folks are wondering what happened to Michael Olague, the longtime Bakersfield banker who has been replaced as head of the regional Rabobank office. Rabobank is a private, well diversified Dutch-held company that keeps a tight rein on public announcements, and it's not saying anything about what happened to Olague. All the office would say is that the new regional president is Anker Fanoe. Olague previously ran the regional Bank of America office and worked for a time at the old San Joaquin Bank.


 * ... THE MESS WITH LOCAL APPRAISALS: Readers of this blog know I am a big fan of local appraiser Gary Crabtree and his "Crabtree Report," which remains one of the single most authoritative sources on the local housing market. I'm always impressed by the depth and breadth of his reports, which in this day and age makes for a sobering read. His latest report shows Bakersfield remaining the seventh worst foreclosure market in the nation with a staggering 13.14 per 1,000 households. And the mess with out of town appraisers supplying incomplete or erroneous appraisals remains a big problem. From his report:

 "The HVCC (Home Valuation Code of Conduct) is continuing to cause problems with low appraisals performed by either lesser experienced and/or geographically incompetent appraisers ... Research of the MLS appraiser members indicates that 58 percent of the appraiser members are from out of the area as far north as San Francisco and as far south as San Diego, with one appraiser from Huntsville, Alabama. What is even more concerning is that according to the California Office of Real Estate Appraisers there are a total of 119 licensed appraisers in Bakersfield, yet only 50 are 'appraiser members' of the MLS. This begs the question: where and how are the other 69 members obtaining their market data information or do they possess a real estate license and are Realtor members?"

The outrage (or lack thereof) over 'Smartmeters' and a new book looks at the life of Cesar Chavez

* ... WHERE'S THE OUTRAGE? Is there a bigger mess than the new 'Smartmeters" and the arrogance Pacific Gas and Electric is showing in dealing with the public? It seems that each day brings a new story of someone's utility bill doubling or even tripling and all we hear from the utility's "customer engagement"  managers is the same old drivel: it's not our fault, it's the rates. It's like they are just tolerating us and waiting for everyone to simply fade away. Everyone has a story. We have friends in Westchester whose monthly bill just topped $1,000, a huge increase. There are people in 700 square foot apartments with bills of $500. (If you didn't read Lois Henry's take on this, check it out here.) Kudos to state Sen. Dean Florez for at least taking the lead in questioning this mess, but I am surprised by the lack of organized outrage. Here's my take: if this is really due to new rates, then roll them back or change the tier structure to stop this "legal rape" of the customer. It's outrageous that in this economy, when so many people are suffering, that the rate payer is expected to absorb these new costs. 

* ... CESAR CHAVEZ: THE REAL STORY?: A colleague from Los Angeles tipped me to a new book on Cesar Chavez and the now famous (or infamous) formation of the United Farm Workers (UFW) union. Titled "The Union of Their Dreams" and written by former LA Times editor Miriam Pawel, I'm told the book is both a sympathetic and scathing profile of the UFW and shines a new light on the internal power struggles that ultimately almost destroyed the movement. Apparently - according to my correspondent - some UFW supporters are so upset they plan to boycott Pawel's appearances to promote the book. Given Kern County's central role in the grape boycott and Chavez's life, Bakersfield is a natural book tour stop. Pawel is planning on at least one appearance here, at Russo's Books at 1 p.m. on Saturday, October 24. Check out the book at its website here. One reviewer said the book "recounts for the first time how a cult of personality around Cesar Chavez (influenced by the practices of the sinister Synanon organization) ultimately betrayed the courage of the workers in the fields and the trust of a veteran organizing staff." The "Union of Their Dreams" is definitely on my reading list.

 * ... STEADY AS SHE GOES: I see from the latest "Crabtree Report" that the local housing market seems to have stabilized. The report says we've entered the off-peak "winter market" when prices typically decline by three to five percent. In September, local prices declined 2.3 percent which Gary Crabtree describes as "no great surprise." I suppose this is good new and it's certainly better than what we have seen in the past. Crabtree went on to say that the "supply versus demand continues to indicate stable market conditions with unsold inventory of two months."

* ... IRVINE LEADERSHIP AWARDS: Heard from Judi McCarthy, chair of the Kern Community Foundation, that she's encouraging folks to nominate some local deserving soul for the James Irvine Foundation’s Leadership Awards.  Nominations are due October 13, so the pressure is on, but each prize is $125,000:  $100,000 for that person’s organization and $25,000 for that awardee.  From Irvine’s website, the awards “support the work of individuals who are advancing innovative and effective solutions to significant state issues. We anticipate making four to six awards in 2010, the program’s fifth year. Nominees may be working in any field — such as education, health, housing, economic development or the environment — in the public, private or nonprofit sector.”  The link is http://www.irvine.org/leadership/leadership-awards

     Judi also says  the Women's and Girls' Fund of Kern County is accepting letters of inten to apply for grants in the area of "Physical, Sexual and Domestic Safety." Founders of the fund selected this focus based on research showing domestic violence as a key issue in Kern County. The letters of intent are due November 20. For more information about the process go to www.kernfoundation.org or you can call 661-325-5346.

A jobless recovery, celebrating the golden era of Minter Field and looking back on a 1968 classic: Harvard versus Yale

 Starting the week reflecting on some sobering economic statistics, but looking forward to some end of the week diversions.

 * ... WHERE ARE THE JOBS? Fed chairman Ben Bernanke may be declaring the recession technically over, but it sure doesn't feel like it. First came the sobering news last week that Kern County's unemployment rate remains around 14.4 percent, a stunning statistic under any circumstance. The Bakersfield area is faring a tad better, around 10 percent. Still, most economists will tell you the real number of jobless is much higher, because these numbers never include the number of people who have given up the job search. Then there is the dormant real estate market, which is struggling to find some kind of traction. Gary Crabtree, author of The Crabtree Report, reported this week that "the employment picture is bleaker than it looks on the surface" since all key job sectors reported losses last month.  to give us some hope. The local appraiser

 As reported here earlier, Crabtree says we are entering the "off peak" season in which reduce sales volume and lower prices can be expected. He added:

 "The question remains how severe  will this 'off peak" season be? Based upon pricing, it does not appear to be as ominous as the market has bottomed and is unlike the previous three years in which the monthly decline as 5.3 percent (2008), 5.3 percent (2007) and 3.4 percent (2006) as the market was in 'free fall.'"

 So that's encouraging but yet the signals remain mixed. Here's something scary from Gary's report:

 "In the past 12 months, the Bakersfield MSA has recorded a total of 7,787 foreclosures equating to 1 in every 23 homes in the MSA and the Bakersfield Metro area. According to RealtyTrac, the Bakersfield MSAA remained the 7th worst foreclosure market in the nation..."

 * ... WHEN HARVARD BEAT YALE: Noticed that the popular Flics program at the Fox Theater will be featuring the movie "When Harvard Beat Yale" this Friday, Sept. 25. Not that we have a lot of Ivy League grads in town, but this movie is appealing on two levels: first it's a terrific look back at a famous college football game and second it features Bruce Freeman, the local Castle and Cooke president who was  key Harvard player back then. (Tommy Lee Jones was a classmate who also played on the Harvard squad) The movie looks at this classic game when both teams entered undefeated and it ended in a tie, a virtual win for the Harvard underogs.

* ... CELEBRATING MINTER FIELD: Don't forget that this weekend is the dedication of the old Minter Field Air Museum hangar. Minter Field is bursting with history and if you haven't been, it's worth a visit.  The museum is housed in the original fire station built in 1941. It is one of the last examples of this architecture left on the base. The base was a major basic training facility where nearly 12,000 pilots received basic training in BT-13s, UC-78s, AT-6s, P-38s and B-25s. One of highlights of the weekend will be a "flyover" by a restored B-17 Flying Fortress, seen in the file picture below.

FDIC warns of new wave of bank failures and new cracks in the housing recovery: hold that champagne for later!

Before we get too giddy about signs the economy has turned the corner, it's wise to remember that there are plenty of lagging indicators pointing to a long, slow slog back to anything regarding normalcy.
First, I was struck reading two different takes on the ongoing crisis in the financial industry. The first (read the entire post here) said that according to the FDIC, fully 5 percent of all banks in the country are now considered "troubled." Yet another (read the story here) said there had been a 36 percent rise in the number of banks put on the FDIC's "watch list." The reason?

"Many of the new failures (or potential failures on the trouble list) are seeing weakness due to traditional personal and commercial loans going bad. While the headlines may not be a blaring as we saw in late 2008, the underlying reason is much more worrisome. Essentially the slow economy, low employment, reduced consumer spending, and generally poor business environment has caused many business loans to simply be unserviceable. So on bank balance sheets as they write off these loans as uncollectible, it means that their assets (receivables from borrowers) fall well below their liabilities (balances owed to depositors) which creates insolvency. The pace of more traditional banks going under (there have been 81 so far this year) points to sustained economic weakness which could quickly choke off the current “green shoot” economy."



Finally, local appraiser Gary Crabtree alerted me to a posting on the Appraisal Institute website which says we need to be careful about getting too giddy about recent indications that home sales have picked up. (read the post here) The institute says the numbers of homes on the market may be skewed because some folks are simply taking unsold homes off the market and converting them into rentals, which in itself could cause problems down the road. From the post:

"However, although prices may be nearing the bottom in many markets, there are reasons for consumers to remain cautious. It is not surprising that some markets saw increases in sales with two temporary short-term fixes hitting the market: an $8,000 refundable tax credit for first-time buyers as well as lower mortgage rates. In addition, the inventory of housing may not appear what it seems with many unsold homes taken off the real estate market and simply put up for rent, especially in hard-hit markets such as Miami. Moreover, because it can take several months for delinquencies to turn into foreclosures, there may be a new wave of distressed properties entering the market soon as last winter’s casualties begin to surface."


All in all we have room for optimism, but keep it guarded. There are lots of factors that could throw this recovery off point.

Crabtree: local real estate market has hit the bottom, but don't break out the champagne yet

Here's some long-awaited good news: it looks like we've finally reached the bottom of the real estate meltdown. At least that's according to Gary Crabtree, one of the most well respected authorities on our local market. Gary sent me a copy of "The Crabtree Report," a detailed, no-holds-barred look at our local market. It's always a sobering read, but there is a glimmer of hope. Said Gary:

"Overall, it can be opined that the Bakersfield market has reached a bottom and is experiencing a stabilization of prices with one quarter of slightly increasing prices brought about by a continuing decrease in supply and reasonable demand."

That said, he warned that the current market conditions "should be met with a healthy amount of caution" because we are nearing the end of the prime marketing season, meaning sales will naturally begin to decline as we move to the seasonal "off peak" period."
Gary's report is rich in detail and to my knowledge, it's without peer in terms of of research and analysis. Some highlights include:

* ... EXISTING HOME SALES: Sales of existing homes in July came to 657, slightly down from June but 11.7 percent better than last year.
* ... EXISTING MEAN SALE PRICE: The mean sale price was $154,211, again slightly higher than June but 27 percent lower than last year.
* ... CURRENT LISTINGS: There were 1,340 listings in July, fully 59 percent less than last year when there were 3,293 on the market.
* ... DAYS ON MARKET: The average days on the market came in at 18 compared to 35 last year.
* ... MEAN PRICE PER SQ. FOOT: In July it was $90.87 compared to $122.94 last year.

That gives you an idea of the state of things. Gary warned that unemployment continues to be a factor, hovering around 10.1 percent in Bakersfield, and we are still experiencing problems with inexperienced appraisers working in our market. Still, all in all, we take good news when it comes. Stabilization is a good word these days.

Short takes around town: a hard throwing local kid heads to the big leagues, dangerous mortgage default rates and a touch of the arts

Looking forward to a brief respite from the heat wave this weekend, when the highs are expected to stay a tad below 100. You know you're from Bakersfield when you welcome 99 degree days ... Lots happening around town. Let's get to it:

* ... JARRET HEADS TO THE BIGS: It's always great to see local kids excel, be it in athletics or academics or both. So here's to Jarret Martin, former Centennial High standout now at Bakersfield College who just inked a nice contract with the Baltimore Orioles. Jarret's mom is Dana Martin, a local writer and regular contributor to BakersfieldLife magazine and one of our community's great cheerleaders. Dana tells me her boy got what he wanted in terms of money, and on top of that he gets his college education paid for by the Orioles. So the kid can't lose either way. Here's to Jarret and all the other local kids moving up and out.




* ... MIXED NEWS ON HOUSING: I try to keep a pulse on the local housing market here and yesterday posted a short (and optimistic) note about home sales after talking to Ray Karpe, president of Karpe Real Estate Center. (read that post here) Then today I read in the Los Angeles Times that California's default rate has soared to 9.5 percent. That means that 1 in every 10 home loans in California is now in default. Ouch! So I touched based with local appraiser Gary Crabtree, who arguably has a better handle on local housing than anyone else in town. Let's hear it from Gary in his own words:

"We are in recovery mode now with increasing prices, but my real concern is the second wave of upcoming foreclosures, the unemployment and the ever increasing number of "short sale" listings (future foreclosures) on the market. I just ran some numbers today and found that out of 1,345 total listings, there are only 280 REO listings on the market (21%) and 389 short sale listings (29%). On the sales side out of 506 sales so far in July, 317 (62%) are REO and 53 (10%) are short sales. "This doesn't bode well for the short sales that will most likely turn into foreclosures. In spite of the record number of foreclosures, my sources are telling me that the lenders are actually showing some responsibility by only releasing a few each month for sale and holding on to the rest either in the form of rentals or leaving former owners/tenants in them. I hope this is true. If so, it will go a long way to curb the next "bloodbath". "

So let's all keep our fingers crossed. We need a steady recovery in housing to lead us out of this recession. There is certainly pent-up demand, so let's get to it.

* ... DANTE'S DIVINE COMEDY: If you're in the mood for an evening of art and education, mark next Thursday (Aug. 6) on your calendar. The Bakersfield Museum of Art will host a lecture by Dr. Robert Crewdsen on The Divine Comedy. It runs from 6 p.m. to 8 p.m. and is free to members and just $3 for non members. The museum always does a good job with these lectures, so make sure to check it out. For more details check it out here.

One more thing to worry about: Why low appraisals may be scuttling the housing recovery

It was a few weeks ago that Watson-Touchstone Realtor Mary Christenson tipped me off to the latest hiccup standing in the way of a housing recovery: new federal regulations that are leading to flawed appraisals and derailing sales. Here's the deal: a buyer and seller come to terms to sell a home for say $400,000, yet the appraisal comes in consistently low, say $350,000. And the home had multiple bids and the comps hold up in the area. So what's wrong here? Mary and others point to rules that went into effect May 1 requiring lenders that sell loans to Fannie Maie or Freddic Mac to set up a firewall between appraisers and loan officers. All this to prevent "improper influence" between the appraiser and the Realtors. (Check out a Seattle Times story for a more complete explanation.
Now I see CNBC has picked up the story and I include a brief report from their website here. This is a serious issue, folks, and another case where over-regulation has simply gummed up the works. We have a market that is struggling to find its sea legs and regulation that is killing legitimate deals. Enough already.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Gary Crabtree, one of the foremost experts on the issue locally, said the issue is complicated by the fact that local appraisers are being "low balled" by outsiders who know little of the market. I'm excerpting parts of an email Gary shared with me. Feel free to contact him for a fuller explanation. Said Gary:

"The reason the appraisals are holding up the closings is that the AMC's now control the purse strings of the fee. Once the appraiser would receive $375 to $400 for his services, today they receive as little as $175 to $285 from these AMC's. The experienced and ethical appraisers can not afford to produce a creditable report for that kind of money. So who is doing the appraisals? The lesser experienced, geographically incompetent and sloppy appraisers who are forced to produce a 'shoddy' product because they don't have the time to do a "creditable" report. To exacerbate things, now that they have independence from pressure from lenders, they can 'low ball' to their hearts content and not have to worry about anything. I have been swamped with calls from agents, buyers, sellers wanting to know why their appraisals are low? Well, see above for the answer.

"So who is hurt by HVCC (Home Valuation Code of Conduct)? Well lets see, first the experienced and geographically competent appraisers like Rich and me; the buyers who have been 'low balled' and lose the deal or has to come up with additional cash down; the sellers who are sometimes forced to lower their price to make the deal; the mortgage broker who can't close a deal because they are held captive by the AMC's on appraisal delivery and fees; the taxpayers who get to pay for the 'write downs' of the banks, Freddie, Fannie all of whom have been subsidized by the TARP money... How is the market to recover with this type of forces in play? "