Media Advisory
January 4, 2014

Minneapolis and Saint Paul Police Union Presidents co-author letter to the community addressing the recent attacks on officers and the law enforcement profession.

In light of attacks on peace officers across the nation, including the recent tragedy in New York involving the execution of two police officers, and in response to the hostile climate in which the nation’s law enforcement officers find themselves living and working, we as leaders of the Minneapolis and Saint Paul police unions feel it is important to speak out publicly on behalf of our members, and law enforcement officers everywhere.

Our organizations have always advocated for, and unequivocally supported, the high educational and professional standards applied to our members. As one of the few states in the nation that requires officers to obtain–at the very least–a college degree in law enforcement, and mandates professional licensing, Minnesota stands tall in this area. The men and women wearing blue each and every day on the streets of Saint Paul and Minneapolis endeavor to serve the public in a professional and ethical manner, and to treat citizens with respect and dignity. We believe that they accomplish this goal the vast majority of the time.

Certainly, there have been instances where our officers have fallen short of the line, and we believe that we have been quick to acknowledge these instances. No other profession polices itself so strictly, or is more scrutinized internally and externally with more levels of review, than law enforcement. We do not disagree that disciplinary action and even criminal prosecution of officers in certain circumstances is appropriate.

However, it seems we have reached the point where it has become permissible for those whose
words may carry significant weight with the public to make irresponsible public comments
regarding the actions of certain officers on both sides of the river, and elsewhere. It seems that too often lately we have found ourselves living in a world where “feelings” count for more than facts, and officers are judged prematurely within the context of media “feeding frenzies” before the truth of any given situation can be discovered through a thorough and impartial investigation.

Those who make such comments need to understand the danger of contributing to these often false or inaccurate publicly-broadcast narratives. When this occurs, the impact on individual law enforcement officers, and law enforcement officers as a whole, can be devastating not only for the officers but for the rule of law itself. Ultimately, public safety is compromised.

As we move foreword as communities through this difficult time in American history, we urge those with a voice to measure their words and reserve judgement in these situations until the facts can be brought to light. Instantly condemning officers and their actions, and fueling the fire by making reactionary comments benefits no one, and in fact, as we saw on the streets of New York, can lead to tragedy.

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Dear Members:

Words cannot express the emotions I felt when I heard of the assassination of two New York City police officers on Saturday. Whenever a tragedy occurs, regardless of whether perpetrated by humans or nature, we seek to know why. This event is no different. It is too easy and convenient to cast blame. The social media posts prior to the murders are certainly disturbing, but no one knows the extent to which the assassin’s actions were influenced by mental health, protestors, elected officials or the media. The only things we know for sure is that we live in a violent society and that police officers are the ones that the public expects to protect them from the violence. Despite this reality, some segments of our society behave as though police officers are the perpetrators of violence rather than the defenders against violence. I do not believe this is the view is shared by the vast majority of Americans.

That said, perhaps the most painful irony of this weekend’s events is that, at the very moment two police officers were being murdered in Brooklyn, protestors against the police were disrupting holiday shoppers at the Mall of America. However, their message suggests they (and those that support them) are unable or unwilling to accept just how violent our society is and that police officers have few alternatives other than to use force when faced with violence or threats of violence. I believe most people do understand use of force and why it is necessary and appropriate for officers. But, if one wants a simple solution to use of force by officers, there actually is one – obey the law and those entrusted to enforce it.

In conclusion, I want to thank your for your dedication and your service. You have made the choice to do this very dangerous job. It was dangerous before Saturday and will be dangerous until your last tour of duty. Your primary concern on the job should be safety – for yourself, your partner and the public. You should not stop doing your job, but rather approach it with heightened awareness of the threats that exist. Recent events suggest that these threats are even more imminent in the current political atmosphere. However, you are professional and well-trained. You serve the public well. Be proud and be safe.

Sincerely,

Lt. John Delmonico
POFM President

“Up, up and away.” Consumer sentiment and retail sales may have soared higher, but both wholesale inflation and oil prices are on the decline. What does all of this mean for the markets and home loan rates? Read on for the breakdown.

Consumer sentiment surged to 93.8 in December, reaching the highest level since January 2007 and the recent recession. In line with that sentiment, consumers also opened their wallets in November, spending money on goods ranging from cars to clothing as the holiday shopping season got underway. Retail Sales rose by 0.7 percent in November, which was the fastest rate in eight months.

One thing helping both consumer sentiment and retail sales of late is the continued decline in prices at the pump. In fact, the International Energy Agency recently cut its outlook for global oil demand growth in 2015. The markets have been especially volatile in recent weeks, and this news only added to the volatility. Despite the choppy trading in both Stocks and Bonds, home loan rates (which are tied to Mortgage Bonds) remain near historic lows.

Also of note, thanks to the decline in oil, the November Producer Price Index showed that inflation declined at the wholesale level. This is Bond-friendly news, since inflation reduces the value of fixed investments like Bonds, meaning this is also good news for home loan rates.

The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance.

Time is on our side. Time continues to be on the side of potential homebuyers, as home loan rates remain near 18-month lows. But could a hint of inflation be creeping into our economy—and if so, could higher home loan rates be on the horizon?

The housing sector continues to be a bright spot, as Existing Home Sales in October reached their best level since September 2013, coming in at 5.26 million units. Low home loan rates and an improving job market are two key factors that drove buyer decisions.

There was also a double dose of good news on the builder side. Building Permits, a sign of future construction, reached their highest level since November of last year. And the National Association of Home Builders (NAHB) reported that its November Housing Market Index rebounded to 58, up four points from October. The NAHB Housing Market Index gauges builder perceptions of current single-family home sales, and readings over 50 are seen as positive.

The one downside from the housing sector came from October Housing Starts, which declined from September. It’s important to note that within the report, starts for single family homes increased 4.2 percent, while multi-family dwellings fell by 15.4 percent. More housing reports are ahead in the coming week. Will they also signal a continued recovery in the housing sector?

And there’s another thing to watch in the next week, as Personal Consumption Expenditures (the Fed’s favorite measure of inflation) will be released. While inflation on the consumer side via the Consumer Price Index remained tame in October, wholesale inflation came in hotter than expected. While one month doesn’t constitute a trend—and expectations are for inflation to remain cool—remember that inflation is bad for Bonds, as it impacts the value of fixed investments like Bonds. This means inflation can also cause home loan rates to worsen, as home loan rates are tied to Mortgage Bonds.

The bottom line is that at this time, home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance

“Home of the brave.” The Bond markets were closed on Tuesday in honor of Veterans Day, and the brave men and women who have served and sacrificed to protect and preserve our great nation. The economic calendar was quiet the rest of the week, but there are some key highlights to note.

In the labor sector, Weekly Initial Jobless Claims came in at 290,000. Claims have remained below 300,000 for nine straight weeks—a feat that has not occurred since 2000. In addition, claims are 20 percent lower than they were this time one year ago. However, all is not golden as 18.2 million Americans still say they can’t find a full-time job. This is a big number, considering that we’re five years into an economic recovery. While the labor sector is improving, there is still more work needed ahead.

Oil prices continue to drift lower, reaching levels not seen since October 2011. This slide lower has put extra cash in consumers’ pockets just in time for the holiday shopping season, and it helped Retail Sales in October bounce back from the negative numbers seen in September. However, all-time price highs in meat, dairy and produce could tap into these savings at the pump.

Looking ahead, housing data is abundant in the coming week. And while the hot housing numbers from 2013 have cooled a bit this year, recent data suggest that the housing recovery is still intact. Existing Home Sales in September touched their highest level in a year, while New Home Sales hit a six-year high. These will be important numbers to watch as we look ahead to the housing sector, and whether its recovery continues, next year.

The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance.

ANOTHER OPEN LETTER TO MAYOR HODGES

Dear Mayor Hodges:

Your statements in your open letter to “the communities of Minneapolis” and in your community forums are repeated and personal slaps in the face to every member of the Minneapolis Police Department. While you attempt to hide behind the tired remark that “most officers are good, the problem is just a few bad apples”, when you speak of the “culture of the Department” that is “on a downward spiral and must be changed” you paint all officers with the same brush since all of us are members of “that culture.” One does not need to be too clever to understand that culture to which you refer is a culture in which racism and brutality is condoned and ignored. While that may well be your perception, it is a perception that is as malicious as it is false.

Contrary to the premise underlying your misperception, bad behavior by Minneapolis police officers does not go unpunished. If anything, discipline is too often more severe than is necessary to serve the stated purpose of being corrective rather than punitive. One cannot reasonably conclude that the system is broken merely because some complainants are not satisfied with the outcome. There are many legitimate reasons why not all complaints result in discipline. Sometimes the action of the officer was necessary and appropriate but misunderstood by the complainant. Sometimes there is insufficient evidence to prove wrongdoing. Sometimes the circumstances warrant coaching or training or modification of policy rather than discipline. And, yes, sometimes complainants lie. The true test of a good disciplinary system should be whether complaints are fairly and thoroughly investigated. When sufficient evidence supports the charges, discipline should be imposed promptly after the investigation is concluded, and should be at a level that commensurate with the offense. If you were willing to look at facts rather than rely on your misguided perceptions, you would be telling the communities that we already have such a system.

You claim you want the relationship between officers and “the communities” (obviously showing that you do not consider Minneapolis to all be one community) to improve. A relationship is a two way street. For a good one to remain good and for a bad one to improve it requires desire, commitment, effort and trust by both parties – not just by one. Your stated formula for improving the relationship between the cops and the communities places 100% of the burden on police officers. This implies that police officers are 100% to blame for any relationships that may be less than perfect.

Every member of every community should rightly expect that each Minneapolis officers will treat him or her with a high level of professionalism. Believe it or not, Minneapolis police officers actually expect that of each other. We often preach that in every citizen contact we should treat all folks – whether victim, witness or suspect – the way we would want our loved ones to be treated. However, it is fair to say that while we would expect a police officer to treat our loved ones with respect, we also would expect our loved ones to treat a police officer with respect as well. That expectation of mutual trust and respect is precisely what is missing from your “relationship improvement” plan. No mention is made as to whether the community can or should expect those who punch us, spit on us, curse at us, shoot at us or falsely complain about us to improve their behavior. Nor is there an attempt to examine the complaint process based on the premise that the expected outcome should be fair and thorough investigations rather than harsh disciplinary context correct misperceptions held by yourself and some of the communities to whom your words are addressed.

Your words and actions do not support your purported goal of improving the relationship between police and communities. If you truly wanted to improve the relationship, you would challenge police officers to always act with professionalism and respect but also challenge “the communities” to re-examine their perceptions of the “police culture of tolerance for bad behavior” and to accept that the desired outcome of the complaint process should be a fair, thorough and timely vetting each complaints rather whether all complaints result in harsh discipline. Instead, you have chosen to not only adopt but perpetuate the misperceptions about your police department and to take positions that support the fallacy that officers are 100% to the blame and 100% responsible for the solution. Those actions fuel the flames – they do not extinguish them. No amount of effort by officers or expenditure of taxpayers’ money will improve the relationship between officers and communities when elected officials repeatedly undermine those efforts by engaging in political pandering to those who inherently dislike and mistrust the police.

Sincerely,
Lt. John Delmonico
President, Police Officers Federation of Minneapolis

It’s been said that history repeats itself. That seems to be the case as we approach the end of the Fed’s big Bond-buying program. Read on to learn why.

In recent weeks, Stocks have seen a sell-off while Mortgage Bonds have pushed considerably higher. Why has this happened? Concerns about slowing global economic growth have pushed investors into the safe haven of the Bond market, and investors have also secured profits with Stock prices near all-time highs.

But there’s another reason that’s important to mention. After the first and second rounds of the Fed’s Bond-buying program (known as Quantitative Easing) ended, Stocks performed terribly—and that behavior seems to be repeating itself as the Fed’s latest version of its Bond-buying program is nearing its end later this month. But that’s not all that could impact the markets in coming weeks. If corporate earnings are worse than expected, Stocks could continue to drift lower, meaning Bonds and home loan rates could continue to benefit. This will be a key story to monitor in the weeks ahead.

In housing news, research firm CoreLogic reported that home prices rose by 6.45 percent from August 2013 to August 2014, which is down from the annual figure reported in July. CoreLogic went on to say that home prices are 12.1percent below the peak seen in April 2006. Looking forward, prices are expected to increase 5.2 percent from August 2014 to August 2015. The takeaway from this is that home price gains have slowed to more normal and sustainable levels, after the large appreciation seen last year.

The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance.