700 Billion Left Hand Turns
You weren’t asked by the government what they could do with your money and they still aren’t. Now they take another left hand turn in the $700 billion dollar bailout plan by NOT doing what was originally planned.
I told you and every one that would listen that the government was headed in the wrong direction for buying up troubled mortgage assets, but that’s what they used as the initial decision for structuring this unbelievable bailout decision.
Now here comes the news that perhaps they were confused and such action wasn’t and isn’t the best idea and now they want to step in a use the funds to support non-bank financial institutions or to be more specific credit card companies and personal loans outside of banks.
Guess what? That’s exactly what I have been predicting. The DOW has dropped today to 8400 and the government is going after supporting the core consumer market through smaller loans and credit that puts the dire pressure on the family unit.
Mortgages could be supported by deferral plans without the help of excessive government funds. Be sure to read my comments in Halting the Foreclosure Wave.
Don’t get me wrong folks. I believe we will come out of this and the financial markets will stabilize by the second quarter of 2009, but only if we focus on the core consumer market and not the big banking institutions, insurance companies and bad mortgage assets.
Support needs to be directed at corporate business that creates jobs, new job development and deferral of core consumer debt until the population can reestablish a firm financial foundation.
These are the people that drive this country.
Corporate business, banks, mortgage companies and even the government can do little if the core consumer market cannot drive their income and taxes through the financial system.
Listen up big business and government…
Support the people not business and financial institutions. If you support the correct institutions and they in turn support the core consumer market things will begin to stabilize. If not, if you continue to chase your tail by throwing good money after bad the consumers will continue to suffer and go broke and the economy will continue a tailspin into financial oblivion.
Wise up and pay them now or pay the terrible price later.
This with the SOCIAL BOOKMARKING CONSOLE 
Halting the Foreclosure Wave
The tsunami of home foreclosures continue and the situation will only get worse as job layoffs continue due to company closures and shutdowns. The proposed plans simply won’t work and homeowners know it.
The government plans to streamline loans especially Fannie Mae and Freddie Mac simply won’t work. I was discussing this last night with someone and here are the main reasons why.
Fannie Mae and Freddie Mac are but a small percentage of the loan issues.
A majority of the general mortgage potential foreclosures are due to loss of income.
Families that lose their jobs such as the towns in Ohio hit hard by the DHL shutdown or Michigan automaker layoffs which affect thousands won’t have anywhere to turn in the short term period.
There was a saying when I was a boy “you can’t get blood out of a turnip”. Restructuring mortgage loans means little to a family with NO income. They can’t pay a mortgage regardless of any percentage restructure provisions.
The foreclosure is then inevitable and that only serves to put another American family out on the street and another vacant home into the possession of a mortgage company or bank in an already soft and unstable housing market.
So here is what I proposed for what little it means and for the few financial gurus in the government and mortgage industry listening. If the family has lost income due to a company layoff offer them two avenues of relief:
A ) Deferral of all payments other than loan principle for a term of 12 months to give the family a chance to establish a new income position and to observe the status of economic recovery in this country. This would greatly reduce the financial demand on the family and give them a chance to recover from the layoffs.
B ) Deferral of all payments for 12 months to allow the family to use savings only for essentials like food, utilities and living expenses until they can establish new income. The mortgage would still exist, but readjustment would extend the terms to give these families a chance to breathe financially.
At the end of the 12 month period everyone involved would have a much better picture of where the country and the family are economically. Families would stay in their homes, foreclosures would be reduced, the housing market wouldn’t be flooded with properties and the American core consumer market would have the time to strengthen their position against this sudden downturn in the business, financial and job markets.
The government needs to focus on creating American jobs and strengthening the core consumer market that supports local businesses more than becoming a landlord through buying up mortgage and investment concerns.
It is also imperative that we keep American dollars and business in America.
Assembling products in the US that have been manufactured abroad simply puts our money in someone else’s pocket in the long term. Jobs need to be HERE even if the people must accept lower wages to subsidize the future growth of the company.
A lower wage is far better than a layoff and NO wage.
This is not a time to worry over padding corporate bottom line profits through outsourcing labor and parts to foreign countries. That is one process that has weakened the job structure in the past two decades.
This is a time if there ever has been one for corporate and worker unity and clear thinking on the issues and demands that affect the core consumer market.
These are the people that buy holiday gifts, eat out at restaurants and purchase the consumable commodities that power this country. These are the very people that purchase homes, vehicles and small to medium investments in the banking industry. These are the people with the core deposits in our banks.
Turn your back on them and the backbone of this country will be bent to the breaking point.
This with the SOCIAL BOOKMARKING CONSOLE
When Your Job Abandons You
It’s a painful experience that is being experienced by far too many people right now due to the economy. However, losing your job doesn’t have to be as traumatic as you might think.
When we interview people 78% don’t even want the job. It’s the income they desire the most.
Of course the other people truly like the work they do. Some would even follow the path of their vocation even if there was little or no pay.
However, most of that money focused 78% of the workforce feel that their job and company has abandoned them when they do get the pink slip of dismissal or layoff. They want and need the income so the reason for the loss is not as important as the fact that the money is now gone.
In this wave of economic job loss it is important to understand that income simply means money coming in to you and your family and is not specifically linked to a formal company job.
In fact, in some areas where job loss is severe and there are no real company related positions located nearby it is important that you be able to replace that income without leaving your home.
Now more than ever home based businesses will help to stimulate the economy for the core consumer market. The only requirement is that families educate themselves on how to pull the value out of their potential and then market that value.
Losing your job doesn’t have to be painful. You can learn to redirect your energies into an income that far exceeds your expectations.
This with the SOCIAL BOOKMARKING CONSOLE 