That depends. I think this question should be answered on an individual basis. If you just lost your job; times are tough. If you just got a raise, times
are good: Don’t let the daily news convince you otherwise.
However; things are definitely different that they were a few months ago:
You can’t buy a house with zero down-payment anymore – I would argue that this should never have been an option.
Ninja loans are gone. N.I.N.J.A - No Income, No Job, no Assets - We have an acronym for everything! Only a
government agency would create something like this!(1)
The free market is being criticized.
Washington has been experimenting with socialist solutions to solve cyclical problems – for over a decade.
Banks are getting very stingy, though they won’t admit it.
In spite of our problems, I am a big believer in the resourcefulness of the American Business Person and the American Worker - You! If you provide a product that your community needs and you effectively get the word out;
if you serve your clients to the best of your ability, and encourage your employees to do the same;
if you avoid overly complicated business deals and investment products;
You will prosper in any free-market economy.
People still need food, clothing, shelter, entertainment, medical care, transportation, etc, etc,. That won’t change.
Many of the businesses we hear about in the news have been making very poor decisions for years. This isn’t universally true, but it’s
true in a majority of cases. Here are a few thoughts and examples to illustrate this point:
Skybus went out of business when Oil prices skyrocketed, but Southwest Air made a ton of money in that same period:
SW understood that they were in the Airline business and in the Oil commodities market:
Skybus thought they were just an airline - They crossed their fingers and hoped fuel prices would remain stable, but they didn’t do anything about it.
Warren Buffet made a killing in the market last year. Bill gates lost a ton. I used to criticize how conservative Mr. Buffet’s investments were, but
it seems he knew what he was doing after all. When everyone else started panic selling aggressive investments, he started buying. Now his portfolio looks
pretty aggressive while everyone else is putting cash under their matresses or buying Gold.
Lots of people lost money in the stock market, but EM Trend Advisors' clients made money last year, as they
did the year before. Every serious investor should have a trend analyst on their team. Yes, this is a shameless ad placement; but the claims are also true!
I know a young lady in her 70’s whose retirement nest-egg was reduced by 50% in 2008. Her broker insisted on keeping her in aggressive
investments. I told her for years that she should get into something more conservative. I'm not a licensed advisor, so it's so suprise she didn't listen to me.
Her advisor should be taken to the wood-shed for keeping her in a portfolio that may take 5 years to return to pre-2008 levels.
I know a couple living with 8 kids in a 2-bedroom apartment - They lost their house. They seem to be the happiest people..... pleasant, fun to be
around, quick to laugh. I don’t know how they do it. Some would say they are delusional! I think their strong faith and their strong family support gives
them reassurance and hope for the future.
As a final thought; I’d like to share my favorite quote of all time!
Winston Churchill said this in a speech given a few years before he died:
“Never give up! Never give up! Never, ever give up!”
(1) Low interest NINJA loans were compliments of Freddy Mac and Fannie Mae. Though they are technically private organizations, they were run like government agencies,
right down to politically motivated appointments to key positions, and complete lack of fiscal responsibility.
Our Projections have served many companies in many industries. Architectural Firms
Engineering
Software Development
Construction
Pharmaceutical Firm
Accounting & Consulting
Programming & Development
Night Clubs
Fitness Centers
and Much More!
Vote for the other guy!
It may be time to fire your congressman.
(The house and senate) pulled a political stunt of the worst kind with the passage of the emergency bail-out bill. Instead of passing a clean bill that addressed the problems in the mortgage lending sector; congress loaded this bill with pork, unfunded mandates, earmarks, and pet projects. Whether or not you believe government is the answer to the current financial crisis, you must agree that these add-ons are fowl. This bill illustrates why congress' approval rating is so low.
Here are some of the provisions added to the final version of the bill – H.R. 1424:
Excise tax exemption for Wooden arrow manufacturers. $2,000,000
Tax deduction for Companies who provide bicycles to employees to commute to work. $10,000,000
Domestic Production incentive for Movie makers to produce films in the United States. $478,000,000
Accelerated Depreciation for race track owners. $100,000,000
Excise tax exemption for Rum Producers in Puerto Rico and the Virgin Islands. $192,000,000
Tax incentives for the Wool Industry. $148,000,000
Tax credit for research and development
Tax relief for amounts received from Exxon Valdez Litigation. $49,000,000
Aid to rural communities for education. $3,300,000,000
Federal individual tax deduction for State sales tax. $3,300,000,000
Economic Development credit for American Samoa. $33,000,000
Alternative Minimum Tax Exemption was increased. $62,000,000,000
Tax credits for purchasing energy efficient appliances. $322,000,000
Unfunded Mandates:
Insurance Companies will be forced to cover mental health and substance abuse programs.
FDIC Insurance increased from $100,000 to $250,000.
There are other provisions (and extensions of existing provisions) for Wind Energy, Hydro-electric dams, further restrictions on “carbon-emitting” manufacturing companies, Biomass facilities, Mine safety equipment, railroads, etc. Frankly; it would take weeks of research to understand the final version of the 451 page bill. Please feel free to download a copy of the bill and you’ll see what I mean - http://banking.senate.gov/public/_files/latestversionAYO08C32_xml.pdf
The final vote for the house and senate are listed below for your reference.
If you are tired of bloated government that no longer represents the people, please vote against every senator who voted for this bill.
