The next shoe to drop will be the Commercial Real Estate market. Currently they are hiding the losses with corporate debt, but eventually they will have to reveal the loses.
My business offers me a unique view at the mortgage and banking industry. About 5 years ago I noticed hundreds of Arab and Indian/Pakistanie individuals purchasing gas stations, grocery stores, real estate, fast food franchise, etc., etc.
First lets look at the commercial real estate market and I'll tie this in with the foreign businesses owners.
FACT! Almost every corporation was using FAKE numbers for profits over the last few years! They were using what I've coined - "Expansion Profiting".
This is when a corporation or individual opens up a new location or a new business and they use a MORTGAGE to finance the business.
IMPORTANT NOTE - This was the major reason why my wife and I decided to pull our money out of the market back in Feb. 08!
Example:
Corporation or individual needs money to expand or start a business. Instead of leasing the property they decide to buy the property...WHY?????
Because they figured out a LOOP HOLE in the lending rules. They figured out with the help of Happy Go Lucky bankers that they could use the building as collateral and finance the entire business, building and working capitol into the mortgage.
We've started to see several corporation starting to pull back and closing stores left and right all across the country.
I noticed that this would be a problem when I started seeing the same type of franchise within a few miles of each other. Normally franchises offer a 5 mile radius to guarantee a good volume of business to a certain location. But after they started using this loop hole they didn't care about the 5 mile radius.
I have several associates that were put out of business by the same franchise that they bought into. Not to mention names but they have so, so sandwiches!
I must admit that even though I consider myself pretty smart "LOL" I really didn't figure this out until I started questioning my Arab and Indian friends about how they got the money to purchase certain businesses that I knew would cost thousands of dollars.
A good friend of mine from India purchased a BP gas station for $1,5 million dollars. Before that he owned a small Dollar Store.
For this loop hole to work you need two ingredients.
1) You need to know the loan officer. There were a few banks that the loan officer would allow individuals to refer their friends and that was as good as good credit.
2) You need a cash flow based business. Fast food, auto repair, gas station, grocery store, etc.
YES - many of these loans have went bad also! Many of these individuals were able to walk away from the business and not have any marks on their credit report due to the business being incorporated.
If you think that was great info - wait for my next update! You haven't seen nothing yet. I'm talking about MONEY, MONEY, MONEY!!!
Us African Americans need to do our homework!!!!! This SECRET is so incredible I need a few days or maybe a week to decide if I really want to reveal it.
If I reveal it I will probably lose some close Multi Millionaire friends of mine!
To sum it up...these corporations and individuals are having a hard time making the payments for the loans they took out.
The market will determine if this shoe will drop lightly or hard!
This Needs To Happen:
1) they need to refinance their debt at lower interest rates.
2) they need the consumer market to start buying again.
3) they need to hold or halt expansion.
4) they need to repay the debt.
Monday, October 27, 2008
60 Minutes Got It Right!
On the TV News show 60 Minutes 10-26-08. They showed how corporations and stock market insiders have been betting on various financial instruments to fail.
These types of bets are called 'derivatives'! These were actually made illegal before the Great Depression. These types of investments don't workout because there isn't enough money to payoff the bets.
In a normal betting situation someone would have to bet for and against. You would have money placed on both sides.
In the 'derivative' market, a bank could loan money to an individual and bet against them staying in business.
Example:
*Bank loans company A $500,000
*Bank buy a 'derivative' for $1,000,000 (1 million dollars) against company A making it for only $1,500 or even less depending upon the other bets they have placed.
*The bank WINS either way. But they WIN bigger and SOONER if the business fails.
These types of bets are called 'derivatives'! These were actually made illegal before the Great Depression. These types of investments don't workout because there isn't enough money to payoff the bets.
In a normal betting situation someone would have to bet for and against. You would have money placed on both sides.
In the 'derivative' market, a bank could loan money to an individual and bet against them staying in business.
Example:
*Bank loans company A $500,000
*Bank buy a 'derivative' for $1,000,000 (1 million dollars) against company A making it for only $1,500 or even less depending upon the other bets they have placed.
*The bank WINS either way. But they WIN bigger and SOONER if the business fails.
Tuesday, October 21, 2008
Earn $1,000,000 in just a few months?
O'boy...here they come. Over the last few weeks I've been getting chain letters explaining how I can make a million dollars by just sending $5 to the 5 names on the list and taking off the name of the person at the top and adding my name and address at the bottom and sending it to 100 people.
I've gotten over 25 letters from various individuals that have fallen for the scam!
Another post card I've been getting is the Famous Gifting post card that making its way across the country. They have taken it to a whole new level with addition of a website and the adding of video to the website.
They are tempting people that are struggling with videos of them opening envelopes with $500 to $1,000 inside of them.
Let me help you right now before you fall for the scams and lose your hard earned money.
They don't work and they are highly illegal!!!!!!
#1 - if you send money without an exchange of product through the mail you will be subject to mail fraud. These individuals try to get away with this by adding the following items with the money!
*a magazine
*a letter saying its a gift!
*a receipe
*a ebook
Everyone involved in these types of scams will be subject to US Mail fraud charges eventually. They always catch up to them when they get comfortable.
There are ways to make easy money, but I've learned that if you find a way to make easy money, it will take a lot of brain power to make it continue to work.
This is where most people fail. Its very easy to physically work on something with your hands but when it comes to using your brain power its becomes almost impossible for most.
You'll never be able to use your labor to get ahead in life, you must figure out a way to use your brain to have other people/technology to do your labor.
Until next time...
Steven
I've gotten over 25 letters from various individuals that have fallen for the scam!
Another post card I've been getting is the Famous Gifting post card that making its way across the country. They have taken it to a whole new level with addition of a website and the adding of video to the website.
They are tempting people that are struggling with videos of them opening envelopes with $500 to $1,000 inside of them.
Let me help you right now before you fall for the scams and lose your hard earned money.
They don't work and they are highly illegal!!!!!!
#1 - if you send money without an exchange of product through the mail you will be subject to mail fraud. These individuals try to get away with this by adding the following items with the money!
*a magazine
*a letter saying its a gift!
*a receipe
*a ebook
Everyone involved in these types of scams will be subject to US Mail fraud charges eventually. They always catch up to them when they get comfortable.
There are ways to make easy money, but I've learned that if you find a way to make easy money, it will take a lot of brain power to make it continue to work.
This is where most people fail. Its very easy to physically work on something with your hands but when it comes to using your brain power its becomes almost impossible for most.
You'll never be able to use your labor to get ahead in life, you must figure out a way to use your brain to have other people/technology to do your labor.
Until next time...
Steven
Monday, October 20, 2008
Who's really conservative?
I was just watching the 5:30pm national news and they laid out the differences between Obama's tax plan and McCain's tax plan.
Before I talk about the differences I'm very disappointed in the so called talk radio host such as Dave "I filed bankruptcy but you shouldn't file" Ramsey making statements that Obama is a socialist!
For a man that touts paying your debts, he needs to do his homework about who's a socialist!
We have reached a point in America where we need to pay our bills and not leave this mess for our children and grandchildren to pay off.
Under Obama's plan our national debt will rise by $3.5 trillion dollars.
Under McCain's plan our national debt will rise by $5.5 trillion dollars.
Under Obama's plan we will actually start a pay as we go formula and this will allow us to actually start pay down our debt as new revenue streams start to evolve. And they will evolve regardless who is the president.
I use to co-sign to the trickle down economic theory, and after very deep thought it honestly doesn't work.
I personally know 14 multi millionaires and some might consider me one, but they / we don't really run our businesses they way it's explained on the news reports.
No one wants to pay taxes and we all want to pay less taxes, but if you think that business people base their business on what they will pay in taxes I have a bridge in the dessert to sell you!
Let me give you one of my real life examples that I'm going through right now! In Feb. 08 I pulled all of my money out of the stock market and I decided to invest in real estate.
I paid a tax for taking the money out. On just one of my deals I will make $115,000 of that I will profit $75,000.
I will pay 15% capitol gains tax on the $75,000 which is $11,250 that leaves me $62,750 cash in my pocket. So I will have my initial $40,000 back + $62,750 in my pocket. That's $102,750!!!!!
For only a few months work.
Something they don't want you to know and its mainly because most people don't have the opportunity to make this type of money they usually win money or know someone that won money and they see the taxes taken out immediately.
There are several tax deductions that frankly rich people don't want you to know about. For example there is a loop hole that will allow me to place the $75,000 in a specific account and not pay the capitol gains at all!
There's also a loop hole that allows me to place all of my income in an account and pay no taxes at all.
A local car dealer a few years ago took alot of heat because he earned $1,000,000 YES 1 million dollars and paid no taxes on that money at all.
Do you think that the money trickles down? Ofcourse not. What we do is we try to make more money and we do that by expanding. But that has nothing to do with taxes that has to do with having a good product and services for the public.
There is a level of responsibility that we must adhere to! Years ago the state of Wisconsin prison system offered to print my weekly publication for about 40% of what I was paying. That's a 60% savings.
I didn't just think about the saving like most, I thought about the workers at the printing plant I was currently using. I thought about the owners of that plant and how they treated me with respect when my publication was a tiny 8 page magazine and how they continued to treat me with respect as my magazine grew to over 100 pages per week.
I'm curently profiting 70% so I could probably profit 90% if I was to use there services, but what would I be promoting?
*prison slavery - the same prisoners couldn't get the same opportunity to work for a printer after they exited prison.
I just couldn't do it, I have a conscious!
To sum it up...don't believe the hype that these so-called debt talk show host try to sell you because they don't want to see a president that looks different than them.
Don't believe the hype about how rich people decide to invest in the market.
Don't forget to share your stories about debt.
visit http://www.therealdebtsolution.com
Before I talk about the differences I'm very disappointed in the so called talk radio host such as Dave "I filed bankruptcy but you shouldn't file" Ramsey making statements that Obama is a socialist!
For a man that touts paying your debts, he needs to do his homework about who's a socialist!
We have reached a point in America where we need to pay our bills and not leave this mess for our children and grandchildren to pay off.
Under Obama's plan our national debt will rise by $3.5 trillion dollars.
Under McCain's plan our national debt will rise by $5.5 trillion dollars.
Under Obama's plan we will actually start a pay as we go formula and this will allow us to actually start pay down our debt as new revenue streams start to evolve. And they will evolve regardless who is the president.
I use to co-sign to the trickle down economic theory, and after very deep thought it honestly doesn't work.
I personally know 14 multi millionaires and some might consider me one, but they / we don't really run our businesses they way it's explained on the news reports.
No one wants to pay taxes and we all want to pay less taxes, but if you think that business people base their business on what they will pay in taxes I have a bridge in the dessert to sell you!
Let me give you one of my real life examples that I'm going through right now! In Feb. 08 I pulled all of my money out of the stock market and I decided to invest in real estate.
I paid a tax for taking the money out. On just one of my deals I will make $115,000 of that I will profit $75,000.
I will pay 15% capitol gains tax on the $75,000 which is $11,250 that leaves me $62,750 cash in my pocket. So I will have my initial $40,000 back + $62,750 in my pocket. That's $102,750!!!!!
For only a few months work.
Something they don't want you to know and its mainly because most people don't have the opportunity to make this type of money they usually win money or know someone that won money and they see the taxes taken out immediately.
There are several tax deductions that frankly rich people don't want you to know about. For example there is a loop hole that will allow me to place the $75,000 in a specific account and not pay the capitol gains at all!
There's also a loop hole that allows me to place all of my income in an account and pay no taxes at all.
A local car dealer a few years ago took alot of heat because he earned $1,000,000 YES 1 million dollars and paid no taxes on that money at all.
Do you think that the money trickles down? Ofcourse not. What we do is we try to make more money and we do that by expanding. But that has nothing to do with taxes that has to do with having a good product and services for the public.
There is a level of responsibility that we must adhere to! Years ago the state of Wisconsin prison system offered to print my weekly publication for about 40% of what I was paying. That's a 60% savings.
I didn't just think about the saving like most, I thought about the workers at the printing plant I was currently using. I thought about the owners of that plant and how they treated me with respect when my publication was a tiny 8 page magazine and how they continued to treat me with respect as my magazine grew to over 100 pages per week.
I'm curently profiting 70% so I could probably profit 90% if I was to use there services, but what would I be promoting?
*prison slavery - the same prisoners couldn't get the same opportunity to work for a printer after they exited prison.
I just couldn't do it, I have a conscious!
To sum it up...don't believe the hype that these so-called debt talk show host try to sell you because they don't want to see a president that looks different than them.
Don't believe the hype about how rich people decide to invest in the market.
Don't forget to share your stories about debt.
visit http://www.therealdebtsolution.com
Thursday, October 16, 2008
For Immediate Release...Many Americans Will Not Live Through the Present Financial Crisis
FOR IMMEDIATE RELEASE:
Contact: Lisa Stevens
The Real Debt Solutions, Inc.
Tel: 262-745-6879
Fax: 262-364-3445
Email: lisastevens@therealdebtsolutions.com
www.therealdebtsolutions.com
Many Americans Will Not Live Through the Present Financial Crisis
KENOSHA, Wis - As the financial crisis on Wall Street shakes stock markets across the planet, it is causing an earthquake here at home. With a force greater than Hurricane Katrina, the current financial crisis is forcing middle-class families everywhere into poverty–and there is no end in sight. Not since September 11th have we been faced with a greater threat to our security, but without a leader to guide us many have lost all hope. As homes move into foreclosure and lifetimes of savings vanish, many are matching the cruelty of the market with cruelty to themselves, committing suicide or murder because they no longer understand their lives and have completely given up.
Here are the facts:
• Company Layoffs are at all time high
• 89% of Americans no longer have confidence in U.S. Economy
• Stocks are down 33% since their all time high 1 year ago
• Local Unemployment is up to 11.5% in some large cities
• Divorce Rates are at an all time high due to finances
• People are committing horrible acts of violence due to their debt problems
• Americans don't believe their political officials care about their financial situation
• Families are afraid of what's around the corner
Steven Williams, the founder and chairman of The Real Debt Solutions, Inc., has been appearing on radio and television to remind Americans that we are now involved in the most difficult struggle of our lifetimes. His forthcoming book, The New Slavery...Debt Crisis in America, tells the story of how the recent financial crisis is destroying American families and how its negative effects have been greater than any natural disaster or act of terrorism.
In the early nineties, Steven Williams and his wife had a successful business, but they were overwhelmed with credit card debt. After some tough talks, Steven and his wife started paying for everything except their home with cash. It was difficult at first, but within a few years they were able to overcome their debt, pay off their credit card bills, and begin saving.
Unfortunately, most Americans are far from debt free and their circumstances have become desperate. Many in the middle-class, and even some well-known celebrities, are deeply hurting because of their financial difficulties. But staying silent about financial problems while the economy collapses around us will only compound the stress that everyone in America is feeling. Besides the damage that terrible anxiety can cause to marital relationships and personal health, many recent suicides and murders have been a direct result of financial stresses.
Talking about your financial problems is the first step towards solving them. Steven William's forthcoming new book, The New Slavery...Debt Crisis in America, will help you understand the causes of your financial problems and point you toward the solutions to get you out of debt. Learn how other American families are struggling through the greatest crisis of our lifetimes, and when you're ready, share your story anonymously at www.therealdebtsolutions.com.
###
About Steven Williams
Steven Williams, the founder and chairman of The Real Debt Solutions, Inc., is a US Army Veteran whose forthcoming book, The New Slavery...Debt Crisis in America, will be released in January of 2009 and tell the story of how the recent financial crisis is destroying American families and how we can stop being stressed about the economy and get out of debt forever.
If you would like more information about his forthcoming book, The New Slavery...Debt Crisis in America, or to schedule an interview with Steven Williams, please contact Lisa Stevens at (262)745-6879 or via e-mail at lisastevens@therealdebtsolutions.com.
Contact: Lisa Stevens
The Real Debt Solutions, Inc.
Tel: 262-745-6879
Fax: 262-364-3445
Email: lisastevens@therealdebtsolutions.com
www.therealdebtsolutions.com
Many Americans Will Not Live Through the Present Financial Crisis
KENOSHA, Wis - As the financial crisis on Wall Street shakes stock markets across the planet, it is causing an earthquake here at home. With a force greater than Hurricane Katrina, the current financial crisis is forcing middle-class families everywhere into poverty–and there is no end in sight. Not since September 11th have we been faced with a greater threat to our security, but without a leader to guide us many have lost all hope. As homes move into foreclosure and lifetimes of savings vanish, many are matching the cruelty of the market with cruelty to themselves, committing suicide or murder because they no longer understand their lives and have completely given up.
Here are the facts:
• Company Layoffs are at all time high
• 89% of Americans no longer have confidence in U.S. Economy
• Stocks are down 33% since their all time high 1 year ago
• Local Unemployment is up to 11.5% in some large cities
• Divorce Rates are at an all time high due to finances
• People are committing horrible acts of violence due to their debt problems
• Americans don't believe their political officials care about their financial situation
• Families are afraid of what's around the corner
Steven Williams, the founder and chairman of The Real Debt Solutions, Inc., has been appearing on radio and television to remind Americans that we are now involved in the most difficult struggle of our lifetimes. His forthcoming book, The New Slavery...Debt Crisis in America, tells the story of how the recent financial crisis is destroying American families and how its negative effects have been greater than any natural disaster or act of terrorism.
In the early nineties, Steven Williams and his wife had a successful business, but they were overwhelmed with credit card debt. After some tough talks, Steven and his wife started paying for everything except their home with cash. It was difficult at first, but within a few years they were able to overcome their debt, pay off their credit card bills, and begin saving.
Unfortunately, most Americans are far from debt free and their circumstances have become desperate. Many in the middle-class, and even some well-known celebrities, are deeply hurting because of their financial difficulties. But staying silent about financial problems while the economy collapses around us will only compound the stress that everyone in America is feeling. Besides the damage that terrible anxiety can cause to marital relationships and personal health, many recent suicides and murders have been a direct result of financial stresses.
Talking about your financial problems is the first step towards solving them. Steven William's forthcoming new book, The New Slavery...Debt Crisis in America, will help you understand the causes of your financial problems and point you toward the solutions to get you out of debt. Learn how other American families are struggling through the greatest crisis of our lifetimes, and when you're ready, share your story anonymously at www.therealdebtsolutions.com.
###
About Steven Williams
Steven Williams, the founder and chairman of The Real Debt Solutions, Inc., is a US Army Veteran whose forthcoming book, The New Slavery...Debt Crisis in America, will be released in January of 2009 and tell the story of how the recent financial crisis is destroying American families and how we can stop being stressed about the economy and get out of debt forever.
If you would like more information about his forthcoming book, The New Slavery...Debt Crisis in America, or to schedule an interview with Steven Williams, please contact Lisa Stevens at (262)745-6879 or via e-mail at lisastevens@therealdebtsolutions.com.
Tuesday, October 14, 2008
Markets Rally - What they don't won't you to know!
Yesterday the market rallied over 950 pts. which by their standards erases 1/2 of last weeks losses.
But something they don't want you to know about is that doesn't mean your specific investment rebounded.
There were specific companies that made huge gains, but overall you gains were probably very small.
Eventhough I took all of my money out of the market in Feb. 08, I keep up with where the funds were heading.
Each day I thank God for allowing me to stand up to my broker and not listen to his advice.
Both of my mutual funds tanked more than 50%. They are invested in 1,000's of companies combined and they came back by a combined increase of $1.66 per share.
They have a long way to go but at least they seem to be coming back.
http://www.therealdebtsolution.com
But something they don't want you to know about is that doesn't mean your specific investment rebounded.
There were specific companies that made huge gains, but overall you gains were probably very small.
Eventhough I took all of my money out of the market in Feb. 08, I keep up with where the funds were heading.
Each day I thank God for allowing me to stand up to my broker and not listen to his advice.
Both of my mutual funds tanked more than 50%. They are invested in 1,000's of companies combined and they came back by a combined increase of $1.66 per share.
They have a long way to go but at least they seem to be coming back.
http://www.therealdebtsolution.com
Monday, October 13, 2008
What a F_ _ _ _ ing Christmas Present
Just released on a news report in my area (Wisconsin) GM said they will be closing the auto plant on December 23, 2008.
Wow! What a Christmas present for those workers.
http://www.therealdebtsolution.com
Wow! What a Christmas present for those workers.
http://www.therealdebtsolution.com
So much to say...
I've been very busy over the last week. People are truggling and they are doing what ever they can to survive or to end the stress of their financial problems.
My week started out with one of my delivery vans getting vandalized and robbed of its precious fuel. The theif didn't want to steal the gas the old fashion way with a water hose, they just poked a hole in my gas tank and let the gas pour out.
They it had more than they could carry so the fuel poured all over the ground after they left.
Later that day I was fueling up my car and I noticed an advertisment on the gas pump for a plasma donor center. I had a good laugh because they want to our money and our blood.
By the way all of the blood plasma centers in the inner city are for cosmetic companies. The plasma helps the makeup stick to your face. How do I know this? We'll I've done the marketing for several of these companies for more than 17 years. After I got to know the managers I just asked and they told me.
MONEY, MONEY AND MORE MONEY PROBLEMS...
The US markets are still suffering, but they are currently constructing a plan for all of the worlds central banks to agree to insure all loans made to each other.
I'm coming to a realization about our money. That realization is maybe not the answer you might expect me to have. If you've been reading my blog postings I've had some reservation about the US Dollar. I've been watching some online videos explaining that the US dollar and all currency that is not backed by gold or something is really not worth anything.
These videos have also been talking about how debt it used to enslave us and make us work like dogs to pay the loans back. But there is a major flaw with these opinions.
The flaw is the need for us humans to "GROW"! Even if we were back in the stone ages, we would have a need to invent and grow to live an easier life.
I think what has happened is on one hand we have the people with money. These people are at a level of knowledge that has them growing to keep power and on the other hand we have people that have no "Will" to succeed or achieve.
95% of us is in the middle. Struggling to either stay at our level, or advance or not to fall back. Believe it or not we need this struggle or we would cease to exist!
No my feeling about debt has not changed. I think that all of us can get ahead if we became debt free. Debt free allows you to own what you buy without just having an equity position.
We need money to survive, people who loan money need to make loans to survive. This is a game! Who will win? Up to know the lenders have been winning, but the lenders have also learned a valuable lesson.
They can't win if we lose! Look at this example: Lender loans you $1,000,000. Your money payment would be about $4,000 per month. The same lender loans $1,000,000 to your friend and their monthly payment is $4,000 also.
The banks has loaned out $2,000,000 and they are only making $8,000 per month back. Now I'm not including interest to keep this example simple.
The bank would have to wait over 20 years to get their money back from you and your friend. This is the formula banks use but they add their interest to make a profit. But they can't make much money doing things this way.
This was the old fashion system of lending. They would only lend to people who could afford it and they were willing to wait years before they turned a profit.
The new system or formula that banks and lenders are using is to sell your debt for a profit and attach all types of fees and insurance type products and services.
In other words they are more interested in selling you either another loan (re-finance), insurance to protect their loan, even though they make it like they are protecting your interest. If things go bad they charge you all types of fees. They love the individuals that pay all the time but they tend to always pay late.
The other secret profit center is the selling (or sharing) of our personal information with other companies. These companies are not always related to the type of business they are in.
For example I just purchase a Laser Shield alarm system for on of my properties. I received advertisments for a clothing company in the box my order came in, but know I'm also receiving mail (junk mail) from that company.
But the funny thing about it I'm already on the list of that company. I've purchased custom made dress shirts from them. So I'm receiving double the amount of junk mail from them.
You might be saying why don't the clothing company update their list which will show that I'm already on their list? There's a good reason why they won't.
Some companies participate in joint ventures, this is when a company will advertise for another and only get paid if their customer purchases something from that specific advertisement.
That's why you'll see "offer codes", "dept #'s" on an ad you receive.
I guess in a round about way, I'm telling you to get good at playing their game. Become more of a seller instead of a buyer.
see you next time...
Steve
PS I need to here your stories about how debt is or has affected your life. Please visit my website and share your story for my upcoming book.
http://www.therealdebtsolution.com
My week started out with one of my delivery vans getting vandalized and robbed of its precious fuel. The theif didn't want to steal the gas the old fashion way with a water hose, they just poked a hole in my gas tank and let the gas pour out.
They it had more than they could carry so the fuel poured all over the ground after they left.
Later that day I was fueling up my car and I noticed an advertisment on the gas pump for a plasma donor center. I had a good laugh because they want to our money and our blood.
By the way all of the blood plasma centers in the inner city are for cosmetic companies. The plasma helps the makeup stick to your face. How do I know this? We'll I've done the marketing for several of these companies for more than 17 years. After I got to know the managers I just asked and they told me.
MONEY, MONEY AND MORE MONEY PROBLEMS...
The US markets are still suffering, but they are currently constructing a plan for all of the worlds central banks to agree to insure all loans made to each other.
I'm coming to a realization about our money. That realization is maybe not the answer you might expect me to have. If you've been reading my blog postings I've had some reservation about the US Dollar. I've been watching some online videos explaining that the US dollar and all currency that is not backed by gold or something is really not worth anything.
These videos have also been talking about how debt it used to enslave us and make us work like dogs to pay the loans back. But there is a major flaw with these opinions.
The flaw is the need for us humans to "GROW"! Even if we were back in the stone ages, we would have a need to invent and grow to live an easier life.
I think what has happened is on one hand we have the people with money. These people are at a level of knowledge that has them growing to keep power and on the other hand we have people that have no "Will" to succeed or achieve.
95% of us is in the middle. Struggling to either stay at our level, or advance or not to fall back. Believe it or not we need this struggle or we would cease to exist!
No my feeling about debt has not changed. I think that all of us can get ahead if we became debt free. Debt free allows you to own what you buy without just having an equity position.
We need money to survive, people who loan money need to make loans to survive. This is a game! Who will win? Up to know the lenders have been winning, but the lenders have also learned a valuable lesson.
They can't win if we lose! Look at this example: Lender loans you $1,000,000. Your money payment would be about $4,000 per month. The same lender loans $1,000,000 to your friend and their monthly payment is $4,000 also.
The banks has loaned out $2,000,000 and they are only making $8,000 per month back. Now I'm not including interest to keep this example simple.
The bank would have to wait over 20 years to get their money back from you and your friend. This is the formula banks use but they add their interest to make a profit. But they can't make much money doing things this way.
This was the old fashion system of lending. They would only lend to people who could afford it and they were willing to wait years before they turned a profit.
The new system or formula that banks and lenders are using is to sell your debt for a profit and attach all types of fees and insurance type products and services.
In other words they are more interested in selling you either another loan (re-finance), insurance to protect their loan, even though they make it like they are protecting your interest. If things go bad they charge you all types of fees. They love the individuals that pay all the time but they tend to always pay late.
The other secret profit center is the selling (or sharing) of our personal information with other companies. These companies are not always related to the type of business they are in.
For example I just purchase a Laser Shield alarm system for on of my properties. I received advertisments for a clothing company in the box my order came in, but know I'm also receiving mail (junk mail) from that company.
But the funny thing about it I'm already on the list of that company. I've purchased custom made dress shirts from them. So I'm receiving double the amount of junk mail from them.
You might be saying why don't the clothing company update their list which will show that I'm already on their list? There's a good reason why they won't.
Some companies participate in joint ventures, this is when a company will advertise for another and only get paid if their customer purchases something from that specific advertisement.
That's why you'll see "offer codes", "dept #'s" on an ad you receive.
I guess in a round about way, I'm telling you to get good at playing their game. Become more of a seller instead of a buyer.
see you next time...
Steve
PS I need to here your stories about how debt is or has affected your life. Please visit my website and share your story for my upcoming book.
http://www.therealdebtsolution.com
Wednesday, October 01, 2008
No Bailout! Update
Thank God for the Jewish holiday! Due to a break in for observance of the Jewish holiday congress took a day off.
This day off gave everyone some time to see the market working its self out.
Gas prices went down - eventhough the speculative market beat on it going up.
No depression was declared. The assest of the companies in crisis were being sold off and they were being taken over by other companies.
The market is at work. I also took the liberty to call my US Senator Paul Ryan to express my opinion. I told him to vote NO for the bailout. I also sent him an email to make it clear.
I voted for him so I think he should listen.
Let the market do its job, lets have some guts and not pass on anymore debt to our children.
http://www.therealdebtsolution.com
This day off gave everyone some time to see the market working its self out.
Gas prices went down - eventhough the speculative market beat on it going up.
No depression was declared. The assest of the companies in crisis were being sold off and they were being taken over by other companies.
The market is at work. I also took the liberty to call my US Senator Paul Ryan to express my opinion. I told him to vote NO for the bailout. I also sent him an email to make it clear.
I voted for him so I think he should listen.
Let the market do its job, lets have some guts and not pass on anymore debt to our children.
http://www.therealdebtsolution.com
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