Pres. Obama: Give Money to Homeowners!

I vote for a Tax REFUND. Rather than give money to the banks, give the taxpayers a refund. Here is how it would work:

The IRS would issue a $100,000 voucher to every homeowner (one per household). The home owners can then contact their lender and in order for the lender to receive the money from the voucher, they must renegotiate their PRE-existing home loan to a new 5% 30 year fixed rate loan AT THE HOMEOWNER's option (don't want to force the homeowner to renegotiate into a worse loan).

Second, any amounts of this voucher NOT used by the homeowner for home loan (i.e. their total loan is LESS than $100,000) can be applied against Pre-existing consumer credit up to $35,000. Any amounts not used for that purpose will result in a refund check to the taxpayer of up to $10,000.

Third, if a Taxpayer is NOT a homeowner, The IRS would issue the IRS would issue a voucher for $35,000 be applied against Pre-existing consumer credit. Any amounts not used for that purpose will result in a refund check to the taxpayer of up to $10,000.

Finally, any Taxpayer who does not have consumer credit, will be eligible to receive a refund check to the taxpayer of up to $10,000.

Why should we wait to receive personal benefit from the TARP money? Give it to us NOW and help the banks in the process!

What Goes Up, Must Come Down

What Goes Up, Must Come Down

No one was complaining when their homes were skyrocketing in value. No one minded when their wealth seemed to double overnight. And yet, we knew… we knew because we had seen it before. We knew it had to end, we knew the market would adust. But somehow we pretended it wouldn’t, we ignored wisdom.

1929 - Stock Market Crash $100 Billion
1983 - S&L Junk Bond Crash $150 Billion
2002 - Dot Com Market Crash $5 Trillion
2008 - Mortgage Loan Crash $2 Trillion

All Good Things Must Come to an End
H.H. Riley (1857)

Whose fault is it? Greedy bankers? Negligent politicians? Democrats? Republicans? Congress? Presidents? Ignorant borrowers? Speculators? US?All of the above?

I am sure that will be debated for years to come, and yet the answer will not rescue us, but  hopefully it will prevent the same thing from happening again. In the meantime:

Don’t Cry over Spilt Milk
James Howell (1549-1666)

So now what do we do? Well, we need to be smart. We MUST not panic. We must be calm and implement a new plan for our futures.

A Firm Tree Does Not Fear the Storm
A Stitch in Time Saves Nine

Get a second opinion on your investment strategy. You may love your broker/investment advisor, you may think they did a great job for you “under the circumstances,” and maybe they did. But - maybe they didn’t. If you lost ANY significant investment value (other than your home), have another experienced and successful financial advisorreview your investment.

A Drowning Man Will Clutch at a Straw
Sir Thomas More (1478-1535)
Avoid a Cure That Is Worse than the Disease
Aesop (c.620-560 BC)

Be smart. “Don’t put all your eggs in one basket.” Don’t be afraid of the markets, just spread your investments out. NOW is the time to buy, but buy wisely, buy smart. The sky is NOT falling, things will get better.

Better the Devil You Know than the One You Don’t
R. Taverner (1539)

Invest in things you know or understand. Don’t invest in businesses you do not understand. Seek good advice and follow it. It won’t be 100% right, but it will usually be better than you will do on your own.

Even though you have ten thousand fields, you can eat but one measure of rice a day. - Chinese Proverb

Do you have what you need? Is your income comfortable? Then don’t worry. Don’t look at the stock reports every day. Enjoy your life!