Hello All,
Below is an excerpt from a recent call and response email. One of my Step-Father's co-workers recently sent out an email called 'the Alternative Bail Out Plan,' which will be posted separately. It's really quite interesting although his math is a little off. Below is my response. Mind you, this message went out to a group of high school teachers and IBM engineers in Colorado. However, it speaks true to what's going on in our ecenomical world today...enjoy!
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Hello All,
For those of you that don't know me, I'm Peggy Morrow's eldest son. I'm in real estate for a living, and during a recent meeting, a broker that I worked with pointed out that the government's spin is that the proposed bailout is for ‘up to 700 billion, but may more likely settle out around $100 billion (according to Representative Barney Frank, D-Mass, Chair of the House Financial Services Committee). However, should the total bail out meet the 700 billion limit, that will represent a $2,000 (+/- a few hundred dollars) burden on our populous.
Peeling back the layers of this onion, we find out that this is based on every man, woman, and child. So, multiply the number of people in your household by $2,000, and you will find out what you will be paying to carry support these failing banks and other institutions that have been able to get earmarks in this bill (which is disturbing in itself).
The largest problem that our government seems to be missing in all of this is consumer confidence. It doesn't matter how many stimulus packages, bailouts, refunds, etc. they put together. Until we are able to come together, set greed aside, and stand firm as a nation...we're just putting lipstick on a pig (admittedly bad reference.).
While there is a huge national fear that our systems could collapse if something isn't done, the reality is that some of these business deserve to go out of business, which means that people are going to lose jobs. This is very sad and requires a great deal of prayer. However, if the government would take 5 minutes and act like the business's that they are trying to support, they might find that a $100 million put toward Public Service Announcements, and other standard marketing tools to rally the support of the people...they might save the citizens of this country hundreds of billions of dollars, while moving us back on course for an incredible rally of confidence unlike anything we've seen since President Franklin D. Roosevelt gave his famous ‘The only thing we have to fear is fear itself speech.'
Since I'm responding to a group of my mother's peers, I can only assume that a portion of you are educators. Here's a little meat to chew on. The great depression was caused by fear and panic...nothing more. There was no real basis for the collapse of our economic systems at that time. Additionally, many historians look to a man named John Pierpont Morgan (JP Morgan to most) as the cause of the run on the banks in 1907 that caused a scare only slightly less dramatic that what we are currently experiencing. This is kind of funny considering the fact that JP Morgan just picked up WAMU for Pennies on the dollar.
By no means am I a conspiracy theorist. As a family member working in the higher of echelons of our government once pointed out to me, with exception of some small clandestine organizations, our government couldn't pull off such a task. They simply aren't smart enough. However, there have always been a handful of business people poised to exploit the right conditions. Examples of this are rampant and in many ways, it is part of the course of business in America.
However, our public officials aren't helping us. Weekly press conferences from our president, partisan in-fighting as opposed to passing legislation, unregulated markets....when will this stop. Maybe, just maybe...we need to call a halt to this madness. Maybe, we need a national quorum to change our laws to allow an immigrant to become president. After all, it seems that some of our best presidents weren't necessarily intelligent or moral men. They were ‘great communicators.' That's why I'm asking you all to help me with a write in bid to make Arnold Schwarzenegger our new president, with Michael Bloomberg our new VP. At least Arnold understands what it means to be an actor on the world's stage, and Bloomberg has the non-partisan sensibilities to run this country like a business. And...as sad as that sounds...you have to admit...it sounds a hell of a lot better than what we are currently dealing with as a nation.
One last thought...as I have been advising many of my clients...if you have that assets available, and you have access to depressed real estate markets...BUY NOW! Repeat...BUY NOW! One of the father's of market manipulation and contrarian investing once said "Buy if there's blood in the streets, even if that blood is your own.' Remember, this is how one of the world's wealthiest men made his fortune by purchasing depressed shares of the Washington Post in the 1970's and turning them around at over a hundred fold profit margin. His name is Warren Buffet. With exception to your service unto the lord...don't' be sheep. Survive and thrive.
For references to any of the information I've supplied above...email me at joshua.atwell@me.com, or do a little research. You might be surprised at the knowledge you gain.
God bless,
Josh
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