Are we so upset at the banks, that people are going to start ripping their homes down just to make a point to the banks?

I do understand the anger towards these greedy institutions… I have read all the stories about how they are turning people out into the streets and calling them deatbeats, when they themselves are the actual deatbeats, having taken BILLIONS in tax dollars either directly via Bailout, or indirectly via the Fed Window/TBill Scam, where banks were allowed to borrow money from the FED at almost ZERO PERCENT, then turn around and buy TBILLS with that same money paying 3% and higher… by the way, TAXPAYERS pay the interest on TBILLS, so, yes, while main street is being turned out on its behind… big banking was enjoying profit heaven, and they were writing themselves the bonus checks to boot…

your thoughts?

I know that losers are not always savers, but are are savers always losers?

I saw a commercial the other day, where they were trying to sell the audience on the idea of foregoing saving for retirement and instead they were pushing the idea of spending money on nice and exciting things right now, ala their cool sports car.
In the commercial, the couple who saved all their life for a wealthy retirement die in a car accident on the day they retire. The newly retired couple die after a life of delayed gratification, frugality and thrift. They spent their entire life foregoing the finer things in hopes of a lavish and comfortable retirement. They took few vacations, and when they did, they scrimped on everything. They always drove an old car, never had the latest gizmos or gadget.

The point of the commercial was to tell you to live for the now. To buy that car you always wanted, to ignore the potential risks and liabilities of the future and instead have fun now, enjoy yourself today, to never delay gratification.

The point of the commecial was to make a statement, to state that saving is for losers. That savers are losers. Are savers losers? Is saving for losers?

First, lets take a close look at the basics of saving. You open a savings account, and you start saving by placing small amounts of money into it at specific intervals. The banking institution pays you a very small amount of interest in return for parking your money at their bank. After years and years of depositing to your account, and after compounding the interest – bamm, you have a little nest egg.

But, you have a problem. The interest rate you have been getting paid all these years has been significantly below the rate of inflation. This inverse relationship between the rate of inflation and the rate of interest being paid has resulted in a significant loss os savings over the years. In fact, the more you saved, and the longer you saved the more money you lost. Right about now, you are probably yelling at these words, and saying I must be crazy. How could I be making such a statement? How could I be stating that the more you save, and the longer you save, the more money you lose? How, you ask. Well, the answer is simpler than you might think. Lets imagine that you have 10 dollars today. Lets also imagine that one dollar buys you one gallon of milk and one dozen eggs. You decide to be a good saver, and you start saving 2 dollars each month. After 20 years, you have saved $657 dollars after a theoritical 3% interest rate. In 20 years ago buying power, you currently have enough money to buy about 325 gallons of milk or cartons of eggs. But, herein lies the problem, inflation has had a huge impact on the cost of food, and now a gallon of milk or a carton of eggs now costs 3 dollars. So, you can only buy approximately 108 gallons of milk or cartons of eggs.

Furthermore, you also paid taxes on the interest you were paid by the bank, thus decreasing your true savings rate, since in order to keep that full interest in the bank, you had to pay the taxes on the interest with real money.
Added to that, just to save the initial $2 – you had to make $2.40
Now, I know what you are asking right now… why would we care about details like that?
That is what brings me to the underlying point that I am trying to make here. Real estate.

Let me paint you a picture. You spend 30% of the asset to purchase the entire asset. Thus, giving you a better than 3 to 1 leverage on your cash. From here, we move to taxes. Investment real estate allows you to write off phantom loss. What this means in simple terms is, if your property is worth $390,000 – you can write off $10,000 per year via depreciation. What does this meant to you? It means that you can make $10,000 per year completely tax free on a $390k property. Now, lets talk about saving. Real estate can also be a great method of saving as well. This is where leverage comes into play and is what can defeat inflation. Take for example the above example, where you are leveraged 3 to 1. If you average 3% rate of appreciation, your actual cash rate of return ends up being 9% because you dont just average 3% on your cash, but on the entire property, thus acheiving the 9%.

So, lets take two theoritical portfolios. The first is a cash savings account, the second is a real estate portfolio.
$117,000 in cash, plus an additional $250 per month placed into a savings account earning 3% after 30 years ends up over $433,000 dollars.

As opposed to the same $117,000 invested into a piece of real estate worth $390,000. In 30 years, the property is fully paid off, and its worth more than $958,000. Plus, with the $250 per month that you were socking away each month, you also have another $145,000 in cash saved that you could use to purchase another property. In addition to all this, you now own a property that nets you an income of $4,000 per month. Not to mention the fact that all these years your tax burden has been nominal. In the early years, where you made little to nothing on the property, you were able to save money on other income, and then over the years as it started to cash flow, you paid little taxes on it with the depreciation.

More to come…

1. First, it prohibits family members from seeing everything that they actually have. Thus, there could be an important document or bill that needs to be paid, that may end up getting ignored or even accidentally discarded, and the results can be disasterous… a misplaced credit card bill can lead to late payments, leading to a lowered credit score, or how about the tickets to the concert that you bought your husband for his birthday… you are sure you put them somewhere on the counter three weeks ago, and now if you don’t find them in like five minutes, you will be late and the entire suprise will be ruined.
2. Next, a cluttered counter like this actually creates a bad vibe or a dark cloud like theme, whereby everyone in the family will respond to it in a negative manner… so, as people encounter this cluttered mess, they immediately get a bad feeling, they feel lazier than usual, their expectations become lowered, and this bad vibe spreads throughout your familys lives in ways you rarely think about. Imagine your third grader at school, having been shown that clutter and messes are standard procedure and accpetable behavior, they leave their desk area a cluttered mess, and rarely throw away old papers or trash and this will almost certainly affect their behavior and their ability to learn to their full potential.
3. Lastly, a cluttered messy counter, actually spawns more messes, as people come home and need to place a document or a plate, or keys, or the mail, or something else is needed to be placed somewhere… albeit temporarily… they find nowhere to place it, and thus have to search for another place or space or counter to place this new load down… but, since the counter is all filled up with crapp, you have to find a new place… and thus, you start a brand new crapp pile, and since you have a theme already in your home of creating and maintaining messes, you and other members of the house will just keep adding to this new pile, and thus you have just propagated another mess, and started the whole process all over again… it won’t be long before your entire home is just a whole lot of small little crap piles…

Please people. Clean up your messes while they are small. Clean up after yourself. Get organized. Clean off your counter at the end of each day before you turn in for the night. Make sure the entire family knows and understands what you are doing… as you come across your third graders old homework assignment, call them in and have them put it away or throw away if necessary. If your husband left his keys on the counter, call him in and ask him to put them away. If your wife left her purse on the counter, call her in and ask her to put it away. Going through these motions will teach everyone in the family to start doing these things on their own, and will help everyone get organized.

Have fun.

WHY? – Why not just STEAL THE MONEY FROM THE AMERICAN PEOPLE?
Why not just get the government to steal the money from the American people and hand it to you on a silver platter like the banks just did?

Don’t understand what I am talking about? By all means, let me explain…

I was quite shocked to hear that the banks that were on the brink of bankruptcy just a few months ago, were suddenly making BILLIONS of dollars in profit… yes, the same banks like B of A, Wells Fargo, Goldman, etc. that were likely to go out of business like Lehman Brothers, Wachovia, WaMu, and the rest of the hundreds of banks that actually did go under or were bought by these new mega banking institutions… they are now making a PROFIT again… wow, that was FAST, real fast.
Then, after reading a very informative article written by Ben Stein, I went out and did a little research, and I found some very interesting things about how these wonderful caring banks made all this money…

For starters, the government gave banks money… they were GIVEN – yes, GIVEN BILLIONS of dollars(your money that is, since the government doesn’t have any of its own money… ALL of the government’s money is the United States Taxpayers money… in other words, the governments money comes from you the taxpayer)  in exchange for stock in their companies to help keep them from going out of business from all the bad loans that these degenerates wrote over the past 8 years… nice, very nice… too bad furniture, travel, retail, and every other business in this country didn’t get a similar deal… FREE MONEY to stay afloat.

NEXT, the banks were then given access to the FEDERAL RESERVE lending window and were allowed to borrow BILLIONS, yes BILLIONS of dollars at near ZERO percent interest rate(oh, did I forget to mention that this once again is just you the taxpayer lending this money to the banks… hey at least you are not just GIVING it to them this time)… wow, that sounds nice… can you imagine if your business was allowed to borrow virtually unlimited funds at near ZERO interest?

FINALLY, comes the kicker… with all of these BILLIONS of dollars (from YOU the taxpayer, via the government in the form of equity capital to purchase stock, and then finally in the from the FED window at near ZERO interest), the banks then went and invested BILLIONS of dollars (again, important to remember that these billions care from you, the taxpayer) into US TREASURIES at HUGE interest rates (compared to what they are paying for the money)…

THE RESULT – BILLIONS of dollars of YOUR MONEY STOLEN from you and your fellow Americans and just handed to the banks… its a very simple game here – BORROW at zero, take that money and invest it in US Treasuries that pay a few % of interest EQUALS FREE CASH… think of it this way – someone says they will GIVE YOU a MILLION DOLLARS for ONE YEAR, but you have to pay it back in ONE YEAR. So, you go to a bank and you open a CD at 5% – and at the end of the year you pay back the million to this mystery donor, and you keep the $50,000 in interest from the Certificate of Deposit. Its really that easy… its PRINTING MONEY… and guess who had the money stolen from them? YOU, AMERICA, the United States TAXPAYER… you were fleeced, you were stolen from… and what’s even better… you THANKED them for stealing from you… when the economy didn’t completely fall of the cliff, you thanked the government for stealing your hard earned money.

So the next time you hear about the MILLIONS of dollars that are being paid out in bonuses to these really really deserving, smart individuals… ask yourself if these Robber Barons should be getting away with what they are doing. Where is the outrage, where are the trials, the indictments for fraud, where are the concerned advocacy groups… not a sound, silence.

The DEFICIT just rose by $180 BILLION in the month of JULY… I wonder how many BILLIONS of that number were simply STOLEN from the American people and deposited into the coffers of the banks, and then swiftly paid out in “performance bonuses” to the executives of those same institutions…

Wake up America, find your voice – or you could find it silenced by an oppressor.

The words have been uttered by many a miscreant that used to be called a journalist… some get tingly feelings up their legs when they hear the one speak his wonderful genius… those words are “greatest President in US history” – so, what do you think? will the one become THE ONLY ONE? Will he stand above the rest… will he stand above Lincoln, Washington, and Reagan? will they tear down Rushmore, and replace the entire facade with the now famous image of a man deep in thought… does he transcend all that came before him and all those who come after? Is the idea of his very existence so compelling, so inspiring, so defying to the demons of the past that his image, his spirit, and his aura will live forever in the hearts and minds of Americans and the citizens of the world forevermore…

 so, can you answer the question? is he the greatest? is he the one? what do you think?

So when he says it will save you money – IT WON’T!

When he says it will lower taxes – IT WON’T!

When he says you can keep your insurance – YOU WON’T BE ABLE TO!

When he says only the WEALTHY will be taxed to pay for this – IT’S A LIE!

When he says he is about insuring all Americans – HE IS LYING!

When he says Americans hate the current system – HE IS LYING!

Stop the LIES, call your congressman, call your Senator, tell them to STOP laying down for a liar.

As I told many people before the election… “be careful what you wish for – you just might get it” – and here we are… everything you wished for – you are getting… and now prepare for the consequences of all of this…

This will be his Waterloo… this will be his last policital stand… the American people are finally realizing that the lies can no longer be ignored… that broken promises about transparency, tax cuts, economic recovery, jobs, housing, etc. are just too many to ignore…

Stand strong for Liberty, for Freedom here in America!

Perhaps my mother should have simply attempted a late term abortion on me and spared me from the horror that I would inflict upon myself and society in general as a white male… that is I guess what they would have you believe?

I certainly don’t feel like I am inherintly evil just for being… just for the color of my skin, just for my sex, just for my heritage, just for my dna… I am actually saddened that I have been judged even before allowing myself to testify by my actions who or what I am and who or what I am about…

Chrysler to Cut 25 Percent of U.S. Dealers!!!

This is a HUGE DEAL!

What is going to happen when your local Chrysler dealership closes? I will tell you.

First, there is the obvious immediate take away of a profitable enterprise from a “greedy” corporation… are you hearing my sarcasm?

Next, there is the immediate loss of all jobs at the dealership. All the salespeople. The office staff. The entire service department. Notice anything here? No union jobs being lost here…

Next, your local city and county loses all that income and sales tax revenue as car buyers go to other cities and counties to purchase their cars.

Next, your local commercial real estate market is harmed, as the empty dealership blights the area and drags down other businesses that used to be patronized by all of the employees and staff of the dealership. These include restaurants, window tinting, gas stations, and tire distributors.

As you can see, the repurcussions are HUGE. TRICKLE DOWN ECONOMICS is REAL! Whoever told you it’s not real was simply trying to make a politically motivated statement and has obviously never lived in the real world in a real locality…

No ivory towers people.

Mandrake

So, let me get this straight… since the depression began in Decemeber 2007, we have shed a NET total of 5.1 MILLION jobs… that is NET PEOPLE… that means that 5.1 million more people are currently out of work since December 2007… and here is the most striking part of this horrible statistic – almost 2/3 of those job losses came in the past 5 months… for those of you who don’t see the significance of this, let me break it down: We have been in a depression for 15 months now – the first 10 months only produced about 1.6 million job losses… meaning, the sub-prime blow up, hedge fund crash, etc… only can really account for about 1.6 million jobs lost… now, the logical result of all this is more job losses, ala in the next 5 months (previous 1/3) of the depression we lost around 3.3 million MORE jobs (about 2/3 of the job losses in 1/3 of the time)… now, lets back up here for a second… does anyone know what the result of job losses is to a capitalistic economy? – The answer is clear, simple, and shockingly reliably predictable – ECONOMIC CONTRACTION! Economic contraction is what we are going through right now… and what does economic contraction produce? – MORE JOB LOSSES. And so the cycle will continue until some major catalyst stops the cycle and turns everything around. So, I ask you… what MAJOR CATALYST can you point to in the past 30 days has stopped the cycle and is turning things around? The answer is NOTHING… there is NO MAJOR CATALYST! How dare the liar press run around spewing lies about things turning around when it clearly isnt turning around… absent the major catalyst, there is not going to be a change…
At what point are people going to realize that a family where one or two of the breadwinners have lost their job – and are on unemployment or have given up working or have taken part time work – SPEND LESS MONEY!!! – Spending less money does NOT create economic expansion! Hello! Looking back at the vicious cycle above, as households spend less money, private employers SHED MORE JOBS! This cycle will continue forever, until something happens to stop it… I am sick and tired of this simple, kindergarten level economic principal being completely ignored by the American JOKE of a FREE PRESS…

So, I repeat, THIS IS NO RECOVERY! This is NOT A RECOVERY PEOPLE! Stop buying the BULL. Stop drinking the POISON COOLADE… you are fooling yourselves…

So, the DOW is all the way back to 8000, and here come the same idiots that told us to buy buy buy all the way down from dow 14000 all the way down…  here they come… spouting such diahrhea of the mouth as this is the best buying opportunity of a lifetime… and stick with your long term strategy, and don’t change your strategy now… why? simple, it is in their best interest… they work for brokerages, news networks, or other financial related industries that BENEFIT from idiot America simply following their advice like lambs being led to the slaughter… BEWARE of advice givers that have an interest in you taking their advice… in other words, when a loan broker says – yes, choose the option ARM, it will save you money, get you into the house you want, and you can always refinance later… think about how much more money he makes when you choose this TOXIC ASSET. Or how about the real estate agent who advises you to make an above asking price offer on the house of your dreams, as they state that real estate is the best investment you will ever make, and prices are lower than they have been in years, and housing prices can only go up from here, and other TOXIC spewage, as they have only one desire… to get the deal done so that they can cash their commission check (oh yeah and they referred you to that expert loan broker, who will take them on a vacation later on that year as a kickback for sending them so many sheep to be slaughtered)… and a year later, as you sit in your dream home – and you stare at a foreclosure notice… your home now worth $100,000.00 LESS than what you paid for it… your loan payment about to TRIPLE, and you call your loan broker and your real estate agent for advice on what to do now, and what do you know… they are together on a 5 STAR VACATION in an exotic location somewhere, SPENDING your money that they fleeced from you – without mercy, without a heart, without ever caring about what is happening to you, as you crash and burn and go down with the ship and lose it all… they sip champagne and laugh at your stupidity and say to each other – “we didn’t hold a gun to their head and make them buy the house, or sign on the dotted line, they have to hold themselves responsible for their own actions”.

BEWARE I say.

Mandrake