My Thoughts on the President's Address

For a text of his speech, click here.

My wife and I listened to his speech from start to finish. He said a lot of good things. Accountability, responsibility and leadership were the themes inside of his speech. His positive message, I believe, helped address the lack of confidence by the American people.

One of the things that I have mentioned repeatedly in my blogs is the lack of confidence. Employers who are fearful of the future have been laying people off. They are not building for the future and refuse to look beyond the next quarter or two to make plans. I have seen it in the businesses that I have worked for.

The country needs to be told that things will get better and that the government will work to make it better. After the Japanese had bombed Pearl Harbor, the President, Franklin Roosevelt, led the nation in prayer. After talking with people who listened and participated in the prayer, they told me that they knew that things would be fine. It wasn't his speeches or this words. It was a prayer. Something inside of each American clicked and they knew that they would be fine.

I think that people need those words. They need to know that everyone is working together to solve problems. I heard a President who is dedicated to the task at hand. Although I'm a Republican, I feel that President Obama has been acting more like a Republican than the Republicans I voted for in November. I'm not happy with the all of the government spending and I disagree with the bailout programs. However, I do agree with him that we need to work together to move forward.

He talked about health care, energy and education. With health care costing about $8,000 per person per year, it is a lot of money for the average family. I had to give up my COBRA just to stretch my dollars a little longer to find a job. I postpone going to the doctor just so I can save some money. According to the President, every 30 seconds a family goes bankrupt over medical bills. This is very sad. I am certainly not recommending socialized medicine, but something has to be done to lower the costs on the American people. Why does it cost me $8 for water pitcher and $12 for a pill? Liability insurance? Possible.

Another point I would like to make is about energy. The US should be leading the way in creating renewable forms of energy. We should not be dependent on foreign oil. Take a look at OPEC's response when oil prices dropped like a rock? They cut back on production immediately. They are trying to push up oil prices. If the US, the world's largest supplier of food, were to do things like that, all of the nations of the world who depend on our food would be up in arms and pushing us to stop inflating food prices. Once again, we can do something about this. One of the interesting things that the President pointed out in his speech was the creation of batteries for storing energy. We have the idea, but have them built in Korea. More jobs going overseas. I know that labor is cheaper over there, but we are laying people off to save a few dollars. But, when you consider the money were are spending on unemployment, I honestly believe we are spending way more than we are making in profit. No one seems to think about the total cost. We all suffer when we send jobs overseas. I used the word, "WE".

The President reached across the aisle to the Republicans to help. I hope that my fellow Republicans can put aside their differences to help rebuild our economy. Let us resolve to work together.

Investor Talks about Disintegration of the World Financial System

NEW YORK (Reuters) - Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.

As I had mentioned in earlier blogs, very few economists are willing to say that we are out of the woods and still fewer are willing to say we will see the light at the end of the tunnel by the end of the year. I have also read of individuals who have said that it will get a lot worse. George Soros is one of those individuals.

Our entire financial system is being stressed and I honestly believe that we are far from seeing a positive change. After giving a lot of thought to this, I have a theory. I'm not an economist or a financial guru like Soros; however, I have my own theory about the collapse.

It started as a perfect storm. The first problem was the building boom. Everybody was getting into the house and real estate business. You had programs on all of the channels showing you how to flip houses and people went crazy. They saw a perfect opportunity to buy houses, fix them up and then dump them for a profit. Buyers could get financed just by fogging a mirror. Everything was sweet. At least, we thought things were sweet. As long as everyone could make their bills and pay their mortgages, things would work. Plus, there were so many different finance options for people to make minimum or below minimum mortgage payments.

The second problem, the price of fuel and its impact to food and the rest of the economy, pushed everyone over the edge. When people are faced with buying food or going to the doctor, they are going to skip the mortgage payment for that month. Americans were already having difficulties making their mortgage and credit card payments. Now, the price of gas and then food went up almost overnight. People were now pushed over the edge. People started cutting back on buying televisions, computers, etc. When you have to buy gas or food and try to make a mortgage payment, buying a computer or television just isn't going to be in the cards. For example, I watched a box of instant oatmeal at Wal-Mart go from $1.50 a box to $1.84 a box. Even though the price of fuel has dropped, the new price of $1.84 remains unchanged.

Now, you see the perfect storm and how it started. Once people cut back on buying luxury items, then they start working on budget and start cutting back on eating out. I have seen a lot of restaurants in Cedar Park, TX closing their doors. For example, the Village Inn restaurants in my areas are now closed. As people cut back, the companies that manufacture computers and televisions start laying off people. Look at companies like Dell, Panasonic, etc. They are laying off people by the thousands.

This is where I come into the storm. Like a tornado or hurricane, my life was impacted. I, too, joined the ranks of the millions of people who are unemployed. During an average week, I submit 15 resumes. In order to stretch my budget, I had to find cheaper health care for my family. We have had to cut back on luxury items. I worked for a high-tech company for 8.5 years and was shown the door on December 5, 2008.

My manager tried to help me locate a job inside the company. However, when no one is hiring and waiting until the first fiscal quarter before considering headcount, it is very difficult to find something. I was given until the Friday morning at 11AM to find something. At 10:30AM, I received a phone call. No one could help. So, a skilled and highly experienced individual with 20 years of supervisory experience, 16 years of program and project management experience and 8 years of vendor contract and relationship management experience was moved from his cube to the curb.

As I had mentioned in my other blog, www.capableofmore.com, millions of good people are now facing all of the problems of being unemployed. I am one of those individuals. Am I bitter? No. Am I disappointed? A little. Am I hopeful? Yes. If I am going to make it through this, I have to remain hopeful. To those who are reading this and are unemployed, keep the faith and remain hopeful.

Congress and Its $4700 Pay Raise!

While blasting the CEOs of large corporation for their spending, salaries and perks, Congress is just waiting to receive its $4700 pay raise for the year. Yes, while Americans all across the nation are tightening their belts and living on tight budgets, Congress may receive a pay raise.

In 1989, Congress passed an amendment allowing for the automatic raises, unless lawmakers specifically voted to reject it. Which Congress did, until 2000.

Congress has now voted itself a total of $16,700 in raises over the last six years. Since 1990, congressional pay has increased from $98,400 to $154,700 in 2003. The current Congressional salary is, according to a memo from the Congressional Research Service, $169,300.

There is a House Bill, H.R. 156, that would prevent Congress’ automatic pay hike from taking effect through the end of 2010. If you would like to check on its progress, you can click here. There are several Congressmen who are supporting this bill. (Ron Paul, Harry Mitchell (who is the sponsor of the Bill, Betsy Markey, John Salazar, Mike Coffman just to name a few).

Support the Congressmen who are pushing this bill. Let your Senators know and have them support it as well. If we are to survive the economic downturn, we all (including Congress) need to do our part.

Glenn Beck Makes an Excellent Point about Our Economy

I highly recommend that you view this video and pass it along to your friends. This will definitely put things into perspective regarding the spending of the billions of dollars. Remember, there are financial analysts already predicting that the President and Congress will be creating another stimulus package in a couple of months. Look at what we have spenting thus far. $700 billion for the bank bailout, $787 billions for the stimulus package, billions for the auto industry, $75 billion for mortgage bailouts and the list just keeps going on and on. Kansas and California don't have any money and a lot of other states will soon be in the same place.

Don't get me wrong. I'm not predicting Armageddon and telling people to buy canned food, bullets and weapons. However, we really need to consider what we are doing. There is a very small group of analyst that believe that we are just postponing the inevitable collapse of the global economy.

Have You Seen This Man?

He is billionaire Texas banker Allen Stanford, charged with a "massive" $8 billion international financial fraud. His whereabouts are unknown at this time. His assets are frozen as well, but a smart guy like that has a nice secret bank account for just such an emergency.

Once again, our greed has gotten the better of us. People gladly handed this guy thousands of dollars in order to have that lifestyle of the rich and famous. They weren't happy with the returns they were getting so that took a chance and invested.

My dad always said, "Nothing comes without a price." He told people that they would get unprecedented returns on their investments. You wonder whether or not these people asked themselves a simple question. Is this too good to be true? I always ask that question when I'm considering investing money in anything. Do your homework and wake up?

The U.S. Federal Reserve cut its 2009 economic forecast sharply and discussed setting a target for inflation at its previous meeting as a deepening recession heightened fears of a dangerous decline in prices. So, there are going to be a lot of people out there ready to fleece you. Be careful. Tough times in the economy breed desperate people. Desperate people will just jump at any chance to save themselves.

Congressmen Fly to Europe on our Dime!

Once again, the Congress manages to spend our money on perks for themselves called congressional delegations, or "CoDels."

A bipartisan group of members of Congress and their spouses went on an official trip to Europe during Valentine's Day week, traveling through Brussels, Vienna, Paris -- where they spent Valentine's Day -- and the Bavarian Alps.

Don't you just love this? We are having to cut back on gas and entertainment as the economy gets worse. Yet, Congressmen and their spouses take a trip to Europe for a "relationship-building" tour. Isn't that just wonderful? I bet by the end of this year Congress will vote themselves a pay raise for all of the hard work they did on the stimulus package.

Rep. John Tanner, D-Tenn defended the trip and said that it was important. If he had his choice, he would have rather visited his grandchildren. Next time, you have a trip to Europe and you don't want to go, send me instead.

Click here for the full article.

Show Me the Note!

I read this article just a few minutes ago and had to share it with you.

ZEPHYRHILLS, Fla. (AP) -- Kathy Lovelace lost her job and was about to lose her house, too. But then she made a seemingly simple request of the bank: Show me the original mortgage paperwork.
And just like that, the foreclosure proceedings came to a standstill.
Lovelace and other homeowners around the country are managing to stave off foreclosure by employing a strategy that goes to the heart of the whole nationwide mess.
During the real estate frenzy of the past decade, mortgages were sold and resold, bundled into securities and peddled to investors. In many cases, the original note signed by the homeowner was lost, stored away in a distant warehouse or destroyed.

With the paperwork lost, some mortgage companies can't prove that they own the loan and can't do anything about it until the paperwork is found. I applaud Ms. Lovelace for her request and keeping the mortgage company busy looking for paper.

If they can't find the original signed documents, then the mortgage company has to renegotiated the terms of the loan.