Review Of I.O.U.S.A.

Posted: August 22, 2008 
Filed Under: Observations

Last night I went to see I.O.U.S.A. at a theater near my house and to be very candid I was going primarily for “work-related purposes” since my job for the past 13 years has revolved around credit card debt. In other words, I was looking at this as kind of a continuing education class just keep up with the times and stay abreast of the latest information.

This was the first time I ever went to a movie with a pen and notepad in hand, and I was basically expecting to be sharing the theater with 10-12 other people that dealt with the financial industry in one way or another.

Boy, was I in for a surprise.

I walked into the theater 10 minutes before the show started and the placed was packed. I was STUNNED. Absolutely blown away. I actually had to sit in those seats way down in the front that no one ever sits in because that’s all that was available!

The fact that SO many people turned out for this event, especially when it was not publicized in the mainstream media, was a refreshing realization (for me) that the public at large is deeply concerned about the state of our economy and the massive debt that we are racking up … and the effects that it is going to have on our children and grandchildren, and our society in general, if we don’t do something about it.

I.O.U.S.A. is a sobering documentary based on actual financial data. The movie is very well done and they do a great job of explaining our current state of affairs, how we got into this financial mess and the potential ramifications if we don’t start taking corrective action now. As someone that has worked in the financial industry for many years, even I was a bit startled at the impact that our country’s massive debt load has on our everyday standard of living, not to mention our national security.

In the days ahead, I’ll have more to say about the contents of the movie. But in the meantime, do yourself a favor and take a couple hours out of your schedule and go see this movie to educate yourself on a very serious problem that our country is facing.

For more information:

www.iousathemovie.com

www.agorafinancial.com

 CNBC video with Warren Buffett and David Walker (8-22-08)

I.O.U.S.A.: Live with Warren Buffett, Pete Peterson & Dave Walker

Posted: August 20, 2008 
Filed Under: Observations, Video

I know it’s kind of late notice, but I just found out about this myself yesterday.

If you’re a little concerned about the state of our economy, you might be interested in attending an exclusive one night event in select movie theatres nationwide tomorrow, Thursday, August 21st. This event will include the critically-acclaimed documentary, I.O.U.S.A., and a LIVE discussion about America’s economic crisis and what we can do to change course.

For more information, here’s the link to the official website:  www.iousathemovie.com

When It’s OK To Do Nothing

Posted: August 4, 2008 
Filed Under: Observations, Answers To FAQ

In our fast-paced Western culture of go-go-go and do-do-do it’s tempting to think that all problems can be solved by being proactive and *taking action*. However, that’s not always the case, especially when dealing with financial problems.

As the saying goes, “You can’t squeeze blood from a turnip.” And with regard to creditors, they can’t take what you don’t have. Therefore, there are some unique situations where sitting idle and *doing nothing* (at least in the short term) might be the way to go.

Here are two examples …

Example #1:

Let’s say you’re presently unemployed and you have few or no assets to your name. Thus, there’s no wage for a creditor to garnish and there’s no car or property for them to seize. A creditor could huff and puff and do their best to intimidate you, but if you find yourself in a situation like this there’s not a whole lot that a creditor could do to you to really hurt you financially.

Example # 2:

Let’s say you’re retired and your only source of income is a pension or social security check. In most cases, this type of income is off limits to creditors. But what if you’re a homeowner? Ok, fine. A creditor could sue you and get a judgment against you, then they could attach a lien to your house. But they won’t get any money from you unless you sell your home. So if you don’t plan on moving any time soon, that lien could sit there for *years* before the creditor collects a dime.

The concept we’re talking about here is being “judgment-proof”. Yes, it takes some intestinal fortitude, but ultimately your creditors can only do so much if there’s nothing there (financially) for them to go after.

Now please don’t take this the wrong way. I’m not suggesting that you deliberately do things to try and screw your creditors out of the money that you rightfully owe them. Not at all.

But what I am saying is that if you’re going through a rough patch financially, there are some unique situations where you’ll temporarily be just fine by *doing nothing*, and it won’t cost you a dime. Certainly you are going to want to straighten things out eventually. But sometimes the best course of action in the immediate moment is simply to sit tight, remain calm and do nothing.

Naturally if you are *working* and/or you have some *assets* that creditors could go after, that’s a different story. In other words, if you are gainfully employed or you have assets that could be at risk you might need to actively pursue a solution to your present financial dilemma while you still have the opportunity to do so. (Translation: Don’t become a sitting target for your creditors.)

In most cases you will need to be proactive and take action to solve any financial challenges you are faced with. However, as described above, there are some unique situations where you’ll be just fine by doing nothing.

The Debt Elimination Scam … Version 2.0

Posted: March 6, 2008 
Filed Under: Observations

When people are faced with a difficult financial situation, sometimes they make decisions out of pure desperation that they’ll later live to regret. One such decision is taking the “debt elimination” plunge.

The basis of the debt elimination “procedure” is that promoters claim that you never actually borrowed any money on those credit cards, because credit card debt is not *real* money. Hence, there’s nothing to pay back.

Yeah, tell that to the judge, then let me know how that worked out for you.

My good friend, Charles Phelan, of www.zipdebt.com, just published an excellent article on this whole debt elimination thing. It’s definitely worth reading. Here’s a direct link to his article >> www.zipdebt.com/blog/debt-elimination-variation

Over the years I’ve seen the debt elimination scam come and go, and apparently it’s making it’s rounds again with so many people struggling financially these days. And sadly, there will be unwitting people that will sign up for the debt elimination procedure and it will make their financial predicament even worse. Just don’t be one of them.

Warren Buffett: U.S. In Recession

Posted: March 4, 2008 
Filed Under: Observations

Last night I watched a fascinating (to me, anyway) interview on CNBC with billionaire investor Warren Buffett. Among the many things he talked about, he came right out and said, “From a common-sense standpoint right now, we’re in a recession.”

Ironically, I published an article on this blog just last week stating the exact same thing, even though many in the media and government are presently waffling on the topic and afraid to come right out and say it. Here’s the link to my article in case you’re interested.

The numbers don’t lie. They are what they are.

On a positive note, though, he did restate his view that over the long-run the U.S. economy will do fine and that each generation will live better than the one before it.

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