Friends Don’t Let Friends Call Them About Crappy Business Ventures.

February 9, 2009

   

pyramid

   

          Maybe I am getting older, maybe I am getting richer, maybe my phone numbers is out there in a bunch of databases, but I have been getting lots of unwanted “business” calls from friends and friends of friends lately.

            A few have been offering a legitimate service, but a few have been straight up pyramid schemes. I have been expecting a few calls from business that I don’t have the number in my phone for, so I tend to answer my phone most of the time thinking that it could be important. Yes I realize that I can let it go right to voicemail, but that kind of defeats the purpose of having a cell phone does it not?

            These calls that I get are usually not from a nameless telemarketer that I have no qualms about giving a nasty “not interested” and hanging up. They are from friends, acquaintances, or friends of friends. Not the kind of people that I want to burn bridges with.

            I feel like they are putting me in a very difficult position, they are using their good relationship as leverage into going along with whatever they are selling. What is a guy to do?

            The only thing I can think is be polite, listen to their pitch, and tell them in no uncertain terms that I am not interested, and then if they persist be a bit more direct. I feel at the point that I give them a pretty definite NO, that they have used up all the goodwill they have with me. At that point (I think) I am allowed to treat them like any other unwanted solicitor.

 

Moral of the Story: I guess we all have to do things we feel uncomfortable doing, and only by actually doing them are we able to become comfortable.


Anything You Can Do I Can Do Worse…..

February 3, 2009

The comedian Lewis Black pretty much hates everything, and that includes politicians. His thoughts on the political parties go something like this.

 - A Republican stands on his chair in Washington DC and yells,

“I have a horrible idea!”

And a Democrat stands up on his chair and yells back

“And I know how to make it worse!”

 

The Republican Plan: 700 Billion TRAP Plan

            This bill included tax benefit for victims of the 1989 Exxon Valdez oil spill, even a tax exemption for makers of children’s wooden arrows, as well as giving money to banks who acted in the most hazardous

The Democratic Plan 900 Billion Stimulus package.

            This is a bill that is not even truly stimulus, just more spending for social programs. Nothing against social programs, but the plan increases in unemployment payments, and student loans will not stimulate much of anything.

Final Thought: I don’t like to be political just about ever, and I am very sick of hearing about politics. Let me say that this is in no way a political blog, but we do have to pay all this spending back at some point, which will affect my taxes. I don’t like any of the plans that have come out of Washington, but I honestly don’t have any better ideas. All I see is Pork-Barrel spending and increases in the deficit masked as “stimulus”


Seven Days

January 12, 2009

No it is not the new lame romantic comedy staring Hugh Grant. What it is is my one week plan to live healthy and saving some coin to boot.

 

It involves seven days of lots of this :

weight

 

None of this:

pint

 

Or This:

restaurant

The two things I am not doing (eating out or drinking adult beverages) are where I spend most of my entertainment dollars.  It is just a good way for me to put into context how much money I spend on these luxary items, and replace it with a healthy habit of bring more physically active.  We will see how it goes…..


Save Detriot?

December 18, 2008

 

 

                       Regardless of how I feel about bailing out Detroit (currently waffling on the subject), or the quality of ‘American’ cars, this is still a funny poster.

 

big-3


Skipping Christmas

December 3, 2008

 

 

 

 

christmas

 

 

A Book

 

By: John Grisham

 

            I read this book every year. It’s the story of a married couple who have just become empty nesters. The couple attempts to skip Christmas completely and take a cruise instead. They decide to do this because Christmas is ridiculously expensive and even with buying an expensive cruise they are able to come out ahead financially. Their plan of course falls apart and hilarity ensues. I highly recommend the book.

 

            That being said I have no idea what Christmas costs me, not in just money, but also time, effort, and stress. The gifts are expensive, but think about all the other things that must be bought. Tress, lights, Christmas cards, Christmas tips and bonuses, money to fundraisers, and the lost wages, or vacation time you have to use.

 

            I am not a scrooge, I love Christmas, and it is probably my favorite holiday. I am just saying it is something to keep in mind during the season. Millions of us every year dread going to the mailbox in January to retrieve a hefty credit card bill.

 

Just stop to think

 “Is he/She ever really going to wear that cute frosty the snowman sweater?”

“Will my co-workers actually eat that fruit cake at $10 a pop?”

“Is spending 6 hours on a Saturday in the cold putting up lights worth it?”

 

 

Instead of buying a (insert random Christmas item), maybe buy and read the book instead.


Enough!

November 25, 2008

           

 

           

bailout

 

(notice my super awsome graphical design skills.)

 

 

            The newest plan to come out of Washington is another $800 BILLION bailout to fix the financial emergency. The plan is to lend (read: give) all this additional money to companies who specialize in credit card lending and auto loans.

 

            Seriously? That is what we need to fix what is going on? People buying things they can’t afford and are unable to pay back? That is going to save us and return everything to normal!

 

            I say enough, no more bail outs, not more hand outs, no more rescue packages. We made this bed; it is time to lie in it.

 

            Let GM collapse, let homes be foreclosed on, let the economy go into a recession. I am sick of politicians throwing money around like they have an unlimited supply of it.

 

           Many people think that the federal government has an unlimited supply of resources. This is simply untrue; no resource in the world is unlimited: accept for all that hot air that spews out of Washington. This money has to be paid back, and I want it two take two generations or Americans to  pay it back, not six, or eight generations

 

            I say let the chips fall where they may. The last thing we need is more deficit spending.


GM Collapses: UAW To Blame

November 15, 2008

 

            GM has not gone out of business, yet. But I don’t see any way that it is not going to happen.  The rhetoric coming out of Detroit is defiant, “Bankruptcy is not an option.” Although that sounds bold and courageous it is unrealistic. Companies don’t declare bankruptcy because they want to; they do it because they are forced to.

gm

Let’s review the facts:

            GM is burning through over 2 Billion a month in cash, which would make them out of cash, insolvent, and bankrupt sometime in the middle of next year. Now GM is crying for a 25 billion dollar loan from the federal government. Let’s think about this.

            GM is losing over 2.5 billion a month is cash, using my super genius math skills I multiply 2.5 by 10, and realize that a 25 BILLION dollar loan to a company will only allow it to survive another ten months, then go bankrupt, and be unable to repay the loan!

            GM like every other person and business in the world when faced with decreased income tries to cut costs.  One would hope that GM would be able to work with its suppliers and employees to renegotiate deals so that everyone can continue to stay in business.

            Instead The United Auto Workers (UAW) states that they will make no more concessions. In other words they are willing to keep wages to their union members as high as possible even if it means destroying their employer and killing the goose that lays the golden eggs.

            That article can be found here: http://biz.yahoo.com/ap/081115/auto_bailout_gettelfinger.html ,  it is no secret that this website  has an unfavorable view of unions. This is just another example of why.

            What UAW does not tell you is there is a very large and successful American car industry that is non-union.  Most of the cars that would be classified as “imports” are in fact built in America, by American non-union labor. These cars are more reliable and better built by workers who get paid less than their union counterparts.

So the question I ask is why do unions still exist in the 21st century?

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Election Edition

November 4, 2008

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Kudos to America

October 29, 2008

 

 

 

            Give yourselves a hand America. We actually did something that was both fiscally and environmentally beneficial at the same time.  

            We are consuming less gasoline, causing slacking demand, and dropping prices. This is great news for airlines, truckers, the cost of living, and the cost of food. Americans drove about 254 billion miles in August, nearly 6 percent less than during the same month a year ago, the Federal Highway Administration reported Friday. 

            This is great news for all of us. I would like to see some increased taxation in the price of gasoline to discourage people from going back to their old ways and forgetting the lessons of oil price history.  

            Everyone who is older then me remembers the oil spikes of 1973, and 1979. So lets keep the cost of gasoline high though taxes and then we can quit buying it from countries that generally do not like the United States of America.  

Moral of the Story: Using less fuel makes everything else cheaper. 


Where We Are, And How We Got Here

October 22, 2008

 

 

My humble and only slightly educated guess as to how the market fell down.

 

1995: the Community Reinvestment Act (CRA) was passed encouraging (forcing?) banks to make loans to lower income borrows. The aim was to reduce discriminatory lending to those living in lower income neighborhoods.

 

The CRA also required Fannie and Freddy by law to purchase these loans just like they would higher quality loans. Therefore removing any risk from the bank that was doing the lending.

 

Now this went along swimmingly for about 10 years, more people were demanding houses so home prices went up. Those people who had less of an ability to repay their loans were mostly ok because they tapped into the increasing value of their home by refinancing.

 

Eventually supply started to catch up with demand. Home builders bulldozed acres of land to put up massive subdivisions while countless apartment complexes were converted to condos. Demand waned, prices started to stabilize then fall. Loans were defaulted on and houses slipped into foreclosure.

 

Now all of these loans that were collateralized by Fannie and Freddy then sold off started to go bad. These “assets” are held by just about everyone in one way or another. Losses started to mount.

 

Bailouts start to happen so banks are perceived as weak.  Business lending all but stops, and Banks horde as much cash as they can to ride out the storm.

 

When Lehman failed the government was content to sit on the sidelines.  If the government will let Lehman collapse, then who will it save? Everyone bails out of financials Sell Sell SELL!

 

So here we are, the stock market is down massive amounts, the financial sector is in tatters, and things are looking pretty grim.

 

Final verdict: Buy stocks, and for goodness sake only lend money to people who can actually pay it back! The CRA was a bill with good intentions, but all the sunshine and puppy dog tails in the world will not help someone below the poverty line make a $1200 a month mortgage payment.


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