JohnsBlog (articles, news, thoughts, advice)

As I think back, I'm searching for a time when American citizens and taxpayers were responsible for the well being of a corporate venture.  I think of all the small businesses I've seen come and go, the small business that I've seen turn into mega corporations, and the venture capitalists who put everything into a great idea, only to see if fall apart.  There has always been a free market system, a system where anyone can make it with hard work, ambition, and great ideas.

If ideas didnt pan out, if a market couldnt support a business, that business went away to be replaced by another.  In this current financial market, however, it saddens me to see this free market system tempered with by the government.  Why is a financial giant with a high 6 figure CEO worth more than the corner grocery market?  Could capital, and an abundance of capital for a small minority lead our country into a market full of socialist ideals and actions?  With the recent acquisitions of Fannie Mae and Freddie Mac, the answer is YES, a great big, resounding YES. 

Treasury secretary Henry Paulson is putting money ahead of the principals our government was created on, and our country alike.  Now with talks of government intervention to stave off a complete collapse of AIG (a day after Lehman Bros declared Bankruptcy) Paulson is taking things further...he's taking things TOO far. 

How many companies will the government bail out?  How much will we see an increase in taxes to cover these financial giants losses?  How much will the average middle class citizen suffer because of the mistakes of a multi-billion dollar money sucking, greed-driven company?  That is yet to be seen....Im not sure what can be done, but something needs to happen, some action needs to be taken....what do you think?

and the stock market reacted with a 600 point loss at about 150pm EST.  The failure of this bill to pass could have major economic ramifications, as there are rumors that several financial institutions were relying on this act to stay afloat....if they don't change this and get it through in some form, things could get extremely interesting in the next few days....hold on tight folks, it could be a bumpy ride. 

Here's an article from Bloomberg, breaking the news:

http://bloomberg.com/apps/news?pid=20601087&sid=aw4zWIp05Sq8&refer=home

A little bit of a collage of what's been going on...completely random, but hey, I've got a case of the Mondays.

Dow's down 300 points today, mortgage rates are looking good, and hopefully will continue to look better and better heading into Fridays jobs report.....time to refinance if you can qualify people...these rates aren't going to last forever.  Citi is spending $2.16Billion to acquire pieces of Wachovia, who is on shaky ground due to mortgage lates (that's what you get when your major product is the option-ARM).  $690Billion has been infused into the banks, and hopefully we'll see a positive result from the bailout as everyone hopes, rather than a complete waste and tax increase, which is a scary possibility. 

The Eagles lost...to the Bears...after going toe to toe with Dallas, and destroying the Rams and Steelers, it seemed like Andy Reid and the rest of the staff forgot how to call plays.  Jim Johnson forgot how to Blitz, and they just looked bad...what's worse, they made the Bears look like they have a good offense, which everyone knows is far from the truth...it was a sad moment, but I think Andy Reid and co. are just making sure Philly fans don't get too excited...they've always got to find a way to let us down!

Saturday, I was fortunate enough to attend the last NHL game ever played at America's showcase, the Spectrum in Philadelphia.  Flyers won 4-2, but what made the day really special was the lineup of captains that were present, the passing of the torch to Mike Richards (who responded with 2 short handed goals), and the tributes by former Flyers, as well as Wayne Gretzky and other greats, and finally the half-Lauren Hart, half-Kate Smith "God Bless America" that sends chills up my spine every time I hear it.  Having so many great memories in that building growing up makes it hard to say goodbye, and I actually shed a tear or 5 during the ceremony.  I met with Ed Snider for a couple minutes which was nice, and the day was perfect....farewell Spectrum, what a nice last game.

So we've got the market and sports set aside, I'd talk about Fridays debate, but that'll be another day...I'll keep the updates coming as this will surely be a busy week w/a historical bailout, the election season in full swing, stocks markets going wild, and an employment report due Friday that's sure to further shake things up.

There's a ton of talk by financial "experts", politicians, and leaders of all sorts discussing the recent suggestion by treasury secretary Henry Paulson and Fed Chair Ben Bernanke to infuse $700 billion into the financial mess as a bailout of magnanimous, unprecedented proportions.

There have been reactions ranging from the "finally, thank you!" to the "NOOOOOOOOOOOOOOOO!!!!!!!!!!" and I'm not sure where I stand.  I'm not one to easily trust anything the government does, as I believe many are self-centered egomaniacs out for their own agendas, but half of me thinks they may be trying to help!  It is certain that a bailout of private corporations is not only unethical (saving those who ripped people off to make their billions?)but un-American, as it contradicts the very system we've reveled in, that of free capitalism.  Clearly something needs to be done, though, right?

If not, this country's economy, including its' workforce will continue downhill for a very long time, possibly even leading us into another depression.  As much as I'm not one to trust the government, I'm also not a big fan of poverty and widespread suffering.  It seems there may be no other option than to listen to the Fed and treasury, while making appropriate changes to their original plan...I don't think any CEO of a failed company should walk away with anything, period, not a dime.  I also think any recovered profits as a result of the bailout should ultimately go back to taxpayers, as we are the ones shouldering most if not all of the risk involved with this plan.  The potential downside of this bailout is enormous, ALMOST as bad as what could happen if they do nothing, so I think it all comes down (as with most things) to the lesser of 2 evils.

I'll keep everyone updated as more news comes out about this, and in the meantime feel free to ask questions or share thoughts, I'm all ears.

Im happy to announce that I just joined Louviers Mortgage Corporation as a Senior Consultant.  You can learn about us on the web at www.louviersmortgage.com. 

I learned a lot in my years at Stonebridge and made a lot of great clients and partners who I am fortunate enough to also call friends, so departing was a bittersweet decision.

I feel that with Louviers there will be greater opportunities, more room for growth, and the same solid team of support around me that has allowed me to provide exceptional service and great mortgage programs to all of my clients.  Come see me in the office at 4839 Limestone Rd in the Stoney Creek Plaza!

I will apologize in advance if over the next week or so I am delayed in responding to phonecalls and e-mails, as I have a ton of catching up to do and things to learn with this change, but you can rest assured that you are my priority and I will get back to you as quickly as I can!