It should be noted that I am not in a position to give advice. Firstly I do not have any credentials from a University or some institution similar. Secondly, if my advice would be worth anything, it would be in demand - which it isn't.:)
During conversations with people who are curious about the present financial difficulties, especially the mortgage crisis, the question most coming up is: "Why did it come to this?".
It is amazing how innocent people are when it comes to history. NOTHING EVER HAPPENS BY CHANCE. Most people would remember that there were several intervals during the last 50 years where we had a mini recession, followed up by a time of Hyperinflation. There are many different thoughts about these phenomenons. If you are inclined to take the explanations given in the News Papers, Magazines, TV, Radio and other medias - you can be rest assured you are not getting the facts.
I am not concerned about the past so much as I am very interested in the cause of the present Mortgage crisis. There are some facts which cannot be disputed.
A) The MORTGAGEE'S - Banks and other Lenders did loan money to people who were not really in a position to purchase a property because
On a local level. Have you noticed how your bank, not losing any time, has invented new fees, some very steep, to squeeze the last cent out of you. Don't you see the Bank YOUR FRIEND AND HELPER screwing you to no end.
Since most of us have to use a bank for our most rudiment financial transactions, there are ways to fight back. Don't take their exotic (or out of this world) suggestions "To save you money". PAY OFF any debit balance on your Bank Credit card(s). Don't use your credit card, your debit card. Pay cash for your purchases, if you don't have the cash don't buy. Paying cash may save you bundles of money on your purchases, instead of being sucked in by obscene Interest charges. If you owe your bank(s) overdue money (or any money at all) and are paying interest charges of 10, 20 or more percentages willingly, you deserve to be in that predicament. You have no clue where you are going and do not practice fiscal responsibility. Sorry, I just call it what it is.
We watch very little TV, for reasons which should be obvious. However there are a few programs which are beneficial to ones improvement of general knowledge.
What we watch and find to be of tremendous value is:
I don't allow certain TV NEWS personalities, who at best are card readers, to pollute my mind. Every one of them, with very few exceptions are only mouthing "His MASTERS VOICE". Some of them a multi millionairs, telling you nonsense which only an ape could believe.
Something to think about. You go to your favourite Furniture store (or any other chain store)and purchase a certain item. Let's assume the price is $ 1,450.00 plus taxes. Most people get lured into buying because the item is offered "15 MONTHS" interest free. No payment to be made (other than the taxes up front)for the period of 15 months. The sales person makes sure that you know that you are getting a bargain at 15 months NO PAYMENTS and NO INTEREST CHARGES.
How many of you found , like I did, that most of the TV programs are stepped DOWN to the level of a retarded? Out of 30 minutes of so called "Entertainment" there is about 15 minutes of advertising implanted. The advertising is more interesting in it's appearance - not substance. Billions of dollars go into advertising agencies, who use the latest electronic gimmicks to make your head swim. Aside from that, the messages are either unbelievable, misleading or completely stupid. What makes me smile is the display of these fabulous looking females, throwing their hair one way to the other,showing the housewives glued to the Screen, how to be glamorous. This type of advertising puts a wealth of money into the pockets of the Manufacturer, the ad agencies and last but not least the TV conglomerates.
There are plenty people who complain (rightly so) that the price of Gasoline is too high. I agree. The difference of the price of oil being pumped out of the ground to the Gasoline pump is staggering. We are being told - by special interest groups - that the price of Gasoline is controlled by supply and demand. BS - it is controlled by greedy Multi-nationals who screwed the Saudis during the twenties, thirties, forties and so on and blaming them for the increase. However, when you look a little deeper into this matter, you will discover shocking information. It is not healthy to go into details about the fraud which has been perpetuated to the general public for decades after decades.
Having said that, I consider the price of Gasoline much too cheap - considering people who still drive 150 km/h (and more). These are maniacs. On top of their excessive driving speed, they cut in and out in total disregard of any ones safety. When you see someone driving like that - and there are thousands every day - you may know the mental state of that Driver.
I had to laugh - and there is not much to laugh about these days - I passed a car stopped by an OPP officer at a Dual Highway. The speeder just passed me a few km back with an incredible speed. His Mercedes - top down - a beautiful, young blond sitting beside him, did not protect him from the law. The guy must have been in his sixties, totally bald. Who says there is no justice?
The reason I am calling this page "WHY" is the simple fact that one cannot possibly believe what is happening to our monetary system. I wanted to include "Ecology", but that is such a monumental subject which would have to be addressed separately.
First of all, my statements are built on what I hear on TV, listen to on Radio, what people are saying and what I am personally observe.
I have to state that I believe very little and only what I see. I even doubt some of the events I am seeing because they are beyond reason.
For clarification, I am not a Democrat, not a Republican, not a Liberal nor am I a Conservative. I am a person who reasons and does not necessarily accept any ones opinion when it comes to politics or militarism.
As most people would have known by now, the Canadian Dollar has a higher value than the US Dollar. This has not been happening since the days of the honorable John George Diefenbaker, Prime Minister of Canada from 1957 - 1963. For more information of this great CANADIAN see:
We don't see as many American Tourists in Canada at this moment. This is most likely caused by the shift in currency value. Our Gasoline prices are creeping up slowly but surely. So far - November 4. 07 - we were lucky to stay mostly below one dollar per liter. That was good news. The bad news is that it will be higher very soon. Why? You would have to ask your representative. He most likely has an answer but not THE ANSWER.
So far the housing market in Canada has not been affected by the Mortgage default problems in the US. Of course, according to our politicians that will not affect Canada. I am asking "WHY". Or should I ask "WHY NOT?" Very little happens in the US that is not working itself into Canada - sooner or later. We can hope but we leave that to those who manage the monetary systems around the world.
The mortgage problems in the US are serious. There are millions of people who are either having their property foreclosed or are in the process of losing their property by forcible seizure.There are many knowledgeable people who blame the financial institutions for this dilemma. They say, many of these home owners are not really qualified for home ownership. Their income is not high enough, or their credit rating is not good enough for a "PRIME" rate of mortgage. Thousands were told that they could buy a property without down payment and/or could make payments which would cover interest only.
I am asking myself, how is this possible? Is it the "salesmanship" of the mortgagee or the lack of knowledge on account of the mortgage applicant. I hear on documentaries where people telling their story, how they were sucked into signing papers without being able to have them read before signing. Of course, in my opinion that is a very flimsy excuse.
I am in general sympathetic toward anyone who is losing property, money or other valuables because of less than ethical behavior of the Lender. But of course there is the other side of the story. People who are on the bottom of the financial ladder are vulnerable because they do not have the clout compared to those who do have the necessary assets. People who do have co lateral (explanation)
Of possible greater consequences could be the high risks some (or most Banks) have taken direct or indirect in this seemingly global financial disaster. Some Banks and brokerage firms are now telling their shareholders that their earnings are possibly being a lot lower than previously estimated. There are many financial institutions , not just in the US, which are writing DOWN Billions of Dollars as LOST. Some Banks are definitely feeling the pinch and there maybe more trouble ahead in time to come. If one reads between the lines, the Government of certain countries are investing Billions of their currency into the troubled Banks. I don't think that this is being done to help the unfortunate little guy who is losing his house - of course not - it is for the benefit of the financial institutions and their Shareholders. Does anyone in their right mind believe that anything is ever done by the CAPITALISTS to give the little people an EVEN break? I guess not.
I am getting away from the International situation of the banks and refer to our local banks - take my own. Every so often there is a new plan, some new offers which are suppose to better and faster increase the investment of the individual account holder. I look at it and I chuckle. How dumb do the Banks believe the public is? These constant changes in deposits, rates, incentives and what have you, are only for the benefit of the Bank. Does anyone feel jubilant about the interest rates they are getting form their bank? I guess not. There is a bank - it shall be nameless - which a few years ago lost 600 million in a South American country. It did not heart this bank at all. You know why they can afford to lose so much money? Because they are making the customer pay for anything they can possibly throw at him or her.
Today I read a story on the Internet that some banks are in danger of losing Twenty Billion Dollars because of the Mortgage meltdown. But it is not front page news that these very same banks made many times this amount because of their involvement in this racket. It would be interesting what happens and did happen to many Pension funds. No one has proof that these funds are unaffected. We do not know if these funds were involved in risky investments and if so, where are they?
Among of the many financial reports I am reading - one in particular caught my eyes. It calls a spade a spade. I am giving the URL for anyone who is interested in known and unknown, the sure things and the risky ones.
Another serious reporting I appreciate is:
All these people who could not afford (or are mentally challenged) to pay their credit card obligations on time are the contributors to the Six hundred million profit. Now, there can be no doubt that fiscally responsible people and those who know how the system works, will not be caught in this dilemma.
It has to be said that greed has something to do with being in debt. People with little or no eduction are the ones which make the windfalls of the banks possible. On one wide one feels sorry for those on the bottom of the ladder but on the other hand, stupidity must be paid for.
It is not just the weak, the lesser educated class of people, there are those vultures out there who are calling money their God. I would like to repeat a story - in part - which I read today on the Internet.
The headline was: "A Real Estate Speculator goes from Boom to Bust"
A man, 32, with just limited exposure to college, owned a BMW, a Corvette and a 5,000-square-foot house, worth a million. He said of himself : "I was on top of the world"
As of this day, the house, the vehicles, three small office buildings and 89 lots he purchased on speculation - gone with the wind:)On top of this he owes $ 6 million in personal and business debt.
The article says that he is only one of many thousands of Americans who jumped into the raging housing market of the last decade. Greed - trying to make a fortune by buying and selling foreclosed properties was his specialty.
In today's New York Times there is an interesting article. It states that a high official in the New York State
is being indicted because he did not pay certain taxes.
The man in question is a former New York Police Commissioner who took bribes of hundreds of thousands of dollars. It seems to be that he was a personal friend of the Republican Presidential candidate, Mr. Giuliani. Of course this is only an indictment and in fairness not a guilt verdict.
It says that friends of this person have established a Bernard B. Kerik Legal Defense Trust to raise money for his legal fees.
Rather than writing the story, I am just copying my memo of the actual happenings
Saturday, November 10, 2007
Memo re: BELLVU
On Monday, Nov. 5. 07 we experienced trouble with the Receiver. While we had the Video we did not have any sound.
We phoned the number provided by Bell and had the usual instructions to go over the various points. After a long time and having great trouble understanding the pronunciation of the English language of the contact person, we got nowhere.
Finally we were told that we should purchase a new cable as there was nothing wrong with the receiver. This guy told me that there was nothing wrong with the unit and when service was requested he told me that Bellvu does not make service calls. I asked the person where he was located and he said in INDIA.
I immediately called a qualified service person who found that the audio output of the receiver was as dead as a doornail. It cost me $ 50.00 to confirm that the unit was defective.
On Tuesday, Nov. 6. 07 I phoned the Accounting department of Bellvu and I advised the answering female agent that I would tape the conversation. She immediately told me that I would have to talk to someone else.
I was connected to a male clerk. I told him the problems I had and the bad advice I got from a man located in Bombay India. As soon as I mentioned that the advice from Bombay was not good he got hostile and made a remark as if I was a racist. (He did not actually say racist but alluded to it.)
I requested a service call. I was told it would cost me $ 75.00. I refused. I again requested to cancel the contract. When he found that I would not continue with Bellvu he put me on hold. After, what seemed a long time; he came back and offered me a “FREE SERVICE” call and replacement of the defective parts.
I told him then that I did not approve of such business practices and insisted to have the contract ended. He told me that it would cost me $ 300.00 to break the contract. I said: “That’s worth it”.
This was not the first time that we had a problem involving problems with Bellvu. Some time ago we found that we could not use the remote control once we were locked into the Weather channel. One could not forward or reverse using the control.
We phoned and went through all the trials we were asked. That took a long time, I would guess at least an hour or more. This person, again out of India, told us that it was our problem. When pressed, he said he would contact the “TEHCNICAL DEPARTMENT”. After a while he came back to tell us that our receiver was not made to go from one channel to another (specifically trying to get out of the Weather channel.) After that advice I knew that we either were getting the run around or we were dealing with an incompetent.
I am totally disillusioned with the Bell Corporation because of several incidents over the years of arrogance, incompetence and misrepresentation of facts. E.G.
Our Business phone number was taken out of the phone book and substituted with our Fax number. This happened without us being notified. Only after I contacted the CRTC did I get a letter from a Vice President of Bell apologizing for our inconvenience:)
At another time, whenever it snowed, rained or it was foggy, our phone was dead. Many times they send a service person, several times a supervisor. There was no change. They checked the service places on our road, County Road 107 and even at the exchange in Shakespeare.
After 18 months I finally had enough. I contacted a person at the Bell office who was willing to look into that. He sent me an old man, retired from a small Phone service in northern Ontario. He knew his business. Within a few minutes he found the problem. Corroded wires right at our own junction box outside of the house.
We previously had 3 service people of Bell right at our house with sophisticated apparatuses; unfortunately they admitted that they were not familiar with the operation of these new devices and therefore cannot find the problems.
Just last year we purchased another line (3.) for Internet use. Bell connected us and left the wire situated above ground. It was supposed to be put under ground within 3 months. After eleven months the wire was still above ground and again the same problem when it was damp there was no signal.
My requests for burial of the wire were ignored. I finally had to contact the CRTC again and would you believe it, it was done within a short time. The excuses I got from Bell were:
a) The township did not give permission to dig underneath the road
b) The contractors were too busy
As it turned out the contractors did not apply to the township.
After Ontario Hydro was here to mark their lines, Bell was supposed to install the phone wire. That was again delayed because Bell waited more than 30 days and therefore the whole process of remarking by Hydro had to be repeated again.
There were dozens of incidents of minor nature but always we got excuses, outright misrepresentation of the facts etc.
This history of mediocre service finally made me stand up to a company which sees fit to outsource jobs to other countries but neglects basic services. As a Joke I mentioned to the Bell representative that since I got advice from India I should be able to pay in Rubies. He would not have any of that.
End of story.
The latest red herring is the "exercise craze". These businesses spring up all over and are patronized by those who could easily save themselves a lot of money, if they would just use an old fashion way to stay trim - WALKING. However, if you are willing to depart from your money so easily, you deserve what you are getting.
Oh, and one more thing. When the price of Gasoline changes, it happens within minutes within the community of all brands of Gasoline. Does anyone believe that the gas stations are doing this? Of course not, this is centrally controlled - another perfect way to rip off the public. I will keep on rambling - whatever comes to my mind. There is plenty of material out there.
Fall 2007
JOHN DIEFENBAKER, from the Wikipedia, the free encyclopedia
FINANCIAL ARMAGEDDON, dated Nov. 3. 07
THE INTERNATIONAL FORECASTER - Bob Chapman
BLOMBERG.com/
A well known US financial advisory institution wrote that a Canadian Bank "WRITE DOWN" in excess of 600 million Dollars because they lost money in the scandalous mortgage situation. However, not to worry about this same bank made a profit of over 600 Million Dollars through their Credit Card business. Isn't that wonderful?
DISHONEST HIGH OFFICIALS
Your comments are welcome