What do I think the first quarter of 2009 will bring. What type of economy will we face.

During the past year, it has become quite clear that throughout all issues of “Sub-prime,” the Government simply doesn’t care about consumers and the federal Reserve bank (a private Sector-which acts as a Government’s wing to the financial world) is too messed up to help consumers. If the Government has any decency, it would have either opened the Alaskan oil field for drilling or start off shore drilling so that it would help the economy. However, we know that it is not all the Saudi or other oil countries fault. It is how the politics work. As you know, when it comes to election time and whichever party is in the office will reduce the prices of certain consumer product in order to influence the vote count. Therefore, as you can see, the price of the oil and gas is dropping and when it comes to late October and November, you should expect the gas price to come back to $2.70 - $2.99 range. Unfortunately, it is all politics. Meaning our life style is controlled by political influences and self-interest of others.

Yet, at the same time, the Fed Chairman, feeling sorry for the banks and lenders drops the bank/creditors-borrowing rate (the rate banks and creditors borrow money from the Federal Reserve Bank) not worrying about the consumers in trouble. Oh, I am sorry, Fed may claim it did so to benefit consumers because the bottom-line the consumers are the borrowers. However, among all these several times that the Fed. dropped the creditors lending rate, how many times your/consumer loan rates has dropped? How much has your/consumer rates has dropped. You will be lucky if your loan rate drops by a .25% when the Fed. so generously drops the banks’ lending rate .50% or .75%. And even if banks feel sorry for you and I - and truly drop their lending rate for borrowers/ consumers, it would a short-lived process (a day, two or three days). While, they benefit the luxury of longer-term (several months to several years) lowered rate from the Fed.

So, as you can see, the Fed. doesn’t care if you have a home or not. As long as, the banks are protected, who cares what happens to you. Otherwise, the actual mortgage rate would have been dropped and kept there until the housing crises disappear.

Let’s not forget the different branches of the executive office that are also holding crucial data from consumers and news media. Meaning, the monthly or quarterly reports provided by the different offices of the Executive branch is also cooked. The Labor Department puts out report that unemployment has not increased or is reduced; therefore, making everybody feel that the labor force is employed and is even getting better (you must be the only unemployed one out there-lazy butt!!J). However, the employers downsize, merge and lay off the workforce in thousands, or simply offer early retirement to reduce their cost. Then, the Department of Commerce throws some bogus numbers out there for the import, export, consumer product index, and others. The Department of Treasury throws out some more fake numbers. Together, all these numbers should make us/consumers feel warm and fussy that the economy is doing great. So, how come you have less money to spend, you spend more at the pump, in the grocery stores –only to buy less than what you did a year ago?

To cut short this long story of economical mishaps, confusion, misleading information, collapse, and mental agony for consumers, since the government agencies is not presented the true reports, guess what is going to happen when the next president takes over the office? I am certain that you have not seen the worst of the economy yet. If you think you have, wait until March and April 2009, when the government agencies revise their numbers for the worst. Thanks! When the new president (whoever he is, take over, he going to be pulling his hair -Oh, I am sorry, they both look bald- I am getting there…J lol).

To add insult to injury, you have the Department of Justice who is investigating mortgage fraud, and concentrates on the consumers that provided misleading and inaccurate financial statements to the lenders. However, I have not heard of even one scenario when the DOJ would be investigating the lenders and mortgage brokers who told the consumers provide the misleading numbers (if you want the loan). You may wonder, what I mean by this. Although some borrowers may be desperate wanting to get a loan beyond their means; however, the act of providing that type of loan on a lot of times was instigated by the lenders who were desperate to provide the loan, so that they could make larger revenues. As a result, loan processors (officers) advised borrowers that in order to get a loan, we need your document show a particular income. Or that would suggest to the borrowers, if you give us this type of financial document, we will not review or question it and will look the other way. As a result, an honest person who may had no clue (providing such documentation was wrong-since most consumers were/are unaware of the details of the law) would be prosecuted, but the guilty bank/loan representatives would be free. This is called double standard of the system of justice. You don’t need to take my words for it. Look around you. I am certain you know individuals who may have been told by loan officers to provide certain documents in order to be approved. Or that some lenders such as Countrywide Home loan and SunTrust bank, who provide you one set of documents for the purpose of closing and at the moment before closing throw some other documents showing more fees or higher interest rate in their benefit. If you don’t catch it at closing then, the lenders gets away robbing you. If you catch their intentional mistake, they come up with the excuse of “since there is no time to correct the error, sign the document and we’ll reimburse you.” However, that day will never come. Whatever your case may be, please don’t get deceived by the lenders criminal mind and act. The current government has very little intention to prosecute companies for their deceptive practices. Plus, it requires more time, effort and resources (all together money) to investigate companies and their employees. And by he time finger pointing is ended, there may be no substantial proof as to who within a company can be prosecuted. However, you are a much easier target. An individual who is already suffering financially, possibly can’t make your mortgage payment, and for sure don’t have a deep pocket to get high priced attorney. Therefore, you will are guilty as charged; because, you are fighting a system that has no mercy upon individual tax-payer/consumer and especially a poor one. Shame on you and I for being poor.

Anyway. Since I can’t encourage you or attempt to brighten your days and nights about where this economy is going, the only thing I can do is to inform you as much as I can in everyway that I can. I hope my articles and my books will provide you the information you need to succeed in your financial endeavor. My book “Bad Things Happen to Good People- YOUR CREDIT = YOUR LIFE, FIX IT NOW!” provides information you need -not only to fix your credit, maintain good credit, handle creditors and collection agencies but also, provides information on some tax-liability issues, controlling the impact of personal relationship on your finances, getting the best rate and loan costs, demand letter writing techniques, avoiding foreclosures, lawsuit and judgment and much more.

I hope I am helping.
With love and best wishes.
Mike Samadi