So You Want to Renegotiate? Banks Hands May Be Tied.

There is a very clever hidden problem with trying to get banks and other financial agencies to renegotiate the debts for homes, businesses, and other borrowers. Behind the mortgage contracts, behind the lines of credit, and behind a lot of other debts there are contracts that are seldom revealed.

Why? Simple. The contract holders hidden behind these are BETTING on mortgages going into default, lines of credit and other loans also going into default, even the banks are being bet on to fail. Sound crazy? Crazy like a fox in the henhouse!

Take for example a simple mortgage on a house worth, say $200,000 and that mortgage is under water. Then the bank has separated itself from the mortgage by a contract to someone else, and that entity has use Credit Default Swaps to ensure they get something. The contract between the entity and the bank binds up any change in the mortgage, because the entity holding the contract WANT to see you lose, want to see the bank lose! That is where the entity makes more money from the default.

This same process is done with lines of credit for business, using the material wealth of the company for collateral.

Unless and until the entities who have these Credit Default Swaps are either put behind bars, investigated for forcing you and the banks to maintain a very unhealthy situation so the entity makes money, or the CDS contracts themselves are judged to be a hindrance to both you and the banks in renegotiations by the courts, you and the banks are going to stay in trouble.

Perhaps the smartest move here is to hire a lawyer, and take this to a court, using warrants to find out who holds the banks hostage to contracts like this. Unless and until the banks can get themselves out of these contracts by either using law or by the Federal Government outlawing Credit Default Swaps entirely, the economy cannot reasonably regain any stability.

When anyone bets on failure, and makes millions from the economic failure of banks, ordinary families, and businesses, then the whole of society has a huge problem.

The time has come to uncover these entities, reveal just how much damage has been created, and publish the terms of these very nasty contracts. The time is long overdue to find the roots of the problem and investigate just how much power some of the entities have over everyday lives.

So, if anyone is wondering why the banks are sweating and making things tough for renegotiation, then perhaps look behind the banks to the contracts betting on YOU going under, along with your banker, and the entity will be taking the money to another bank or hiding it for future abuse of others.

Credit Default Swaps took down Merrill Lynch, put many banks into such a mess they will take years, if they even survive, to get back on solid ground. My belief here is that, even now, someone is putting out Credit Default Swaps on the banks that do exist, the businesses, and even some of the major corporations like General Motors, Chrysler, and the casinos owned by Donald Trump.

Outlaw the damn things, now!

Credit Default Swaps are Insurance without Regulation, click here for fuller information

Australia Burning, Help!

I remember all too well the pictures of the animals that were forced to be abandoned in New Orleans, and a huge number of them died not knowing why. It still infuriates me to know this is how the rescue plan treated them.

In Australia, there are people who have died, but their animals are still alive, some of them in serious need of help. The people have shelters, communication, and means to move to safer havens, the animals don’t.

If you even have a couple of dollars to spare, donate to the Royal Australian Society for the Prevention of Cruelty to Animals (raspca.org.au) or, if you can sew or knit, then make a Joey pouch! Even kids can make these and the volunteers use them for comforting animals, and giving them a place to feel held.

Donate today: Thank you to everyone who has donated so far. We urgently need funds to continue our bush fire relief work. Please donate online. online or forward your cheque or money order (payable to the RSPCA Victoria) to:

Bushfire Appeal
RSPCA Victoria
3 Burwood Highway
Burwood East VIC 3151

Bank transfer can be made directed to our bank account:

RSPCA Bushfire Appeal
BSB 083-153
A/c 868326451
Please email accounts@rspcavic.org.au with your contact details (name, address, date & amount donated) to ensure we can issue a receipt.

This is the rspca in Victoria, where the fires are the worst. They are trying to provide shelter for animals that got lost, got burned, and have to be relocated.

Account Name: Wildlife Rescue and Rehabilitation Account

Bank Name: Commonwealth Bank

BSB: 063 806

Account: 1007 7387

Also postal donations can be made to:

Jon Rowdon
President, Wildlife Victoria
Reply Paid 84688
MELBOURNE VIC 3000

Lets raise as much money as we can to help Wildlife Victoria buy food, bandages, blankets and medicine for all of the injured animals.

Making Possum/Joey Pouches

When juvenile possums/joeys come into care they need to be kept warm and quiet. Carers are always in need of suitable pouches. Many people who would like to help our wildlife but are unable to commit to rescue or care volunteering can help by making pouches and linings.

Pouches
Wool: 8 ply pure wool (unfortunately we are unable to use pouches made from
synthetic materials)
Knitting: Pouches should be knitted in plain stitch both sides
Needles: Size 8 needles
Dimensions: 25 cm wide by 22 cm long (finished size, but you can make larger ones for older animals)
Closed on three sides and open at the top.

Lining
Material: pure cotton washable material only, flannelette is perfect
Dimensions: 24 cm wide by 30 cm long
The lining should not be attached to the pouch as it will need to be changed regularly.
We generally require more linings than pouches to allow washing and regular changes.
The lining should be closed on three sides and open at the top.

All pouches need to be in natural fibres no acrylic. I am sure it will be fine to make them out of wool blankets and calico 🙂

Please post to PO Box 950 Helensvale QLD 4212. Also include a card or note with a few words of support for the volunteers and carers.

At this point, anything helps because there have been over 1,000,000 animals killed and thousands who are burned, have been affected by smoke, and some of the animal shelters were burned to the ground.

I have seen disasters before, and this will likely continue to be a real need for at least 6 months.

Humans can get out, rebuild, move to food and shelter, so please, help those who are helping the animals. Sam, the Koala is in one of these shelters and there have been hundreds of baby koala, kangaroos, and others found.

Stimulus, Jobs, Federal Governments, Change

The stimulus bills all over the world, not just in the Americas, all are done to put tax money, literally, to work. Now, the question is, does it work?

With the cities and states and provinces all dealing with dramatic falls in tax income, the bridges, roads, hospitals, and other public buildings are also falling way behind in repair. One bridge here had a wooden under structure, and when someone used a fire to keep warm (at least that is the assumption here) the bridge caught fire and put hundreds of thousands of commuters out of a means to get to work.

There are literally hundreds of other bridges all over the world that need to be either replaced or repaired, so governments are putting money into these projects to make jobs and to get the building done.

There are other things that have been left to basically fall down until someone got hurt. Minnesota had one situation where the bridge collapsed too.

This is where governments are all focusing their stimulus. But, there has to be an integrity, a sense of “doing the job well” and certainly the people need to understand that shoddy workmanship is no longer acceptable.

Counting on any government to get the entire society out of this mess is foolish, at best. So … what to do?

If  I make kitchen cabinets, for example, then I need to step up my craftsmanship to make the best cabinets I know how, to push myself to making cabinets that will last 20 or 30 years. A lot of places did build shoddy products, thinking that there would always be enough money in customer pockets to buy more shoddy but pretty cabinets. Today, that has come home to roost with those who built crappy stuff, because the customers just flat don’t have the money to keep buying crap.

If I am a cook, then make damn good food, not just chemical soup, literally. Take the time to use food that is nutritious, tasty, and definitely far better quality.

I have worked in several industries, and the most valuable lesson I ever got was “go for the quality, do the absolute best you can” and you will learn to do it better and quicker. Too long have companies made things with built-in obsolescence and basically crappy products.

We don’t have the money or time to waste on these products any more. Would you rather buy furniture that you KNOW you can use for quite a while, that is made to be comfortable, and has covering that is easy to take care of, or junk that you buy every 3 to 5 years?

I have seen housing built that, within 3 years, needs to be repaired because the housing leaks badly. To me, that smells of a racket. I will not buy a house that is poorly constructed. Watching “Holmes on Homes” put that idea in my head when I saw the crappy workmanship and just flat out scamming that some “contractors” pulled. To hell with them!

Again, quality counts!

I worked in a furniture manufacturing facility where the boss insisted on speed over quality. Guess what? He is out of business, because the people working there were not interested in doing their jobs well, producing quality, and the furniture was rejected by the buyers!

If you are spending any money for goods that you need,  look for quality first. Yes, it probably means you spend a bit more for it, but when you look at how often you have to replace crappy stuff, then you actually do save money over time! Wal-Mart is NOT the place to buy durable goods, like furniture, appliances, clothing and especially goods you know MUST work when you need them.

The same principle goes when you are working, produce quality products. Even if your product is a haircut, waiting on tables, digging ditches, do it with quality and integrity.

Companies that ask us to make crap need a lesson too. To hell with companies that make poor quality products, so tell them with your wallet. Put the businesses that treat their employees like crap out of business, because there is a serious lack of integrity within the management there.

There have to be a lot of people out there that want to be their own bosses, want to do something they are good at, and want to make a real difference in their community. I am talking about those who are very good at dealing with people, dealing with machines or other goods like food.

Now may very well be the time for people who needed the time, to learn business procedures and to start making quality count. Go to the library, study on cash flow, tax law, business management and take that risk on you! Please, create businesses that are based on quality, integrity and best of all, create something worth buying!

If there is someone out there wanting to build housing, find out what it takes to make a home that is totally energy efficient! Learn about the innovations in hot water, solar heating and energy, windmills that produce power that can be used in residential housing, and about making houses that are high insulation value.  Build the houses with good quality and don’t buy crappy building products! People will put money into things they know are worth buying.

The most effective choices we can ever make is to do what we honestly enjoy doing, that just never does seem like work at all. Writers who get lost for hours writing, are working, but it is so much fun they never even notice the work in it! Woodworkers who spend hours in the shop, sanding, inspecting, sanding more and putting hours into polishing and finishing make furniture that draws awe from all of us, if we are lucky enough to see it. People who make simple clothing that fits, wears and washes like a dream are those who make the clothing because they enjoy the creation, the design, the feel of the fabric and love to see the clothing finished well.

No matter what you do in life, do it with quality. Push beyond mediocre and go for the best you can. We will spend our money, if you do that.

Producing goods with built-in obsolescence or that needs immediate repair is wasting more than just money, it shows us all contempt for the work we have to do to buy it, and ultimately shows just how little you value your own work.

President Obama may be one of the few international leaders that is showing the world that quality, integrity, and going that extra bit is worth doing. There are others out there, watch how they do what they do, then use those lessons to do your own best work.

I think it is high time those who were elected, all over the world, value our work, value our integrity, and above all, act with integrity, honesty, and value the position we elected them to. No more shoddy behaviour, no more “putting in the time for pension benefits” and certainly no more self-serving actions. Respect the neighbours and your international neighbours and the current mess will be one hell of a lot easier to live through. Do the opposite, create war and conflict and we all face a far more miserable future.

We need innovative thinking now, we need to have people who listen, who are willing to mentor those who have become lost, and we need people who make good decisions with honesty, integrity and above all, awareness that this planet is small, and choices ripple out to either raise the quality of life or swamp people and create disasters. Empathy is one of the most valuable assets we all have.

Going Down? How Long Do You Think This Will Last?

Books to read, and a previous post that should be referred to when devising any solutions. Click here

Jobs going out the window, literally. Companies going under, literally. Houses and foreclosures happening so often now the news services no longer cover this issue. Wow! Like watching a huge ship sink, except this is in very slow motion.

My question here is how long do you think this is going to last?  I thought it may last a couple of years, but when I look at this like an injury to a body, with the bleeding so profuse, and the cuts all over, the outlook for this patient is tentative at best.

So, what do you think? What treatments are out there to stop the bleeding, the damage still happening? The more minds working on this, the better, is my thinking here.

President Obama used words like “Catastrophe, disaster” and, by looking at the damage even now, I have to agree with this.

Solutions! We will work through this, there is no other choice. But how? Come on, give it a go!

My somewhat brief understanding of CDS and loans that sank the banks. Click here.

Obama, Slam Those Salaries, Now!

I knew at least two months ago that the CEO’s and other fat cat exec’s would find a way to circumvent the ceiling on their bonuses, their income, and get the money.  Quelle Surprise!

They made over 100 of the upper echelon in one company “partners” to get around this,in others,  they just thumbed their noses at the taxpayer, the government and took the money anyway.

I have yet to see anything to get those damned Credit Default Swaps under control, and with the serious lack of legal recourse, the fat cats are eating out on the taxpayers of the entire world. Remember, most of the banks do have international branches or connections.

President Obama, put those ceilings into law, harsh penalties if they violate, and make damn sure they do give you full disclosure on every damn cent of taxpayer monies they are spending. No excuses, no hiding, nadda.

If necessary, put a full investigation using every federal agency, including the IRS, the FBI, and the Wall Street agencies. Stop this abuse of trust now.

As for our own government here, there is an equally apalling lack of investigation, oversight, accounting, so I can gather the same is happening in Japan, Korea, the U.K., Belgium, Germany, and virtually every country tied to this disastrous mess.

Here is where diplomacy comes in, there MUST be an international cooperation, an international accounting, and definitely an international effort to kick these guys where, obviously, they need it, in the wallet.

Damn this is a mess!

Buying Only American Can Sink America

Loyalty is great, especially to your family and friends. When it comes to a country, loyalty can be good, but sometimes it has a double edge to it.

The drive to use the tax funds to restart, restore, whatever you want to call it, need not be tied to buying only American goods. Why? Well, as a lot of the US citizenry now are finding out, there are things you need to get from other countries. Oil and power are just two.

Blocking the import of goods such as steel, aluminum, and so on can backfire on the jobs the US and President Obama are desperately trying to create, restore and build. Erecting trade barriers also breaches some of the very trade agreements that the US wants to keep!

Like most other things in life, we live by cooperation, and this does mean we have to deal with countries outside our own.

Let’s see if I can simplify this for myself here. I need power to run a factory, but I don’t have enough local supply to do it. I set up a contract, an agreement with someone to buy it. In exchange, they want to buy what I produce. Sounds like a fair deal to start with.

Later, they cannot buy my goods, and because their own financial problems are causing headaches, they want to put that power to use in their own area. So, I can choose to refuse to buy their power, and up go the barriers. My own jobs go, along with the prosperity I was developing for myself.

While I can understand their reasoning, they NEED what I produce as much as I NEED the power.

This can get to be truly childish and petty, but in the real world, it can create huge disasters.

The US NEEDS oil, power, goods etc. from other countries as much as other countries NEED the goods from the US. It is symbiotic, if you like.

There ARE international agreements in place that need to be honoured, need to be kept, and integrity is one of the ingredients in international trade. I know there are some in the US that want to shut the doors, hunker down, and, while I can see the fear, the loyalty and the desire to make sure there ARE jobs coming, I can also see why the trades and the goods NEED to move.

What most people in the US don’t realize is that the supplies of some goods are NOT found within the US, they just are not there. Foods come from outside the country, along with a huge number of other things. Stop that and the US faces some pretty nasty results. Power is not totally generated within the borders of the US either, it is purchased from neighbouring countries, mostly because the private utility companies have NOT invested in creating more power, especially cleaner and more efficient power. The brown-outs in Los Angeles are symptomatic of this problem.

Some rant on about “Buying Amercan” without realizing just how much of the goods and other things come from outside the country.

Right now, the choice is within the bill facing the government, and I hope that someone will really take a hard look at what they are asking for  with the clause to “Buy American” and create international trade barriers.