Book Trailer The Noble Train

Wednesday, June 10, 2009

Time For The Middleclass to Stick up for Themselves

Don't look for Barack to save you. He is just the President. We are talking about a man who ten years ago was driving around in an old Mustang and is now flying around in Air Force One. Populist rhetoric works when founded in some sort of reality. After eight million and change in book royalties that reality went out the window for Barack. I think his heart is in the right place, but the powers that be can smooth out the jagged edges of any populist with black tie affairs, limousines, money, and power. He is only human after all.

So where does that leave us? High taxes. The foreclosure moratorium is going to end. There will certainly be no bailout for the middle class. We are left with worthless cars and homes and pillaged 401Ks and gas prices blasting off for the heavens. The banks got theirs. The auto companies got theirs. The insurance companies got theirs. We live in an oligarchy which of course is rule by the wealthy. Ever since the banks started lining up behind Secretary Paulson it has been an orgy of back door bailouts, bonuses, payoffs and good old fashioned embezzlement. There is so much money being paid to so many people that they can not even track it.

But not for us. We still have real estate taxes that no honest man or woman can pay. We have energy costs going through the roof and falling incomes and layoffs and foreclosures and just about any other thing that companies can come up with to take our money and property. So it is really time for the middle class to act in their own best interests. Here are a couple of things you can do to survive the bloodletting of the second Great Depression.

Pay your mortgage first. You want to keep your shelter. If you have a car payment, decide what you want to pay not what they want you to pay. If you have lost your job or are in perilous straits then you must decide what you want to come through this with. If your house has lost all value and you owe more than it is worth and the payment is killing you then sell or WALK. There is no point in paying on a depreciating asset. Your first obligation is to survive. Your credit will come back faster than you think. Some facts. A foreclosure on your credit is bad, but a bank will lend on a foreclosure in two years. Same with a bankruptcy. Two years. These marks will still be on your credit, but there will be people willing to give you credit again.

Renting is not bad anymore. In fact some people say that is the smart play. Houses are still depreciating like a stone. Why pay taxes and utilities on something losing value? Here is the order you want to pay things in: mortgage(rent), utilities, food, gas, credit cars, medical. Again, your goal here is to survive. Negotiate with the credit card companies and any retailers. If they don't negotiate then decide what you can pay them and send it on. They got their bailouts--you will have to come up with your own bail out.

Finally, do not feel bad about losing your job or your home. We are in a Depression. The banks would have failed if not for the great bailout by the Government. GM just failed. Unemployment will go beyond ten percent. There is virtually no credit out there. People are losing their homes to the tune of a million a month. These are hard times. The President is trying to paint a positive picture. I get it. But the truth is, the middle class is broke. And until the President stops giving money to banks and companies and starts giving it to the people who do all the working, living, and dying in this country--then we will have to act in our own self interest. Good luck.

Books by William Hazelgrove