How are you cutting back in our Economy? October 28, 2008

Which way are you going

So, its a few days before the election. Our economy has tanked. Paychecks have tanked. Pensions have tanked. Confidence has tanked.

In our society where the paychecks are no longer guaranteed and pink slips are the new “in” thing, How are you making changes in your spending? We want to hear from you below. What tips are you using in your family to conserve your income?

Is this Crisis Really New? October 7, 2008

We wouldn’t be doing our job if we couldn’t report some articles that are meant to give you a balanced view of what we are going through. The sky is falling right? Well read this article.

Dennis Walsh, President and CEO of Money Concepts, wrote this.

Let’s look at a timeline of a crisis:

·         In 1938, the Federal National Mortgage Association (Fannie Mae) was formed as a government agency designed to fill some gaps in mortgage lending left by the wave of bank defaults in the Great Depression.  Fannie Mae could now purchase and sell mortgages to financial institutions that wished to diversify their regional mortgage portfolios.

·         In 1968, the Congress, in an effort to get Fannie Mae’s liabilities off the government balance sheet, sold them off to private investors.  Fannie Mae, a private company could now also raise money through bond issues (guaranteed by the government) and distribute profits to executives and shareholders.  This structure allowed for private profits and public losses.

·         In 1970, to deal with regulatory problems in getting mortgage money to California, the Federal Home Loan Mortgage Corporation (Freddie Mac) was formed as a government agency.

·         In 1977, the Community Reinvestment Act became law.  This law was intended to make credit services available to low income individuals and individuals in urban areas.

·         In 1989, Freddie Mac was sold to private shareholders.