The scramble continues for part of the cash out of American taxpayers pockets in the form of the ever growing fiscal Bailout Bill. The latest to come hat-in-hand to the government for a handout are the Big 3 auto makers, Chrysler, Ford and GM – General Motors. The question is this. Should they get a handout? Not from a national money management perspective according to one financial expert.

“In my opinion giving General Motors, Chrysler and Ford billions of dollars would make the problem worse,” says nationally recognized money management expert and financial consultant Sandra Simmons. “These companies are dinosaurs who ceased to be innovative in their product design and ceased to create high quality products that Americans would be happy to own,” she says. “Citizens who, 20 years ago, would never have considered owning a “foreign” car, are abandoning their stance and switching in droves to the higher quality, innovative products of the foreign car makers.”

Simmons knows a thing or two about salvaging companies. She has an extremely successful track-record in terms of turning around financially ailing companies and corporations. But Simmon’s philosophy is never throw money at a problem without knowing with certainty what the real source of the difficulty is. Throwing money at a problem is a knee-jerk reaction that runs rampant in virtually all levels of business and corporate think - and it is especially true when the government gets involved.

“One thing can be proven by looking at what is happening in industries like the Big 3 auto makers. If you reward out-ethics and non-production, you get more of the same. Chrysler, Ford and General Motors have great workers, but their management are dinosaurs who are in it for the dollars,” she says. “They have long avoided making the tough moves to re-tool into high-quality and innovative products that would have kept them competitive with the foreign car manufacturers.”

According to Simmons, if the government dumps billions of dollars into these sick and dying dinosaurs, they will have no reason to change and will just keep doing the same thing they have done and getting the same poor results. One has to ask the question why the foreign auto companies, Honda, Toyota and Nissan in particular, seem to be doing relatively well despite the economy. Yes, their overall sales have been affected by the economic slump, but they are nowhere near needing a bailout by the government.

What’s the difference in philosophy that is causing the Big 3 to fail?

“They have always counted on Americans to blindly BUY AMERICAN whether the quality was good or poor,” states Simmons. “Well, those days are gone and Americans have lost their blind allegiance to inferior quality and design. A better move would be to let the car companies file bankruptcy, reorganize, and be forced into making higher-quality, competitive products that Americans would once again be willing to buy.”

An essential aspect of any good money management strategy is identifying those things that produce good return on investment, and also identifying those things that don’t. This is true for both the macroeconomic and microeconomic applications. In other words, it doesn’t matter is you are running a world sized government, or a household, the principles are the same: find out what is brining in the income and put resources into that. Unfortunately, the Big 3 aren’t even close to having that conversation. They just seem to have their hand out and are asking the American taxpayer to take an enormous leap of faith.

No one wants to see the U.S. Auto industry fail, but clearly something is wrong, and no clear, straightforward answer seems to be forthcoming from corporate heads or politicians. It also begs the question, would any of us be eligible for some kind of loan based upon a similarly vague business plan? The answer is pretty obvious.

“The American auto makers have great workers. It’s the management that has to go. The reorganization should bring in a new group of management that is willing to do whatever it takes to bring these companies back to life and able to compete,” Simmons says. “General Motors, who has major government contracts to produce parts, should spin off that division and let it operate on its own as the cash cow it is, and let the auto arm sink or swim based on its own performance. That would at least force the shareholders, the management and the public to see the auto division in the harsh glare of reality and perhaps force it to make the necessary changes to survive.”

“In a recent radio talk show interview, it was said that one of the senior management of General Motors has already refused to resign, contending that in these times it is necessary to have good strong management leading the company,” she says. “It is precisely this manager and the others in office in these companies who have led them down the track of self-immolation. They should be forced to resign and make way for some new innovative thinkers who truly care enough to do whatever it takes for these companies to live or die by their own actions, without a government / taxpayer handout.”

There are, of course, many, many other industries and corporations who, in following a flawed money management philosophy, are in dire straits and failing just like the Big 3. But Simmons is doing her best to get the word out. She is currently criss-crossing the country giving lectures and seminars to businesspeople interested in turning around their financial fortunes.

Money can be made even in the worst of times, she contends, and, as she points out, more millionaires were made during The Great Depression than during any other time in U.S. History. Her next seminar is scheduled for December 13th in the Tampa/Clearwater, Florida area for all those who would like to attend.

For more information please contact Sandra Simmons at 727-448-1011 or email her at seminar@moneymgmtsolutions.com. Or visit the website at www.MoneyMgmtSolutions.com.

Sandra Simmons
Founder and President, Money Management Solutions, Inc.

Sandra Simmons was educated at Virginia Commonwealth University. She spent the early years of her professional career working for major advertising agencies and Fortune 500 corporations in executive marketing management positions, winning the prestigious advertising Addy Award in 1983. In 1995 she opened her own business, Money Management Solutions, Inc., with the goal to provide business owners worldwide with a software tool for real financial planning and wealth building. Ms. Simmons is now recognized as one of the leading experts in the field of money management and financial consulting and her wealth and financial freedom seminars are enthusiastically received all around the country. Since starting her company, she has established an outstanding track record in turning companies around who were struggling financially. Her objective in developing the Money Management Solutions software was to provide business owners and health care professionals with the cash flow management program from this business management system. Nothing thrills her more than to see people achieve their financial planning and wealth building goals by using this program.

Will Obama-nomics and the Obama economic plan work? That remains to be seen. However, with the new Obama administration and the financial “experts” telling us it may be years before we see an economic recovery, most of us don’t have time to wait for the politicians to get their act together. We, as a nation, need to take the economy into our own hands and speed up the recovery as quickly as possible.

But how do we do that, exactly? With figures in the trillions of dollars, it would seem impossible for any individual to have much of an effect on our current economic crisis.

“The answer is correct money management and the correct handling of our finances,” says money management expert Sandra Simmons. “We got ourselves into this situation because we, as a nation, have violated many of the basic principles of sound financial management. No matter what the government does, in the end, all of us need to change the way we handle money and credit in order to truly get the economy back on track.”

In particular, Simmons takes aim at America’s over-indulgent love affair with credit. Credit, she says, is an all-too-seductive trap that has lured an entire nation to shipwreck upon hidden fiscal shoals. Almost everyone, from the largest of companies to the individual consumer fell into the credit trap and began living a false lifestyle that was way above its means. This false economic condition was a ticking time bomb just waiting for the right set of circumstances to explode.

“At any given point-in-time, we are all in a certain financial condition,” explains Simmons. “And it is easy to fool yourself into thinking that you are in a better condition than you are actually in. The basis for this false financial condition is usually an over-reliance on credit to supplement your income. Too much credit and too much debt inevitably leads to a financial crash.”

Although Simmons has been writing and lecturing on the dangers of credit and debt for years, the recent U.S. Economic crisis has brought the point home with historical force. Financial pundits and politicians may complain that this “Economic Tsunami” was unforeseen, but Simmons disagrees.

“If you analyze the histories of economic bubbles, you will find at their root violations of sound money management principles. Whether it’s herd mentality or some other phenomena, group-think drives people to take actions they intuitively know to be unsound and overly risky,” she says. “But the terrible truth is that people know when they’ve extended themselves too far and national confidence begins to wane.”

Confidence, says Simmons, is the single most important hallmark of any strong economy. The question becomes how confident can anyone be when they know that they owe their lifestyle and economic standing to a economic foundation based on credit. Like any structure built on an unstable base, it’s only a matter of time till it comes tumbling down.

“Conversely, an economy with little debt, operating on very little credit and strong reserves is an economy in very good shape and one that is very stable and hard to disrupt,” states Simmons. “The kind of money management system that I am talking about is actually the kind of system that is very old-school and traditional. That is a tried and true system. It works and it’s the road to financial freedom and wealth.”

According to Simmons, this is the real way to build the economy from the ground up. The goal should be to get every American applying the tried and true money management policies to their own lives and this would serve to create an extremely strong economic base on which to build an unshakable economy.

Simmons’s plan to grow the economy from the ground up would include:

1.Start using cash instead of credit.
“We have to break the cycle of using our credit cards for every financial transaction,” says Simmons. “Instead, use cash or your ATM card. If you can’t afford it, don’t buy it. Instead, save up for it if it is something you really want.”
Getting away from the instant gratification mindset that we have all become used to may go contrary to popular culture but it is the way to dig ourselves out of this economic mess.

“As a nation, it is not difficult to see the immediate effect it would have if we all stopped using credit cards and started using cash,” she says. “Many would argue against this, especially with the holiday season approaching. But we have to get off our credit addiction at some time, and now is as god a time as any to get into the right spending habits.”

2.Pay down your debts
Another unacceptable money management habit is carrying a large debt load.
“Somewhere along the line, it became acceptable to carry a large amount of debt,” notes Simmons. “Maybe this comes from Madison Avenue advertising campaigns, but this is completely wrong-headed. The goal should be to be completely debt-free. It doesn’t do to pay the minimum amount owed on debt. Additional money should be applied to debts to pay them off quickly.”

Debt, it could be stated, is at the root of all financial evil. Debt, by its very definition, carries with it, risk. That risk of course, is financial failure.

“I think the lessons of the Great Depression faded so far into the past that most of us forgot what could happen when you allow debt to accumulate,” Simmons observes. “The risk-taking by some of the largest financial institutions and our own government would have been unimaginable a generation ago. We can all get out of debt, but it does take a certain amount of planning and discipline. “

3.Build Reserves.
The road to wealth begins with putting money aside little by little into reserve accounts that are not touched except for emergencies.

“Unfortunately, the very concept of saving has gone completely out the window,” Simmons says. “Saving money is just not a popular concept anymore and is possibly viewed as old fashioned by some. As a result, the U.S. Ranks far down the list of countries whose workers and business owners regularly put money aside in savings, and this makes us very vulnerable when we can no longer work or when a crisis occurs in our lives.”

In fact, if anything, the messages in typical advertising and commercials is spend, spend, spend. If there are any suggestions in society about putting money aside, it certainly gets lost.

“In truth I think we’ve lost touch as a society with what it takes to build wealth and gain financial freedom,” says Simmons.”The fact of the matter is that anyone can become wealthy if they apply the right money management principles. It’s really not how much you make. It’s what you do with your money that counts.”

And Simmons has the client list to prove it. Despite the devastating economic storm, Simmons’ clients have weathered it rather well because they have applied her principles and were prepared.

Simmons is anxious to spread the word and is currently touring the U.S. giving seminars on the secrets of wealth building and financial freedom. Her next seminar is scheduled for the weekend of December 13th in the Tampa, Florida area.

If anyone thinks that we cannot change our collective financial habits for the better, Simmons cites one very prominent example.

“Just look at what we did with the gas prices,” she says. “The so-called experts said it couldn’t be done, but America, through our combined efforts, changed our habits and dramatically lowered the prices. It can be the same with the economy if we change our money management habits from the ground up. “

So you want to be broke and stay in the economic trap? Here are the top 7 Money Management Mistakes you can make to insure you have NO MONEY and are living in poverty.

Money Management Mistake #1. Spend every dime you make and deny yourself nothing; buy stuff whether you need it or not.

Money Management Mistake #2. If you have any money in the bank or room on your credit cards, go out and spend it. Don’t worry about emergencies that may come up. When they do, borrow more money to handle it.

Money Management Mistake #3. Work to make just enough money to barely pay your bills and be sure to spend your free time out spending money. Don’t stress over the yearly increase in the cost of living.

Money Management Mistake #4. Use your credit cards to pay for essential items like gas and groceries, and to do impulse shopping for things you want but don’t need. Max out those credit cards.

Money Management Mistake #5. Pay only the minimum payment required on your credit cards each month, and don’t worry about the extra charges for paying late or spending over your credit limit.

Money Management Mistake #6. Never put any money in savings, and if you do, feel free to tap into those funds when you can’t pay your bills.

Money Management Mistake #7. Rely on the Government and Social Security to take care of you when you can no longer work.

These actions will guarantee that you are being controlled by the money and are broke and living in poverty.

If you don’t care that you’ll constantly be worried about money and plagued with money problems, then you’ll be able to spend those sleepless nights out spending more money on credit cards or shopping on-line on the computer for entertainment. Heaven forbid that you should be working on ways to take responsibility for your own financial survival instead of relying on someone else to take care of you financially. Isn’t that what friends, family and the Social Security system are for?

Now that I’ve given you all this advice about how to live broke and die penniless, I should also tell you that there is a money management system that you can use to control your income and debts to get on the road to financial freedom. Just in case you change your mind and decide you want to take responsibility for improving your own financial condition, visit www.moneymgmtsolutions.com.

Money Management Solutions, Inc. presents a one-day seminar

How To Create Profits and

Build Wealth In A

Down Economy

With nationally recognized financial and money
management expert

Sandra Simmons

Attend this seminar, and find out how to increase your income, and manage your cash flow to pay the bills, pay off debt, and get money into your savings account every week to build wealth.

Testimonials

Wow, this was an eye-opener! I’m doing everything wrong! I own two businesses and miraculously have survived but owe a lot on credit cards. I know I can be successful on this program and save myself hours of planning and organization! A.M.

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Seminar Date & Location

Saturday, December 13, 2008  -  10:00 am to 5:00 pm 

The Hilton Hotel, 400 Mandalay Ave., Clearwater Beach, FL

Map:  http://www.clearwaterbeachresort.com/map_and_directions/

 Seminar Price

$147 per person

REGISTER TODAY - Seating is Limited!

To Register Call – 727.448.1011 OR email seminar@MoneyMgmtSolutions.com

 Website: www.moneymgmtsolutions.com

Sandra Simmons, Founder and President of Money Management Solutions, Inc. was educated at Virginia Commonwealth University. She spent the early years of her professional career working for major advertising agencies and Fortune 500 corporations in executive marketing management positions, winning the prestigious advertising Addy Award in 1983. In 1995 she opened her own business, Money Management Solutions, Inc., with the goal to provide business owners worldwide with a software tool for real financial planning and wealth building. Ms. Simmons is now recognized as one of the leading experts in the field of money management and financial consulting and her wealth and financial freedom seminars are enthusiastically received all around the country. Since the establishment of her company, she has established an outstanding track record in turning companies around who were struggling financially. Her objective in developing the Money Management Solutions software was to provide business owners and health professionals with the cash flow management program from this business management system. Nothing thrills her more than to see people achieve their financial planning and wealth building goals by using this program.

Sandra Simmons, President and founder of Money Management Solutions, is slated to give a seminar for business owners on how to build wealth and increase profits despite the current U.S. Economic crisis.

Simmons, who lectures and does financial consulting throughout the United States, is a strong believer in the ability to succeed financially, even in a tough economic environment, if you have the right money management tools.

“People really can escape the economic trap and build wealth despite what they hear about the economy,” says Ms. Simmons. “I’ve spent years giving people the tools that they need to be financially successful. Anyone attending the seminar will be excited to know that with a few simple steps, they can greatly improve their financial circumstances and get on to the road to financial freedom.”

Those business owners attending the seminar will learn the secrets of avoiding credit traps, how to quickly get out of debt, and how to increase profits and income. They will also learn what the so-called financial experts and mass media aren’t telling them about economy and finances.

The event will be held at the Hilton Clearwater Beach Resort Hotel on Saturday, December 13th, in Clearwater, Florida.

Those interested in attending are recommended to make reservations early as seating is limited.

For more information, please call 727.448.1011 or email seminar@MoneyMgmtSolutions.com .

Almost 100 years ago, a minister and outspoken advocate for liberty, William J. H. Boetcker, published a pamphlet of principles. These sound money management principles still hold true today. In light of our current economic crisis I think it appropriate to share Reverend Boetcker’s 10 Cannots with you.

You cannot bring about prosperity by discouraging thrift.

You cannot strengthen the weak by weakening the strong.

You cannot help the poor man by destroying the rich.

You cannot further the brotherhood of man by inciting class hatred.

I recently received an email from a visitor to my Money Management Solutions website who wants to learn how to pay off her mortgage quickly without having to attend expensive seminars or buy expensive software to do this trick.

I realized that this was a question a lot of people might have, especially during this current economic crisis. I decided to share my answer here for that reason.

Brenda asked Sandra Simmons:

Is there some sort of “mortgage accelerator” program where your mortgage gets paid off in a fraction of the usual 30 years time? I want to learn how I can do this myself for my mortgages. — Brenda B.

Answer:

Brenda: You can do this yourself by making extra principal payments each month.

Example if your mortgage payment is $2,000:

 If, when you make the payment for 8/1, you include an extra payment for the principal due 9/1 of $302 then you don’t ever have to pay the interest of $1,698 that was due 9/1.

Your next payment due, which you will pay on 9/1, is actually the 10/1 payment.

Then on 9/1, when you make the 10/1 payment, if you also pay the principal payment from the 11/1 payment, then you save that interest. If you do this you will cut your mortgage payoff time in half.

Write on your payment coupon “Extra Principal Payment $302” so there is no question of where you are directing the funds, and keep a copy of the coupon and the check for your records.

If you want to accelerate it even faster, say cut it by 2/3rds, if on 8/1 you make the payment and include the principal amounts for the payments due 9/1 and 10/1, then you don’t pay the interest on the 9/1/and 10/1 payments.

Then on 9/1 when you make the next payment you would pay the payment for 11/1.

Ask your mortgage lender for an amortization statement of your loan so you can actually see the correct principal and interest amounts broken down for each payment. They may not want to give you one so you can’t do this as they lose interest income, but you have a right to have it. Even if you have to pay them for it, it is worth it. Typically they charge $25 - $75 for an amortization statement.

Sandra Simmons is the President of Money Management Solutions, Inc. She specializes in helping business owners and individuals manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide.

Less than a week has passed since the $700+ Billion bailout plan was passed to handle the financial crisis. The money is gone. It’s all been dished out. Yet the Wall Street stock market crash continues, the economic crisis continues full steam ahead, and the greedy want even more.

Just today, Nancy Pelosi asked for another $150 Billion for the bailout to handle the credit crisis. No doubt her new plan is filled with pork belly earmarks. The government and all the greedy and corrupt officals on Capital Hill are admitting that the $700 Billion is just a start. They say it’s going to take at least 3 times that. I, for one, am not willing for my pocket to be picked any longer by people who have been elected to serve me, who are treating me like their economic slave. All those who voted for the bailout plan need to resign from office today. More appropriately they should be convicted of TREASON - betrayal after trust-Democrats and Republicans alike.

Indictments for treason should also extend to the recipients of the money for their criminal activities. Just weeks after receiving their $85 Billion dollar rescue package, AIG senior management reportedly spent over $400,000 on a week-long vacation retreat for themselves at a ritzy resort in California at our, the taxpayers’, expense. Their spa bill alone for manicures, pedicures, facials and massages ran up a tab of over $23,000. That is CRIMINAL! And that is just the first of the stories like these. A lot of heads need to be put on pikes. They have stolen America’s financial freedom.

I still want Ron Paul for President. He has the sanest money management plan of all. I still want the FairTax Bill voted in and the IRS voted out. It’s going to take an all-out grass roots effort by the American citizens to get the FairTax Bill passed. I believe, as does Ron Paul and the 70 or more other members of the current Congress who support the FairTax Bill, that it can be done.

I just visited the FairTax website at http://www.fairtax.org and read this message on the current economic crisis and the out-ethics activities of our government officials from their Communications Director Ken Hoagland. I couldn’t have said it better myself.

Hometown America Must Save The Nation

At the heart of the financial meltdown now bedeviling Americans is a simple and profoundly ignored fact that does not require an advanced degree in economics to understand: Our government spends more than it takes in—a lot more.

Sure, regulators could have done a better job but, in truth, politicians at every level have frustrated attempts to blow the whistle on bad loans, bad reporting and bad ethics. Why? Because politicians have been buying our votes with our money—and our future earnings—for a long time. And they don’t want any interference from those they are “helping.”

It’s not just the naked bribes represented by “earmarks” for hometown voters; it is new entitlement programs like the prescription drug benefit, new rules governing the behavior of favored banks and investment houses and a headlong rush to buy the votes of the poor by guaranteeing home ownership, irrespective of one’s financial ability to repay a loan. Lest we forget, let’s also add up all the special tax breaks for favored contributors that have bloated income tax code rules to 67,500 pages. It’s a bi-partisan betrayal of our future cloaked as concern for the common good.

Although our nation was founded on the principle that the citizen was sovereign, government spending increases and more and more taxes taken from our earnings, savings and investments have effectively transformed the American citizen into a serf working another’s land for the privilege of taking a fraction of the fruits of his or her own labor.

Just Trust Us

“Trust us,” we are told. “We have the best interests of the nation at heart.” Citizens are now left with no rational choice to protect savings, college plans, and investments but to accept the new aristocracies’ trillion dollar picking of our pockets to prop up institutions that must function. It is not the first time in recent years that we have accepted the grasping hand of the federal government in our wallets to avert a disaster not of our making.

In 1983 a “Blue Ribbon” panel of similar leaders including Alan Greenspan, Daniel Patrick Moynihan and others “saved” Social Security from another big collapse by dramatically raising taxes on earnings of up to $97,500 annually. The promise, then, was that Baby Boomers would actually “pre-fund” their own retirement with astoundingly increased taxes, decades ahead of time. It was also promised as relief to the coming generations so they would be free of crippling taxes. Sounded good.

Lo and behold, the trillions of dollars taken in since then—far exceeding promised payments to senior citizens—have since been spent on everything else. Turns out, that it was nothing more than a new tax levied on those with earnings below $97,500 a year so executive and legislative branch office holders could have more of our money to spend extravagantly on “us” so they could win new terms in office. The FICA payroll tax has become a major factor in keeping the poor that way, retarding new business growth and keeping middle-class earners from moving up. Worst, it also turns out that our children and grandchildren will, in fact, still be burdened by an ever-growing and mind-numbing national debt AND unbelievably high FICA taxes to support their parents.

In yet another example of playing fast and loose with politics and our money, 1986 saw Congress reject the tax policies of the Reagan administration and as consequence, the Savings and Loan industry collapsed. Turns out the definition of the tax value of real estate holdings had been changed overnight by the House Ways and Means Committee and banks no longer met liquidity rules. That politically inspired cat fight cost American taxpayers hundreds of billions of dollars. And worse, we didn’t learn.

It is past time–way past time–for hometown America to save America from our well-intentioned but criminally incompetent, at best, and cynically corrupted, at worst, national leadership. Do we have a moment to lose? Do we really need any more examples of how the new aristocracy can—and will—destroy the pursuit of happiness?

The reform that can save the nation and restore our identity as citizens who have empowered and limited government (instead of the other way around) is called the FairTax.

Because the FairTax allows every American to take home everything that is earned without any federal withholding, millions of distressed homeowners could actually afford home mortgage payments. The elimination of FICA taxes eliminates the highly regressive Social Security and Medicate tax but the FairTax provides a far broader stream of revenue into these faltering programs. Because the FairTax eliminates all exemptions, gimmicks and loopholes, Congress would be removed from the ability to buy votes with tax giveaways and billionaires pay taxes when they spend money. Because the FairTax makes nearly all federal government taxes entirely transparent, the sovereign citizen can know the score and put the brakes on extravagant new spending.

Because the FairTax eliminates the price advantage now enjoyed by overseas producers, American jobs won’t be leaving our shores. In fact, because the FairTax makes the USA the most favorable tax environment in the world, we can expect trillions of dollars of investment rushing into the US economy. With the FairTax, our money is ours first and only secondly devoted to government. Savings growth, investments and business decisions are guided by opportunity and real progress instead of tax avoidance tactics.

We’ve lost more than $2 trillion of our retirement savings in a week’s time and our kid’s future at college is in serious jeopardy. This didn’t happen by accident but at the hands of the very same people who have given the FairTax a cold shoulder. Those candidates and incumbents of either party who would spend our future earnings to stay in office and who reject the FairTax for similarly self-interested reasons now need a strong reminder from voters about whose offices they occupy. Please pay attention to our voting guide and send that message. [See the voting guide at www.fairtax.org]

Finally, our campaign needs your help—as always. We never have enough to do the job right. Send us a contribution if you can, even in these hard times. It may turn out to be the best investment you ever made. If you can’t afford a donation, then help us by recruiting two new supporters. And keep your cards, letters, phone calls, faxes and e-mails going to incumbents and candidates.

The plain fact is, we either now save ourselves from our new aristocracy or suffer the consequences as modern day serfs in a nation never contemplated by our Founding Fathers.

The big money management question on Capitol Hill today, October 1st is this: Will a spoonful of sugar in the form of a different set of vote-getting add-ons make the bailout plan medicine go down?

Add-ons such as:

Pork Belly earmarks for Mental Health Parity which, excuse me, have ABSOLUTELY NOTHING to do with the economic credit crisis, unless we are now expected to pay for free psychiatric care for Wall Street, Freddie Mac and Fannie Mae.

Adding a set of popular business tax breaks and legislation to prevent more than 20 million middle-class taxpayers from feeling the bite of the Alternative Minimum Tax, and

A temporary increase in the FDIC’s $100,000 cap on insured bank deposits to $250,000, is just a method to get Republican and Democratic yes votes on Capitol Hill. It is like putting perfume on a pig. It might temporarily mask the stink, but it is still a pig and it still stinks.

What is obvious is that Congress isn’t really listening to the Main Street Americans they serve who don’t want this bailout plan to pass, period. They keep trying to put perfume on the pig so if they vote yes for the bailout plan they won’t hurt their chances for election or re-election.

Main Street Americans are smart enough to know that rewarding the criminal perpetrators of the credit crisis will encourage more of the same out-ethics activity at Main Street America’s expense. If you reward poor money management and criminality, you get more poor money management and criminality.

I agree with House Representative Marcy Kaptur (Democrat from Ohio) who warned Congress and the American people about Constitutional enemies of the Republic and the fraudulent trillion(s) dollar bailout…

“My message to the American people; don’t let Congress seal this deal. High financial crimes have been committed.”

“The normal legislative process has been shelved. Only a few insiders are doing the dealing, sounds like insider trading to me. These criminals have so much political power they can shut down the normal legislative process of the highest law making body of this land.”

“We are Constitutionally sworn to protect and defend this Republic against all enemies foreign and domestic. And my friends there are enemies.”

“The people pushing this deal are the very ones who are responsible for the implosion on Wall Street. They were fraudulent then and they are fraudulent now.”

Unfortunately Representative Kaptur’s warning should have been made long ago. I’ve been warning my clients about the credit crisis for years. Congress, including Barack Obama and John McCain, must have been asleep at the wheel the past few years because they seem surprised by it.

The good news is that Main Street America finally seems to be waking up and exercising their right to be heard. It’s about time!

The U.S. government has demonstrated an exceedingly poor money management ability and a great ability to waste money over the past 5 decades, but the Bailout Bill is the WORST solution ever. There is no way that Congress or the President will ever convince me, or the public for that matter, that the bailout bill is good for Main Street Americans or the U.S. economy.

Dave Ramsey, another American who is sane about money management, met with some economic experts and asked them what the government could do as an alternative to the bailout bill. They have come up with a “Common Sense Plan” as an alternative, and as a money manager by trade, I have to say it makes much better financial sense than the Bailout Bill ever will.

I’ve written to my Democratic and Republican congressional representatives and to Nancy Pelosi and told them to dump the Bailout Bill and implement this plan. I’m happy the bailout didn’t pass the first time, but I’m nobody’s fool. I honestly believe those that voted against the bill did so because they are up for re-election in November. They know the American people are against the Bailout Bill and they are afraid they won’t get re-elected if they vote for it. So let’s keep the pressure on and let our angry voices be heard.

Just in case you haven’t heard about it, here it is so you can read it for yourself. You should write to your congressional representatives and tell them to vote AGAINST the Bailout Bill that Congress is still trying to push through, even though it didn’t pass the first time.

“The Common Sense Fix

Years of bad decisions and stupid mistakes have created an economic nightmare in this country, but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following three step Common Sense Plan.

I. INSURANCE

a. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity.

b. In order for a company to accept the government-backed insurance, they must do two things:

c. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage.

d. Roll all back payments with no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes.

e. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borrower will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while working with the borrower—again limiting foreclosures and ruined lives.

f. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive team members as long as the company holds these government-insured bonds/mortgages. This keeps underperforming executives from being paid when they don’t do their jobs.

This backstop will cost less than $50 billion—a small fraction of the current proposal.

II. MARK TO MARKET

a. Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate.

b. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banks—and it costs the taxpayer nothing.

III. CAPITAL GAINS TAX

a. Remove the capital gains tax completely. Investors will flood the real estate and stock market in search of tax-free profits, creating tremendous—and immediate—liquidity in the markets. Again, this costs the taxpayer nothing.

b. This move will be seen as a lightning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down.

This is not a time for envy of the wealthy, and it’s not a time for politics. It’s time for all of us, as Americans, to stand up, speak out, and fix this mess.”

Why do the media and Congress seem surprised about the current credit crisis? I’ve been warning my clients about it for years. The effects of greed, poor money management practices and betrayal of consumers’ trust have been building and are now being exposed in every dark corner of the credit market. The days when practically any business still open could get a bank loan are long gone. The good news is that there are alternatives.

Despite the sub-prime meltdown negatively affecting the credit markets and the dramatic change in the rules of lending, it is still possible to qualify for business equipment leases. Yes, it’s tougher to get the capital you need to grow, but there are things you can do to increase your chances of qualifying for a loan or lease. Here are some suggestions that will help:

Check your credit regularly and take steps to improve your score. Underwriters have always placed a lot of importance on credit scores because it reflects the debtor’s ability to take care of obligations in a timely manner. Lenders are obviously nervous today, so a credit score of 675 or higher is even more critical. It is a smart money management practice to check your score on a regular basis and carefully review the information. In a 2004 study, it was found that 4 out of 5 credit reports contain errors that can be detrimental to your credit standing. These errors include, but are not limited to:

1. Inaccurate personal information and out-of-date addresses.

2. “Closed” accounts listed as “open”, like a student loan paid off but showing delinquent.
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3. The same mortgage or loan listed twice.
   
4. Major loans or mortgages that have been paid off or timely serviced not listed at all.

If you find an error on your report, write a letter or e-mail to the credit bureau. The bureau is obligated to contact the creditor who supplied them with the disputed information and then respond to you within 30 days. If you are unhappy with how the claim is settled, you can ask to have a brief written explanation added to the bottom of your credit report.

To improve your score, you need to take steps to resolve any items that are showing up as delinquent and those in which a judgment or lien has been filed. Make it a priority to pay credit cards and loans on time each month.

Pledge additional collateral. Some lenders who might otherwise turn down your application for a business loan or equipment lease may change their minds if you increase the collateral base. This might add a comfort level in the event things to south. Additional collateral might include specific assets from another business that is free and clear, rental property, or equity in a personal residence.

You’re ready to start your next construction project. Then you realize the money you need is tied up in accounts receivable. Construction invoice factoring gives you the working capital needed for materials and labor. Your construction receivables are an asset that can be leveraged.

Owners of construction companies are frequently hampered by the lack of working capital, particularly when they’re involved in multiple projects. The dilemma is magnified when their funds are tied up in construction receivables. In many cases, materials must be purchased without the benefit of credit and employees must be paid weekly. This can cause a major cash crunch, but construction invoice factoring is an excellent money management solution to the problem.

With factoring, cash is advanced to the client upon submission of an invoice. The services being billed must be approved and acceptable to the client’s customer. With construction factoring, there must be a “milestone” for each billing. In other words, a certain part of the contract must be performed and an actual invoice generated, as opposed to a percentage of the entire contract completed.

The advance for construction factoring is typically between 65% and 75%, depending upon the situation, with the remainder remitted to the construction company upon collection of the invoice, less the factoring fee. The advance can be advantageous in a variety of ways, including the ability to obtain materials purchase discounts and to be able to negotiate optimal pricing. The influx of working capital from factoring construction receivables fuels the company’s growth.

Factoring provides cash flow to:

Cover payroll and other expenses

Take on new jobs

Take advantage of volume discounts on material purchases

Increase your company’s growth

One frequent question is,” Can invoice factoring be utilized if the service provided spans a long time frame?” The answer is yes, but the way the company bills the client is critical. When you initially set up the agreement with the customer, you should specify the exact work to be performed as it relates to billing. In other words, both parties should agree that an invoice can be generated upon a certain level of performance or milestone. The factoring company will be able to advance funds based upon that invoice even though the entire job isn’t completed.

Contrast this scenario to progress billings, an arrangement in which the customer advances money for the job as a whole. The Factor (lender) is hesitant to advance funds to the client with progress billings, since the company getting billed may become unhappy along the way and stop making payments. With milestones, on the other hand, that is not a problem.

Smart money management strategies I use with my clients include looking at factoring as an alternative for funding projects. Construction companies that need working capital owe it to themselves to investigate factoring as an option.

Factoring is just one of the many money management strategies that I use to help my clients. Here is a recent testimonial from one of my construction company clients:

“Two years ago my construction company was close to bankruptcy with only $30 in our bank account and no way to pay bills.

Using the Money Management Solutions program we are doing so well now. With the power of this system and the financial stability it has helped us create, we now have $130,000 in reserves and always have $250,000 or more in our bank operating account.” K. A.

For information on a reputable and ethical factoring resource for your construction receivables or information about the Money Management Solutions program, ask Sandra by sending an email to Sandra@MoneyMgmtSolutions.com

These are the 32 Words in the Bailout Bill intended To End Our Economic Freedom and Destroy the US Constitution as noted by a friend on my email network.

“Decisions by the (Treasury) Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” - Section 8 of the Paulson Proposal

Bluntly, this clause was put in the Bailout Bill to personally protect the authors of that bill. Why? Because they know it is a bad bill designed to harm the public while protecting the out-ethics companies and company executives whose money management mistakes got them into trouble.

Did you listen to President Bush’s 12 minute address to the nation on the evening of September 24th? In one breath he stated the economic crisis was caused by too much lending of credit. Then 3 times he stated that the solution to the problem is the Bailout Bill which would make it possible for more credit to be given to businesses and families.

So how can what created the problem also be the solution? It CANNOT.

Did you listen to Bush and watch the politicians and so called “experts” being interviewed about the Bailout Bill? Did you notice that rach one of them used the word “hopefully” more than once? - Hopefully this will help, hopefully the housing market will start to recover, hopefully the government can sell the distessed properties that they are buying that ‘We The People’ have to pay for now. The authors of this bill and our political representatives on Capitol Hill doubt this bill will be the real solution. That’s why the authors of the bill added the clause that protects them personally if it doesn’t work - they are merely “hopeful” and are nowhere near certain.

The Great Depression finally materialized when the amount of credit loaned reached a critical mass and far outweighed the public’s ability to pay. That exact same situation has happened and the public cannot pay the credit debt they have incurred. To extend more credit is to send us faster down the slippery slope toward a long and deep recession.

I am against the Bailout Bill. I am for letting the executives who make millions in salaries every year take the hit for their out-ethics money management that created their companys’ and Wall Street’s problems of greed and financial mismanagement. I refuse to bail them out when I have worked so hard to keep my business and household financially sound and out of debt. I don’t want to be punished as the producer while their non-production is rewarded.

President Bush, Mr. McCain, Mr. Obama and all members of Congress, GET OUT OF OUR WALLETS and pay for this out of YOUR multi-million dollar annual salaries instead, since you are so HOPEFUL that this Bailout Bill is the correct solution. Take the billions in salaries made by the executives of Fannie Mae, Freddie Mac, AIG,  and Wall Street brokerages. You were