Wow, now the recession may be over by the end of 2009...but wasn't it all doom and gloom just a few weeks ago with even the President saying the economy might never recover?
See-saw? Feels more like whiplash some days.
Although I'm an optimist when it comes to my belief in our nation's ability to pull together and overcome huge obstacles and challenges, I also am a realist and think the American people are, too. Changing rhetoric isn't going to solve the problems we face. And this economy isn't going to change overnight.
I'm happy to hear more upbeat and positive things coming out of the administration and the news media. But when the message goes from pending doom to upbeat while the realities of what is going on is still in flux - well, that's what will keep all of us on edge and not sure what to believe.
Uncertainty is a big part of what is going on. When people are unsure of what to do or what might happen they hunker down. As long as we keep seeing and hearing conflicting messages and data this economy isn't going to do much more than it has been doing...see-sawing.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
3/08/2009
In This Economy Barter May Become More Commonplace
I was just reading an article from a source that isn't usually very "upbeat." But in these two articles at The Sovereign Society they made me think about something that makes good sense in our current economic situation. Going back to the basic concept of barter. And I loved their title: Using "People Power" To Close Your Lifestyle Gap ©The Sovereign Society, copyright 2009 - I need to see and read upbeat, positive things right now.
Barter has been used forever, and there are plenty of people that have been using it right along. But how many of us really have been involved with it in any significant way?
Rather than try to re-write what they've already written I'm just going to give you the links and suggest you read the two articles. What I really liked, and think we need more of right now, are some reminders of how we can deal with this whole economic mess on a personal and business level. I don't know about you, but I'm looking for solutions and ideas to personal situations. What's happening on the national stage is not as important to me as what I can do individually to help myself, my family, my friends and my community to weather the storm.
To quote from the end of the second article:
Using People Power To Close Your Lifestyle Gap
People Power at Your Place of Business
Barter has been used forever, and there are plenty of people that have been using it right along. But how many of us really have been involved with it in any significant way?
Rather than try to re-write what they've already written I'm just going to give you the links and suggest you read the two articles. What I really liked, and think we need more of right now, are some reminders of how we can deal with this whole economic mess on a personal and business level. I don't know about you, but I'm looking for solutions and ideas to personal situations. What's happening on the national stage is not as important to me as what I can do individually to help myself, my family, my friends and my community to weather the storm.
To quote from the end of the second article:
But bartering and joint ventures are truly the beating heart of our economy; exactly what "paper money" tries to simulate. And when paper money fails to closely simulate the levels of efficiency and satisfaction you get from barter trades...well, don't be afraid to go back to what works.
So get out there and start thinking outside of the box! ©The Sovereign Society, copyright 2009
So check out the two articles:Using People Power To Close Your Lifestyle Gap
People Power at Your Place of Business
2/15/2009
Tightening Credit - Where Were the Economists?
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Hi Mary,
Wow! You were one of the first to call out the rate increases in credit cards back in November? of 2008. Today, FrugalDad.com just posted how his rate was increased from 6% to 28%. He has good FICO and no late payments. The CC companies are just raising rates across the board.12/2/09 6:34 AM
Posted on: Sun, 05/04/2008 - 13:02 Mary said:
An update…our friends got back from their vacation only to hear that an acquaintance who lives off of his HELOC found it closed on the very Monday after I got them to pull the money out of theirs. Not sure if it’s the same bank they use, but it’s very likely.
An update…our friends got back from their vacation only to hear that an acquaintance who lives off of his HELOC found it closed on the very Monday after I got them to pull the money out of theirs. Not sure if it’s the same bank they use, but it’s very likely.
Lesson here is that you get no notice, except that the line of credit is no longer available to you.
Posted on: Tue, 05/06/2008 - 08:05 Mary said:
WaMu is one of the banks that is beginning to close HELOC accounts. They are in financial trouble because of all the questionable loans they wrote in the real estate heyday and they just closed all of their “home loan only” branches. They’re not in a position to take any risks on something they could just as easily close-out and not worry about.
Posted on: Thu, 06/19/2008 - 10:45 Mary said:
The credit card companies are starting to lower your credit line. The more open credit you have the more they may lower it. A friend's Amex line was $25,000 for over 7 years and they just lowered it to $8,000 - which is about what he had outstanding on it at the time. I just had a card that I've had since 1991 with a $25,000 credit line lowered by $1,240.00 - can you imagine? Again, that's about the open credit I had on it at the time. Absolutely nothing had changed in my credit report, my FICO hadn't changed (I get e-mailed every time there's any change to it) and I've never missed a payment in 17 years.
The credit card companies are starting to lower your credit line. The more open credit you have the more they may lower it. A friend's Amex line was $25,000 for over 7 years and they just lowered it to $8,000 - which is about what he had outstanding on it at the time. I just had a card that I've had since 1991 with a $25,000 credit line lowered by $1,240.00 - can you imagine? Again, that's about the open credit I had on it at the time. Absolutely nothing had changed in my credit report, my FICO hadn't changed (I get e-mailed every time there's any change to it) and I've never missed a payment in 17 years.
With college tuition for two kids coming up I just cash-advanced a card with a sizeable open credit line on it because I can't risk it not being available. There are always unforseen expenses - 21-year old daughter just had a trip to the emergency room that required an ambulance ride and tests and probably will top out at about $5,000 (my HSA will save us on this one) - our dog collapsed totally unexpectedly last February while we were 3,000 miles away and between the treatment to keep her alive until we could get home and then the surgery to give her a few more months with us cost about $10,000.
So now I've taken all available monies on my HELOC to protect my access, and now max'd out credit cards to make sure I don't lose access to that money. Hell of a pickle this economy is putting us in!
Posted on: Sun, 06/29/2008 - 10:53 Mary said:
First HELOC's, now Credit Card Limits are getting reduced! Watch your FICO scores DROP!
Well, now that people are getting their HELOC's rescinded (heard a horror story from my friend of a woman who was in the middle of a full kitchen remodel; totally torn down to studs then found her HELOC was yanked!)
Just saw an article on it and here's a quote - the bigger (??) issue is what all of this does to your credit score, so take heed:
"Here's how that happens: Let's say a cardholder has a credit limit of $10,000 and a balance on the card of $4,000. The card company worries that large balance may increase the prospects for default, so it lowers the credit line to $5,000.
But in doing that, it completely changes what is known as the credit utilization rate, raising it from 40 percent to 80 percent. That is then factored into the calculation of one's so-called FICO credit score, which measures creditworthiness, according to Craig Watts, a spokesman for FICO-creator Fair Isaac Corp. "
Here's the link to the full article:
http://channels.isp.netscape.com/pf/story.jsp?flok=FF-APO-1310&idq=/ff/s...-
And later that day:
Posted on: Sun, 06/29/2008 - 11:26 Mary said:
Forgot to mention…I found it interesting that one of the banks that are doing this is Washington Mutual, already known to be pulling HELOC’s. Also Wells Fargo, which was a surprise to me.
This situation is troubling on a number of levels. It seems like a fast-moving downward spiral that is going to have far, far reaching effects. e.g., I’m OK with holding my own right now, even holding non-cash flowing properties. But take away any of my credit and I could be in a very bad situation.
Again, in the current economy we’re not doing great, but we’re holding our own. But change anything in the current mix and we could be in a tight situation.
Anyone interested in adding to the discussion of where all of this may lead, head over to the “Crystal Ball” Forum topic!
BTW, another friend got her $100,000 HELOC “rescinded” by National City Mortgage last week. She’s sick about it, mainly because she knew I had suggested taking it all out in putting it in an interest bearing account, just in case, but she didn’t act. She had another smaller one that she immediately took and put away. Well, it's beginning...I just got a letter from a Platinum credit card that I've had since 1991 (I'm listed as a "charter member" on the front of it!) - they reduced my credit line, get this, by $1,240.00! Probably would have been more, but that's all I had available on the credit line. This is a card I've never paid late.
I use a service to tell me anytime my FICO score changes, but nothing has, and we have a good score.
Just like with HELOC's - if you NEED the credit line you may want to cash advance your credit card and tuck the money in an interest bearing account...that's what I'll be doing with another card I have with available credit on it. College tuition will be due in another month and they don't take credit cards anyway, so I'll just take it all now so I've got a buffer. What's next????
That amount was just a little less than what I had available - I think they took what I hadn't used yet and allowed for next interest that would be assessed and knocked it down. But why bother to do that for such a small amount of additional credit? That's what is so unsettling - it appears to be an automated system. Computer program just churns out the numbers, reduces the line of credit and sends a letter. Bam! So if I had been unlucky enough (LOL) to have had $20,000 open credit I could have found my credit line reduced from $25,000 to $5,000. I would have been VERY unhappy.
And since no one is extending credit to anyone right now (so it seems, anyway) max'ing out all of my credit cards and HELOC is irrelevant to me if it dips my FICO score. Even with a really good one (FICO) people aren't getting mortgages, etc.
So even if I came into a big amount of money would I pay down anything? Probably not, because I'd be afraid my credit lines would start disappearing. Will that cost me money? Yes, but I'll retain peace of mind knowing I have the money available.
Posted on: Wed, 09/10/2008 - 21:30 Mary said:
In this economy you may want to consider a guaranteed return of principal investment. Rabo Bank is the largest (?) international bank and they have these types of CD's. Basically they give you a range of interest based on what they expect to make, but guarantee you'll always get your principal back. If you're willing to put some of your principal at risk they give you a higher rate of return in exchange you put 10% or 20% of your principal at risk.
In this economy you may want to consider a guaranteed return of principal investment. Rabo Bank is the largest (?) international bank and they have these types of CD's. Basically they give you a range of interest based on what they expect to make, but guarantee you'll always get your principal back. If you're willing to put some of your principal at risk they give you a higher rate of return in exchange you put 10% or 20% of your principal at risk.
I'm in a similar situation. I'd like to start paying some of my HELOC back, but I'm afraid if I do they will reduce the available LOC by what I pay back.
I've made all of my friends who may need their HELOC lines of credit take out the maximum and put it in an interest bearing account. At least until we see where the dust settles. If you may need the money you can't be sure you'll have access to it unless you take it now, is my opinion.
Posted on: Mon, 09/15/2008 - 18:19 Mary said:
I hate to say it, but for anyone who understands what's going on you need to be max'd out on your credit lines to preserve them if you need or want them. At least until all of this shakes out.
I've got to call Amex tonight. I have several thousand dollars in open credit on my card yet yesterday and tonight at the grocery store it was declined. I have a bad feeling about what I'm about to find out.
Posted on: Tue, 09/16/2008 - 10:33 Mary said:
So here's the update:
I went to the grocery store the other day and used my AMEX card as usual and it was declined. I download all of my credit card transactions into my Quicken account every day and I knew I had several thousand dollars of available credit on that card. Thinking it was a fluke I used a different card. Last night (yes I go to the grocery store pretty much every day!) it happened again.
Just now I called AMEX to see what the problem was and found that they had reduced my credit line down to what I had outstanding. Poof, thousands of credit line dollars, gone. Being my argumentative self I contested it with the young man who claimed it was because of a negative credit report from Experian. Well, I also subscribe to a service that alerts me to any changes in my credit reports and/or FICO score on a daily basis. And nothing has changed.
He transferred me another person in another department that again tried telling me it was because of my credit report. I have had this card since 2003, never been late with a payment, actually in over 30 years my credit report shows I have never been late with any payments. So of course I pointed that out and asked exactly what in my credit report were they referring to. He just kept repeating the same memorized line over again so I told him I wanted to speak to his supervisor.
A woman got on the phone and repeated the same information. But when I pressed her she said that it had nothing to do with my personal credit report that AMEX and other financial institutions were reducing credit lines based on the current negative economic environment and it had nothing to do with my personal credit. They would not budge.
My husband Googled AMEX and found this article from June in the NY Times:
http://www.nytimes.com/2008/06/21/business/21credit.html?_r=1&oref=slogi... which talks about AMEX and other credit cards reducing lines of credit across the board. And it doesn't matter what your credit score is or how much you make, if you carry high balances or own a lot of property and therefore have several mortgages on your credit report you're going to see your credit lines reduced. If it hasn't happened to you yet, be aware that it probably will.
Now you'd think that with the current economic conditions requiring banks to tighten their belts that they'd be encouraging credit worthy people to carry balances so they can collect interest. I mean, they've got to do everything they can in these tough economic conditions to tighten their belts and cut costs to keep AMEX financially sound, right? Especially since the chairman and chief executive of American Express, Kenneth I. Chenault, received compensation valued at $53.2 million in 2007, nearly double the $27.3 million he received in 2006. http://www.nytimes.com/2008/02/26/business/26amex.html
Oh? Wasn't it the mismanagement of these same financial institutions that created this current economic mess? But it must be tougher now to manage them, so the top management really need to take more money from their struggling companies in order to compensate them for the terrible job they did in the first place!
Posted on: Tue, 09/16/2008 - 10:51 Mary said:I'm updating my old post in the thread "First HELOC's, now Credit Card Limits are getting reduced! Watch your FICO scores DROP!" because I think the new wave of credit cards lowering credit limits is really going to start affecting people's FICO scores. After all, they are based on the total amount of credit you have relative to your debt. Your debt isn't changing at all when they drop your credit line, but since they are dropping it to whatever you have outstanding, plus a little to cover their next interest assessment, practically everyone will see a change in their credit scores, won't they? For example, now instead of having only 40% of your available credit outstanding you're going to go to almost 100%!
I'd really be interested in comments about this. I debated about adding it to the "Futurology, Trend Identification" thread because I see it having major impact on FICO scores and how credit worthiness is going to be assessed in the future. Remember, your credit lines are based on your FICO scores which do NOT take into consideration how much you make. So even if I made $10,000,0000 a year (I wish!!!!) if I have lots of real estate loans and carry lots of balances on my credit cards because my cash is invested elsewhere, I'm going to get hit by these credit line reductions.
Posted on: Wed, 09/17/2008 - 22:00 Mary said:
That's interesting, because how many more big corporations can they bail out? I would have thought that people would have gotten more concerned with the bail out. Of course the government can just start printing more money if it needs it.
2/14/2009
The Economic Stimulus Bill...or is it The Economic Stimulus Bull****?
The Economic Stimulus Bill...is that really what they're still calling it? I just read that none of the items included in the bill are expected to make any difference in the economy until late in 2009 or until 2010. Uh, don't they realize that's not going to do much to stimulate an economy that is shrinking more and more every day? What will be left to stimulate in a year or two?
The $500-per-worker credit for lower- and middle-income taxpayers that Obama outlined during his presidential campaign was scaled back to $400 during bargaining by the Democratic-controlled Congress and White House....Officials estimated it would mean about $13 a week more in people's paychecks when withholding tables are adjusted in late spring. Critics say that's unlikely to do much to boost consumption. Well, it would cover a couple of cups of coffee at Starbucks each week.
I'm all for high speed trains here in the U.S., but the $8 billion earmarked for high speed trains:
The $500-per-worker credit for lower- and middle-income taxpayers that Obama outlined during his presidential campaign was scaled back to $400 during bargaining by the Democratic-controlled Congress and White House....Officials estimated it would mean about $13 a week more in people's paychecks when withholding tables are adjusted in late spring. Critics say that's unlikely to do much to boost consumption. Well, it would cover a couple of cups of coffee at Starbucks each week.
I'm all for high speed trains here in the U.S., but the $8 billion earmarked for high speed trains:
In late-stage talks, Obama and Senate Majority Leader Harry Reid, D-Nev., pressed for $8 billion to construct high-speed rail lines, quadrupling the amount in the bill that passed the Senate on Tuesday.
Reid's office issued a statement noting that a proposed Los Angeles-to-Las Vegas rail might get a big chunk of the money. Let's make sure the casinos stay in business - but in the meantime 40 and 60 year-old businesses are going under along with who knows how many small businesses that don't make the nightly news.
2/10/2009
House Values, Jobs and the Economy
There is so much negativity in the news so I'd like to suggest you focus on what isn't negative for today. You'll sleep better.
House values have plummeted, yes, but if you aren't planning on selling your house soon, or need a home equity loan, that's somewhat irrelevant. It's the same with any asset...you only have a gain or loss when you dispose of it, so don't dwell on their value as of today if you don't need to. Deal with reality, not "what if" scenerios. You'll sleep better.
Jobs are being lost and unemployment is high, but even at 10% unemployment there are 90% who are employed. Look beyond the negative numbers. You'll sleep better.
The economy is in turmoil, but American ingenuity is amazing and the spirit of the American people has always been strong in the face of adversity. Think about all that we've faced and overcome in the past. You'll sleep better.
And if you know someone who has fallen on hard times, reach out a hand of friendship. That can make all the difference in someone's life, to know people care. And you'll sleep better.
House values have plummeted, yes, but if you aren't planning on selling your house soon, or need a home equity loan, that's somewhat irrelevant. It's the same with any asset...you only have a gain or loss when you dispose of it, so don't dwell on their value as of today if you don't need to. Deal with reality, not "what if" scenerios. You'll sleep better.
Jobs are being lost and unemployment is high, but even at 10% unemployment there are 90% who are employed. Look beyond the negative numbers. You'll sleep better.
The economy is in turmoil, but American ingenuity is amazing and the spirit of the American people has always been strong in the face of adversity. Think about all that we've faced and overcome in the past. You'll sleep better.
And if you know someone who has fallen on hard times, reach out a hand of friendship. That can make all the difference in someone's life, to know people care. And you'll sleep better.
1/31/2009
Home Loan Modifications
You may be aware of "home loan modifications" being talked about in the news, but do you understand the who, what, when, where, and why of them?
I created a website to answer those questions, hopefully in a clear manner. Check it out at: http://loanmodifications4help.homestead.com/ The most important reason I did this was because scams and rip-off's are all over the place preying on people who really need a loan modification - it's easy money for the scam artists. I have a friend who may have fallen for the "give me $3,000 and I'll get you a loan mod." It's been 3 months and I'm afraid she's not only lost her money but also just wasted 3 precious months.
Biggest, most important piece of information is DO NOT PAY ANYONE UP FRONT. The best loan modification companies will give you a free consultation and if they think they can help you, charge you an "application fee" to cover their costs of filing the paperwork and negotiating on your behalf. that usually is about $500. They will only charge you the balance of their fee upon a successful agreement.
And you can request one for yourself. Individuals who are financially savy and who understand how to negotiate with a bank negotiator can be successful without paying a loan modification company. Like with everything there are pro's and con's to both ways.
It's going to cost you about $3,000 to have a loan modification company do it for you. But the good ones have connections to the decision-makers and know how to negotiate with them. Most individuals are going to deal with much lower-level staff who have limited ability to negotiate the terms they can offer. Remember, there are thousands and thousands of people asking for loan mods and the staff the banks and mortgage companies have put in place to handle all of these requests are following strict guidelines and have limited authority.
I happen to personally know a guy that was a mortgage broker who helped me re-finance a house a couple of years ago. He and a partner have started a Loan Modification company and I can recommend him confidently. He's honest and ethical and will do right by you. And he and his partner have superb connections in the banking and mortgage community. He told me just the other day that even if someone was a week away from foreclosure they could possibly still help them. So if you want more information on loan mods go to the website I created at http://loanmodifications4help.homestead.com/ and pass the information along to others.
We're all in this rotten economy together...let's help each other whenever we can.
I created a website to answer those questions, hopefully in a clear manner. Check it out at: http://loanmodifications4help.homestead.com/ The most important reason I did this was because scams and rip-off's are all over the place preying on people who really need a loan modification - it's easy money for the scam artists. I have a friend who may have fallen for the "give me $3,000 and I'll get you a loan mod." It's been 3 months and I'm afraid she's not only lost her money but also just wasted 3 precious months.
Biggest, most important piece of information is DO NOT PAY ANYONE UP FRONT. The best loan modification companies will give you a free consultation and if they think they can help you, charge you an "application fee" to cover their costs of filing the paperwork and negotiating on your behalf. that usually is about $500. They will only charge you the balance of their fee upon a successful agreement.
And you can request one for yourself. Individuals who are financially savy and who understand how to negotiate with a bank negotiator can be successful without paying a loan modification company. Like with everything there are pro's and con's to both ways.
It's going to cost you about $3,000 to have a loan modification company do it for you. But the good ones have connections to the decision-makers and know how to negotiate with them. Most individuals are going to deal with much lower-level staff who have limited ability to negotiate the terms they can offer. Remember, there are thousands and thousands of people asking for loan mods and the staff the banks and mortgage companies have put in place to handle all of these requests are following strict guidelines and have limited authority.
I happen to personally know a guy that was a mortgage broker who helped me re-finance a house a couple of years ago. He and a partner have started a Loan Modification company and I can recommend him confidently. He's honest and ethical and will do right by you. And he and his partner have superb connections in the banking and mortgage community. He told me just the other day that even if someone was a week away from foreclosure they could possibly still help them. So if you want more information on loan mods go to the website I created at http://loanmodifications4help.homestead.com/ and pass the information along to others.
We're all in this rotten economy together...let's help each other whenever we can.
12/11/2008
End of Year; A Time to Re-Assess
I can't believe that it's the end of 2008 already! This year flew by, and considering all of the melt-downs we were bombarded with I think I'm definitely ready to move on.
The last quarter of the year is a very busy time for a lot of us, not just because of school starting again and the holiday season, but because those of us with businesses have a lot of year-end preparation. Looking at where we stand tax-wise, making certain the books are in order and up-to-date, looking at what is and isn't working and making plans for the coming year.
I own several businesses but the main one is one that my husband and I started over 21 years ago. We've been through bad times and recessions before and we always planned for the worst-case situation because it was our only source of income and we had a baby under a year-old and my 80 year-old mother living with us. No room for making mistakes. And because we were so focused and careful we did well, even in economic bad times.
In this last quarter we realized we hadn't been as focused as we could have been. So out came the sharp pencils and the lengthy conversations between my husband and me and our management team and we found a number of ways to save money, tighten our belts and ways to keep ourselves in front of our customers, at a lower cost than mailing catalogs and flyers.
One of the best ways we keep in contact with our customers now is in a non-commercial way; we're not asking them to buy anything from us, we're just sending cards and postcards to say "hi," and keep our name in front of them. Basic relationship building.
The system we use is easy and reliable. We have regular campaigns where a card goes out to thank them for their business, wish them a happy holiday (all months but June and August have one); a postcard goes out periodically with a picture of our most current catalog on it in case they didn't receive one, etc., etc. The cards are especially good for saying "sorry we goofed" or thanking them for a nice comment about us.
The economy isn't going to turn around quickly, so it's important to stay connected to your customers. And it's important to stay in-touch and connected to friends and family. I don't know of anyone who is not stressing or affected by this economy. I stopped sending holiday cards a couple of years ago because it was too time consuming, but this year I feel compelled to reach out to friends and family and even acquaintances to wish them well and let them know I care. One of the worst things about a bad or sad situation is how lonely it can make you feel.
And I've made a commitment to not just send holiday cards this year, but "thinking of you" cards, birthday and anniversary cards, Valentine's cards, etc. Reaching out and making a connection with a card makes me feel good because I know it will bring a smile to someone...and who knows, maybe it will be the one good moment they have in a crappy day!
The system I use for both our business and also personally is easy to use and much less expensive than buying cards at the store. And it's automated so I can send them with a click of the mouse but they are real cards that are put in good 'ole snail mail. Perfect for some of my older relatives (Grandma!) who don't use the internet, and more personal than a e-mailed greeting. Finding something in your mailbox instead of bills or advertisements is nice.
So join me in making an effort to reach out to the people in your life on a regular basis; life is tough right now and I think we all can use a sense of community that has been lost over the last couple of generations as we as a society became more mobile and more high tech.
If you're interested in the system I use, drop me an e-mail (it does have its place! LOL) at bridgewayconnections@hotmail.com and I'll be happy to tell you more about it.
The last quarter of the year is a very busy time for a lot of us, not just because of school starting again and the holiday season, but because those of us with businesses have a lot of year-end preparation. Looking at where we stand tax-wise, making certain the books are in order and up-to-date, looking at what is and isn't working and making plans for the coming year.
I own several businesses but the main one is one that my husband and I started over 21 years ago. We've been through bad times and recessions before and we always planned for the worst-case situation because it was our only source of income and we had a baby under a year-old and my 80 year-old mother living with us. No room for making mistakes. And because we were so focused and careful we did well, even in economic bad times.
In this last quarter we realized we hadn't been as focused as we could have been. So out came the sharp pencils and the lengthy conversations between my husband and me and our management team and we found a number of ways to save money, tighten our belts and ways to keep ourselves in front of our customers, at a lower cost than mailing catalogs and flyers.
One of the best ways we keep in contact with our customers now is in a non-commercial way; we're not asking them to buy anything from us, we're just sending cards and postcards to say "hi," and keep our name in front of them. Basic relationship building.
The system we use is easy and reliable. We have regular campaigns where a card goes out to thank them for their business, wish them a happy holiday (all months but June and August have one); a postcard goes out periodically with a picture of our most current catalog on it in case they didn't receive one, etc., etc. The cards are especially good for saying "sorry we goofed" or thanking them for a nice comment about us.
The economy isn't going to turn around quickly, so it's important to stay connected to your customers. And it's important to stay in-touch and connected to friends and family. I don't know of anyone who is not stressing or affected by this economy. I stopped sending holiday cards a couple of years ago because it was too time consuming, but this year I feel compelled to reach out to friends and family and even acquaintances to wish them well and let them know I care. One of the worst things about a bad or sad situation is how lonely it can make you feel.
And I've made a commitment to not just send holiday cards this year, but "thinking of you" cards, birthday and anniversary cards, Valentine's cards, etc. Reaching out and making a connection with a card makes me feel good because I know it will bring a smile to someone...and who knows, maybe it will be the one good moment they have in a crappy day!
The system I use for both our business and also personally is easy to use and much less expensive than buying cards at the store. And it's automated so I can send them with a click of the mouse but they are real cards that are put in good 'ole snail mail. Perfect for some of my older relatives (Grandma!) who don't use the internet, and more personal than a e-mailed greeting. Finding something in your mailbox instead of bills or advertisements is nice.
So join me in making an effort to reach out to the people in your life on a regular basis; life is tough right now and I think we all can use a sense of community that has been lost over the last couple of generations as we as a society became more mobile and more high tech.
If you're interested in the system I use, drop me an e-mail (it does have its place! LOL) at bridgewayconnections@hotmail.com and I'll be happy to tell you more about it.
10/20/2008
The Current Economic Situation is Crazy - But Another A.A. Milne Quote to Help Us Keep Balanced
“Promise me you'll always remember: You're braver than you believe, and stronger than you seem, and smarter than you think. Christopher Robin to Pooh” - A.A. Milne
I'm thinking that it's time to read more "Winnie the Pooh" these days! When the news swings like a crazy pendulum and you don't know where all of this economic craziness is headed you need to listen to Christopher Robin's wisdom.
I was happy to be away from most news during the first two weeks of October. When I returned and started reading about what had been happening I was appalled. Our news media created a frenzy of fear and near panic, and although there are serious problems now and ahead of us, how much unnecessary stress and angst was caused by excessive "news."
So the next time you feel anxious about the economy or anything in your life, take a deep breath and remember Christopher Robin's advice to Pooh.
I'm thinking that it's time to read more "Winnie the Pooh" these days! When the news swings like a crazy pendulum and you don't know where all of this economic craziness is headed you need to listen to Christopher Robin's wisdom.
I was happy to be away from most news during the first two weeks of October. When I returned and started reading about what had been happening I was appalled. Our news media created a frenzy of fear and near panic, and although there are serious problems now and ahead of us, how much unnecessary stress and angst was caused by excessive "news."
So the next time you feel anxious about the economy or anything in your life, take a deep breath and remember Christopher Robin's advice to Pooh.
9/24/2008
The Economy - Where Are We Headed?
If you've been reading my Blog you know I've been sounding the alarm about HELOC's being reduced or taken away and more recently credit card companies reducing credit lines arbitrarily whether you have a good payment history or not. And the amount of money that you make has absolutely nothing to do with the reductions in credit. As I said before, if you've been hit with this situation, check your FICO score because it will, most likely, take a hit as the "credit utilization" portion (a big one in the scoring) could go from 30% to 100% utilization, as it did for a friend.
The other day CNN reported on this situation, specifically with American Express admiting that they were reducing all credit lines. And today a friend just told me she was watching Suze Orman this morning and she was talking about this, also. She went so far as to say we are going back to a cash and carry society, that credit will be a thing of the past. I wonder how MC and VISA feel about that comment considering they just went public a short while ago and she's talking about their billlion dollar businesses disappearing!
So how will this all play out in the economy? Anyone with a crystal ball?
The other day CNN reported on this situation, specifically with American Express admiting that they were reducing all credit lines. And today a friend just told me she was watching Suze Orman this morning and she was talking about this, also. She went so far as to say we are going back to a cash and carry society, that credit will be a thing of the past. I wonder how MC and VISA feel about that comment considering they just went public a short while ago and she's talking about their billlion dollar businesses disappearing!
So how will this all play out in the economy? Anyone with a crystal ball?
9/15/2008
Is Anyone Else Reeling From All the Economic Fallout?
I don't know about anyone else, but I find it difficult to think of all of the potential issues that this housing bubble has created. People loosing their homes, walking away from upside down mortgages (they call it "jingle mail" because they just mail the keys to the bank), empty developments but for an occasional occupied house, empty rentals getting vandalized and not having insurance coverage, and on and on.
With the news about Merrill Lynch being bought by Bank of America (who also bought Countrywide a short while ago) - will B of A be able to handle both of those company's problems without creating problems for them? And Lehman Brothers declaring bankruptcy, continuing talk about whether WaMu and Wachovia will fail...what more economic fallout lies ahead?
A friend in San Diego just wrote about how people are living in RV's parked in lots. Some have kids (are they going to school? Doubtful) and they have to move them at night or the police come by. Do they just drive around all night and sleep during the day?What about what all of this is doing to our society, not just our economy?
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Posted on: Sun, 06/29/2008 - 11:00 Mary said:
I don’t have a prediction but take what has already been noted, add in the reducing or totally cancelling of HELOC’s, the reduction in credit card limits ... and the resulting financial disasters for many, many more people and the resulting drop in FICO scores and, wait, I DO have a prediction - total economic disaster!
Please, someone tell me we aren’t in as bad a situation as it appears to me…
Posted on: Sun, 06/29/2008 - 18:50 Mary said:
I think what worries me most is the ripple effect...one bank, company, etc. starts calling in HELOC's and then the credit card companies start reducing credit lines. These are things that affect people who have been paying all of their bills on-time, managing their debt, etc. These aren't necessarily the people who didn't know their adjustable mortgage actually would go up.
And that's what is so troubling...I'm old enough to remember waiting in gas lines during the embargo, the freeze on wages, etc. And yet this seems more ominous.