This classified ad in the Smoky Mountain News (September 23-29, 2009, Vol, 11, Issue 17) caught my eye this morning (I have removed the phone number):
Let’s see, if a “similar lot” was $70k “not more than 9 months ago,” but now worth $24,900 (assuming enough similarity to be considered a comparable in a real estate appraisal), then the loss was $45,100 ($5011 per month).
Thank goodness, in these days of economic turmoil (with credit card companies doing all that they can to bully consumers and strangle small businesses), there are “RECESSION PROOF!” safe havens where those who have the financial wherewithal can invest!
Oh well, not to worry, with the “real estate professionals” working the market here in Murfreesboro, TN, it will probably be a while before our present home sells and we can move on to NC, anyway. Yep, yesterday, one of those “professionals” called from our driveway to show a (local) “looker,” who wanted to see our home. Forget the one hour notice request on the MLS, “we’re here to see your house!”
It’s days like those that make me want to give up. But I don’t. I make the drive. 305 miles, each way, every week, to work (plus the “in-town” mileage, when I am in NC).
I have a deadline to meet this weekend. I’m working on a conference paper (on credit cards and small businesses). You see, if I did “give up” on selling our home (by walking out like so many others have done), then I would not have much of an argument any more, when I try to speak out on behalf of struggling entrepreneurs (who are being squeezed — mercilessly — by credit card companies).
I have paid my bills and met my obligations, no matter what. (As I drive during the treacherous trips through the mountains on I-40 eastbound in eastern Tennessee and western North Carolina, I at least know that if something happens to me, I’ll go with a clean conscience; I’m guessing that an apt description of “hell” is being a credit card account holder for eternity, so I definitely want to avoid going there.)
The FED (which is — unbeknown by most citizens — “owned” by the national banks and not “Federal”) and all of the bailouts have done nothing but enrich executives, who have enjoyed the parties, trips, perks, bonuses, and salaries of corporate big-wigs while they have had the same time, engaged in a reckless campaign against ordinary citizens (worldwide). Meanwhile, homeowners, small businesses, and middle class consumers at large are slowly having the life sucked out of their wallets.
Just imagine: What if we invested $750 billion in bail out funds on the 21.7* million very small businesses in the United States?
The numbers are so staggering, they’ll make you dizzy (especially if you wear eyeglasses):
$1,000,000,000 (one billion dollars) x 750 = $750,000,000,000
$750,000,000,000 / 21,700,000 (very small businesses) = $34,562.21 (each)
I’d certainly bet that if the first round of bail out funds had been invested in small rather than big businesses, we would have stimulated the economy. But no, we bailed out big banks and car companies, where a handful of executives (each typically earning in excess of a million dollars in salary, so you do the math) became even richer in bad times, on the backs of all of us. I know that these executives are about the only ones who can afford scooping up deals on lakefront property right now. Further, as I have previously written, we could have averted the worst of the mortgage and foreclosure crisis as well.
By the way, regarding one of biggest problems, unemployment (which as you recall, came next in our downward spiral — while we bailed out “big” businesses and executives), and much of the pain that has come from that, could have been avoided if we had invested in small businesses. Also according to the SBA Office of Advocacy, small businesses: “Employ just over half of all private sector employees”; “pay 44 percent of total U.S. private payroll”; and, “have generated 64 percent of net new jobs over the past 15 years.”
Want to know why we’re suffocating, despite ever-so-slight signs of recovery? A relatively small number of big businesses and their executives have prospered, and the rest of us, along with our children, and grandchildren, will pay, and pay, and pay.
* Those so small that they have no employees; number taken from SBA Office of Advocacy 2009 FAQs — out of 29.6 million total U.S. businesses. Yes, the vast majority of all businesses are small businesses. The vast majority of start-ups “bootstrap,” and many of these use personal and business credit cards as a source of capital.
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on Sep 26th, 2009 at 5:41 pm
Thank you for taking the time to post. I watched the TARP hearing and much to my dismay – “We” the 36% share holders in Citibank have no one looking out for our money
well except for the folks who are looking at how to charge “We” the largest shareholders more money. If you think about this it is so pathetic it is comical. A tragic comedy.
WE OWN 36% of Citibank – think about that. :We The People” are the majority shareholder in Citibank and yet the government officials who took “OUR” money to buy Citibank are “choosing” not to exercise any majority shareholder rights in the governance of Citibank.
Our government – the caretaker of our money – is choosing to allow Citibank to screw us – “We the People” who happen to be the majority stock holder in the company.
This is truly an ironic and sad state of affairs. I think we all need to ponder this one for a while. Not only does it make me not want to pay Citibank it makes me not want to pay taxes. This is a horrific abuse of power on the part of Citibank and the Federal Government.
BTW – Citibank lowered my interest rate – in case you have been following my banking woes.
on Sep 27th, 2009 at 4:22 am
Hi Heather,
I am delighted to hear (and read on your blog) that you have received some relief from Citibank. You also happen to be an excellent writer, and I do think that a common thread among banks that back down is that they know when someone puts up a blog to fight, that person has flat-out had enough.
The only way we’re going to get change in the banking industry is to let our elected officials know that at least thus far, they can be “unelected.” The legislation in favor of an interest rate cap is also a step in the right direction.
Utilities are regulated, and they seem to be able to survive; the banks have been so incredibly smug about being able to do anything that they want, it makes me want to ensure that their new buildings resemble those of many public schools: cinder block walls and linoleum flooring (with old-style steel desks).
I do hope that you will stay in the fight. “We” need people like you, who have a “moral compass.”
on Sep 28th, 2009 at 12:20 pm
You may be interested to know how our senators voted on the usury limits part of the CARD act. I obtained these stats from:
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00191
Grouped By Vote Position
YEAs —33
Begich (D-AK)
Bennet (D-CO)
Boxer (D-CA)
Brown (D-OH)
Burris (D-IL)
Cardin (D-MD)
Casey (D-PA)
Conrad (D-ND)
Dodd (D-CT)
Dorgan (D-ND)
Durbin (D-IL)
Feingold (D-WI)
Feinstein (D-CA)
Gillibrand (D-NY)
Grassley (R-IA)
Harkin (D-IA)
Inouye (D-HI)
Kerry (D-MA)
Klobuchar (D-MN)
Kohl (D-WI)
Lautenberg (D-NJ)
Levin (D-MI)
McCaskill (D-MO)
Menendez (D-NJ)
Merkley (D-OR)
Reed (D-RI)
Reid (D-NV)
Sanders (I-VT)
Schumer (D-NY)
Udall (D-CO)
Udall (D-NM)
Webb (D-VA)
Wyden (D-OR)
NAYs —60
Akaka (D-HI)
Alexander (R-TN)
Barrasso (R-WY)
Baucus (D-MT)
Bayh (D-IN)
Bennett (R-UT)
Bingaman (D-NM)
Bond (R-MO)
Brownback (R-KS)
Bunning (R-KY)
Burr (R-NC)
Byrd (D-WV)
Cantwell (D-WA)
Carper (D-DE)
Chambliss (R-GA)
Coburn (R-OK)
Cochran (R-MS)
Collins (R-ME)
Corker (R-TN)
Cornyn (R-TX)
Crapo (R-ID)
DeMint (R-SC)
Ensign (R-NV)
Enzi (R-WY)
Graham (R-SC)
Gregg (R-NH)
Hagan (D-NC)
Hatch (R-UT)
Hutchison (R-TX)
Inhofe (R-OK)
Isakson (R-GA)
Johanns (R-NE)
Johnson (D-SD)
Kaufman (D-DE)
Kyl (R-AZ)
Landrieu (D-LA)
Lieberman (ID-CT)
Lincoln (D-AR)
Lugar (R-IN)
Martinez (R-FL)
McCain (R-AZ)
McConnell (R-KY)
Murkowski (R-AK)
Murray (D-WA)
Nelson (D-FL)
Nelson (D-NE)
Pryor (D-AR)
Risch (R-ID)
Roberts (R-KS)
Sessions (R-AL)
Shaheen (D-NH)
Shelby (R-AL)
Snowe (R-ME)
Specter (D-PA)
Stabenow (D-MI)
Tester (D-MT)
Thune (R-SD)
Vitter (R-LA)
Warner (D-VA)
Wicker (R-MS)
Not Voting – 6
Kennedy (D-MA)
Leahy (D-VT)
Mikulski (D-MD)
Rockefeller (D-WV)
Voinovich (R-OH)
Whitehouse (D-RI)
I think a lot of pressure on the sell-outs, especially from Delaware, South Dakota, Utah, is in order. These are the states that the credit card companies moved to, after the usury laws were weakened. It is interesting that Rockefeller did not vote. Doesn’t that family have a big banking interest? Hmmm.
on Sep 28th, 2009 at 5:14 pm
Here is a glaring example of what a bunch of two-faced, lying hypocrites represent these banks. Jamie Dimon has the nerve to say that all a customer has to do is call HIM and HE will fix things (in the manner he feels is proper and appropriate). He said this before Congress in February 2009, right after the first round of victims had started making their extortion payments to Chase bank and before Chase paid back the TARP money. He tries to patronize the congressional representative by mentioning changes in FICO scores as a possible reason for changing customers’ rates. Glib, isn’t he?
http://www.youtube.com/watch?v=wTo95A920Wk
This one might make you feel better – Bernie Sanders goes off on Bernanke 3/3/2009.
http://www.youtube.com/watch?v=rCWXrMCGJT4&annotation_id=annotation_723884&feature=iv
on Sep 30th, 2009 at 1:22 pm
I just made a phone call to my member on the House committee in our Congressional district (toll free, thanks to Consumers Union) regarding common-sense reforms that will prevent dangerous financial schemes. Congress must hear from the millions of us who are at the mercy of these financial giants. Our wallets can’t afford to let them run amok again – and neither can our nation’s economy. And they need to finish their work and pass reform this year. If you have just two minutes to make a call who live in your Congressional district so they can add their voice, too:
To call your Representative, go to http://cu.convio.net/DYD-patchthrough0928.
It’s easy and there are some simple talking points on the page. Be sure and tell Consumers Union what your lawmaker’s office said!
Thank you!