Let’s Talk About Financing

Posted: 10 Sep 2008 | Categories: Loans

(Copyrighted Material) The stock, bond and financial market are going crazy. The DOW closes down about 600 points in a week and NASDAQ follows. The giant banks such as Citi Bank (Citi-Group) goes from $48.00 per share to less than $18.00 per share in a matter of 90 days (a change whether up or down- never seen before in the company’s history), losing over $120 BILLION dollars in value. Similarly falls take place for Bank of America, Washington Mutual and one of the largest home lender’s (Countrywide) stocks. Countrywide stock goes from $45.00 per share to a little over $5.00 per share in a matter of a few months (an action never seen before), these are all clear indication that there is something wrong with the market and economy.

Such banks and lenders don’t fall in such way so quickly unless something big is wrong. Of course, it was all because of the Government giving the banks all the rope they needed to hang themselves by allowing them to lend money to everyone with any type of credit rating (score). Meaning, the government did not regulate nor set policies for the banks to limit their lending to people who have bad credit. As a result, all those who had bad credit are defaulting on their loans and causing even some of those with good credit to suffer as well. However, this was NOT the only reason in banks’ failures. The banks also made the loans attractive for a lot of people for the first few years, by offering low ARMS rate (read all about it in Your Credit = Your Life book. I wrote the book and promise it talks about our real life credit and money problems). The Government wasn’t accepting the fact and has been putting its blind eyes. Finally, the Federal Reserve is realizing the problem and is continuing to reduce interest rate hoping that the economy and all the sad financial companies’ news would go away and things get back to normal.

What do all of these mean to you?

As the price of Gas and Oil goes up, the retail stores that have to transport their goods to the stores (making the them available to you), have to raise prices, cut corners and lay off workers in order to cut cost and control expenditure in order to stay profitable. The same goes for almost every other company.

As a result of all these changes in the economy and corporate losses, you and I will be effected (if not effected yet). Therefore, you must understand your financial environment and make certain that you do NOT get affected directly and quickly. This means you need to get a grip over your money and finances.

Your Credit and Financing You have two options.

If your credit is good:

If your credit is B or better (credit score of 740 or better), do NOT get excited - go spending money now. Because, until the dust in the stock market settles and/or the price of OIL/GAS come down (if ever), you need to keep the good credit so that you can use it for investment in areas such as REAL ESTATE, and other properties that have been taken away from their previous owners and will be sold CHEAP (cars, boats, planes…). Or use your money and buy some of the CHEAP stocks (Citi- C, Freddie Mac- FRE, etc.). However, I do NOT suggest borrowing money to buy stocks. I am NOT giving stock analysis or advice. Do your research.

If your credit is NOT good:

Now it is the time to fix your credit and take control of your financing.

Although Mike Samadi taught colleges and universities in the area of computer programming and engineering, his desire in life has been to teach those who have a willingness and need to learn. He initiated his design and development of application software packages as he planned to leave institutions of higher learning (teaching those privileged) to become advisor to less fortunate with greatest needs. Meanwhile, he took on the task of assisting others with their credit management/repair, which blossomed into a full time obsession. He learned this trade from the experiences passed down from his generation to his father who studies economics and been multi-millionaire real-estate investor for nearly 50 years. This was a part time interest to him that grow to become his passion. It developed to something big especially when he literally got burned out of his projects. At that time, his direction in life changed and he became consumer-advocate and extended his effort in credit management/repair advisory. As a result of nearly 12 years of doing so, the consumers who received his assistance and became friends persuaded him to write a book about the credit and money management matters. Thus far (in the past year), he authored two (2) books, one that is called: “Bad Things Happen to Good People. Your Credit = Your Life, Fix It Now!” which is in its second edition. Second book “Saving Your Money.” Touches areas giving consumers access to gain knowledge and experiences needed to overcome their financial problems. While nearly completed his third book, “Consumer Advocacy,” Friends/scholars alike urged him to write about his short but fulfilled life. His believes in: “More is Lost by Indecision than by Bad Decision”, “Knowledge is Wealth”, “Ask and you shall receive” among others.

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