President Bush Drunker Than Wall Street.

Here's that video everyone is talking about. It's the secret clip that finally reveals the truth about what our President Bush thinks about our economy and the pain we folks are feeling. Email subscribers click on this link to watch the video clip:
http://www.youtube.com/watch?v=hrzFyeHSRJI

"Wall Street got drunk", Bush smirks, "and now it's got a hangover." Bush also goes on to state he understands all about the housing mess because his own wife, Laura, is out trying to buy a home in Texas.

Everybody in the room is laughing, howling and thinking it's all just rip-roaring funny. While we folk are back home struggling with our jobs, foreclosures, shrinking property values, bank failures, car repossessions, rising food and energy costs and telling our children mommy and daddy just can't afford their lives anymore.

Wall Street, as President Nero Bush puts it, is nothing more than a bunch of alcoholics, drug dealers, addicts, thieves, crooks, scum bags. And you, the American public are no better than these inebriated thugs as long as you keep your money invested with them. We all were led to believe that if we invested our hard earned money in Wall Street investments, we'd have retirement portfolios, college funds, savings accounts. Remember when President Scumbag wanted to privatize social security and transfer all that wealth over to Wall Street? It would have been the greatest intoxicated party of all time.

Our own government is laughing at us, people! Our own President Nero is playing the fiddle while America burns. Wall Street has brought the American economy to it's knees and has created more misery and unhappiness since The Great Depression of 1929.

And all these people are laughing and telling jokes.

Get your money out of Wall Street. Move it to an FDIC bank accounts. The ones that a truly great president established, FDR, Franklin Delano Roosevelt. Retirement accounts in an FDIC bank are insured up to $250,000. It will NEVER go down and your money will NEVER be lost.

This whole mess just makes me sick to my stomach.


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Debt Will Always Suck.

The NY Times has a scathing series today entitled: The Debt Trap, A series about the surge in consumer debt and the lenders who made it possible written by Gretchen Morgenson. In both the video and written article, The Times chronicles three distinct people and their downward spiral into the abyss of consumer debt. I'm not going to go into great depth about these people but I implore you to read the full article (click here) to fully understand what I am about to say.

The story is about three types of people. The first is a young couple, Amy & Robert Ahleman who bought their first home with 2 mortgages totaling $250,000 in 2006. The keyword here is TWO MORTGAGES. Shortly after they purchased their home, the husbands' job slowed down. Less hours meant less pay, thus they started to miss their mortgage payments. The story recounts how the sheriff showed up at their doorstep one day and served them with foreclosure papers.

The second story is about Diane McLeod, a middle aged woman with a shopping problem. A $280,000 shopping problem. Watch the video about her and notice her massively cluttered home filled with Home Shopping Network crap almost touching the ceiling. As Diane explains, "I'm not good with money. If you have room on a credit card and you want to buy something, you can buy it." A divorce in 1996 sent Diane on an endless shopping spree and into bankruptcy. Keyword in this story is CHRONIC SHOPPER.

The third story is about a 62 year old elderly woman, Norma Patino-Reyes, who refinanced her home three times in three years and borrowed all the equity out of her home to pay her bills. When her annual interest payments were totaled up for the year, Norma was paying $20,000 on an annual salary of only $43,000. Keyword: 3 REFINANCING IN 3 YEARS. At 62, Norma had a stroke, could no longer work nor pay her bills. Norma is facing foreclosure.

When you first read their stories or watch their videos, your first reaction will be to blame these people for their stupidity. Or, as the NY Times wants you to blame, the lenders. Neither one is correct. The real culprit in these stories or in any story you may hear today, yesterday or tomorrow is DEBT. Carrying debt of any kind is a losing proposition. Hear out my theory first before you start sending me emails telling me how you pay your bills on time, pay your credit card in full, indulge in rewards or became a doctor through the wonders of student loans.

Every single person alive will face the following scenarios at some point in either their lives or the lives of their immediate family: job loss, job slowdown, faltering economy, medical health problems and/or divorce. Period. When you take on debt, debt of any kind whether it is credit card, car loan, mortgage, home equity or student loan you are betting against yourself that you will be able to pay your debt over a set amount of years. You are betting against your future that you will NEVER lose your job, get sick, divorce or stub your toe at the supermarket. The odds of that happening to either you or I is ZERO. Carrying debt is arranged in such a manner that you, or I, will always fail. ALWAYS.

It took me a while to figure this out, but it's true nonetheless. As banks and lending institutions devise more ways to part you and your money more, as in fees (over-the-limit fees, late fees) and constantly changing interest rates (always higher, never lower) your ability to save money and prepare for the worst case scenario lessens over time. None of the above case studies had savings, emergency funds or asked themselves the 'what if' questions. What if I lose my job? What if I or my partner gets sick? What if my marriage ends? What if for any reason I can't pay my bills, what will I do? Americans are a pack of people who spend more than they earn and never prepare for job loss, economic downturns (as in 1987, 1990's, 2001 and now 2008. It ALWAYS happens) or illness.

We can blame whomever we want, but truth is, debt is still a losing game. The only generation who got it right, was The Greatest Generation: the folks who survived The Great Depression. They bought one home their whole lifetime, they put down the required 10-20% that they had saved most of their young life for a conventional 30 year mortgage, they never borrowed against their home nor ever pulled out any of their precious equity, they stayed in that home for the 30 years so that in their old age they had a paid-for roof over their head, they saved their money, they paid cash for the things they needed, they bought appliances or a car and they used them till they were unusable, they graduated high school and went on to a community or state trade school and learned a job or career that would sustain them for life, they believed in God and taught their children the 10 commandments (because they knew their was no security in a bank account, job, government agency or Wall Street investment. The only security in life, they reasoned, is God.)

Boring stuff, right? Where are the fancy vacations, European kitchens and baths, fast cars with the fancy gadgets, the closetful of clothes, the front loading washers and dryers, plasma screen TV, cell phone for 8 year old Jane, 3000 square foot McMansion or any of that Home Shopping Network crap?

You can find all of that excess on Ebay. Say hello to Diane McLeod when you get there.

And so it goes.

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July 4th Holiday Summary.

Before everyone goes ballistic on me, I'm going to give a true, financial report of our first summer holiday spree. First off, despite my financial stature, I took 2 economic hits so far this summer. The first one was our original boat yard going bankrupt and our losing our $1250 deposit. This caused us to moor our boat at a more expensive marina @$1987. Because of this delay, we had to contract out more boat work such as hauling, lifting and supplies to the tune of an additional $500. We finally launched the boat July 4th and also had to pay our instructor another $100 to train us in a new body of water (different currents). Alas, I'm not finished. When we hoisted up the front sail, the line snapped. Without a front sail, we can't use the boat. We had to order a replacement part ($178) from Catalina. It will be shipped to us by the end of the week. Hopefully, the repair can be done at the dock. I don't even want to think about hoisting costs nor the extra storage fees because we are so far behind this summer, it is not funny anymore.

The second hit was the $1300 I had to pay for an ex-husband's forgotten credit card. My out of pocket expenses so far, which I withdrew from a combination of salary and my emergency fund is $5,315. I'm sorry, but I consider this to be a fairly big financial hit. Especially, since it is now July 8th and we still haven't used our boat and it looks like another 1 to 2 weeks before we can.

I'm not blaming anything or anybody. I just think it's just the way it is. When I asked our sailing instructor how her winter went, she replied she is holding down 3 jobs just to make ends meet. I told her about the lost mooring deposit and our new mooring fee and she snidely whispered to one of my daughters "Your mother is always talking about money."

Oh, geeze. I'm sorry. I guess it's OK for me to lose money because you are working 3 jobs. I should have realized. Silly me. (Note to self-find another instructor.)

My daughters got an offer from a cousin, who was driving her car out to the beach house for the weekend, for a ride. All 4 of them just had to split the costs of the gas and supposedly they thought they would be saving money. WRONG. Contrary to the news reports that due to the high costs of gas, more folks were staying off the road. A 3 & 1/2 hour normal car ride turned into an 8 hour nightmare. The traffic was bumper to bumper for miles and miles and miles. They left at 1PM. Should have arrived no latter than 4:30PM. They arrived at 9:30PM. And this was Thursday, the day BEFORE the holiday. Same for the ride going back. 5 & 1/2 hours back and counting. (ka-ching in gasoline costs)

Everyone swore off taking a car next time. They went back online to order train tickets for the next weekend out and found that Amtrak raised their fees. Discount codes are no longer available or completely sold out. My daughters wanted to lessen the amount of times they come out for the rest of the summer down to just 2 more trips: one in August and another in September for Labor Day weekend. The thought running through my brain when they told me this: "$4,000 for a sailboat? and they only can come 2 more times? I could have rented a yacht with a full crew for what I've spent." Yes, Miss Sailing Instructor. All their mommy thinks about, is money.

There's no doubt about the fact, however, that despite it all, we all managed to have a spectacular time this weekend. We went to the beach, ate out at some hip, cool hot spots, took the ferry over to the main island, went to the movies, watched some fantastic firework displays, went sightseeing and just enjoyed the time we spent with each other. Priceless.

I told the kids I will cough up and help pay for one of their trips and I'd like them to come an additional weekend. Amtrak charges $81 each way and when you add it all up, it's very expensive to travel right now regardless of whether it's car, train or airplane. The trip is only 3 hours on Amtrak, so they'll gain it back in summer hours of fun.

I did have sticker shock when DH and I accompanied the kids to the movies. I'm used to paying $4 for a matinee at home. Tickets on the island for a Saturday night flick is $8.50 per person and I shrieked when the cashier quoted me $17 for our 2 seats! Even our local fish joint charged $5.75 for a fish fry that last year only cost $3.25. Multiply that new number by the lot of us and we're talking bigger money. Eventually, we were content to grill up some turkey burgers on the barbie and had some low fat hot dogs. We all chipped in to get organic whole wheat rolls and ketchup. In the morning we either had oatmeal, fresh cantaloupe or blueberry pancakes with whole, natural maple syrup. We tried to eat as well as we could. Next time we'll skip the restaurants, chip in an buy some fresh tuna or swordfish and clams on the barbie. It definitely worked out better with all of us chipping in for our meals. After we came back Saturday night from the movies (we saw 'Get Smart') we played board games (Batman Monopoly-don't ask.)

There is no doubt that the economy is changing. Yes, things are more expensive. Yes, if we keep making substitutions and adjustments, we'll keep managing to stay somewhat on track. The original marina went bankrupt because of their subprime loans. Yes, I'm thankful I have an emergency fund in place that helped me face a financially challenging time and hold onto a summer dream. Yes, when you own a boat, there are oodles of additional expenses. I think I am being realistic and honest. I found that if more people share in the costs, everything is more manageable. I don't think the high costs of gasoline are accurately keeping the folks at home, as the media suggests. Americans are still out there enjoying life, spending time with their families and trying to hold on to some semblance of a lifestyle.

Two couples are coming out this next weekend. One is an avid sailor and has offered to help us do what hopefully will be the last repair on the boat. If the boat is ready, he'll take all of us out for the day and teach us all about the new currents and their respective dangers. I still had to pay Miss Instructor the $100 despite the fact that we were never able to sail. I hope she and her 3 jobs are happy. This means that Saturday night I will have 6 adults staying over and I sure hope they like turkey burgers and low fat hot dogs. We've got tons of wine and beer left and my daughters told me I make a mean Cosmo. I just hope everyone likes to play Batman Monopoly and watch DVD rentals from the local public library.

And so it goes.

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The End Of The 'Latte Factor'.

I hope David Bach is happy. He finally got his way. David's constant pounding to the masses that the best way to save money and become a millionaire was to give up the 'latte factor'. You know the scenario: stop buying those $5 frappuccino's from Starbucks, invest the five bucks instead and become The Automatic Millionaire.

David Bach changed what he considered to be the 'latte factor' over the years. He was concerned about probable lawsuits. But we all knew who he was targeting. It was Starbucks. Today Starbucks announced that they are closing 600 stores in the US and laying off over 12,000 employees of it's 172,000 total employed people. Twelve thousand people are now out of a job because some financial guru concocted a scheme to create millionaires by just simply giving up a five dollar cup of coffee. As if?

I wonder how many millionaires are really out there because they stopped drinking their $5 cup of joe? Are any of those 12,ooo unemployed people millionaires? How about the remaining 160,000? Are they millionaires yet? If they own Starbucks stocks, they're not.

Starbucks CEO Howard Schultz knew his company was on the downswing. Foreclosures and a tightening economy made many wallets tighter across the nation. Schultz's preposterous solution was to come out with another flavor of coffee, Pike Place. No, Mr. Schultz. Lower the price of a cup of coffee to $1.50 and watch the big bucks roll in. It's far better to make a little money than no money at all. Even Frugal Me would have stopped in a Starbucks and imbibed in a buck-fifty-soy-venti-place-of-pike. (Did I get the java lingo correct?)

Starbucks tried to reinvent the coffee wheel by using pseudo-Italian names for the sizes of their designer cups (tall, grande, venti vs small, medium, large). Fail to order your cup of coffee using these ridiculous brain-twisting names and you would be ignored by both the barista and the cashier. Starbucks justified their prices by presenting a 'whole experience'. Indulge in a grande cafe' au lait with a double shot, linger as long as you wanted amongst the Starbucks' ambiance, surf the web, listen to funky music, chat with your hip friends, be part of the in-crowd. It was all a plot. All a scheme. To make a consumer think that an actual few pennies of coffee could be anything more than what it is: "A cup of coffee. Small. With milk and sugar. Please. To go."

And so it goes.

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Hard Economic Times=Creative Financial Moves.

I do a lot of kicking and screaming on my posts. One week I'm up. The next week I'm down. I've termed my behavior: 'manic economist'. The rapid changes in the economy are forcing me to make economic changes in my life. That's no excuse but as you (I) age, changes just don't come as freely as they did in your (my) youth.

As in the words of Michael Corleone in Godfather III: "Just when I thought I was out, they dragged me back in."

I've been through recessions and downswings before. I'm getting tired of them. Just when I had my spending habits and new debt-free lifestyle under fantastic control, the economy takes a dump and through no fault of my own, is dragging me down with it. These hard economic times are stirring up all the creative juices my little body and mind can muster. It's been two years already and truthfully, I don't see an end in sight. (Normally, an election is the psycho-dramatic impetus a failing economy needs to boost morale and the GDP. I'm just not feeling it yet with our political choices.) I'm running out of fresh ideas on how to keep up with an economy going down. The talking heads don't have a clue either.

What's a girl to do?

I'm a long term planner. I don't think in increments of days, weeks, months or years. I think in terms of decades. Most of my financial decisions are projected into the not-so-close future. Lately, however, my long distance planning is stumbling on immediate bumps in the road. My formulas were calculated for minor stumbling setbacks but not the ones in proportion to today. We've been in an economic slump for two years and counting. I don't see the economy getting any better. Maybe when this next election and accompanying presidency is over.......like five years from now we'll see an upswing. In the interim, how do I hang in for another 5 or so years?

I've taken some big major hits since January 2008. The year started off with getting a heating bill on my summer home. One of the bedrooms had a defective battery (made in China) which caused the electric radiator in that room to run and run and run. That mishap cost me $600. Ouch. Next came a credit card bill from a 7 year forgotten era. The $850 bill was two weeks shy of the NY Statute Of Limitations and penalties and interest shot the liability to over $10,000. My attorney litigated it for a year and settled on just a mere $1300. My attorney waived his fees but I still had to couch up the charge card money on a debt that wasn't even mine (previous marriage).

Early spring brought forth rapidly rising gasoline prices. We drive over 20,000 miles per year between our two cars. I was forced to discard our crossover SUV for a more fuel efficient vehicle at a cost of $4,700. I consoled myself by reminding myself that the SUV needed new tires ($500) and an extended warranty ($1300). Those 2 latter bills, normally would have been paid out of our weekly salary. I had to withdraw the full amount out of our emergency fund in order to trade in and buy the new car instead. Quadruple ouch!

Early summer (May) revealed that the boat marina we've used these past 3 years filed bankruptcy over the spring and we lost our $1250 deposit. Unwilling to give in to defeat, we found another marina close by and had to shell out another $1986 to secure a mooring for our family boat. This new marina , although rather nice, caters to a more affluent boater. The latter of which we are not. Since we got a late start on the season, we've had to pay for more services, like hauling, lifting and storage to the tune of $400. The old boat yard never charged extra for those services. (Thus, they're out of business.)

In January, I pulled all but $25,000 out of the stock market. As of yesterday, that $25K is worth $22K and dropping like a stone each and every day. So, throw in another $3000 loss to all of the above. What's the total? $13,236. The year is only half over yet.

In order to make our budget balance, I've had to cut services, go without and just plain lower our overall expenses. I didn't take too kindly to the changes. Sure, once the boat yard went belly up, we could have spent the whole summer looking at a very expensive lawn ornament (sailboat) in our driveway. But everytime we passed it, it would have been a daily reminder of the fun we family members weren't having. The thermostat in the kids room has since been replaced. I called the electric company, explained what happened and they agreed to a yearly payout of $50 a month. I cut back on our own TV, phone and internet services in order to compensate for the budget adjustments. I discontinued our prescription plan thus saving another $70 per month, because frankly, DH and I hadn't had an RX filled in years. Restaurant meals can only be enjoyed if someone else is paying. Food choices are now limited. Road trips have been shortened (we stay longer at the beach house rather than driving weekends). Family members have to contribute more financially now. I don't reimburse half of my daughters train tickets anymore, as I did last year. We all chipped in to buy a beach pass. Food bills are now divided by four and split. Train station pick-ups now require a $10 reimbursement for gas.

The list goes on and on and on.

I find it all a little bit disconcerting. A sign of the times.

Oh, my accountant has been depreciating the vehicles and the new car will be no exception. If we decide to go ahead with the mooring next year, the fee will be divided by four and each of us will pay our share. Invited friends will be asked to contribute more to sharing food and beverage expenses. I think everybody 'gets it' now. The economic downturn has hit each and every one of us. I might as well accept it, stop the rants and just get on with it.

I just have to keep on thinking of more creative ways to make things work. I have to evaluate the worth of everything now. Is it a need or a want? Can I do without it? Can I get it cheaper somewhere else? Can I recycle, restructure, reissue, redo, replenish, readjust?

Can I relax?

I just sent this email to my kids: "Mommy is down to her last $1000 in the emergency fund. Bring food, money and sun tan lotion. See you Thursday night."

And so it goes.

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Editors Face The Economy.

There's been a birth of new reporters in many of the top news media.

Have you read any of them yet?

The Wall Street Journal just started a new weekly column by Neal Templin called Cheapskate. It's a blow by blow account of how one reporter and all his years of living on the cheap can help the masses adjust to the rapid decline of the American economy. You can read Neal's first submission "The High Cost Of A Bargain Meal" by clicking on this link. Don't forget to bookmark the site so you can read Neal's weekly updates.

Yahoo Finance posted this little ditty from writer Terri Cullen. Ms. Cullen offers pointers to the American family on how to hold onto your vanishing family values i.e. boat ownership. Read how Terri and her fellow Americans maneuver and manage a shrinking pasttime.

CNN Money added in a columnist for the declining times: Carmen Wong Ulrich. Her column is appropriately entitled "On The Money" whereby Ulrich gives a daily uptick on the downtrends. Today's post: Economy Will Improve-But When? pretends to give it's reader the false hope that an end is near.

Jeff Opdyke, long time columnist of Love and Money for the Wall Street Journal apparently has jumped on the crowding downswing treadmill also. Opdyke's recent post of "Our New Plan: First Sell The House" chronicles the couples' plan to downsize just for the heck of it. Smaller home, less heat and bills, smaller property tax, smaller commute, less time working for the wife. Or as Opdyke himself recants: "Instead, this is purely something we want to do because it makes sense -- from a financial, lifestyle and moral perspective. It's the right thing to do for our family." Dick Tracy must have given Opdyke his first clue.

Bankrate.com introduces us to their slant on the slump. Jay MacDonald tries to look on the brightside of the downslide by chanting 10 Reasons To Love A Recession. Here's the ten, with my comments in parenthesis:

Happy Slowdown (0ther than a commercial for teeth whiteners, have you seen anyone smile lately?)
Family Dinner (the talk at most dinner tables is the economy, stupid. Nothing but complaints.)
Shorter Lines At The Pump (nope. people are lining up to feel the pain)
Less Junk Mail (more collection notices and bills, that's why)
More Coupons (generic purchases beat out brand names even with a coupon)
Free Fitness (it never costs anything to be a couch potato. more time at home means more time in front of the tube.)
Bargain SUV's (anyone buying an SUV today, is an idiot)
Business Startup Opportunities (give me the address of the bank who's loaning. I'm there!)
Growth In Gardening (we had Victory Gardens to get through the war. growing your own food is not what I'd call an up-and-coming enterprise. I'd call it a survival tactic)
Musical Inspiration (the soothing melodic chants of Amy Winehouse are inspiring. no, no, no.)
New Perspectives (they're called: decline, downsize, downswing, downtrend, downturn, drop, fall off, sag, slide, slip, slump, lapse, loss, lowering, decrease, drop off and sell off)

Long time New York Times op-ed columnist, Thomas Friedman summed it all up best this morning with his post Anxious In America:

"My fellow Americans: We are a country in debt and in decline — not terminal, not irreversible, but in decline. Our political system seems incapable of producing long-range answers to big problems or big opportunities............We are the ones in need of nation-building. It is our political system that is not working."

Tom, have you looked at our political choices lately? I mean, really looked? After September 11, 2001 I remembered a comment someone made regarding "bombing them back to the stone ages." As I look around at the increase masses are taking to their bicycles, growing their own food, raising their own chickens and livestock, moving back to the already crowded cities, sorting through their lives on less foreign oil, smaller homes, smaller cars, smaller wallets, yes, we bombed them back to the stone age. Just didn't think that the 'them' would become us.

And so it goes.

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Iraq To The Rescue.

On June 30, 2008, Exxon Mobil, Shell, Total, BP and Chevron (and some other smaller oil companies) will announce their no-bid contracts to set up shop in Iraq and pump out oil for the citizens of the Untied States of America.

Well, hallelujah! 'Bout 500 billion dollar time! (Americans have poured over $500 billion in taxpayer bucks into Iraq.) It's been over 36 years since the last American company was allowed to pump oil in Iraq thanks to Saddam Hussein. I know what you're thinking. President George W. Bush planned this all along. Like he knew 5 years ago that gas would one day reach $4.50 a gallon, and he could make this announcement right before the 2009 election and get another Republican in office. Here's a quote from the article:

"There was suspicion among many in the Arab world and among parts of the American public that the United States had gone to war in Iraq precisely to secure the oil wealth these contracts seek to extract. The Bush administration has said that the war was necessary to combat terrorism. It is not clear what role the United States played in awarding the contracts; there are still American advisers to Iraq’s Oil Ministry."

It all boils down to this:

"For the American government, increasing output in Iraq, as elsewhere, serves the foreign policy goal of increasing oil production globally to alleviate the exceptionally tight supply that is a cause of soaring prices."


Say and think what you will. Most people won't truly care. Let them pump away. Iraq owes us. They owe us big. It's the least Iraq can do. Once the system gets into place and oil is pumped and delivered to the shores of America, our high gasoline worries will subside. I count the days, hours and the minutes.

And so it goes.

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10 Reasons To Live Debt Free.

CNN Money has started a new website made up of folks who have chosen to live debt free. Obviously, it is becoming a trend. You can read all the 10+ stories by clicking on this link.

All the stories are basically the same: drowning in credit card debt, these people have a light-bulb moment, exclaim 'enough is enough', pay off their debt and vow never again to use a credit card. Only then can they save enough money and live a stress free life.

And so it goes.

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The Kids Are Alright.

I'm going to go out on a limb right now.

I'm going to make a statement.

"I think the economy is going well."

There, I've said it.

Granted, yes, gasoline prices are obscene. But the price of fuel is high everywhere and not just limited to the United States. There are protests all over the globe concerning the high costs of a gallon of gas. As this article (and video) states (click here) there are either riots or protests in Italy, Spain, France, England, Portugal, India, Malaysia, Nepal, South Korea and Thailand to name just a few countries. Since I made my switch from a 22 mpg crossover SUV to a more fuel efficient (American made) Ford Focus that gets 42 mpg I really haven't felt any pain at the pump. Yesterday, I paid $4.30 for a gallon of gas. It cost me $43.00 for 10 gallons of gas that will average me around 420 miles. A year ago at $3.50 a gallon, it would have cost me $35, which is only $8 more. I really don't think $8 is going to ruin my life nor upset my lifestyle.
Do you?

I didn't have to lay out $35,000 for some hybrid car. The new Ford Focus was a bargain at only $16,500. I won't be needing a new $8,000 battery in a few years (like the Prius will). My great, fantastic American-made car gets better fuel mileage than most Honda's or Toyota 's and I didn't have to lay out any more cash for a foreign import.

When will Americans ever be happy?
When will they realize that America is doing just fine?
I wonder.

Secondly, I really don't see nor do I feel any pain when I buy groceries. Yesterday, I shopped at a Super Wal Mart (I go once or twice a month) and bought my monthly allotment of food and supplies. I only paid $1.47 for a dozen eggs, $2.35 for a half-gallon of soy milk, $1.83 for my favorite butter substitute (Smart Balance), $2.75 for artisan (and sliced to order) California Sourdough bread. $3.77 for a fresh (imported) pineapple. The list can go on and on. I really didn't see or experience a huge jump in food prices as we have been led to believe. Yet, a few weeks ago, I foolishly stockpiled my pantry with pounds of rice, beans, canned vegetables and tuna because I realistically thought America was going to experience a food shortage and crisis.

Same holds true for my local grocery store: Stop and Shop. Their new slogan is "Everyday low prices" and I have to admit it, it's true. Their prices are low. And they are low each and every day.

What a crock.

Then it dawned on me: THERE'S AN ELECTION GOING ON! So, of course, our corrupt media (that has been pushing for Obama to be elected) is going to slant the news and make us all believe our economy is bad so a democrat or whatever will get elected and 'save us'. Well, they aren't fooling me.

The kids are alright.

My DH has more work than he can handle right now. Our business is fine and I can assure you it has nothing to do with those ridiculous stimulus checks Bush sent out. The economy is alive and dandy. Last week, DH and I were able to buy new shoes and clothes at fantastic prices. We're going out to eat at restaurants and having three course meals more reasonably priced than ever before. Anyone who has cash right now can get some of the most fantastic bargains. The 'keyword' I said in the previous sentence is 'CASH'. If you have debt, you're out of luck. Those banks and credit card companies have a choke-hold around any one's neck who believed in their propaganda. Our disastrous economy can now be officially tied and blamed to one thing and one thing alone: Countrywide Lending and Angelo R. Mozilo, it's corrupt CEO. How utterly outrageous then, it is now to find out that the media darling, Obama, appointed Jim Johnson, a person who has just been found guilty of receiving kickbacks, reduced mortgage loans and other perks from Countrywide, to head the Vice President search for these here United States of America?

Are we getting my point yet?

As in the great words of my know-it-all attorney: "It's all bullshit!"

Listen, I know the reason why DH and I are doing well is because we've downsized our lives, live within our means (notice-I didn't say 'below' our means), have no debt and are as self-reliant as possible. That's the secret folks. It doesn't take a brain surgeon to figure it out. But as one blogger once pointed out-there aren't any books written about people who live debt free. There aren't any books about people who are debt free, manage their lives. Why? Because it's boring. You are led to believe that without material junk, your lives are boring.

So, let me end my post today with a synopsis of my most boring life. DH worked massive hours these past two weeks and earned enough cash so that we can now take a few weeks off. We're heading out to our summer beach house. Tonight, my daughters and their friends will be arriving on Amtrak and we all will be spending a fantastic Father's Day Weekend together. We'll all be pitching in and getting our sail boat ready for another season. (We're mooring at another marina because the original one went belly-up due to their ridiculous sub-prime mortgages. I'm still due a $1250 refund, but that's another post). We're loading up the Focus and should be gone for a few weeks. DH has more work lined up in Pennsylvania at the end of this month. We'll probably have a few B-B-Q's, get in a few fish dinners, take in some concerts (free) and probably go out for a fantastic Sunday brunch at an inn-by-the sea we all love.

My daughters and their significant others all have great jobs, live in affordable apartments and because of my constant, annoying pressure, have absolutely no credit card debt. One has an affordable mortgage because I loaned her enough of a down payment to make sure her 30 year fixed-rate mortgage was manageable. (She will pay me back, with interest, when she sells). The other is in the final throes of paying off her 3% student loan. Both girls are in secure careers that I helped guide them through because I knew the future would be in technology. They also have had retirement funds since they first started waiting tables when they were teenagers.

We all know the value of the good, ole American buck.

I'm taking a few weeks off from blogging. To be quite honest, I've just about had it with all the political and economic hype. I'm turning off the TV, not reading any more online stories about the gloomy economy from either the New York Times, the Wall Street Journal or whatever. It's all a crock of bullshit anyway. I've set my DVR to record all the late night shows of Craig Ferguson, who, in my opinion, as a European-turned-American, has the perfect slant on American life. Each night, Craig starts off his show with the statement "It's a great day in America!" and then goes on, hilariously I might add, to talk about the foolishness of everyday life. If anyone caught his take on the current tomato recall, you'd know what I mean.

And so it goes.

As a side note: Daughter #1 had the 10% down payment on a coop apartment. I believe in putting down as much as possible, so I loaned her another 15% (which she signed a promissory note for) so that if and when there was ever an economic downturn, she could always afford her mortgage payment. Daughter #2 (as was daughter #1) were responsible for half of their college costs. Their father and I paid half the tuition, the kids paid and secured the other half from either savings and/or low costs college loans). Because I live debt free, I can save money. My good luck and fortune sets a good example to my children. I have no qualms about helping my children. That's what it's all about: one generation helping the next.

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McMahon-The Face Of America Today.

85 year old Ed McMahon (30 year TV side kick of Johnny Carson's Late Night Show) is broke. He is several months behind on his Los Angeles $6.5 million dollar Countrywide mortgage . Last night, Ed and his youthful (unemployed wife) were interviewed by Larry King. McMahon, a celebrity who earned millions over his 60+ year career, is in arrears to the tune of only $644,000. When questioned by King as to how this happened, McMahon's response: "I haven't been able to work the past year and a half 'cuz I broke my neck."

Ah, excuse me, Mr. Ed, but aren't you 85 years old? Shouldn't you have planed your retirement a few years back? Johnny did. Do you mean to tell us that despite all those gazillions of dollars you earned, you don't have at least $500K saved to pay your mortgage? (which you shouldn't have in the first place! at least NOT at age 85.)

You can click on this link to get the inside scoop.

McMahon's wife tearfully told King that this is the first time she ever owned a home and she doesn't know what to do. McMahon, at least showed one thread of competency when he shrugged "Gee, I guess we spent more money than I earned." Ya think?

Not only do these people not have a dime in a savings account, they apparently don't have anything to sell to even come up with some money. At least nothing that they appear to want to sell. A caller emailed in to the show to ask Ed what happened to the $7 million dollar settlement he got a few short years ago as part of a settlement on their moldy, toxic home? "We had to pay off our 7 attorneys and stay in hotels while the home was being rebuilt. I guess we spent it," was Ed's pathetic response. Duh!

I thought this interview was the most frightening thing in America I have witnessed to date. McMahon tried to blame his problems on the economy and his neighbor down the street, Britney Spears. No, Ed. The Spears paparazzi aren't keeping prospective buyers from buying your two year for-sale home. I think the toxic mold may be more in play. That, and you and your wife's inability to manage money. Despite Larry King asking Ed McMahon numerous times as to how his neck became broken, Mr. Ed refused each and every time to correctly answer. I surmise the geezer got drunk one day, fell and broke his neck. Drinking, gambling and stupidity is probably more of Mr. Ed's economic reality. I personally have not one drop of compassion for this American has-been icon. McMahon and his ditsy wife represent exactly the current status of life here in these United States: unbridled spending sprees with nary a care nor concern about the future. To watch an American spend their money today is like watching a person eat themselves alive. It's repulsive and disgusting.

Ed McMahon: from the Publisher's Clearing House to the Beverly Hills House to the poor house. Brilliant. Don't worry Ed. Somebody will swoop down and save you. I just hope CNN's Larry King Live was shown in assisted living communities throughout America and it's residents were still awake.

And so it goes.

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"I made it. Now, F You."

Some people can be so uncaring. The act of selfishness never ceases to amaze me. Lately, I have been encountering it more and more. The most unsettling aspect of this self-centered style of thinking is coming from many 20-something year olds. Their attitude is that 'they' made the right choices in life so why have any compassion for those who didn't?

"Hey, I only drive a few miles to work, so why should I worry about high gas prices?"

"Hey, I don't own a home" or "Hey, I put down a big chunk of change on MY house, what do I care about the rate of foreclosures? MY home is doing OK."

Maybe what 'they' say and feel is true. Maybe we all should take that same attitude. Maybe I should too. My own 20-something daughters give me the same kind of slack. 'They' can't understand why I am so concerned about the price of gas or the cost of food because hey! after all, I've got enough money to buy the stuff. And hey! I had enough money to trade in my SUV and cough up enough dough to buy a more fuel efficient vehicle. Both kids live in a metro area and take rapid transit. One kid gets breakfast and lunch at work for free plus a Metro Card is part of her pay package. The other is a single gal who sets the table for one every night in front of TIVO. Both live in steam heat buildings that force them to keep the windows open during the winter months. What rising food and energy costs? I wouldn't call my kids spoiled because they have been on their own since 19 and have never asked for a dime from me. I think they do, however, represent their peers.

Truth is, they're right. I made it. So, why am I still complaining? We had an old saying back in my old neighborhood in Brooklyn. When my peers made it out of the hood, whether through education or connections, once we made it up the corporate ladder and onto a better position in life, we used to say: "I made it. Now, fuck you."

I never believed in that. I always turned around and offered my friends a helping hand. Some of them were grateful and went on to better things. Some of them never even said a "Thank You". I didn't care. I didn't do it for a pat on the back. I did it because it was the right thing to do. I always felt that part of the reason why I have been so successful in my life was because I did stop and help my fellow wo/man. Especially the elderly. Whenever I see an aged person struggling over money, crossing the street, making a pay phone call or being mistreated in anyway, I stop and help them.

That's why I found it morally depressing when I received a vicious email from a 20-something who wished me, a baby boomer, a rapid death. As if my death, and those of my fellow baby boomers would make his/her life any better. To that person, I cheerfully say: "I made it. Now Fuck you". Don't worry your pretty little head off. I have no intention of collecting Social Security when I'm qualified to do so. I hope my measly, puny $600 a month will make your life a whole lot brighter. For you see, I don't need to collect Social Security. My investments will take care of me. I invested well. Now, F you.

This doesn't alter my concern over the rising cost of a gallon of gas and the higher price of food. To think that just because you can afford to keep paying for these commodities and that since it doesn't affect your own life in some way is preposterous. It affects each and every one of us: rich or poor, black or white, legal or illegal, man, woman or child. Just because you can't feel it (yet) doesn't make it less real. Are we to just sit around and wait for the effects to pierce our own little bubble-world? Or are we to feel compassion and help make the world a better place for all to live in?

Does it feel too overwhelming? My kids tell me I am helpless and useless to change anything? Is that what today's 20-somethings feel? That there is nothing that they can do? All we can do is change ourselves. In this aspect, my children are right. Yet, if we ALL just changed ourselves, the impact will have a global affect. Don't believe me? Already, because of America's slowing economy and our concerted effort to conserve gasoline, whether voluntary or mandatory, the price of a barrel of oil has dropped from $135 to $129 a barrel.

"Oil prices fell sharply Tuesday, after hitting a series of record highs in previous sessions, as the dollar strengthened and traders pulled back amid concerns of softening demand"

The keyword here is 'softening demand'. In other words, our reduced consumption of gasoline has the traders worried. Our reduced consumption is because of the high price of a gallon of gas. Obviously, $4 for a gallon has been a turning point for us. If we cut back on our usage, we won't be needing as much gas as before. If we don't buy, they don't earn. In order to keep us buying, they have to keep the prices lower. Lower fuel costs helps our economy, our environment and our fellow neighbors, friends and strangers. Sorry, dudes, I can't turn my back and say "I made it. Now, F you." Sorry, I am going to do whatever I can to reduce the dependence on foreign oil. Even if it is just little ole me.

Thankfully, there are others who feel as I do. Los Angeles, California is re-birthing it's oil fields. Millions of dollars (and jobs) are awakening on the streets of L.A. Here's a quote:

"I can pretty well say across the board, for the industry, that the higher price has rejuvenated these older fields," said Thomas Dahlgren, who works for one of the small oil companies in the Los Angeles area. Most of these fields have been pumping a few barrels a day for years, amounting to about 27 million barrels a year in Los Angeles County. But beneath this crowded city are some of the largest reserves in the United States, and with the price of oil continuing to skyrocket, there's an urban oil boom underway as drillers renew these aging oil fields.

The $4-a-gallon price may be the tipping point. The price may stabilize soon and hover between $3.50 and $4. This was the best news I heard in a long time. This and the falling price of a barrel of oil, made my day.

I'm going to take my daughter's advice and stop talking about myself. I have no woes or worries. I only have concerns. I'm changing the focus of my blog and concentrating on world problems and not my own.

My new motto is going to be: "I made it. Now, I want to help you."

And so it goes.

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What Gas Crisis?

It's Memorial Day. Where is the gas tax reduction Hillary Clinton and John McCain promised us?

President Bush went begging to the Saudi's on bended knee to pump more oil. Their response: They told him to go take a hike.

Congress drags Big Oil Exec asses back into Congress in a futile effort to strong arm them to lower gas prices. "Don't blame us!", was their reply.

Are we seeing a pattern here, folks? The government has absolutely no control over the price of a gallon of gas. None of their supposed efforts are going to relieve our pain at the pump. Get used to paying high gas prices because they are here to stay. There are only so many more gallons of oil left in the earth. The Saudi's know this and are intent on preserving their income stream. The increased global demand for gasoline (i.e. India and China are adding automobiles on the road at 1000 a day.) must be factored in to the price of a barrel of oil. High prices force users to conserve. Get it, Americans? Conservation is the answer.

America contains the largest oil reserves in the world, 516 trillion gallons at last estimate, yet we haven't built a refinery nor drilled for oil in the past 35 years. Why? Just ask the environmentalists. Those are the asses Congress should be hauling into court. But, they won't. Not if they want to keep their jobs and continue to be elected.

The only person in the media who is actually speaking the truth (in my opinion) is Ben Stein. Ben is telling the masses what they don't want to hear nor face up to. It is up to each and every one of us, as citizens, to take the oil crisis into our own hands and solve our own problems. The government can not get the price of a gallon of gas lowered. Reducing the gas tax does nothing for our future. Berating the oil execs does nothing. Reducing their salaries does zippo for our gas tanks also. Begging for oil is pathetic. Drilling in Anwar, Alaska is a pipe dream. Literally.

Take your clues from American Airlines and the Ford Motor Company. Both Fortune 500 companies are cutting back, retooling and building more fuel efficient modes of transportation. Once the transformation is complete, they will be more conservative, fuel efficient and profitable. If you want to survive this oil crisis and emerge a winner yourself, here are the steps you must take:

1. You must drive a fuel efficient car that gets at least 35 mpg. To continue driving a gas-guzzler is to continue your dependence on foreign oil. Every gallon you burn is a wasted gallon. The solution is NOT to get second job to help pay the high costs of gasoline. The solution is to stop right now wasting precious fuel. Trade in your gas-wasting vehicle, take the financial loss and buy a more fuel efficient car. If you refuse to do this, stop driving now. We should all band together and protest drivers of SUV's, hummers, Jeeps and other gas-guzzling vehicles. These wasteful vehicles (and their drivers) are the real enemy. (As a side note: since I made my switch from an SUV to a '08 Ford Focus that gets 40 mpg, I haven't felt one pain at the pump! Instead of spending an extra $100 a week on gas, I now have been able to save $100 back into my savings account. I can go anywhere, drive anywhere and know that I am not wasting fuel. I am not polluting the environment because the Focus also has zero emmissions. Ford has already done something right. Production of the Focus has increased by 35%.)

2. Take mass transit whenever possible. Don't have train, bus or trolley service in your area? Start annoying your local, elected officials to provide mass transit options to you. Start re-vitalizing car pooling stations. (remember those back in the 1970's). It's easier to reach our local elected officials than those of Congress or the White House.

3. Start conservation efforts immediately. Drive less, use less, become more efficient. It's much easier to make our homes energy efficient thanks in part, to all the technological advances in home maintenance since the 1970's. At least the housing sector stayed on target. Automobile manufacturers are forced now to make drastic changes because we can hit them in the pocket book. Don't buy a gas guzzler despite all the gimmicks (i.e. $2.99 gas for 3 years, free gas for the summer, thousands of dollars in cash backs.) You are only prolonging all our agony by driving inefficient fuel mongers.

4. Shop local. Support your local farmer. Last week I almost paid $12.08 for 2 pounds of California cherries. I live in New York. The high cost of trucking them to my local grocer was to blame for their high cost. Eat seasonally. Utilize an energy efficient freezer (there have been great accomplishments in energy efficient appliances) and store produce for use in the winter months. Tell your food store manager that you will only buy locally grown fruits and vegetables as well as poultry, eggs and dairy products. They'll get the hint. Buying locally will drastically cut down on diesel fuel waste and help lower our rising food costs.

It's up to you and me, folks. No one is coming to save us. I am sure some of us are using our stimulus checks to pay for fuel. I am certain most of us have taken on second jobs or curtailed our style of living just to pay for a gallon of gas. Some are going without a summer vacation. Some are not visiting their relatives or enjoying their lives. Some of us are actually going without eating, or missing whole meals just to put a gallon of gas in their fuel tank. Don't do it. Make the changes outlined above. If you are going to suffer a financial loss because you have to trade in your gas guzzling vehicle, think about what life would be like if you don't. I'd rather work a second job to pay off a car loan and enjoy my life than work a second job or do without in order to pay for a gallon of high rising fuel. Think about it.

If we conserve fuel, they'll be plenty to go around for all of us for many more decades to come. Granted, yes, the cost may remain high, but our efficiency will reap better rewards.

And so it goes.

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Failure To Launch.

When we arrived at the marina last Friday, to make arrangements to have our sailboat launched, we were faced with another Sign Of The Times: the marina had been placed in receivership. The owners hadn't paid their $2.65 million dollar loans since January '08.

Oh, the Mr. and Mrs. Owner, had plenty of salty tales to tell us. Yarns like the bank refuses to take their payments (because they were late and because they didn't have the money to pay the loan on time), they didn't pay their taxes and rental fees in full (because the town was out to 'get them') and other such boring nonsense.

Truth be told, Mr. and Mrs. Owner were in over their heads. They bought a business 3 years ago that they didn't know how to run. On a $200,000 cash investment, the banks loaned this couple $2.45 million dollars. The marina only has 100 moorings. Do the quick math: at $3000 average per mooring, that's $300,000 per season. A 30 year loan @6.5% (with PMI insurance) roughly comes out to $16,000 per month or $192,000 per year. We didn't even get started on the employees and their related payroll or overhead expenses, like electricity and insurance yet! I knew they were having financial troubles last summer. That's why I was hesitant to sign up with them again this season. To hold our mooring spot a deposit was due by January 15, 2008.

I called one of the silent partners first before I sent in my check. I grilled him to the umpth degree. He swore on a stack of fishing bait that Mr. and Mrs. Owner had everything under control. We were told that they only had a million out in loans. The owners refinanced and restructured. All was a go.

So, here we are, on the cusp of Memorial Day, weather forecasts predict that this weekend will be the first sunny, hot, holiday in a long, long time. (It usually rains on Memorial Day Weekend). I am $1200 poorer and this marina is scheduled to be auctioned off to the highest bidder on June 2nd, three weeks away. My sailboat is sitting in my driveway instead of happily floating in the bay.

What do you do in a situation like this? As a typical New Yorker, I screamed, cursed, jumped up and down, pounded my fist and then I called my lawyer. He in turn called the attorney who was appointed by the bank as the receiver of the marina. The attorney assured my lawyer that several bids had been placed and another, more successful and experienced boat marina would be taking immediate control. And that my mooring contract would be honored. My lawyer, however, advised me not to pay the balance of my bill until the transfer had taken place. If everything goes well, the only thing I will have lost will be TIME.

I have absolutely no pity for Mr. and Mrs. Owner. The couple deluded themselves and their clients as to the management of their business. How a bank (2 to be exact) loaned them millions and millions of dollars is beyond understanding. This is a pure example of a subprime loan, the housing frenzy of 2005 and just plain, bad business investing. A recent article in the local paper quoted the Mrs. proclaiming: "We're refinancing. We're refinancing. We're not going anywhere." I wish someone could sit down with this woman and explain to her that no lending institution on the globe would lend anybody anything, let alone millions of dollars, to someone who hasn't paid her previous loans since January 2008.

Word on the town street is that a big conglomerate will be taking over. The transition will be smooth and sleek. The rates will stay the same this year. But over the course of the winter, they'll be remodeling, rebuilding, revamping. Probably put in a upscale sport shop, sell Top Siders and grace the top deck (which overlooks the bay) with a really fine eatery. I expect next year's mooring fees to double.

And so it goes.

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Millionaire Foreclosures.

Why does everyone love to see millionaires stumble and fall? Bankrupt and foreclosed upon seems to have all the New York media abuzz with the recent rise in distressed properties in the Hamptons, NY. The Hamptons, located on the eastern end of Long Island, New York, is a beachfront community composed of some of the wealthiest towns in the world. Villages such as Southampton, East Hampton, Sagaponack and Sag Harbor are home to such worldclass billionaire celebrities as Christie Brinkley, Jerry Seinfield, Barbra Steisand and Sean (P.Diddy) Comes, to name a few. The Hamptons has been a summer refuge for Wall Street millionaire tycoons for decades, as well as media moguls, internet magnates, foreign diplomats and anyone else of wealth. There is no shortage however, in the Hamptons, of the wealthy wannabes. The latter generation touts their money on the back of credit cards, home equity loans, equity leveraging and just plain old bullsh!t.

I know all about the Hamptons. I should. I lived there for 16 long, hard years. I watched all the crap come and go. I moved there in 1985 during the last housing crisis. I was able to buy a $250,000 Hamptons home (expensive back then) for only $135,000 because I had the one thing most Hamptonites didn't: cash. (I later sold in 2001, at the height of the housing boom for a 6 figure profit.) I watched so called big-shots roll in the dough on a Tuesday and then be broke on a Friday back in October 1987. I witnessed the 1990's recession take it's toll on my fellow neighbors. I suffered gently during the dot com craze of the 2000's only to see most everyone's fortune wither and die by 2001. I lived through the shock of September 11, 2001.

It's easy to dislike millionaires. They have an arrogance about them that is undeniable. They are impossible to work for. When one of my bosses wanted to take an extended trip on his yacht one week, I and my fellow employees would get our work week hours cut. I'd watch some of my bosses put in $70,000 kitchens, despite the fact that their wives nor themselves cooked, only to impress a fellow partner or business associate. $30,000 for a dining room table shipped from the bowels of the rain forest in Brazil was just another day in paradise for some. I would laugh in glee as these very same people would lose most of their money during a down period on Wall Street. Yes, most of these millionaires were only so because of Wall Street and the paper profits the street would generate. And yes, I find solace once again in the fact that the economic woes of 2008, has done nothing to teach these fools anything about the economic world of today. Same old. Same old.

The NY Post, a local newspaper, was brave enough to finally list the deadbeat millionaires by name. Some of the Hampton high rollers feeling the pinch are:

* Janice Becker, a regular on the Southampton village social circuit, is facing foreclosure on her multimillion-dollar Wyandanch Lane property.

* Advertising veteran Ransel Potter is defaulting on a $1.8 million mortgage on an Amagansett parcel.

* Real-estate honcho John Conroy is in lis pendens for a $3.5 million mortgage on a Bridgehampton spread on West Pond Drive.

* Former UBS executive Marc Warren is in lis pendens on a $1 million mortgage for a Mitchells Lane pad in Bridgehampton.

* Investor Roger Thanhauser is trying to sell a home on Main Street in East Hampton village to avoid foreclosure.

The Post contacted 13 Hamptons homeowners currently in lis pendens for loans exceeding $1 million. None returned calls for comment.

Nothing shatters a Hamptons' Millionaire more than publicly having other people know that their wealth is in question. Image is everything to these people. It's all a game of smoke and mirrors. With their leased Lexus, BMW's and Benz's, designer clothes, posh eateries, name dropping (guilty), lavish parties, it's enough to make anyone sick. And sick of them I was. I left the Hamptons in 2001 and I have never been back. Ugh!

And so it goes.
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Media, Bad News and the Stimulus Check.

I was recently contacted by a media person (I won't name names) and asked what I was going to do with my stimulus check. He/She wanted to know if I was going to spend it on food or groceries. I gave my reply. The deadline has come and gone. My answer was never printed. I guess it was because I only had good news to reply. You decide. Here's my response:

I only have good news to report and the media today doesn't seem to be interested in reporting the news if it's good.
If you read my blog, I live debt free. Have been doing this since the last economic dip in 2001 (dot com disaster). I learned then that living without debt, a mortgage, car loan or debt of any