Update On What's Happening With The Economy

Ultimately, our grandchildren will pay for many of our decisions: financially, ethically, morally, environmentally, and socially. Funny, the older we get, the easier it is to see the scope of those small day to day choices. You would think we would be able to understand that reducing our need for oil and credit would bring the system a bit more into balance.

Speaking of the banks, I'm sure you are right that they are trying to squeeze every penny of interest they can out of that money before putting it back into the economy. I heard on the news this morning, regarding the excess overdraft fees, they are going to continue applying the checks largest to smallest, and applying drafts before deposits. Many banks also delay application of deposits. If you ask me, the minute your money is in the bank, it should be applied. I know the capability is there, because I've had accounts that do that.

Now, here is the real kicker. I caught a feel good commercial the other day, a major credit card company is offering a special service for it's customers to help them increase their savings. If you have an account with them, they offer to bump your purchase up to the next dollar, then, deposit the change in your savings account. I don't know about you, but I have yet to find a savings account that has interest rates that even come close to what the credit card companies charge, so, the real beneficiary of this service is the credit card company who has increased the balance of every sale by 1-99 cents, while the poor consumer loses more money by paying interest they didn't need to pay.

I caught two of your segments on economy. Your comments on what would happen if taxes were increased I thought were real possibilities. People will leave, people, will give up and stop trying to develop business, or people will do as in other countries where the free market could no longer thrive and go underground, black market, political psychology teaches that becomes the ideal incubator for an uprising.

At this point, we are all a part of the problem, a part of the solution, or a bit of both.

I heard you speak on Fox, and I am also really glad that we didn't have a run on the banks last year, but it sort of feels like we're using one credit card to pay off the other. Yes, catastrophe was temporarily averted, and as long as the money keeps moving around we're all fine, but as soon as it stops we realize that we all have more debts than assets and everybody's in trouble. That's what almost happened last year, and it could happen again, I think, if we don't fix ourselves by managing our money better. The federal government can't make us do that. They try, but every time they step in, they simply leave us with less money to manage, and our expenses don't seem to decrease. -Aaron Charlton, http://gilberthomes.com/

The effectiveness of the stimulus sure is questionable, and unfortunately our grandchildren probably will be paying for it. Hopefully they will see some benefit in what they are paying for.

I think you are right, the banks probably are building up their balance sheets right now. The reason being, is probably anticipation of becoming a more attractive takeover target for newly formed banks or other companies either in the USA or abroad. Using our tax money to prop up the value of their stock until it can be sold or swapped at a premium.

The capital market is not always a math game. Both Twitter and FaceBook just received very large infusions of venture capital and their earnings history seems to not have mattered very much in this equation.

There is a big demand for profitable lending that is not being met right now. Someone will fill that demand, and it seems likely that there will be some new big players in this market in the near future.

There is a lot of money to be made meeting this demand. Hopefully it will be met very soon.

Best of Luck$$

Alex

Dear Mr Trump

Other then greed one of the major reasons we are in these crises is because the bankers of the world began creating derivatives out of derivatives out of derivatives the funny money.

In 2007 when house of derivatives started to fall the richest people started screaming bailout. A bailout is a term used by rich when they want tax payers to pay for the mistakes greed or their fraud.

To you Trump: the "Overt Optimist." With a lovely and fantastic family such as yours, and you doing what you love, I would be an "Overt Optimist" too. Matter of fact, I am an "Overt Optimist."

It will be a struggle for the economy to become right for us ordinary people because the banks will not think out-of-the-box of their traditional though patterns, into a better, sustainable and superior way. And the ordinary people must become better and improved managers of their money and stop falling into the "obvious" traps of the banks. It takes "two to tango." With the money the Banks are squeezing from the people, the banks are repaying back their loans from the government (we the people) with it so that they, the banks, can go back to their old ways of doing things, such as paying their incompetent associates huge bonuses for damaging the world economy. It is insane to hear politicians and news people say that the American people are making a profit from the money the government gave to Wall Street. I have not received a check reflecting this profit.

As I told Tina Merritt, the terrible campus environment in which the colleges and universities are turning out new leaders for tomorrow, bad history is certain to repeat itself, which is obvious from the present leaders of today. Plus, on the news today, there is this big commotion about sex and "sexiles" in the co-ed dormitories. "Sexile" is when a roommate (male or female) is exiled from their room by their roommate while that roommate is having sex. The universities and colleges are still turning out covert irresponsible knuckleheads who will enhance, then destroy the economy and the world permanently, if there is a next time, unless the other nations of the world are smart enough to protect themselves and distance themselves from America’s future economic system.

By the way, on December 2012, the doomsday many people are worried about, will not happen. Get that trash out of your mind and focus on how to better your future. Focus.

The Europeans nations are distancing themselves from America’s economy by attempting to strengthen their Euro currency and staying away from the dollar. Many other nations are changing to the Euro. And if China ever calls in the debt owned to her by America, our grandchildren won’t have to pay for America’s deficit because America will then truly be a third world country, unable to pay, with a decayed infrastructure and a decayed armed forces. China (and Japan) owns America.

Unlike the foolish auto industry that was forced to see the light and change and do what they should have been doing years ago for the people (they are probably lying about their sudden increases in gas mileage), Wall Street will not change. But hope springs eternal and Our faith (in God’s Love) is strong. This world is not my source. It is to undependable. God is my Source.

Children like yours Trump, show that America’s higher system of education can turn out extraordinary good and intelligent people, so all is certainly not lost. America still is the home of the brave and the land of the free. And Americans must fulfill their glorious destiny. No, not the American Dream, but "God’s Dream," which is to (1) love Him, (2) love one another and (3) prosper greatly. That is sustainable. But beware of religion. Do not be a degenerate soul. Be a free spirit.

Sincerely, your friend and "Revolutionary Entrepreneur"
Nimrod

Dr. Nimrod Erech M. Christ Nimrod
Nimrodworldpeace@aol.com.

It’s an interesting point of view from someone who actually h an authority to say something regarding bailout of banks. I wonder what your opinion is, Donald, about curbing bonuses of bankers and how banks should decide who to lend to (to avoid subprime crisis again).

<a href="http://blog.thelogichouse.co.uk">http://blog.thelogichouse.co.uk</a>

I still think that debts on both personal and business level are too high, and to have a meaningful economic recovery we need lower debt levels, and increased savings. Of course this means economic pain while the debt excesses are liquidated, however in the long run it is a better solution.



John,
http://www.canadabanks.net/Investing.aspx

The banks should be serving the people now considering how they did not in the past. At least some banks. But I guess most of those banks are not even around anymore.

Can't they get stable and help people at the same time. The banks are there for the people and for the country.

The banks are not there for the banks. Sometimes you have to be a little flexible.

Mr Trump

Some famous person said once "To look forward we must first look back". So what's happened. When the Clinton Administration left power your country was in the black, the previous administration left the country in the red, they spent the money and then some, which has seriously weakened the banks, as well as the global economy. A terrible sin in my book, we have had to watch the money disappear on a massive scale, so now this Administration is trying very hard to resolve the problem. Looking at it from my window I believe the problems that were created at the highest level should be resolved at the highest level, in other words, the vast amounts of wealth that America and other rich nations hold, should be released (or at least some of it) to the banks so that they, in turn, can start lending.

I believe one day the G20 will hold another meeting and a decision will be made to 'flick the switch' and then and only then will the economy start moving again.

Just as a 'by-the-way' we in Australia have a Prime Minister who made the decision to release a stimulus package, the majority of tax payers received a one off payment of $1,000, it worked, Australia has remained boyant and the experts are putting it down to the stimulus package. Needless to say our Prime Minister is currently enjoying an 'off-the-scale' popularity rating!

I'll be listening out for what the G20 has to say next time.

Corinne Clarke
Perth Western Australia
PS: Have faith in your President, he cares....
PS: And Mr Trump...It's Spring time here in Perth, it's a long way from New York I know, but if you want to escape for two or three days, it's a nice place to visit and a good time to make the journey now.

International Currency Fund IMF says that worlds economy is going up faster than forecasts have shown before. In Finland has buying and selling flats increased almost to the level as it was in peak years but the unemployment has getting worse.

This a good site to visit and see how the markets are conducting:
http://www.nytimes.com/pages/business/index.html

Thanks Mr.Trump!

I do appreciate the work you've done in many ways! I got inspired both in life and work ethic!

I'm from China and working as ESL teacher in SHANGHAI. been quite long time watching THE APPRNEITCE ever since 2004. the show used as teaching materials for adults studens who doing business in ShangHai. which effectiveness! influenced a lot of people!

I got an idea for your company and think would be good way to expand recognizable of Trump International.

design a high-defination video ads of Trump International. put it on the internet and encourage people to download it. easy for people used as enjoyable, teaching, inspired! cause you got that power to do this!

thank you Mr.trump!

The cyclical nature of economics, patterned much like nature, is fully dependent upon the minds and decisions of Mankind. It is unfortunate that so many minds where on the same track which caused this behemoth of a mess. But as with all things made by 'Man', it too will take 'Man' to also undo it.

The banking system is one of those things (created by 'Man') that was designed with flaws, and the industry leaders have spent countless years trying to correct those flaws which still persisted. Mainly due to a misplaced focus on 'the few' vs. 'the many'. Paulsen was hard-pressed to make the decision he did, to not bail out anymore businesses and Bernanke was perfectly right about the 'why' of this crisis as well as what the government, the business leaders, and the consumer must do to correct this mess.

But building up balance statements to be more attractive to "newly-formed and/or smaller banks" is verifiably incorrect! Yes, banks do build-up their 'assets vs. liabilities' (as all businesses do), but not to be more attractive for any potential takeover - - and especially not from a 'smaller' competitor! The building of assets is to appear more attractive to high-level investors IN CASE OF any future business financial needs; and/or to appear more attractive to LARGER banking or business institutions.

President Obama's 'Stimulus Plan' was put in place in an effort to aide in the ENCOURAGEMENT of the cyclical pattern of the flow of money between all parties involved (i.e., The Federal Reserve, Banks, High-Level Investors, Other 'smaller' Banks and Financial Institutions, Businesses, and finally the Consumer.) And as our President so clearly stated, "IT TOOK US SOMETIME TO GET INTO THIS (humongous) MESS AND IT WILL (no doubt) TAKE US JUST ABOUT AS LONG TO GET OUT OF IT!"

Problem is, is that our society is so undeniably accustomed to a 'McDonalds' pace of life wherein you place your order and BAM! there it is. Well, it just doesn't work that way in the arena of "world economics," no matter how advanced our technology. Just as dependent as 'Man' is on the decisions and actions of our decision-makers; so it is that technology is dependent upon the action or non-actions of inputting the required data for technology.

Yet, some (erroneously irritated) individuals have failed to conceive of these economic concepts and stand up in the midst of a seminar about 'Real Estate' (not Economics, or Finance) and loudly declare, "Yeah, well I don't see where I'm getting any benefit from this (so-called) 'Stimulus Plan' for my business or personal finances. I'm not seeing any cash coming my way....so how can this business acquire some of those funds?" - - as others look upon that person wondering what planet is he on - - and what did that have to do with the subject the Presentor was speaking on (clue: it wasn't about The Stimulus Plan or President Barack or the Government).

And YES, your grandchildren will be left holding the buck on this. That is certain. But Americans can choose now to decide to alleviate some of the pain of that by coming to terms with a new financial reality. By enriching your grandchildren with a precise understanding of economics and by establishing the proper funding sources for their futures (iinvestment funds: trust, savings, etc. - whatever you can do, including insurance that covers their future lives).

America must be re-structured, re-engineered, and yes, Corrected or as one person indicated in the comment's stated here - we just may become a third-world country - if we don't do whats right now.
And this can happen - BUT - only if this re-structuring encompasses the whole spectrum of "Mankind" - - not just "The Privileged Few" but instead every Man, Woman & Child; and ONLY IF the system's that comprise America's economic foundation are efficiently analyzed, re-adjusted, re-regulated and distributed in a more equitable manner. BUT tha

"Only Time Will Tell" if the graduates of Finance know what is best for the economy. As for our grandchildren paying the price for economic turmoil, they would have to die to escape paying to live.
Will the price of living continue to escalate? More than likely. At least it has for the entire time the United States has been an established country. So why change what has been working?
When the economy favors your interests, we are the greatest country in the world. We give money and donations to charities in return for recognition as being a generous and wealthy country that others envy. A little rumble and people are acting like we all need to be heading for higher ground.
The highs and lows of life keep it from getting boring. It allows new thinkers to step forward and make a contribution to humanity. These differences add to courses taught in colleges, establishes new businesses and clears away old and cumbersome ways of functioning as a whole unit, rather than focusing on individual parts (such as the banks).
Quit complaining! Some people don't even have a warm bed to sleep in tonight. Why not show the "True American Spirit" and encourage people to send a warm comforter or some blankets they have laying around the house that aren't being used so they can help the needy? Clean out the basement, attic, closets, and drawers, and get the kids involved. I'm sure they can donate some toys they've outgrown or books that they've already read.
As President John F. Kennedy said, "Ask not what your country can do for you, ask what you can do for your country." His wisdom is still meaningful.

I am Thankful for the stimulus package, I needed it and I got Very lucky to recieve it. I hope the Banks will see that it DID help the unemployed.

I was listening to KNPR on my way to work recently, one woman has tried like 20 times to purchase one of these lowpriced houses. She had FHA financing approved, a nice down payment, and a good credit score. But the banks keep taking the cash offers from out of country sources from investors. The banks just don't want to lend the money. Heck, foreigners don't need to bomb us....they can just buy us! What's wrong with this picture?

We are all upside down with our mortgages in Nevada now. We were stupid and let our homes be our investment for the future. Now there is no future in our homes....baby boomer generation doesn't have enough time left to let the market gradually recover. So they are declaring bankruptcy so they can live out their lives without having to work 2 jobs to make ends meet, or until they drop in their tracks trying to keep up. If we were younger, we would see things differently, but losing all the equity in your house and being underwater really sucks. What choice do we have really? Anyone with suggestions?

I am not economist, but it does not mean that i do not know something about economy. As I observe
the state of economy, i can understand the simple plain word which is affordability..It is a common
sense that the economy of a nation is supported by domestic spending of average consumers. It is
equally clear that growth of the house market can not be sustained without synchronized growth in
household incomes. When the growth in household incomes under pace that of the house market, the affordability becomes an issue.Sometimes as an economy obsevant, i would rather have get payday loans to give my family good sustainance. Read more click http://personalmoneystore.com/Payday-Loans/

The banks might be witholding their services for now, but in the future, I am willing to bet that things return to normal, if not better in ten-fold.

There are a lot of ways people can get financial assistance without having to deal with a bank or use credit cards, and one of the more recent forms was the invention of payday loans. Similar services have been around for hundreds of years – all payday loan is a small loan that you pay back on your next payday, rather than multiple payments that never touch the principle that get paid until your children are dead like credit cards require. Whether you find them called easy payday loans, payday loans, paycheck loans, or no fax payday loans like from an online lender, it's a quick and easy way for you to get some fast financial assistance. For more readings, please have trim to visit http://personalmoneystore.com/moneyblog/2009/10/08/payday-loans-cash/

To many people the term tax rebate connotes the happy idea of a government sending back some amount of taxes already paid, which may occur or be recommended by governments during lean economic times, or when taxes are over-collected. There is a lot of interest in what people do with tax rebates – but no one seems interested what people do with payday loans, if they use them. A study by University of Chicago faculty from 2008 found that payday lending declined in people that use payday loans towards bills and assistance declines around the period of tax rebates, but lending to those that used payday loans for discretionary uses didn't. This means that the average person uses their <a rev="vote for" title="Payday Loans and Tax Rebates: How Consumers Handle Shocks" href="http://personalmoneystore.com/moneyblog/2009/10/16/payday-loans... ">tax rebates</a> and payday loans for real reasons, and is taking responsibility for themselves.