Bush and Bernanke support stimulus package

Bush and Bernanke are about to unleash a "stimulus" package to "get the economy moving again." According to Yahoo:

When asked by lawmakers about the potential effect of a fiscal stimulus package totaling around $100 billion, Bernanke said that the economic impact could be "significant" and not "window dressing." Some have floated packages that would range in size from $50 billion to billion to $150 billion — all of which are in the range of "reasonable," Bernanke said.

Rebates can be useful, he added.

"Getting money to low and moderate income people is good in the sense of getting a bang for the buck" because they tend to spend it quickly, Bernanke said. Research shows that the affluent spend some of their rebates, he said.

So, let me get this straight. Millions of people are in houses that they can't afford. They owe more than their house is worth. They are under water by tens of thousands of dollars, in some cases hundreds of thousands. They have enormous credit card bills they cannot pay. And the banks are begging hat in hand from the Chinese government for a bailout.

The US dollar is falling fast, and yet, the US government and the chief of the Federal Reserve think it is a swell idea to print $100 billion and hand it out. That will certainly make things better, they think? Are they that stupid?

Do a mortgage short sale, cut debt

What people need now is to save money, not spend it. You probably don't have enough money in reserve to make your payments or pay for emergencies. And everyone should have that much reserve. If the government prints more money and hands me some of it, then I will take it and buy gold with it. I will save it. I will cut back on my expenses. I will get out of real estate. (I'm already out of real estate. I rent. It's a great time to rent.)

This is the time to stop spending and start saving. For those of you who are scraping by and struggling to just make your payments, it is a great time to get out of that house. Do a mortgage short sale. Make your loan your lender's problem. There are buyers out there but they want a rock bottom price. If your lender gets all the proceeds, you just have to sell the house for their benefit, so whatever it brings, it brings. You don't care what the price is, so long as the lender accepts the short sale.

The foolishness of the Administration is that somehow, putting $500 in your pocket or mine is going to magically make the bankrupt banks whole again. Or that somehow, spending more money on Chinese goods at Walmart is going to be "good for the economy."

What is good for the economy is a good recession to bleed out the excess and write off all the bad debts. It isn't pleasant but it's the best thing that can happen to us. It will happen and hopefully not turn into something worse.

Be prepared. Don't run out of cash. Read Should you stop making your mortgage payments?  and if you are a real estate agent, read real estate agent short sales.  And for sure read financial freedom, surviving the 2008 meltdown.

And please get my home study course Mortgage Relief Formula which tells you how to do professional short sales in any situation, how to slash credit card debts while raising your FICO credit score, how to buy with no money down and no credit, and how to sell your house in nine days, or if you are a real estate broker, how to sell a house every weekend while your colleagues starve. I never share your information with anyone and you can opt out anytime.