Well, I finally got everything to work properly so I will start with what has happened this week. I hope most of you already know what happened to Bear Sterns. For those that say big deal who cares well you should and here is why.

http://www.marketwatch.com/search/?value=bear%20sterns
If you like you can read all about them!

Bear Sterns was one of the top five firms in the nation. They are part of American History; 85 years they have or should I say had been in business. They made their mark through the years as one of the best for taking such high risk, they were also one of the big players in the great depression. (That’s important)

So what do we know about the company, other then it was just sold for $2.00 a share on a fire sale on Sunday evening. That’s right Sunday evening how did that happened? Well there was a meeting of the minds after the company lost 40 percent of its market value when it announced "it had suffered severe liquidity" problems within 24 hours. How do you suffer "sever liquidity" problems in 24 hours? Simple, the answer my friends is a "margin call" this is when a loan at a great rate from other banks was called in. When they call it in you basically have 24 hours to settle the debt. Imagine if one of your creditors that gave you a home equity loan at a great rate wants their money in 24 hours. This created the "severe liquidity issues"

Now you say but shouldn't they have known that they where running out of money? Absolutely but it doesn't help when the CEO keeps saying everything is alright. Does this sound familiar? They have been dodging questions since December about their balance sheet. So the who’s who met on Sunday evening to “force” the sale of the company to J.P Morgan. FORCE is the key word here, the feds stepped in to “help prevent” more damage to the financial markets if they would of failed. Seems to me that they already had, but there is more to it then that.

J.P Morgan is known to be there to bail out other companies in trouble this is why they are so successful. Imagine your competitor is having financial difficulties because of bad management. During the weekend you meet with the federal government to discuss buying the company with a loan from the feds as long as you agree (who wouldn’t) and by the way its basically given to you for peanuts.

So why is this important? Because I said so, just kidding these two big names that our part of our history were major players in the “Great Depression” coincidence? I say not my brother this is all part of the American Way. The feds lower interest rates so you can borrow money, like you probably did in the past few years from your house that now most likely has zero or negative equity. So you took money and probably shopped with it, some were smart and invested the money but “most” shopped. So interests rates are up foreclosures are up and now you have to pay that borrowed money. With what are you going to pay that money with, hey why don’t you refinance your house and pay off the debt? The thing is you are not paying the debt you are simply transferring it to someone else. Wake up people!

It’s time we start to take notice and understand how GREED has gotten us to where we are today. I am tired of hearing “I don’t watch the news because it’s bad news”, no news is good news, blab la blab la and now you want help for your bad decisions.

We are in the information age and it’s time we start to take advantage of it and educate ourselves. I am not a conspiracy theorist but I think everyone needs to watch http://zeitgeistmovie.com/ to better understand why we are in this mess.

I will do my best to help you understand but I can not do it with out your help, we must make an effort to educate as many people as possible. It is education that will empower you and help negotiate a short sale, credit card rates, and stop foreclosure!

Good Luck
Carlos