Accountability

Someone has to pay. America has always had a strange relationship with its would-be criminals. They love Bonnie and Clyde, Machine Gun Kelly and more recently John Gotti. Yet seem to loathe Ivan Bosky, Michael Milken and Gordon Gecko. This really goes back to a Robin Hood mentality that it’s okay for underdog to take from rich but not okay for rich to take from people. This is a lesson that Martha Stewart is learning hard way (not to say she’s guilty of anything, but if she is…) with her current stock sale imbroglio. At end of day it really only becomes an inconvenience for those staying at Club Fed. The key is that average person on street needs to feel like there is some fairness in this world. Before getting back into stock market those whose lives are marked with rules, regulations and spending time in traffic court to fight a ticket must see an equal distribution of justice.

Economy

The economy has to continue to grow. It is unreasonable to think that a transition from a recession to a would-be expansion could happen without a few bumps in road. Of course with so many things going against economy that have nothing to do with fundamentals it is hard to figure when coast will be clear. A company like WorldCom says it may have fibbed to tune of $4 billion dollars and confidence in America suffers. That puts additional pressure on dollar, a greater focus on rating agencies to be even more aggressive in their downgrading binge. It causes net outflows in funds. It lowers wealth effect and hampers economy. Yet American economy has an iron will. It will be dinked a few more times, but that is what will make move into expansion that much impressive.

New Thinking

The mindset of quick payoff has to be eliminated. I don’t think one can be a passive investor anymore. In fact, same decisiveness that investors are demanding from system, ratings agencies, brokerage firms, governing bodies and corporations themselves they should apply to their approach at stock market. In a recent Business Week article it was noted that turnover in NYSE issue in 1960 was just 12%, last year it was 94%. That means there isn’t always a lot of time to peruse or hesitate. In some ways it is unfortunate that companies aren’t allowed to evolve or reach their goals over a longer period of time. Yet this is world we now live in and investors have to adjust.

Earnings

Much is made about market still being over valued based on historic price to earnings ratios. This is because companies have no pricing power and are afraid to force issue. Moreover there is still inventory overhang and fact that some industries are too crowed –back to modern day baseball theory. Creative destruction and an improving economy are only things that can make this situation improve. There are other ways to measure worth of a company beyond P/E ratio. However, in order to feed into economy earnings have to be a tributary allow for job creation, research and development spending and an improvement in wealth effect. The most compelling aspect of better earnings is that investors have to believe in sincerity of numbers.

2. When will my creditors be paid? Some counseling services have a set date each month when they take money out and apply it to your debts. Sometimes, creditors wind up being paid after their due dates. Make sure that counseling service will work with your creditors to change due dates or will set up your payment schedule based on when you get paid. The best services will work around your payday and your bills’ due dates.

3. Can you take money electronically out of my checking account or will I have to send you a certified check or money order each month? You’re much more likely to stick with a repayment plan if making that single payment to counseling service is a “no-brainer.” If you’re pressed for time and don’t think you can get to your bank each month to get a certified check, make sure counseling service will take money out of your account electronically.

4. How often can I see statements of my accounts? Your counselor should send you at least monthly reports on your progress. The statements should show you how much of your payment is going toward interest, how much toward minimum payment and how much toward counselor for his/her services.

5. Will I always deal with same counselor, or at least get a live person on phone when I call during regular business hours? How long does it take for you to return phone calls? Make sure you’re comfortable with answers you get here, and that you’re comfortable with people you might be dealing with. After your free budget counseling session, call your counselor once or twice with questions you have about budget paperwork to make sure that you don’t have a problem getting your questions answered and your phone calls returned.

There’s no obligation or payment due to any good credit counselor until after you’ve determined what your monthly payment would be under plan and you’ve decided to join their program. I encourage you to explore all your options and then pick one that makes you feel most comfortable