Watch this amazing video and be shocked by what is going on in the world!

Tell me what you think?  Did you know these statistics before? 

Either write to me at psingh@rempower.com or leave a message below!

I look forward to seeing you in a future workshop!

Prabhjit Singh

I was excited to see 4 schools from the DC region in the top 100!  Thomas Jefferson High school was ranked #1 across all high school in the United States!  That is an amazing accomplishment!  The following were the other 3 schools from the region were placed: (more…)

Well clearly a majority of America is confused about the economy.  There is no reason not to be in all honesty.  This is basically how it shakes down.  We as an economy are cash poor.  We have leveraged ourselves beyond all measure and now we need a bailout.  Well our economy needs it.  If we do not bailout the financial markets it will take quite a while for us to get out of this economic situation.  Do I believe that bailing out the financial markets is the best thing to do?  Well, I believe that there are a number of steps that could have been taken previous to being in this situation.  But since we are now here, I would strongly suggest that we do the bailout with thousands of strings attached to it.  Their needs to be scrutiny across the board to make sure that every single dollar is accounted for and it goes directly to make this market get fixed.  The last thing we need is that the money goes to pay the salaries of the individuals at the top.  Since the markets are partially the fault of those at the top, they should take a pay cut; I do not see any reason why not!  At the same time the treasury department needs to show to the people of America how this plan will trickle down to help the common man and woman that is having trouble paying their bills!  I believe that is where the downfall is, it is very difficult to quantify this. At the same time, we need to see how long it will take for the markets to get fixed with this bailout situation - most are saying 2 to 3 years!  Well then how quickly will this money then be returned?  Clearly, there are a lot of questions that need to be answered to make this work.  My strong feeling is that a bailout plan will be made but to work for both sides there are going to be quite a few strings attached.  My hope that it includes tight oversight so that every penny is returned to the American people!

So what does this all mean to the American people?  This all means that it is going to more difficult to get any loan!  Any type of loan will be more difficult to get.  It is similar to a dog that has been beaten, when you go near that dog it gets scared and reacts.  In a similar way, the banks are hurting and they are going to be very scared to give loans out.  The other way in which Americans will feel it is that there is going to be instability in the financial markets for the next few years.  So it means that those that do put money in the stock market need to diversify their portfolio based on their risk tolerance.  If you want to play it safe then go with government bonds, money market backed by the government and regular bank accounts that are insured by FDIC.  If you have not already, you need to take your money out of brokerage accounts that are not backed by FDIC.  If your brokerage company goes belly up so will your money.
Make sure that all your money is placed in bank accounts that are FDIC insured.  Not sure if it is, then go this website which will check if your account is http://www.myfdicinsurance.gov.  If your account is not, then you just need to move your money to another bank which is insured.  Generally, it is $100,000 for a single individual and joint accounts are $200,000.

I love receiving emails, so please email me at psingh@rempower.com if you have any questions and/or concerns about this or any of the posts I have made.
I look forward to seeing you all at a workshop soon!

Prabhjit Singh

Yes - the subprime lending issues hit Australia as well.  No suprise that those collateral debt obligations otherwise known as mortgaged backed securities were purchased by everyone.  National Australia Bank has now stated that they have lost over $798 million dollars American due to the subprime crisis.  The bank CEO has stated that the reason they were purchased as that the mortgaged backed securities because were given AAA ratings.   As well, National Australia Bank stock has fallen by at least 12.7 percent.

The Australian dollar has also dropped from $96.18 to $95.53.  Cost of living has also increased at increasing rate, the most in 17 years.

The short answer is maybe. There is quite a bit to know about the economic stimulus before we can gauge what impact, if any, it will have on the economy. Currently, congress and the white house are still trying to create a deal as to what will be in the economic stimulus plan, but there is some positive news. Basically, Bush and congressional leaders have come up with a plan to try to keep the economy afloat, so that a recession does not occur. There is strong belief in congress that if a law is not passed soon, the United States will have a recession, and some are suggesting that we are currently in a recession.

The definition of a recession is when there have been three consecutive quarters of negative GDP (Gross domestic product) have occurred. For the last 3 quarters we have been having positive GDP, in the third quarter it increased 4.9 percent and in the second quarter 3.8 percent. So a recession, not according to the definition and we are not even close until we begin to start having at least one quarter of negative GDP.

So what does this plan entail? This plan costs the American people $150 billion dollars; it gives individuals a tax rebate equating $600 for an individual and $1200 for married couples making less than $75,000 individual and $150,000 married couple. If you, either single individual or married couple, made at least $3000 in 2007 you will still receive $300 for an individual and $600 for a married couple. By throwing money back into consumer’s pockets the hope is that this will ensure that the GDP continues to keep positive and does not become negative. But there is still a clear problem of energy costs being high, and consumer confidence being very low. As well, this little amount of money will not help the ability of millions of homeowners to purchase.

But, there are some parts of this plan that would help individuals purchase and refinance their properties. Specifically, they are stating that they will increase the GSE for a conforming loan from $417,000 to $625,000 which will allow individuals to refinance at a much lower interest rate. As well, they are speaking about increasing the conforming loan limits for FHA loans from $362,000 to $725,000. By taking these two steps coupled with the reduction of the Federal Reserve interest rate, this will allow individuals that currently have subprime loans to be able to refinance them, in theory. The problem still lies in the ability for these individuals to now get approved for loans under the new guidelines which continue to keep changing. This is especially difficult if the individual has been late, and their credit scores have dropped as a result of late payments. This will make it increasingly more difficult for them to refinance their property before the loan readjusts, if their loan is an ARM.