Texas, Debt, Government, Observation, Importance

Texas protects their citizens.

I was talking to someone from Texas the other day. He states that he went to a mechanic. He paid the company $3,000 to fix his vehicle. He said he drove away then a week later he had the same problems. He goes back to the mechanic and asks for either a refund or the problem to get fixed. The owner/mechanic states that he already spent the money. Also mentions that he would not fix a car for free. The customer, like any other reasonable person, looks into what his legal rights are. He finds out that since the company does not have any assets you can not get the funds back from the company. The customer also finds out that Texas law makes it very difficult to go after the owner of the company. Especially if the owner of the auto repair shop does not have any assets.

The man I spoke with also mentions that there are others in the "good" state of Texas that drive without insurance. He states that when these (lacking insurance) individuals get into a car accident. The person who got hit is unable to sue for damages at person who hit them (if they don't have assets).

This policy encourages people to be poor. According to what this man said, nobody in Texas can be sued for damages if they are living in poverty.


Debt Purchasing.

I overheard two men talking while I was eating breakfast one morning. One man read to the next. "Sub prime debt is a serious issue in the United States..." Then starts mentioning that the company (supposedly they work for) was looking to purchase sub prime debt if it becomes affordable. The man mentions "sellers of this kind of debt are pricing it high..." "Our company will be looking to acquire sub prime debt once it becomes affordable".

I was just flabbergasted. How stupid. Of course the price is high. The sellers of the debt know that the so-called debtors will me more unlikely to pay off their debt in the future. With rampant inflation and job loss, one who was in a bad loan from the start 3 years ago is most likely in a severely worse situation today. These individuals probably are depleting their savings, soon without anything. On top of which, there are states that protect the debtor from paying the debt after a certain amount of time (no legal action can be taken). Everyday that goes by, that is one loan that may not ever be paid back. You might buy the debt at 10 cents on the dollar. If only 2 out of 10 are paying and once you add in overhead...

Is this the kind of investment that a large corporation should be taking with shareholder's capital? Absolutely not. The Alt-A debt securities market has a tremendous amount of risk and very little return IMHO. There are a lot of markets out there that have very little risk at this stage in the economic cycle. Can anyone say government-backed debt securities or Dow 30 corporate bonds? Worse comes to worse, either the tax payers pay you or the shareholders do.




Payment cycles.

Most credit cards start to only charge you interest once you receive your first bill. Conveniently enough, there is a way to increase your credit card payment date by 14 days. Be aware that this is a system only to be used by those who are financially responsible.

Most credit cards have a system in which you don't get billed for your payments in less than 30 days. All one has to do is charge something on the credit card when it is 29 days until the payment cycle to get an extra half month to pay off that purchase. That little bit of time could make the difference of one starting a new job or selling items around the house to pay for living expenses (i.e. avoid having the lights turned off).


Coupons.

I am fortunate to have a wife that enjoys cutting coupons. This saves us at least $30 a week, $1560 a year (if not more). We feel that this money is just lying there, all one has to do is make the effort.

It also helps to eat similar items every week. Of course monitor what items yield the most per dollar. Look for prices on common items at different stores. The wife and I noticed that some cleaning supplies are a few dollars cheaper at Menards and some frozen foods are at least 60 cents cheaper (per unit) than at grocery stores even after coupon.




Gasoline and Rant about Government.

I don't know about you, I think that gas is getting cheaper. That must be because our "Mighty Greenback" is strong. It must be because ethanol is taking away the demand. It must be because Big Oil has decided to stop gouging their customers. It must be because we have a lot of exports. It must be because we are paying off our national debt. It must be because the war is ceasing in Iraq. It must be because we have learned to stop consuming as much oil as a nation.

No. NO. No. Absolutely Not. NOOO! No. Partially No.

Frankly speaking, we are not producing as many goods. It costs the producers too much to make the goods that they are closing up factories. The workers can not buy as many goods because they are not as many jobs. Meanwhile, certain large industries are being compensated (with tax payer money) to produce their goods (Pharma, Insurance, & Energy). These goods are obviously inflated which prohibits small town factories from sustaining their humble operation. To compensate for the loss of jobs (and consumer confidence) the government creates jobs (homeland security). This reaction does nothing but takes away the purchasing power from main street America by creating over-paid, non-producing counterparts in Washington DC. Said tax payer money *should* be going for assisting businesses that have difficulty maintain cost of operation. So that these mid-America jobs can create goods that can be exported. Those exports are sold affordably (USD at historical lows) to other countries that appreciate their buying power.


Corralation to Observation.

One of my coworkers noticed a few months ago that time moves (or at least seems to move) faster the fewer times you watch the clock.

He has gotten to the point to tape paper on his computer screen to block out the time. Being that no more than 3 people at work actually look forward to working (unless they are front loading hours to leave early on Friday) on any given day, he makes a good point. I have done the same.

It forces your mind to occupy it with something other than counting the seconds. It encourages you to be creative with your downtime.

Reason I am mentioning it here. Perhaps the accumulation of money works the same way. The least you watch your pennies on a daily basis the more your dollars with grow. Obviously if you are responsible with your pennies you will eventually be responsible over dollars. But it is the point that the more you observe and focus your mind on how far you are away from your goal, the more anxiety and doubt you have about actually meeting the goal. -Just an idea.


I Can't...

Anyone who says "I can't", won't. If you want something say "I want". Then figure out a way to do it.

Everyone has just as much ability as someone else. There is an equal amount of good as there is bad in every situation. Someone my be better situated currently for what you desire. However, if you are willing to work harder for it then it is already yours.

When pursuing your dreams make effort to figure out how to provide others with what they want. Usually if you concern yourself with others, you need not be concerned with yourself. Within reason, of course.




Everyone needs to feel important.

Something that I was just reminded of recently. The next time someone acts in a manner that is absurd in your mind, ask yourself "How is this person showing their importance?"

People are motivated by unmet needs. Satisfy ones need to feel important and they should realize their mistake on their own.

Compliment what someone did good. Where you would normally criticize, just make general logical statements. For example, "People rarely get successful by saying they can't." This would take defensive pressure off the one who made the mistake and their decision. Then the person who you are trying to influence would be more willing to listen to your advice.