Linda Ferrari, President of Credit Resource Corp. and regular Biz Fit Contributor, has just announced the release of her new book: The Big Score - Getting It & Keeping It - Buying Power For Life.  Not all credit advice is good! With years of experience in this business, I can tell you that most of the information you hear or read about credit improvement contains erroneous, or blatantly false information.  Consult a trusted source!

- Kory

Click Here to Read A Sample Chapter Now!
Click Here to Download the Table of Contents

Jim Cramer speaks in the below video about how when he was a hedge fund manager he could manipulate the stock market for profit.  Jim consistently offers inside information that most “Insiders” would never want to let out.  This video is from 2006 and sheds light onto how corrupt our system has become.   

Jim Cramer Speaks about how Stocks can be Manipulated by Hedge Funds

These may be times of great stress and uncertainty, but you can handle stress better if you are physically fit.  Challenge yourself to the old-school Presidential Fitness Challenge, now modified for those of us no longer in Junior High School.  Go to http://www.adultfitnesstest.org and participate in a few fitness tests.  See where you stack up against the rest of the desk jockies and arm chair quarterbacks!  Unfortunately, there’s no cool patch to sew onto your gym clothes.

At last some minor relief at the pumps.  Gas is desperately trying to get back to the $3/gallon mark.  To find the cheapest gas in your area (or an area you are travelling to) try yahoo.com.  Type in “gas” and the zip code you are headed to and you will get a list of the cheapest gas for the day.  You’ll even get a map showing the 4-5 top locations!

Read the below article and before you get to the end try and figure out what year it was originally pubslished.      

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Experts: Bank Crisis Risks Turning Recession Into Depression

Knight-Ridder Newspapers

WASHINGTON - People are starting to make nervous jokes about pulling their money out of shaky U.S. banks and stashing it under their mattresses instead.

But the banking crisis is no joke.

It is real - so real it risks turning the emerging recession into the biggest economic nightmare since the Great Depression of the 1930s.

“My own view of this tends to be apocalyptic - that we are on the threshold of a ’30s-like experience,” said David Cates, chairman of Ferguson & Co., bank consultants based in Dallas.

“The banking system is under tremendous strain. Should it begin to unravel, recession could easily become an economic disaster,” said a recent editorial in Business Week magazine.

Not since the Great Depression have U.S. banks been so weak as the economy entered a tailspin. Banks are trying to strengthen themselves by cutting back loans to reduce their risks. But that is creating a “credit crunch” that makes the economy even weaker, because the crunch is denying many companies the money they need to conduct or expand their business.

“The risk here is it’s going to feed on itself. As the recession gets worse, it compounds the banking problems,” and vice versa, said Lawrence Chimerine, senior economic counselor to DRI/McGraw Hill, consultants of Lexington, Mass.

To be sure, the crash of the U.S. economy is not necessarily imminent, nor even likely. But for the first time in 60 years, the shadow of that fearsome specter is visible and growing.

How great is the risk?

To deposits, absolutely none, if they are in federally insured bank accounts. A senior Treasury official and a dozen independent financial experts that were consulted stressed that. Insured deposits are safe because they are backed by the full faith and credit of the U.S. government.

But ultimately that means they are backed by taxpayers - who unfortunately are at rising risk.

Taxpayers may have to bail out the sinking federal bank insurance fund, experts warn, just as they must pay up to $500 billion over the next 30 years to bail out deposits in failed savings and loans.

“The banking industry has not reached the dire straits of the savings and loan industry, but the potential risks are there,” the Congressional Budget Office concluded earlier this fall.

Those risks are rising - both for banks and the economy. What is of concern are trends like these:

– Almost 900 banks have failed since 1985, more than twice the number closed between 1934 - when federal deposit insurance began - and 1979.

– More than 1,000 banks are on the Federal Deposit Insurance Corp.’s problem list - four times as many as in 1981, the last time the U.S. economy entered recession.

– The emerging recession is driving loan defaults up and bank profits down.

– The federal Bank Insurance Fund (BIF), which insures deposits, is at record low levels and sinking fast. It is projected to fall to $10.2 billion by Dec. 31, providing only 51 cents of coverage for every $100 in insured deposits, far below the $1.25 per $100 ratio prescribed by law. Failure of any one of the top 10 U.S. banks alone could wipe out the BIF, the Congressional Budget Office concluded.

– Consumer confidence - the cornerstone of banking - is plunging, surveys show; experts fear public faith in banks could be shaken dangerously if any major bank should fail in this climate.

– Stock values of the biggest U.S. banks, such as Citicorp and Chase Manhattan, have plummeted 50 percent since July.

– To shore up profits, banks are cutting back loans even to credit-worthy businesses, shrinking the already-slowing economy.

When assessing these risks, most experts agree with James Barth, an Auburn University finance professor who witnessed the S&L debacle from the front lines as chief economist for the main federal S&L watchdog agency.

“There is no clear evidence right now that we are headed for a recession that would be anything like the one in the 1930s,” Barth said, adding: “Having said that, not too many years ago I would have simply dismissed (such talk) . . . I would have just said, never again could there be a Great Depression. Now I don’t say that.

“We could have major financial failures that adversely affect the economy. . . . Now I might say that’s on the order of 5 percent (probability) or so. Not very high, but high enough to concern me.”

High enough to also concern President Bush, Treasury Secretary Nicholas Brady and Federal Reserve Board Chairman Alan Greenspan. Each has met recently with groups of bankers, imploring them to boost loans to the credit-hungry economy before it starves and shrivels. In exchange, they promise regulatory relief for banks, which they already have begun to deliver.

Copyright (c) 1990 Seattle Times Company, All Rights Reserved.

Pretty amazing ehh??? Chilling almost the similarities to the current state of affairs.  The point is our economy is never as good as it seems and certainly is never as bad either.  The American economy will weather this storm and again will emerge as the pinnacle of capitilsm.  The only question remains will we be dumb enough to repeat this process another 20 years from now?

In a press conference from City Attorney Michael Aguirre he made an announcement that a deal had been reached with Countrywide Home Loans to help alleviate the foreclosure crisis throughout the entire county.  His case essentially asserted that Countrywide made loans they knew couldn’t be repaid and therefore were illegal.  Subject to that fact Coutrywide will be forced to halt foreclosures and provide reasonable work out options with lower interest rates and affordable terms.  More details are to come, in the meantime watch the video of Attorney Aguirre at the below link.     

Aguirre Countrywide Annoucement 10.6.08

The original complaint pleading filed on July 23, 2008 can be viewed here. 

San Diego City Complaint Against Countrywide Home Loans 7.23.08

Priscila Rodriguez from Manalo Realty joined us today to discuss the Chula Vista, CA Eastlake market and showcase a tremendous home she has listed.  The same home just a couple years ago sold for over $500,000 and currently has a short sale approved acceptance price of $310,000.  That is a 38% drop over the high sales mark just a few short years ago.  Homes in this area have become a tremendous value and the affordabilty has soared.  The idea that an average working class family can purchase a home in a nice San Diego neighborhood has returned.  Priscila will be happy to help you with a purchase of this home or something else that may be more fitting of your needs.  She can be reach at the following contact points below the property details.  Until next time on Biz Fit, happy house hunting, take advantage of our discounted market and the lending party our government is throwing. 

Priscila Rodriguez 2437 Fenton Street, Ste. A Chula Vista, Ca 91914 Direct: (619) 921-6154 Priscila@PriscilaRodriguez.com

Today on the program we touched upon the financial problems are economy is facing and how you as a consumer can whether the storm.  John Howells, CFP from AXA Advisors joined us to lend his expertise.  Our special guest John was joined by our colleague Sandy Fitzpatrick, a fellow General Mortgage Loan Consultant.  For more information visit www.sterlinggroup.axa.-advisors.com or email john@johnhowells.com

The Firestorm of 2007 burned roughly 397,000 acres and destroyed about 2,000 homes and killed 7 people. We know the fires are coming and even though a fire may ravage your community, there ARE ways to increase the chance of survival for your home. Check out House Fire Armor’s website for tips on how to keep your home as safe as possibe this season. Beter yet, call Sean and his team of experienced firefighters and have them personally inspect your home. They’ll provide you and your family with written safety and evacuation plans, incredible home saving tips and more. One call could save your home!