Saturday, March 7, 2009


In the worst unemployment since the early 80's and the worst economic downtown since 1933, many individuals are becoming increasingly nervous about economic survival in this country.
El Defenzor will be providing the unfiltered truth about these circumstances. One thing is certain, if you have debt try to pay it down, look at your resources for 3 to 6 months of emergency financing. In the event of a massive devaluation of the dollar which may come very soon be sure to have "Hurricane Awarness" packets available. What does this mean? Flashlights, batteries, canned food and water and be prepared to have a social network in place to rely on and pull resources together. This is not a doomsday scenario. Look around us: Because of the mortgage crisis and Americans refinancing mortgages and not taking responsiblity for their spending and wanting to keep up with the Jones and Garcias and wanting the two car garage and fajitas every Sunday and flatscreen TVs and cars on easy credit, and living beyond our means many Americans are living in homes that are not worth half of what they owe on the mortgage. The bitter pill we are looking to swallow is that many of us have lived beyond our means and those that haven't will have to shoulder the load like everyone else. The economic crisis has gone beyond Citigroup and 50 million dollar jets and a trillion dollar bailout to the regular consumer and your neighbor. Take the example of our imaginary friend John Smith Garcia for example who bought a home for 100,000.00. had a good construction job for 25/hour and a wife who made 12.00 an hour at a bank. All is well and they are paying their bills but they want more. due to easy lending practices and easy access to credit cards of up to 25,000.00 they are tempted to accumulate more debt. The buy the house with a 10,000.00 downpayment and after taxes their payments are 1000.00 per month. They get three home equity loans to repair the home, for vacations, to live the good life, to buy 15,000.00 in furniture, to send their child to a private school they cannot afford. Soon enough Mr. Smith-Garcia and his lovely but now worried wife have missed a few payments on their mortgage because he has been laid off (is placed on COBRA insurance which has now tripled what they were paying to 1,500.00 per month in insurance for he, his wife and son. That is the first thing they drop. His unemployment rolls in and he is making 2000.00 per month for an uncertain time, his wife has been "furloughed" from work(new term, not fired or laid off in order to skirt many issues for employers) and is not working. The smith-garcias are going under fast and are going to lose our home. The pervading thinking is that we should bail them out because if they lose their home it is just another vacant house which will invite crime, drive down property values and shall also place a drain on all of us if they end up in the street.
As the crisis deepens what about the millions of Americans, one in five, who are facing the same dilemma. Banking is getting tight, many are thinking that there will be a great deal of unrest in America. Some say that American troops are coming home to handle this unrest and the advent of private detention centers that are going to be used for immigration problems may be used for those Americans who attempt to protest against these situations. What of the homeowner who is being forced off is land because of the easy credit and subprime mortgages with few details explained? If they resist will they be detained. Very harsh questions.

Cut and paste this link to listen to a reality check on the ECONOMIC CRISIS and be prepared and be forewarned:


1 comment:

Anonymous said...

Pretty hardcore