Financial crisis marks out a new geopolitical order

Blame greedy bankers. Blame Alan Greenspan's careless stewardship of the US Federal Reserve. Blame feckless homeowners who took out loans they could never expect to repay. Blame politicians and regulators everywhere for closing their eyes to the approaching tempest.

All of the above are culpable. I am sure there are even more villains lurking out there. Sometimes, though, it is worth looking through the other end of the telescope. The wreckage of the financial system holds up a mirror to the changing geopolitical balance. It offers advice, and a warning, as to what the west should make of the emerging global order.

Until quite recently, the talk was about the humbling of America's laisser faire capitalism. The US government's $700bn bail-out was the price to be paid for past hubris.

By Philip Stephens

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Recession is coming...

Hi Friends, Recession is coming... make your own judgment, don't panic! Do what is wise.

The recession looks very eminent. It is really time to take pro active steps to avoid a painful time in the next two years which is how long the is expected to last.
Suggestions:

1. Don't take any loans; buy homes, properties with loans, or even cash. Keep as much cash as possible.
2. Pay off as much of personal loans, private loans, as debt collection will be hastened.
3. Sell any stocks you can even at lower prices.
4. Take money off from Trust Funds.
5. Don't believe in huge sales forecast from customers, be extremely prudent, lowest inventories, reduce liabilities.
6. Don't invest in new capital.
7. If you are selling homes/ properties/ cars, do it now, when you can get good prices, they are going to fall.
8. Don't invest in new business proposals.
9. Cancel holiday plans using credit cards.
10. Don't change jobs, as companies will retrench based on 'last in first out'.

Stay cool, wait, and if you took all of the above actions and more, you probably will be better off then many. This is not a rumor.

Bear Stearns is the first of many banking and financial institutions that will start falling in the not too future. If Bear Stearns can fall, so can JP Morgan, Citibank, HSBC, and the whole world. US economy falls, the rest will crumble.

India and all those self economies will be the most protected, but not gullible.

Europe may be a little stronger, but not China, another giant place!

Malaysia will see significant impact.

Be alert and pass this to your friends!!!

The End of American Capitalism? 5 Short Takes on Where the Financial Crisis Might Be Headed

Five prominent economists share their thoughts on what's happening and how bad the situation really is.

The past week has seen the US economy rocked by some of the worst global financial turmoil in decades, with venerable firms collapsing, global banks and governments pouring huge sums of money into financial markets in a bid to ease turmoil and thousands facing unemployment or financial ruin.

As US officials announce planned measures to tackle the crisis, Al Jazeera asked five prominent......For more

Basics Information about “Short Sales”

You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to as a “short pay” or “short sale.”

Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department.” More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.

From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee's, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.

The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!

The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.

Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.

Don’t be surprised if your short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you “steal.” Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes - if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.

Certain Marketing Mistakes Investors Make And How To Avoid Them

Dear Friend,
What I would like to address in this article is something that is disturbing to me. Over the past few years I have seen how many investors after a real estate seminar or buying a new course would jump on the band wagon of the usual marketing strategies we are all familiar with. You know, bandit signs, classified ads and postcards too just name a few. Now, these marketing strategies in themselves are not bad but it is sadly the method how these marketing activities are applied where investors get into trouble.

Not Having a Marketing Strategy At All

Just placing bandit signs in neighborhoods and intersections without planning, testing and reviewing the quality response rate from your signs is a sure recipe for failure.

Not Identifying Strategies That Work and Sticking With Them

There are many ways to skin a cat. Some ways are better than others. It is the lack of not knowing what works and not knowing what works well that leads many astray and cost them a lot of money in the process.

Not Staying Within a Budget and Wasting Your Money

If you only have $10 or $100 per month or more that you can spend on marketing then you need to stick to that amount and use strategies that fit into your budget otherwise you might soon be distracted from your real estate investment business by facing a cash crunch.

Having No Competitive Advantage Above Other Investors

I have a personal bias towards attorneys and using free publicity as my competitive edge. What is yours? If you don't know, develop one.

Not Being Persistent.

Sadly many quit with a huge database of leads they accumulated from haphazard marketing efforts not realizing they have unrefined gold in their hands. All it asks is some nourishment and follow up.

Following the Herd and Using the Same Marketing Strategies

Ask yourself, with all the same strategies used by fellow investors in your market, why would a seller call you ? If you can't answer this then you need to think of a different strategy like marketing to attorneys. When you market to attorneys there is no competition and no negotiation. What I like about this approach is that the attorneys may times would send pre-qualified leads your way which makes negotiations much less stressful and complicated.