HERE ARE SOME SUGGESTIONS TO PREPARE FOR AND SURVIVE GREAT DEPRESSION II
It's time to prepare for the Second Great Depression. Here's what to do.
Line up ducks Start
with the basics. Make sure that you're covered if you lose your job.
In the depths of the Great Depression, 25% of all workers and 37% of non-farm
workers were unemployed. That's a devastating statistic. It means that in cities, almost four in 10 people didn't have jobs,
and that doesn't even take into account the underemployed -- people who wanted full-time jobs, but were only able to find
So, prepare for the worst. Make sure that you have an emergency fund -- in cash
-- of at least three to six months worth of expenses. Then, pay down your debt, starting with the debt with the highest interest
rate. Debt is terrible during deflationary times because deflation doesn't just affect prices, but incomes as well. As incomes
fall, that debt becomes more and more onerous. During the early 1930s, there was 30% deflation. So, pay back debt now, while
Finally, recognize that, in a Second Great Depression, losing your job is a real
risk. Whenever you buy something, think hard about whether you truly want to spend that cash. Imagine that you'll lose your
job in six months. Looking back from that time, will you still be happy that you made that purchase? (from
to the Second Great Depression By Richard Gibbon,
The Motley Fool)
house– lose it. Give up on it (assuming you are having problems paying
for it.) You can buy the same house in 2 years for 2001 prices and get it for a few hundred thousand dollars less. If you
are in duress and having problems with the payment, stop paying it. Stay in the house as long as you can. Fight the foreclosure
at every turn. Doing the 'right thing' by paying your bills until you go broke and lose everything anyway is not good economic
sense for you and your family. If you continue to try to keep up you will not only lose the house but you will be destitute
and heading towards homelessness. Pride destroys finances.
Fight the foreclosure –Answer
any papers sent to you by the bank. You will have 20 days to respond, wait til 18 go by and overnight it. Complain about the
loan and the company and the mortgage broker. They will have 20 days to respond. And so on and so on. This will give you 3
to 12 months in your house rent and mortgage free.
The bank is overwhelmed with properties. Law forbids them from owning
too much property. Due to this, the foreclosure could be pushed off for a long time. You can even try to ‘fake’
sell it with a realtor for some real high price or some 'never going' to happen short sale.
methods, depending on the lender could give you 2 years or more in your house with no payments. Why go broke? Save your money
in a hole in the ground. Help your family survive and forget your 'honor.' The lender could not care if you lived or died.
They knew what they were doing. Until someone else owns it, it is your property.
Plan for your bankruptcy-Don’t go nuts on your credit cards, but use them up if you cannot pay them.
Do not go bankrupt until the month your house is going to foreclosure sale. This will give you an additional three months.
Even more if you can work something out with the attorney to delay the proceedings. That is at least 3 more months of living
free. Watch excessive spending on cards or huge items going back 12 months before bankruptcy. Hide your cash.
is especially important if you lost your job. The bank will not go under if you do not pay them, but your family will starve
if you feel honor bound to pay the crooks, I mean lenders and credit card companies, til you are really broke and destitute.
how to send cease and desist orders to creditors you are going to bankrupt so they leave you alone.
are talking about surviving here.You need your car and a roof over your
head. You need money to live and eat for you and your family. Don’t worry about breaking the hearts of the crooks that
made this mess or the credit card companies (read: loan sharks.) Worry about you.
Feel bad, like you are using the
system?These scumbags have received 100s of billions of dollars of our
taxpayers money for being crooks. And the CEOs made millions more. So, F#ck em, burn em back. Worry about you and your family
not some billionaire. They borrowed the money to lend to you. They got it at 0.25% interest (that is a quarter point) and
sold it to you on some screwed up plan that is going up to 8% or more. They will (and are) being bailed out by our loving
congress and the lender still made tons on the interest they earned from you over a few years.
After your bankruptcymove into a nice rental and relax. You should have little or no debt. If you still
have your job you may be on a small repayment plan, but you will be fine.
In two years from
now the prices will have hit real rock bottom and stay there. 2001 prices. Now you can look into buying a house, maybe even
the same one, at less than half of what you had originally bought it for. Yea, you will have a bankruptcy, but so will everyone
else. You have some credit, maybe a card or two, a car loan.
Best of all, your family is well fed, safe roof over their
head, and you still have a lot of money in that hole somewhere.
In other words, survive and let the multi billionaires
who have ripped everyone off for so long get some heat. You and your family come before any crooks like the lenders. Your
family first, lenders last.
Wisdom– you did not get out
when you could have. The experts, who have a vested interest in making you spend your money, told you it would be fine. They
lied. Take care of yourself, the next year is going to be a bitch. (From
How to survive the Great Depression
of 2008 - 2009 by Bob Hoffmann, Political Gateway)
10 Key Recommendations for Internal Auditing in the
May 21, 2009
Richard Chambers President Institute of Internal Auditors
Organizations are navigating through the current crisis in a variety
of ways. Most CAEs said they are making their internal audit activities more flexible by adjusting to stakeholder expectations
and changing risk priorities. By linking their audit plan to business strategies and current risks, internal auditors are
shifting priorities from a financial and compliance focus to a more operational and ERM effectiveness strategy. Resulting
in 10 recommendations for internal auditors in helping their organizations through the financial crisis.
Focus on recession-related risks and activities. Incorporate cost containment and revenue enhancement reviews into the audit
activity. Review risks around reputation, liquidity, workforce reductions, and third-party vendors. Look at going concern
issues and off-balance-sheet transparency, and ensure internal controls mitigate reputational risk. Cultivate a cultural mind-set
so that all activities are scrutinized with corporate reputation in mind. Invite management to surprise drills, and discuss
strategies if the unthinkable happens.
2. Increase communication with management
and the audit committee. Know the expectations of the audit committee and management. Recognize the opportunity to advocate
risk management and keep the audit committee informed of upcoming and emerging risks. Discuss and obtain agreement on any
shifts in audit plan priority. Promote transparency at all levels.
renewed focus on risk management and corporate governance processes. Audit the effectiveness of the organization’s risk
management and governance processes. Take a hard look at the organizational structure and business strategies, and ensure
that there is a well-thought-out risk management process. Raise tough questions about oversight practices and strategies.
Look at the board structure, reporting lines, and separation of duties.
your risk assessment process. Reassess risks, including emerging external risks, and quantify the impact more frequently.
Add a preparedness, velocity, and resilience factor to the risk assessment matrix, and subject every area of the risk assessment
to a reputational risk litmus test. Assess the impact of compounded interrelated risks that if combined could snowball into
a higher risk priority, and look toward the future to anticipate the next emerging risk.
Operate with a more flexible and adaptable audit plan. Reassess the audit universe regularly and change the audit plan to
stay aligned with business objectives. Reprioritize resources to adapt to priority risks identified in the risk matrix, and
shift assurance activities to risk management processes, operational controls, and cost containment/reduction and revenue
enhancement activities. Keep an eye on what actions management is taking to cope in today’s environment.
Serve as a risk management educator. Help management and the audit committee understand where they stand in the ERM curve
and work together to fill in the gaps. Facilitate risk management workshops, and advocate a rigorous self-assessment process
to provide broader risk review coverage. Facilitate risk discussions at every opportunity.
Expand fraud testing in the audit plan. Incorporate technology to review a broader transaction universe for anomalies. Focus
on recession-related risks, inventory shrinkage, overtime abuse, unauthorized accounts payables, and expense report padding.
Strengthen business knowledge. Couple audit methodology with a deep understanding of the business; find out what you don’t
know and fill in the gaps. Focus on business objectives and strategies, and ensure that your audit plan considers and addresses
the strategic risks to the organization. Partner with risk champions to improve organizational knowledge.
Strengthen your relationships and communications with the organization’s other governance, risk and control functions.
Improve relationships with other risk and control groups, and meet with risk champions regularly. Build a strong relationship
with management to stay abreast of business changes and strategies. Encourage open communication and sharing, facilitate risk
discussion, and publish emerging risk lists.
10. Enhance the efficiency of your audit processes. As your
businesses revamp and re-engineer their processes to enhance efficiency and cost effectiveness, put internal audit processes
to the same test. Look for ways to shorten reporting time, increase the use of technology, and challenge internal audit teams
to increase their efficiency.
YOU DON'T CRY
Government Virus –
Nothing seems to get better, but all the elected officials say it’s getting better.
Political Virus –
Doesn’t actually do anything, but you can’t get rid of it until the next election.
– Sixty percent of the economies infected will lose 17 percent of their GDP 12 percent of the time (+/- a 2% margin
Marxian Virus – Helps your economy go into a depression whenever it wants to.
Virus – Before allowing you to fix the recession, it first asks you if you’ve considered the alternatives.
Virus – Crashes your economy, but denies it ever happened and calls you a liar.
AIG Virus – Makes sure
it’s too big to fail, while crashing everything else.
Stimulus Virus – Puts your economy in a recession
for four years. When you finally recover, you’re 10 trillion more dollars in debt.
Whenever you find you
are on the side of the majority, it is time to pause and reflect
--- Mark Twain
We have never observed
a great civilization with a population as old as the United States will have in the twenty-first century; we have never observed
a great civilization that is as secular as we are apparently going to become; and we have had only half a century of experience
with advanced welfare states...Charles Murray
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