Young, Educated and BROKE

Posted on October 30, 2010. Filed under: Economy | Tags: , , , , , , |

        I know that I have written a blog post similar to this topic about education still leaving some in poverty, but I just feel so passionately about sharing this as an educated individual and a mother of children that will be educated and joining the workforce in the future. The number of college graduates leaving college and not finding work is alarming. Generation Y and some of the fringe X’ers are being named “The Boomerang Generation”. Why? Because they leave for college only to return back to their parents’ homes. Or we have the non traditional adult students that return to school in hopes of a better financial future, only to face the same outcome of no new employment opportunities or no increase in pay from what they were making without higher level education.

      Did you realize that 68% of baby boomers are supporting an adult child? This is not good news for the economy. What are these graduates supposed to do when they can not find employment or become underemployed? They can’t make it on their own, so they are moving in with mom and dad or asking mom and dad for supplements to their lackluster incomes. This puts a huge burden on the boomers who should be enjoying their golden years, yet they are more rapidly depleting their already deflated retirements. If the younger generations don’t find new ways of making money, then boomers are going to go broke and then who is going to support them?

     So is this only a problem here on US soil? Absolutely not. I read a Newsweek article titled “Smart, Young, and Broke”. It focused in on China’s new underclass, the educated of China! What?! Yes, there is no typo. China’s new underclass is educated. The skilled laborers are actually faring much better than those who had families make huge sacrifices for education. As in America, China has pushed education and then opportunities it provides, but with colleges doubling in size, producing larger numbers of graduates- the graduate rate is outpacing that of the growth of new jobs. Those applying for positions in large cities such as Shanghai and Beijing are shocked and feel as if they have been somehow “duped” into believing a better life is ahead.

(Actual photo of a Chinese student as he sits on the street to beg for money to eat and survive. The educated have played and important role in the economic development of the country, but without jobs many are becoming the new educated poor.)

     We need education in order to create better societies. We see countries with higher levels of education among their populations as more developed, wealthier, healthier and overall much safer and comfortable to live. We should never stop pushing education, but we need to stop believing that it it the magic ticket to financial “comfortabilty”. It needs to be viewed as a necessity, a rite of passage to create a better society. Education is key to a country’s overall health, but we all need to look at a plan B. Stop relying on others to hire you…..look for ways to build a business to hire and build more prosperity because of what you can do, not what others can do for you. This country was founded on those who were inventive, boldly stepped out to build new business and services, and those wanting to live their dreams through new opportunities.

       There are opportunities everywhere for new businesses. From dog walking, babysitting, maintenance services, new product inventions, online services, networking businesses and so much more. You have to find the right fit for you, but your plan B can easily turn into your plan A that is far better than you could imagine. You have the freedom and power to change your future and your present. Just step boldly…..you never know if it will succeed unless you try!

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Stopping Foreclosures: For the Good of a Few…..Many May Suffer.

Posted on October 9, 2010. Filed under: Economy | Tags: , , , , , , , |

       Not to sound extreme, but the ramifications of many of these politically driven decisions seem like a straight path to socialism. For the good of a few, we will look at the top earners and punish them….not to mention all the other workers and industries that rely upon foreclosures. It seems to be a way to help bring the classes to an equal level of living…an eliminating of classes, which in definition is communism/socialism. To argue my point of why this makes me feel a little bit nervous about the future I will explain so that you see I am not extreme right not looking at the whole picture- but just extreme American that loves being an America where entrepreneurship flourishes and freedom abounds. Poverty can create a state of paralysis with no real way out.

          I judge no one for getting into a position of foreclosure, it is not my place because all circumstances differ. Many homeowners purchased homes they could afford, but do to the economy incomes have been cut or disappeared due to unemployment. In this economy losing your job is almost a sentence to FINANCIAL DEATH because you can not find another job opportunity and if you are lucky enough it will take some time and you most likely will be taking a severe cut in pay. So no I do not judge the individuals and sure there were people who got into squirrelly loans and went over their means, but they didn’t just choose to be in a position where they wanted to not pay their mortgage and be in default…no one dreams those dreams. They were individuals wanting to live the American dream and were until financial strains threw in a curve ball.

     In looking at the population as a whole the few that are on the verge of foreclosure are breathing a sigh of relief right now. I know they must feel relieved, but for the short-term “pain relief” we are going to see so many others suffer. Did they think about the domino effect?

    Mortgage/Lending Industry. Obviously they will be hit and suffer another blow. Most of these companies and individuals that are around have survived the last five or so years by making modifications to meet the demands and needs of today’s homebuyers and homeowners. They have learned how to change gears and still stay in business. Many still becoming more and more successful by finding the right niche. Most in this industry have been relying on the mass number of foreclosure sales and renovation loans that are associated with many of these purchases. What will they rely on now to pay the bills? Will homebuyers still flood the market to buy non foreclosures that are at market value, or will they wait until this passes to find a great deal? I believe we are going to see some cleaning house in this area.

    Closing Attorneys. No foreclosures to sell, no closings to be had. Once again they will feel another hit and many will not be able to ride out this storm. For those of you that think you won’t miss another attorney…think about the staff that assists them from secretaries to cleaning services it never just ends with one, we are like a complex career web.

    Realtors. Of the realtors that are still active, many of them will share with you that although they have had to sell more inventory because of lower commissions, they have been relatively busy selling short-sale and foreclosures. I have heard a few people say this should allow the non-foreclosures to now sell at a fair market value and boost those sales, but I am afraid that the banks may even get more strict on credit scores and raise the down payment requirements for fear of lending money to new homeowners that may just decide to stop paying because they will have no fear of foreclosure. Honestly, if your neighbor isn’t paying their payment and you are having a tough time, but you know that the banks are not going to be able to move forward on foreclosure processing for up to possibly a year, you may decide to miss a payment or two during hard times. Just a thought, but I know it will happen because no one knows what will occur at the end of the investigation. You may get to be a part of another bail out and not even lose your home, just pay on a sliding scale. I don’t know, they don’t know and that is what makes economies come to a halt when their is uncertainty and fear.

    HomeInspectors/Appraisers: This is a big industry and one that has grown due to many individuals in the residential construction industry that no longer were building due to such low demand as a result of a large volume of foreclosed homes on the market and a recessed economy. Many found that this was a place they could use their knowledge and still build a business due to the demand for their services related to foreclosures. Many will be looking again for what will keep the lights on at home because the demand just came to a screeching halt.

   Construction/Remodeling/Clean-up Services: If anyone has walked a foreclosed home, it may be a great deal, but usually they are in need of major repair due to neglect or a foreclosed homeowner trying to sell every last fixture before they were evicted. Rarely do they come in perfect shape. This has been great for the residential construction industry and suppliers such as Home Depot and Lowes. There has been a demand for remodeling, junk removal and lawn maintenance services. This has become the lifeline to an industry that is hurting.

I absolutely realize that we are in a very difficult state as a Nation. I know I don’t have all the answers and I do know that foreclosures are a problem. Anyone can look around in their own neighborhood and see the evidence that our economy is in trouble. But is it going to fix anything by halting foreclosures? How many others will be affected? Have we thought about the office cleaning services, office maintenance, office supply businesses, and on and on that are also bringing in business from real estate related business.  Will helping those in foreclosure trouble help the masses? I believe that it may ultimately help the masses because unfortunately many of the above mentioned businesses that have relied on foreclosures to stay afloat will now be the very ones that may have to breathe a sigh of relief that their home can not be foreclosed on for a time do to this decision. I am hoping that I am wrong and that my fears are not realized…..but if more and more people lose their jobs we are headed to government dependence unless we continue to be innovative and look for new ways of networking ourselves and our businesses to become strong!

  

It has touched everyone somehow….it is the cancer that is spreading. How do you fix it….or can you ever?

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Ten American Industries That Will Never Recover…Do you have your parachute to safety?

Posted on September 8, 2010. Filed under: Economy | Tags: , , , , , , |

Unrecovering Industries | Ten American Industries That Will Never Recover | Comcast.net

via Unrecovering Industries | Ten American Industries That Will Never Recover | Comcast.net.

As I opened up my desktop this morning, this comcast update really pinpointed what online businesses help individuals prepare for….the crash of your industry. I am wondering how many truly have a parachute or are they just thinking they will be lucky enough to survive the turbulence or crash of an industry. I know that boyscouts always live by the “always prepared” motto- I think individuals need to start thinking about preparing for the worst because this is a ten year outlook, not just hang in there for another year and we will pull through type of scare-this is a serious threat. You may not be jumping, but you might just get pushed so get your parachute ready so your life doesn’t go down with the industry. So do you fall into one of these categories?- Take a look and see…..I would think you are already feeling the squeeze…don’t be fooled, BE PREPARED!

So what are the top 10 industries that are on Mayday…Mayday…alert status?

#1 State and Local Government: This one surpised me a bit because I have felt that the private sector of business is being hit the hardest and government is getting bigger, but it really makes sense. Less money from private sector equals less government spending. I have personally experienced this crunch a few years ago before discovering an online business plan when I was applying for a teaching position. One of the safest industries right?- Wrong. Layoffs were occurring due to cutbacks and no new hires….bad news for a mom who went back to college to create a better life believing that I would be insured a job in education. I was only left without an opportunity for teaching and student loans to pay back…..which is why I knew I needed a parachute and was fortunate enough to find a network of leaders who showed me a simple and proven online business plan.

#2 Construction: Once again my family personally has been affected in this area. My husband growing up in the industry from a small child had a true love of construction and all of its’ facets molded into his being. As an adult he became successful in commercial and residential construction ultimately stepping out on his own, to only be faced with the tanking of this industry within a few years. I know that this story sounds like countless others. Small businesses and large are struggling just to find work and when they do the bidding is so competitive it is difficult to turn a profit…..a true advantage for consumers with money to spend. But honestly, people aren’t spending so commercial in the area of retail, restaurants, and business center development has really almost become obsolete. Then on the residential side; new construction of homes have come to a screeching halt with high volumes of new home inventory that is available and not enough buyers to fill what is even existing out there today. Even residential remodeling has slowed down as families tighten up their purse strings.

#3 Installation: Maintenance and Repair: This industry heavily relies on #2: New Construction, so obviously if this is hurting then so is the skilled labor that helps build new construction, the maintenance sector that helps keep large office buildings/retail in good running order, and repair-especially within the commercial arena. Now I realize that there is still work in this area as all of these items are a must at some points, like when your dishwasher leaks all over your kitchen floor and destroys the whole subfloor, blows out some electrical- then yes, there is a job that awaits these fields; but they are no longer luxury items or in high demand. Another interesting fact that was in the mini article was all the skilled labor within our troops that are returning from Iraq. They will then populate this industry even more, competing for less and less work at lower wages. Not looking pretty is it?

#4 Auto Manufacturing: As if we didn’t already know this one right? But I never really thought about the fact that when the industry of manufacturing gets hit- each and “every layoff rusults in three more layoffs withing that industry”!. I see that around this metropolitan area with HUGE carlots sitting empty due to bancrupt dealerships.

#5 Pharmaceuticals: This is another one that was a bit surprising to me. I figured with new health care reform and the baby boomer population getting older and in need of more medication, that this would be a growing industry. The reasoning behind the job losses within the article pointed to the loss of patent protection for large Pharma companies. This means the drugs go generic and they lose the monopoly of having the latest and greatest drug….great for consumers and insurance companies- BAD FOR PHARMA REPS AND PHARMA COMPANY STAFF!

#6 Big Telecom: Take a look around when you are driving….is everyone talking??? Cell phones have taken over and landlines are becoming a thing of the past. The new advertisement for the DROID shows giving wireless internet capabilities and you can even stream your favorite shows through many cell phone plans. So less customers, equals less money, less demand for staff, equals a lot of JOB LOSSES!

#7 Newspapers: This has been an area that has been decreasing ever since the age of the internet, but more and more it is declining. Many newspapers are going completely online which takes less staff and brings in less money. Families looking to cut back will cut out a newspaper subscription because they can view it online, which cost less money and is more eco friendly too! It is projected that there will be “120K” more layoffs within this already shrinking industry in the next 10 years.

#8 Airline Employees: If people don’t have a lot of money…are they traveling as much?? If a business can use online technology for conferencing, file transfers and so on- do you think they will fly their corporate reps all around? Also they have had so many mergers and have had to reduce fares to appeal to the market…..it results in less money for staff. Even now when I fly most everything is done online…even check-in- that reduces a need for a real live person and gone are the days of more than 3 or so flight attendants on a flight- working less people, for less and harder.

#9 Realtors: Ok we all knew this. No new home construction…don’t need any realtors. Foreclosures up, means prices way down……meaning commission goes WAY down too. That means a realtor has to sell at least double if not triple the amount of homes in order to make the same amount of money. Not to mention they are working harder than ever before to sell the houses. This is not the real-estate boom era any longer…….so many of these industries are tied to one another you can see the domino effect.

LAST BUT NOT LEAST……..

#10 Bank Tellers: Number one….who has a ton of money to being going up to the bank to put in or take out…..most likely most people are up their for non-sufficient fund charges. Also, so much banking has gone online, that the need for tellers has decreased.

Are you thinking you need to get your parachute ready……or are you already out of the “plane” screaming for help? There is a better way….you can see that many industries are already working online…..so why can’t YOU tap into the power of online business too? Do you have a computer, internet, cell phone? Are you fearful that the OLD system you counted on to keep you safe is FAILING…….step out of the old and into the NEW. A new simple online business system has been developed for you, all you have to do is open your scope and see it. It is not a get rich overnight…..nothing is unless it is the lotto or a huge family inheritance. It takes some work, but with a great SIMPLE ONLINE BUSINESS MODEL, TRAININGS ONLINE, SOLID LEADERSHIP and much more…….you CAN DO IT, just please don’t fly without a parachute!!

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