My Lubbock TX Real Estate Blog

From:  www.DaveRamsey.com

September 25, 2008

Original Article Link:  http://www.daveramsey.com/etc/newsletters/company/092608.cfm?ectid=cnl0809.2_05

Over the past month, we’ve witnessed the largest bankruptcy in history, the stock market dropping like a rock, and the talking heads on TV freaking out that the world is coming to an end. I’m here to tell you the truth—we’re going to make it. We’re going to be fine. Take a chill pill.

This month I’ve compiled some of the most-asked questions I’ve gotten recently from you:

Are we okay, Dave?

Definitely. Remember Enron and WorldCom in the recent years? We survived that. But much worse than all this was the financial crisis of the ‘80s – S&L collapse and 1,000 bank failures in 2 years. We’re nowhere near this type of thing; that was probably 50 to 100 times worse than all of this.

What does all of this come back to?

Greedy banks financing homes to broke people. It all seemed to work okay in their minds when the economy was booming, but when the economy slowed a little bit broke people quit paying on their subprime mortgages. DUH. No wonder they went out of business. Stupid decisions.

Is there anything we can do to fix this bailout mess?

YES! Here's a quick summary: Companies that had billions in subprime loans were feeling the effects of their stupid decision to make those loans in the first place, and practically gave them away for pennies on the dollar. But since no one wants these loans, and they've had to mark them down to market value, it has frozen the market. If we temporarily change the rule that forces companies to do that, that will free the market up.

This is an absolutely huge deal, and it involves everyone getting in touch with their congressperson before we spend hundreds of billions of dollars that we don't need to! Learn more

Will the collapse of businesses and banks going to affect me?

No, not unless you work there. Thousands of stock brokers on Wall Street have lost their jobs in the past few weeks, but that happens in other industries across the country in good and bad times. This time it just happened in NYC where all the national news media is so they made a big deal of it.

If I have 401(k) money in a Merrill Lynch or AIG trading account, should I move the money elsewhere?

No. Your money isn’t with them; your 401(k) money is in the stocks. These big companies are just managers (unless you directly own stock in their company). The only thing that may be an issue is if they crash later, you may have some customer service issues, but your money is still safe. This is a good reminder to not have all of your money in one stock—that’s stupid. Always spread out your money in various growth stock mutual funds.

With these acquisitions, will my 401(k) account and entire portfolio with Merrill Lynch be lost?

No. They just own the company Merrill Lynch. Look at it this way—if I owned 6 rental properties and hired a management company that eventually failed, I would still own the properties; I just wouldn’t have a manager. Your broker doesn’t have title to your stuff. Your 401(k) is not a company asset; that’s the beauty of it.

Should I sell my US stocks to buy gold and foreign stocks?

Absolutely not! Why would you think foreign stocks are any better than US stocks? Again, diversify your money in good growth stock mutual funds instead.

What practical lessons should small business owners learn from these bank difficulties?

When you have no cash, you freakin’ go broke. You must keep some cash on hand, no matter what kind of business you have. Give yourself some wiggle room where you can take a hit and still be standing.

Remain calm, America. We’re in a slow time, but just pay your bills and you’re going to be fine.

Related:

• Contact your congressperson
• More from Dave about the economy
• Discuss this and more with other Dave Ramsey fans
  

COLDWELL BANKER BECOMES FIRST NATIONAL REAL ESTATE BRAND TO DEBUT HOME SEARCH INTERFACE FOR iPHONE

 PARSIPPANY, N.J. - Sept. 29, 2008 – Continuing to blaze a path of innovation in the real estate industry, Coldwell Banker Real Estate LLC today became the first full-service national real estate brand to launch a customized online platform for iPhoneTM users.  

The Coldwell Banker flagship Web site, coldwellbanker.com, now has a different look and feel, along with navigation specifically tailored for optimal viewing on the iPhone, most notably with the property listings search and home value estimator functions.  When a user accesses the site through his or her handset, the Coldwell Banker Web site automatically recognizes that it is being accessed by an iPhone, and will serve up the special iPhone interface.  iPhone users do not need to download any special software to benefit from this enhancement to the Coldwell Banker mobile technology.

“Providing easy access to real-time real estate information is critical for consumers in the home buying and selling process,” said Michael Fischer, senior vice president of marketing for Coldwell Banker Real Estate LLC.  “Distribution of listings is crucial in today’s environment.  Our mobile society is moving away from the desktop and utilizing cell phones and PDAs for more and more content and entertainment.  With so many connecting to the Web by phone, we have to be where the consumer is in a way that makes sense.”

Those looking for a home will be able to search for homes and utilize the brand’s home value estimator.  In addition, consumers will be able to enter specific search criteria such as city, state, price as well as optional filters including number of bedrooms and bathrooms.  When a property is selected, iPhone users can view all of the specifications for that home and contact an agent directly.

“Now more than ever consumers want to access information about a home as they see it, pass it or hear about,” continued Fischer.  “Being in front of a computer should not be mandatory.”

Earlier this year Coldwell Banker became the first national real estate brand to put its listings on in-car GPS devices through an exclusive feed to Dash Navigation.  Drivers can now call up Coldwell Banker listings, map them, get directions and view other Coldwell Banker listings in close proximity.

iPhone is a registered trademark of Apple Computers, Inc.

About Coldwell Banker®
Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2007, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the eighth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,600 residential real estate offices and 110,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.
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Overall our market is down about 7.5% in total units sold year-to-date through August.  While being down is not encouraging, it's much better than other markets that are down more than 20%.

I find it encouraging to know that our market seems to be withstanding the barrage of "doom & gloom" headlines that the national media is portraying, and I thought you might find that interesting as well.