4 Steps to Putting a Powerful Marketing Tactic to Work
Issue #2386
- WEALTHY: How often should you trade? (Rick Pendergraft)
- HEALTHY: Why buy organic? (James LaValle)
- WISE: Cervantes on sampling
ALSO IN THIS ISSUE:
- 4 steps to putting a powerful marketing tactic to work (Paul Lawrence).
- When to keep your graphic designer under wraps (Alexis Siemon)
- It’s Fun to Know… about high-tech tombstones
- Add "phalanx" to your vocabulary
How Many Automatic Income Streams Can YOU Handle?
The Internet has now come of age as the most incredible marketing tool in history.
Think about it for a moment… It’s possible to spend no more than a fiver, write a couple of basic ads, and have instant access to over millions of potential customers all in a matter of minutes!
This has created a real “sink or swim” situation. Those who master Internet secrets will profit massively. Those who don’t are simply doomed to sit on the sidelines and watch others make the real money.
Jim Sheridan’s plan banked him $187,296 in one day. The great news is – you can copy Jim’s plan exactly. The program is called Instant Internet Income and I guarantee it does exactly what it says it does.
Take a look at how Jim brought in over $187,000 in a single day!
It’s All About Quality Not Quantity
I recently attended an investment conference in California, and it seems I always come back from these things with new ideas to share with you. At this particular event, one of the questions I kept getting was "How often do you trade?"
I have fielded this question many times in the past, and I used to give a numerical average as an answer. But this time, I didn’t feel like giving the same old answer. What I said was "I trade as often as the market tells me to."
Now this may sound like a smart-ass answer, but it is the truth. I don’t set minimum trade goals for myself.
Trading is about making money, not trades. So don’t get caught up in making X number of trades. If there has ever been a business where quality rules over quantity, trading would be it.
If you are just starting out as a trader, don’t worry about how many trades you make. Worry about the quality of the trades you make. And when you lose on a trade, learn something from it and move on.
[Ed. Note: The number of trades you make doesn't matter as long as the trades you do make are smart. A seasoned investor like Rick Pendergraft can give you the key to making smart trades every time. Rick's had 13 winners in the last 90 days, and he can show you how he did it. You just sit back on your comfy couch, watch his video demonstrations, consider his trading recommendations, and discover how to make your money grow.
"The proof of the pudding is in the eating. By a small sample we may judge of the whole piece."
Miguel de Cervantes
Give Your Prospects a Taste, Get More Sales
I was walking in the food court at the mall. I planned to get my lunch from one of the fast-food franchises, where I knew exactly what I could expect. But an employee from a place where I'd never eaten was passing out free samples of their entree of the day. I tried it and loved it. In the two years since then, I've spent a lot of money on lunches there. Plus, I've referred half a dozen other people who now also eat there regularly.
There's no doubt about it - giving away free samples is a powerful marketing tool.
The obvious benefit of a free sample is that it allows the customer to confirm the quality of a product before they spend any money on it. Free samples of all sorts of things are given away regularly - ice cream, vitamins, cosmetics, shampoo. But you can also take advantage of this strategy for attracting new customers by giving away free information.
You've read lots of articles in ETR about why giving away free information is so effective. For example, if you pack your free e-zine full of useful advice, you build a loyal group of subscribers who often turn into loyal customers for other informational products you're selling.
And the Internet has made it so easy - and cheap - to produce those products, the ones you're selling as well as the samples you're giving away. All your customer needs to do is download your e-zine, e-book, etc. to his computer.
This applies to videos, too.
One of the businesses I run markets instructional and specialty videos. And I've written before about how easy and profitable this business can be. I've been in it for over a decade, and it's been pulling in over $250,000 each year. My videos go for $29 to $50 apiece, and I've been able to amp up sales by giving away samples so my prospective customers can see that a particular video is exactly what they're looking for before they open their checkbook.
One way I give away video samples is by posting clips on YouTube and other free video-sharing sites. While I don't generate huge quantities of orders from those postings, I do pick up a few.
But an even better and more profitable way to provide free video samples is on your own website. The reason this works so well is because the people who view a clip on your site are highly targeted prospects who are already interested in your product. They found you by doing a Google search for the type of video they were looking for or clicking on one of your online ads. Now, it's up to you to sell them on making a purchase.
Here are the steps to take to put this marketing technique to work:
1. Choose where to host your video clip.
You can choose between hosting the video on the same server where your website is located, or you can use a video-hosting website such as YouTube or Google Video. I would consider the second alternative, since uploading videos to your server can take up the storage space that the hosting company gives to your website. This means less space for new Web pages, documents, images, and other information you might need to upload later.
2. Post a video clip to your website.
Whether you choose to use a video-hosting company or host the video on your own server, you need to upload it first.
This is easier than you may think. Video files used to be so big, it was a pain to post them online. But these days, it's no problem to post a small clip that people can click on and watch.
If you can create your own website, then you can post the video yourself too. If not, just give your programmer the video clip file. He should be able to do it for you very inexpensively.
To upload the video with a video-hosting company, simply go to their website (such as YouTube.com) and create an account. Follow the steps to upload your video, keeping in mind that YouTube and most other video-hosting companies have limits for length and file sizes.
After uploading the video, the video-hosting company system will automatically provide you with html code that you can insert into your website so users can play the video clip directly from your Web page. Doing this does have a downside. Your video clip will have a link to the hosting company's website. And once you send a prospect to the video-hosting website, there's a chance that they will start watching other people's videos when they're done with yours, instead of clicking back to your website to finish reading your sales copy.
If you decide to host the video on your own server, simply create a folder on your website, name it something like "videos," and upload the video as a regular file. (I recommend using an FTP program to do the uploading.)
After uploading the video to your website, test it. Type the address to the folder where you upload the video (e.g., www.mysite.com/videos/myvideo.avi). After testing the video, your link is ready to be used. Remember that since you don't have a video player program on your website (such as the one that YouTube provides you with), the link will redirect the prospect to a new page on which there will be nothing but the video playing.
Make sure your video or the link to your video is placed in a spot that is easy to see but doesn't interrupt the flow of your sales copy for the full video. I have found that putting it at the top of the website, before my sales copy really starts rolling, is best.
3. Choose a section of your video to use as a sample.
I recommend a clip between 30 seconds and two minutes. That's long enough to whet your prospects' appetite. If you give them too much, they'll feel "full" and won't want to order. But if you give them just a tease, they'll want to see more.
You want to entice your prospects and give them an idea of how good the full video will be. So choose your clip carefully. And keep in mind that people tend to be attracted to such things as attractive faces and physiques, swift action, catchy music, and anything unusual or unexpected. That's why, for a cardio-exercise video that I market, I don't show a clip of the fitness trainer doing an arm stretch where she hardly moves. I show a clip of her doing a cardio exercise that most people have never seen before.
4. Come up with a good caption for the link.
Your caption should say something like, "For a free sample, click here." Then make sure you also have an order link right below that - something like, "To get your copy of the full video, click here now."
You say you don't have any instructional videos to market? Well, you can use this technique to help sell just about anything. If, for example, you're promoting a conference, you could post a clip from last year's event. If you sell some sort of gadget, you could show a clip of someone using it. And if you provide a service, you could show a clip of yourself working with a client.
Posting a clip on your website that provides a significant amount of quality information is an excellent way to get people to "taste" the product or service you're selling.
Put a few samples up on your site, and watch your sales increase.
[Ed. Note: Marketing skills like the one Paul just taught you come in handy only if you have a business to apply them to. You can start your own business within a week for under $100.
And if you're interested in making instructional videos, Paul can show you the ropes. Discover how he turned a hobby into a $250,000 side business.]
Does This Situation Sound Familiar To You?
1) You have absolutely no previous knowledge about making money from the internet or any technical knowledge about computers…
2) You don’t want to worry about products, credit card processing, shipping or customer issues…
3) You want nothing to do with network marketing, buying and selling on eBay, internet gambling or any gimmicks either…
4) But yet you realize there’s a ton of money to be made on the Internet and would like to get started.
If so, here’s an opportunity which really does work, that anyone can follow and put into practice quickly in just an hour of your spare time from home.
- Charlie Byrne
SEO Don’ts: Critical Site Content as Images
When developing your website, it’s easy to get swept away by some of the gorgeous creations your Web designer proposes. But while they may look great, it’s important to make sure that none of those images contain critical information or content. The reason is because the search engines cannot "read" any copy that is in an image.
If your site has large banners or graphics that include promotional or product-oriented copy, the search engines won’t be able to crawl and index that content – and you won’t rank for important keywords.
Keep a cool head during the design phase of your website. Make sure important copy is rendered as text and save the image files for pictures.
[Ed. Note: You can get more little-known secrets to staying on the search engines' good side at ETR's 5 Days in July Internet Business Building Conference. You don't need a product, a website, or any technical experience to learn how to build your own business. Learn how to create income for life right here.
And keep reading ETR for more search engine optimization Dos and Don'ts from Alexis Siemon, ETR's Search Engine Marketing Specialist.]
What’s in Your Tomatoes?
By James B. LaValle, RPh, MS, ND, CCN
You may be certain that your plate is full of healthy food… but the truth might surprise you. Your tomatoes, corn, soybeans, Hawaiian papaya, zucchini, crooked neck squash, and even ice cream could have genes from cloned fish, bacteria, or viruses. That’s because you’re not always dealing with the "real thing." Your grocer’s shelves are likely stacked with genetically modified (GM) foods.
GM foods are increasingly prevalent, but the FDA does not require food labels to specify when ingredients are genetically modified. So it’s not surprising that most people aren’t even aware they’re eating them.
According to the Pew Initiative on Food and Biotechnology, 54 percent of people polled hadn’t even heard of genetically modified foods. And though, according to a CBS/NY Times poll, 53 percent said they would not purchase these foods, many common ingredients (including soy lecithin, corn syrup, and cottonseed or canola oil) originate from GM crops. In the United States, three-quarters of the corn used to produce cereals, tortilla chips, and other such products is Roundup Ready corn, which has been genetically altered to resist the weed killer Roundup, according to U.S. News and World Report.
So why avoid GM foods? For one thing, they may be more allergenic. The United Kingdom tracks food allergies, and the year after GM soy was introduced into their food supply, soy allergies jumped 50 percent.
High pesticide content is yet another reason to avoid GM foods. The Center for Food Safety noted that from 1994 to 2005, pesticide use on GM corn, soybeans, and cotton increased by a multiple of 15 due to the increased pesticide resistance of Roundup Ready crops.
Last, but certainly not least, cultivation of GM crops may disrupt our ecosystem. According to the 2004 scientific consensus report of the Food and Agriculture Organization, increased pesticide use may result in herbicide-resistant weeds and pesticide-resistant insects. This affects non-pest insects like butterflies as well as animals like frogs and birds.
Whenever possible, avoid GM foods. Do so by purchasing USDA certified organically grown foods which, by definition, cannot be bio-engineered or genetically modified. You can also look for "non-GMO" on the label.
[Ed. Note: It truly is possible to improve your health just by making a few simple changes to your diet and lifestyle. James B. LaValle, RPh, ND, CCN - founder of the LaValle Metabolic Institute and a nationally recognized expert on natural therapies - can give you easy-to-understand directions for living the healthy life you've always wanted. Learn how to feel better and live longer right here.]
It’s Fun to Know: High-Tech Tombstones
Conventional tombstones are boring, something that one Japanese company is aiming to change. They will add multimedia effects for about $2,000. The high-tech grave markers don’t look any different, except for the addition of a small barcode. But when the barcode is scanned by an Internet-ready mobile phone, a website pops up with pictures, text, and videos about the deceased. Mourners can also sign an online guestbook.
(Source: Boing Boing)
More Time with Your Loved Ones, More Time for Yourself,
and More Money Than You Can Ever Spend…
Does this sound familiar?
You work your butt off at the office, only to find yourself skipping the gym and heading straight home.
You can’t give your family enough of your attention. And what attention you do give them, you are stealing from yourself.
You’ve got bills, chores, and repairs to handle. You’ve got to pay your taxes and put in a call to the plumber and talk with your spouse about the day’s events.
And in no time at all, you’re dropping into bed, dog tired, paralyzed by the idea that you’ll have to start all over again in just a few short hours.
My colleague Bob Cox had the very same problems. But he found a series of techniques that helped him regain control of his life.
Now, he’s living the life he always wanted. He has plenty of time for his wife and his hobbies. And he makes enough money to live comfortably and do what he wants to do.
Learn how he did it – and how you can do the same – right here.
- Charlie Byrne
Associate Publisher, Early to Rise
Word to the Wise: Phalanx
In ancient Greece, a "phalanx" (FAY-langks) was a tight formation of heavily armed soldiers, with their shields joined and their spears overlapping. Today, we use the word to refer to any close-knit or compact group.
Example (as used by Richard Russo in a New York Times review of Dear American Airlines by Jonathan Miles): "Though alcohol has robbed him of wife, child, work, self-respect, and nearly his life, he still regards the phalanx of liquor bottles in the airport bar… as neglected, betrayed old friends."
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
Copyright ETR, LLC, 2008
Hi there,
The US got into strife first of all through very cheep credit, which sent the wrong message to the market.
Interest rates were so low that people began refinancing fixed rate loans with adjustable rate loans (ARMS), and spent the money. In refinancing they revalued their homes and borrowed 79% of the value. In 8 years over US$2,2 trillion has been taken out in mortgages.
They threw money at anyone who wanted it, and with the amoral attitude of not caring whether the borrower could actually make the repayments.
But the real problem facing America is the corruption in business and the corruption in the American character. This gos to the top of Government.
People are being encouraged to spend, wheras once people saved. You can’t get rich by spending. Only by saving can a nation become strong financially. Inflation is caused by two things in my opinion. 1. By too many people chasing too few goods. or 2 By Government printing too much money , or creating too much credit.
In Ben Bernanke you have the natural successor to Alan Greenspan, who almost single-handedly created most of what America is afflicted with today.
Good luck America. You’re going to need it.
If we remember the integration of the DDR with the rest of Germany they had a similar problem answered by austerity, belt tightening and the result was the miracle which is, as usual, Germany. It worked for them and it can work for us. Funny money cannot work. Like “political correctness” it is just a fancy way of telling a lie.
Our weak congress will continue to put out bandaids to “help” the economy. Until they get real and permanetly cut taxes and stop spending us into oblivion the economy will not truly improve.
So far congress has not make even one good move. Mining for oil in Colorado in the biggest oil field in the world would make a lot of things better. Personally I would not mind a few mountains disapearing to get gas to $1.00 a gallon. Common sense is something congress has never been inflicted with. They will always throw money at a problem even though the first hundred times it did not work, but it is what we have always done.
Let’s take those billions of $$$ spent on Iraq and plow it into our economy for better roads, biofuel development, alternative energy programs, small business assistance and educational programs for our children. Only people winning in Iraq now are the oil companies, and The government contractors who supply what the war needs.
None of the above.
The government needs to stop printing and spending money.
Neither presidential candidate has expressed an interest in doing that, so expect more economic turmoil in the future.
1. Inflation. No, inflation can only be stopped by a recession. Prices are being driven up by oil prices and we have no control over that.
2. Fed cuts. The last time they tried this, they created an artificial housing boom.
3. Employment. Jobs are the only driver of economic growth.
4. Housing. No, housing is just a detail and has little direct impact on economic health.
5. Credit crunch. This is a big overhang and will depress the ecomony until lenders open up their wallets again.
6. Iraq. No
7. Stimulus checks. Stopgap stupidity
So fixing #5 will eventually fix #3.
7. Bandaid approach for a few political points, they get to say they tried. 5. The pendulum swings as a result of kneejerk reactions, not thoughtful action. 4. Housing is tanking because investors buying the real estate riches infomercial packs can’t really afford to do it, since it was done on easy credit. 3. Employment is fairly stable. 2. Fed kneejerk reaction to the economy – interest rates are reasonably stable. 1. Inflation is is a result of the current administrations “policy” that took us to war in Iraq. The juvenile reactions of Bush, Cheney & Rumsfeld — post 9/11; then changing the focus in the war on terrorism to war on Iraq, “Remember, Sadam is the guy that tried to assasinate my daddy.”, along with world emerging markets have caused investors world wide to invest elsewhere. This helped drive down the value of the U.S. dollar while demand for oil & gas is increasing because of explosive growth in China and India. Don’t forget, Bush was an “oil man”. This couldn’t be why the oil companies are making record profits. — No, it’s got nothing to do with it.
We will not be able to turn the corner until the banking situation gets better. Their unsound lending practices have put them in a bind, but isn’t it the FED’s guidlines that they were following? I think it was mostly GREED that got us here and we have to pay for awhile!
Inflation is not a mystical phonomenom, nor was it brought about by the current administration. It’s a hidden tax created to bailout governments that over spend, and financial institutions that over lend…particularly for bad loansand has caused economic and social chaos for centuries. This “safety net” was created by central banks via the introduction of fiat money and cheap credit (based on nothing). Booms bust and financia bubbles burst. Sooner or later the mountains of money created out of nothing, become so worthless that prices of goods and services sky rocket and are less and less affordable by consumers. Commerce slows to a trickle. Failing financial institutions and over borrowed governments are are bailed out by more mountains of worthless money and credit all at the expense of consumers. Hence the hidden and most unfair tax of all. Absolute MUST READING for all citizens is “Creature from Jekyll Island”, by G. Edward Griffin. It will answer the economic question for you.
GET OUT OF IRAQ
$4,681 per household.
$1,721 per person.
$341.4 million per day.
Stop printing and spending money. Running a deficit of over $2 Billion dollars a day and the non stop printing of currency is the cause of most of the problems today. When you are digging a hole the only way to get out is to stop digging.
Inflation! Inflation! Inflation!
If I can be more secure in my present economic situation, I can spend and support the economy toward stability instead of where it is now, Extremely unstable and mostly unpredictable.
Hello There I know that the goverment give nothing a way for free there is a big and i mean big catch behind give the stimulus check to the people. i have a strong feeling that everyone is going to have to repay this money back i do not know when but believe me there is a catch that is going to hit us right back in our pockets later. Nothing is totally free.
and we will all see it.
First, inflation is not an accident. It was introduced by leaving the gold standard and giving a consortium of private banks the ability to create fiat money. There was no inflation in this country for the first 100 years of its existence. This situation was brought about by Congress. Inflation benefits debtors (like our government) and punishes savers. There is little incentive for Americans to loose money in savings accounts.
Second, we are forced to depend on foreign oil because Congress has steadfastly refused to allow domestic drilling for oil in our own vast reserves in Alaska, the Gulf Coast, and the Midwest. Congress has suppressed the building of refineries and nuclear power plants for decades. As long as we are held hostage to foreign oil, we cannot control our economy. China will be drilling 80 miles off our coast shortly.
Third, the power to tax is the power to destroy. On June 9th, 1943 Congress approved a temporary measure to support the war that allowed the government to take our taxes directly out of our paychecks. That also enabled the government to increase taxes. The government is capable of performing any job poorly and inefficiently (wastefully). As we continue to expand government, we continue to destroy our market driven economy. In 1958 the average family of four paid 4% in federal income tax. By 1992 that had increased to 25%. When the average family loses one fifth of its income, it does not make the economy stronger.
Fourth, moral decline cannot be ignored. Mexico has natural resources equal to our own. However, systematic corruption discourages businesses from locating there. As our nation continues to distance itself from the Christian morals of its founding, we will suffer economically as well. The cost of street crime, pregnancies out of wedlock, divorce, white collar fraud, etc. peels billions of dollars off of our economy every year.
Why is everyone worried about a recession? Recession is a natural part of the business cycle.
There are just as many opportunities out there now as there were yesterday. There will also be opportunities tomorrow.
What we as a people need to do is get some financial education and stop looking to the government to solve our problems. As history shows, anytime government gets involved in the free markets, disaster happens.
As for your list:
1. Invest, not just spend.
2. Interest rates are low and fairly stable. (Remember the 70s)
3. Unemployment is low. We are basically at full employment.
4. As a real estate professional, I can tell you that you never factor appreciation into a deal. It may or may not happen.
5. Banks are not the only lenders in town. There are still plentiful source of money.
6. Non issue.
7. This was a bad idea and was just political pandering.
Wrong question all around. 1, 3, 4,5, and 7 are just symptoms of the economic problem; trying to fix them directly is like trying to cure lung cancer with a menthol inhaler. 6 won’t have any impact because moving an army that size will take a couple of years and cost very nearly as much as it would to keep it fighting. And though high interest rates can choke growth, low interest rates don’t actually cause it; they just allow it to happen if conditions are otherwise right (one reason why cheap credit poured into housing was because there wasn’t much growth potential in the rest of the economy and it had to go somewhere).
Start with 6 and go on to 2, as in:
Stop spending
Raise margin requirements
Get rid of the Fed, after almost 100 years of errors,it is time to set it aside for a bank that is transparent, not beholden to private interests, and actually follows its mandate to maintain the value of the dollar.
Anyone who thinks exiting Iraq will spur US economic growth just doesn’t understand economics very well.
If you wish to bail on Iraq for political reasons – that’s fine, but not really on topic.
The economy is suffering in large part in only two sectors – banking and housing. Granted these are huge sectors and are capable of sending the entire country into recession (the authors protestations notwithstanding). These sectors were hurt by easy money which seemingly helped them over the past 5 years or so. Now the bill has come due, and they will need to be hurt in order for them to move on. You cannot avoid the pain caused by too much inflation by enacting another policy – it’s a bitter pill that has to be swallowed.
Stop spending like a bunch of drunken sailors. Curb regulation (another tax), which also costs us all a fortune. Let the market decide. Lowering taxes always brings in more money…and always will!
For every US born citizen over 21 years of age, open a special account for 100K. It earns interest until spent. Interest is variable and linked to a 1 year index.
The money can only be spent on:
1)Hybrid cars getting 40+ MPG. PS these cars must be made in the US- preferably Michigan/Detroit.
2)Purchase of a home, as a down payment… or a reduction of an existing mortgage.
3)Purchase of energy saving/producing items. Windmills, photovoltaic systems, etc.
4)Education.
5) Purchase of a life income annuity based on age.
6) Medical insurance.
Construction, autos, education, energy reduction… all covered. Better than having the government trickle down the money through the sticky hands of administrators, lobbyists and various other parasites who produce nothing and inflate the cost of everything the government spends now.
looking from a basic incentive viewpoint, i ask
what causes individual or group economic incentives that are detrimental to real value creation. i believe that inflation, currency
fluctuation and debt servicing are such negatives.
complexity allows for many viewpoints. i think
it would be interesting to read articles on aadvances in computer modeling relevant to your
question.
Of all of your suggestions, the only one that makes sense is getting out of Iraq. We are throwing billions down a rat hole. Iraq will not be a democracy in our lifetime. Too many factions to unite.
As far as winning the war on terror, we win that by securing our borders. Iraq was a mistake that we are going to live with for a long time. Let’s cut our losses now.
This is a complex issue. Thus, it will take a complex solution.
No.1- Announce that America will begin refining and utilizing it’s own energy resources.
This alone will help to alleviate the pressure placed on us by speculators that cause oil pices to rise. It will also bring investment dollars BACK to the US that are currently being spent in the middle east and elsewhere. Gas/Oil prices would go down immediately!
No.2- Make all tax cut permanent; and introduce other incentives to bring investment dollars back to the US.
No.3- Congress MUST spend more wisely!
No.4- The US MUST come up with a comprehensive plan that will make us 100% self sufficient when it comes to energy.
No.5- This country was in a much stronger position when we weren’t as dependent on others. We need to get there again!
None of this matters. Americans were once “rugged individualists” but have become whiners, parasites and simpletons like the rest of the world. This nation is too far gone to salvage.
Only getting out of Iraq would save enough to help the US econmy–and bring back people desired by employers to WORK. It is production and only production that helps an economy.
Like the war? Think we must stay? Okay–how about getting out of EUROPE instead? We have over 700 foreign bases in 130 nations? If we get out of most of them, we can bring all our reservists home, save our economy, and be able to focus on Iraq until we have a real success.
The banks caused the crisis.
They knew 90+ years ago this would happen so that there would be a paradygm shift in wealth.
It is from the misapplication of the rule of 72.
A house costing $1000 dollars in 1913 cost $2000 in 1923. In 1933, same house is $4000 till we get 70 years down the road at $500,000 which is what it was.
Now it can’t double again and has to crash and burn which is what is happening.
This was a very clever scheme or artifice to defraud (rule of 72) and would work so long as no one would read the law and properly apply it.
Since we are a nation of lawbreakers, ie. we would rather practice religion, worship false gods,etc., instead of learning the law, it was a shoe-in for the banks to do what they did and get away with it till it caught up with them and it is still working till this very day.
Everybody who is in the line of fire losing their job and losing their house deserves the scourage they receive for not reading and keeping the law.
The continuing devaluation of the dollar may not be pleasant,but it should act as a boost to exports and will make all those imported products higher.The end result will be a stronger economy and a reduction in unemployment.So what if the price of petrol (gasoline)goes through the roof.Oil is not an everlasting resource,and is a not inconsiderable factor in global warming.The inevitable increase in oil prices should be seen as an opportunity for finding a clean source of energy.
Lower the corporate tax rate. Give corporate incentives to train people for required skills. Basically leave the economy alone and stop the class warfare of bashing business and profits.Profits equal jobs and should not be envied. Profits are not the property of the less motivated!
The government needs to stop printing money which is inflation. The fed will not stop printing money until the presidential election is over. The problems we have right now will not change until January 2009. In ‘09 the new politicians will need to tighten the economy and for two years it will be difficult for most of us. The housing market will bottom in ‘09 and it will be a very good time to buy. When the dollar strengthens that is the indicator that will mean we are climbing out of the bottom. We will need to be proactive in our investment strategy and save as much as we can. Cash will be king.
If I were to choose one of your selections it would probably be #5 – The Credit Crunch. But I don’t like any of your suggestions more than my onw, get people off welfare. We need to turn tax receivers into TAX PAYERS! In most states the highest outlay of funds is state government labor expense, and second is WELFARE. There is a simple way to change this and make tax payers out of tax receivers but the politicians are so entrenched in the “way it is” that they can’t see the fix. I have a solution.
Will share if you wish.
Iraq: We could save a ton of money there but getting out now might come back to haunt us.
Inflation: Monetary inflation is very low under 2% since Ben Bernanke took over as FED chairmen. How long can he maintain a tight money policy?
Stimulus check: What check? Did you get yours yet?
I think the economy is great…unfortunately, Congress is trying to put it out of business.
I pick #4, I don’t think things will get better until real estate improves. Not sure there is any one solution to the mess we are in now.
I agree with Lisa, housing (and gas prices) are affecting MANY other industries, including freight, most all building materials are getting harder to get and many other areas are affected by this, even food!! There is not one single thing that will fix this, it will take baby steps in all areas to fix, model after Dave Ramsey’s ‘Baby Steps’ program, start an overall budget, then SAVE-SAVE-SAVE, and in the process, get OUT OF DEBT. Debt is something we think we need, it’s the enemy!!!!
We can do nothing about inflation. We have continued to shift manufacturing around the world until we’ve reached the least common denominator, China. Now, we will import their inflation as their economy and spending power grows. Fed rate cuts will exacerbate inflation. Stimulus checks are a temporary drop in the bucket. Housing saved the economy in 2003 and 2004. Now, it needs to be saved itself. The annual amount we spend on Iraq is about equal to one stimulus package. Again, it is fairly miniscule in relation to our GDP. Basically, this is a natural business cycle that will unfortunately last for some time. It will ultimately be employment that brings us out of it, probably not until we are well into the exodus of baby boomers from the workplace.
1. Inflation.
I don’t know.
2. Fed cuts.
Please no. They haven’t realized their error even yet. There’s nothing left to cut that will make a significant difference.
3. Employment.
I don’t know.
4. Housing.
Tryin to artificially prevent the freefall of the housing market with federal subsidies is a horrific idea. It will take that much longer for the market to repair itself.
5. Credit crunch.
Stop printing money.
6. Iraq.
It does not matter how or why we got into Iraq; we are there now and need to finish the job. If not, we create a vacuum where Iran will assume control. We ought to believe our enemies are serious when they say they want to annihilate us.
7. Stimulus checks.
Nope. Money that we’ve borrowed from China and most likely being spent on Chinese made items is not going to help the U.S. economy.
None of the options listed are silver bullets, though Iraq seems like the one option that could have the greatest impact. As an individual, when you’re struggling financially you look for ways to cut back your expenses and increase your cashflow. Same goes for businesses and countries. Pulling out of Iraq would certainly stop the bleeding (pun intended), and probably bring the price of oil down by $20 or $30.
Ultimately though, the cure for a recession is usually… a recession. Given the recent credit excesses and according stoopid investment decisions made as a result, the economy needs to shake it out and reorganize. The question is whether it will be fast and painful or slow and painful.
The best thing the government can do to restore a healthy economy is to just stop meddling and let the market work itself out. Unfortunately the majority of Americans seem to have lost their faith in free markets as the most efficient solution for prosperity so we will likely get more meddling and more “solutions” as the government wonks pursue their delusions of heroism, always stepping in to help out the poor citizen-schlubs lead a more enlightened life.
The simple answer is that Inflation MUST be tamed.
If we have to raise interest rates…we raise them.
See Paul Volker circa 1980-1982.
I don’t see the answer listed. A large part may
be not ever mentioned. Stop buying cheap stuff
from China and elsewhere. Bring manufacturing
back to the U.S. . Get off this global economy
crapp!
Has anyone ask or wondered how much fuel is being
burnt by all those huge ships that are crossing
the oceans constantly to bring in that China/Tiwan
/anywhere but here stuff? And how about those UPS/
DHL/FEDEX/USPS fuel hog, gas guzzeling plains that
also fly constantly everyday back and forth all
over the world just so little Johnny gets his
whateveryoucallit in just a day or two. Now I also
buy foreign crapp too. It’s hard not too cause it
is getting harder to find anything made here in
the U.S. . Global warming? Maybe you might look
at all those ships and planes. If we made stuff
here we’d have more jobs less fuel waste and
better economy. More like it use to be. Humm…
say that is what we used to do! Make it here.
Now I know this is probably not all the problem
there’s:
No common sense in the system i.e.:
Congress
Whitehouse
Both main political parties and others
Media
Political Correct crowd
Education system
Colledges
Voters
Greed
Dishonesty
Too much control
Too little control
Lack of Morals
Vanity
Preoccupation with sports
Distraction
Selfishness
enough allready.
Nothing will turn this economy around until the credit “crisis” is fixed. I say “crisis” because it has become a problem blown out of proportion by hype. The current model of mortgage securitization no longer works due to three risks the securities buyers do not want to take on- duration risk, interest rate risk, and now the big one- credit risk. Remove all three and we could have a very liquid system WITHOUT a government bailout of Fannie and Freddie. There is a new model that could work very easily. And this new model would drop interest rates on mortgages by at least a full percentage point WITHOUT any Fed interest rate policy action. And with this same model foreclosures could be virtually eliminated. Once credit markets are restored, the mortgage market would return to normal. The housing market in turn would correct as a result. Consumers would have the ability to refinance, albeit to consolidate debts, and consumer confidence/spending would return to a semblence or normalcy. There is one remaining problem nobody talks about. One lending underwriting guideline that has become the norm over the last 10 years. Until we correct that, there will ALWAYS be problem mortgages and borrowers in trouble. And despite what the politicians and media say it has NOTHING to do with “subprime” or adjustable mortgage products or stated income, the so-called “liar loans”. Fix this problem, and we CAN be on our way to recovery. Let it continue as is, and we have a long ways to go, with a lot more foreclosures.