Herman School of Business
Glub, Glub Glub...
OK, there is no longer an issue that our economy is in trouble. But there is quite a bit of misinformation being dispursed about how bad it is, how long it will stay bad and what you need to do about it. They are trying to make you believe all is going well!
I skipped 8 weeks of writing and I missed it. several of you wrote and I thank you for your support. Cooper came along as grandchild number 5 two weeks ago and mother and child are doing fine in California. That caused some distraction as my wife has spent the last seven weeks on the West Coast while I visited once and am leaving in the morning to travel back with her later this week.
We are now in a world of “Illusion Economy” whereby car sales are up…with a $4,500 help from Cooper’s income and is less than 30 days old. People who would have bought cars in the next few months moved up their decision to grab the bonus money…and they won’t be buyers in September and October…when car sales will slip again.
Home buyers were assisted with an $8,000.00 slice of Cooper’s future earnings to motivate them to be first time home buyers. Lower end home sales improved as people took advantage of this freebie program. Even with this surge of buyers…we are not doing new home starts at a great rate, nor are we realistic about annual car unit sales. We were selling 20 million units two years ago and now hope sales can climb to 11 million units. That is a 45% drop in car unit sales…less metal sold, less parts sold, less dealership profits, less car sales employees.
Reality says we are on our back and better spend wisely. John McAffee, the software guru who “secures” your computer couldn’t secure his own wealth, dropping one hundred million dollars down to a level of four million dollars today…in just two short years.
Protect your family, your business and your future by spending wisely now and do not take on anymore debt at this time. The future will only be good for you if you live in the Reality Economy and avoid believing in the Illusion Economy.
- Posted: 23 August 2009
- Comments: 4
- Category: Business success
Wonderful news: You have a new grandchild and you have a new entry!
Concerning the car subsidy: Here in Germany the government set up a plan a couple of month ago (I am sure you heard of it “Abwrackprämie”.
They extended it once from 1 billion EURO to 2.5 billion EURO. Now they think of extending it a third time. Just because they fear car sales will go down dramatically after their plan runs out of money. Who wonder?
And we voted for those people!
Written by Oliver Pospisil on 24 August 2009
Welcome back, Herman!
Written by Ann on 26 August 2009
Wise advice for all Americans. I hope many will listen and act on it. Thank you.
Written by Dean on 27 August 2009
We are glad that you are writing again! Keep it up, if possible!
Written by William Heese on 28 August 2009