Education as a source of income

A recent article “Middle-aged borrowers piling on student debt” indicates individuals between the ages of 35-49 are amassing significant student loan debt as men and women enroll at postsecondary education institutions, mainly for-profits institutions, due to midlife career changes (Lipka, 2011). Student loan debt for the middle aged group has increase 47% with the average student loan debt increasing from $9,000 to 12,000. The article emphasizes the individuals seem oblivious to the fact that in many cases the retraining may not sufficiently provide the income level needed to repay the massive amount of student loan debt the person is accumulating.

The article has some very valid points concerning middle aged borrowers amassing significant student loan debt as they enroll at postsecondary education institutions. However, there are other economic factors that are contributing to the increase in student loan borrowing such as the loss of government subsidies. Many middle aged individuals have been laid off due to downsizing and forced to seek government assistance to cover their basic living expenses either through unemployment or TANF benefits. Recent state and federal legislation has impacted the unemployment and TANF programs causing many individuals to be ineligible for benefits. The unemployment and TANF benefits were the only source of income for many individuals because of the high unemployment rates and lack of job opportunities. Therefore, these individual have been forced to seek other means of support, student loans, even if the solution is only temporary.

While the mid-life career change may seem to superficially be the logical reason for the student loan debt increase, the loss of government subsidies is one of the imminent reasons many individuals enroll in postsecondary education institutions.  Student can obtain subsidized and unsubsidized loans based on their economic status rather than their credit scores which alleviate the humility of the credit scrutiny of banks that will deny their loan applications because of their lack of employment. The student loan program allows the student to borrower the maximum amount of student loans funds available (in most cases)to cover their tuition and allow for a refund to be able to meet their basic needs, such as food and shelter, because they do not have any other means of support. The student is not concerned about paying the student loan funds back in the future; they are more concerned with their present situation and being able to maintain their standard of living.

From a financial standpoint, borrowers should be concerned about their student loan debt accumulation because it will definitely impact their student loan repayment responsibilities once they finish their education. However, at the same time, for many individuals the loss of employment and lack of income has already has so many adverse affects, such as foreclosure and lack of economic dignity, that the future consequences of not being able to repay their student loan pales in comparison. The borrower credit scores are already low due to not being able to pay their current debts and therefore, the “scare” of the student loan debt burden seems inconsequential. For right now, there is no short term solution for the middle aged student loan debt increases because it is a result of the recession that has caused the borrowers to seek student loan funding as a source of income rather than a source of education. Until the employment outlook becomes better, the amount of middle aged student loan debt will continue to increase.

Reference: http://finance.yahoo.com/news/middle-aged-borrowers-piling-student-debt-205017170.html

Evenings of Dialogue old posts 5

Tuesday, February 24, 2009

No Adult Left Behind: Moving beyond No Child Left Behind

The No Child Left Behind Act (NCLB) has created significant opportunities for children to “grow” academically in preparing them for Postsecondary Education. It has so many excellent initiatives to reduce illiteracy and equalize the elementary and secondary education “playing field”. However, it is really not enough to prepare children academically for Postsecondary Education, because there are so many other variables that can affect a child’s success in the Postsecondary Education realm. The inefficiencies in NCLB are demonstrated in the enrollment, attrition, and retention issues that so many postsecondary education institutions face today.

Many students are prepared academically to succeed. However, they lack the ability to utilize decision making tools to determine the best academic setting conducive to their learning abilities, assessment of the culture of a postsecondary education institution, and coping with the change in environment from the “disciplined” high school structure to a more “self-empowered” postsecondary education environment. These are just some of the variables that can affect the child’s success in completing their education after high school. Secondary and Postsecondary Education Institutions have to be cognizant of these student inefficiencies as the transit from high school graduates to adults seeking college degrees.

Governor Granholm’s initiative to “double the number of Michigan College graduates” is a very obtainable goal. However, children will need more preparation in achieving this goal than just academically. Postsecondary Education Institutions have significant problems with enrollment, attrition, and retention which will have a significant affect on this goal. Through many are developing strategies for overcoming these issues, the real preparation for a child’s success begins during elementary and secondary education in helping the children to develop “a decision making tool kit” that transcends beyond “academics” into a more comprehensive knowledge base that can help them to persevere in the Postsecondary Education environment of “choice”.

In addition, postsecondary education institutions have to be prepared to “assist” the student in identifying their barriers to academic success and in the development of resolution strategies. This is not an easy task. It will take collaboration between the Secondary and Postsecondary Education realms to formulate strategies that go beyond the academic provisions for success in college to the emotional, spiritual, and moral philosophy building. As a child exits the high school “door” and moves into adulthood, “No Child Left Behind” has to also evolve to “No Adult Left Behind” with the decision making tools to achieve their Postsecondary Education goals and become more productive members of society.

Support for Gaza

America is going to donate 800 million to Gaza for humanitarian aid and yet there is controversy over 8000 billion for stimulating the American economy. This is truly ironic. American citizens are starving and homeless and the stimulus bill is being criticized because it has some spending in it. It would seem that the American government is more concerned about humanitarian aid to foreign countries rather than humanitarian aid for the American citizens. American citizens are without jobs and many are not entitled to welfare benefits or unemployment benefits. If they do receive benefits, they are not enough to cover even their basic needs and yet the American Government in concerned more about the living conditions in foreign countries than in America. There is no republican and democratic dispute over providing the humanitarian aid to Gaza and yet there is significant controversy over increasing unemployment benefits, food stamps, and monetary support for the American families. Why can’t American citizens receive direct monies instead of tax cuts and income tax rebates that really have no impact on stimulating the economy and improving the financial plight of the individuals and families? What is our government thinking? Where is the humanitarian aid for Americans? Why are we relegated to second class citizenship behind the need to aid foreign countries as our own economy is crumbling? The aid that is being provided to Gaza could benefit millions of families that are suffering a financial crisis because of politicians, banks, and other entities that are so focused on their own greed that they do not care about how the American citizen is faring. What is the purpose of having a government when the people are in need, the government is more concerned about the federal deficit if it helps American citizens than providing humanitarian aid to Gaza? As an American citizen, what rationale can the American government indicate for proving support for Gaza when so many American citizens are suffering just as much as the people in Gaza?

Evenings of Dialogue old posts 4

Monday, March 9, 2009

Consumer price rollbacks?

As we look at the Consumer Price Index, which is an indication of the prices for a “typical” grocery basket of a consumer. The Consumer Price Index is currently falling due to the economic crisis. Many economists consider this as a negative because it can affect the stock market and investment. However, there can be another approach to the reduction in prices. Currently, retailers utilize a 100- 500% markup on goods and services. What this equates to is that a retailer can purchase a blouse for $2.50 wholesale and will sell the same blouse to the consumer for $29.99. That is a profit of $27.50. As the economic crisis continues, retailers are complaining that sales are down. Yet, with the markup on the goods and services retailers should not be indicating that they are not profitable. We have to think of the fact that the same good or service was significantly lower in the 20th century. Consumer prices increased as the income for the Middle Class increased. The prices were based on the ability of the Middle Class to purchase the good or service and the affordability of the lower class was not considered. Well, we are back to the fact that the Middle Class is shrinking and therefore the prices that were considered affordability before are not applicable now. In addition, many manufacturers and retailers indicated that the reason for increased prices was due to the changes in the production process due to the increased use of technology and the costs had to be passed on to the consumer. With this in mind, it is only appropriate that when the cost for the technology reaches the “break even point” the cost should be lowered so that the consumer is not continually charged for the use of technology. This has not been the case. As the economic crisis continues, retailers may need to consider lowering prices so that the average consumer can afford the goods and services.

Friday, March 6, 2009

The sky is falling ...

The stock market is fluctuating daily in a downward spiral. The Dow is down. The S&P is down. There is great fear that the market will crash. While I can understand some of the fear in the market, it is not necessarily relevant to all Americans. When we look at th amount of Americans that actually own stocks and are invested in the stock market, it is not necessarily your every day American citizen. It is the Middle and Upper Class, more so the Upper Class. Thus the ordinary American is saying, “So what!, I am about to lose my house, car and my family is barely eating”. What has not been realized is that the fluctuations in the market and the lower numbers can be correlated with the middle class that are no longer employed. Middle Class that owned stock are selling their stocks to meet their basic needs. This is not being taken into account. We seem to think this is about trading stock and it is not. It is about basic survival. As many stockholders do not have confidence in the very organization that are on the stock market, they are selling their stocks and cashing in their 401K plans to have their own money readily available. The stock market is really a "big show" that is developed to convince Americans that we are in dire straits when in fact it is the companies on the stock market that are experiencing the troubles and why would you buy stock in a CitiGroup or a GM when the stock may be worthless based on the sustainability of the organization. It is basic common sense and not economics. I liken this to Chicken Little and the "sky is falling". In reality, there is a rationale explanation for the stock market decreases that is not being acknowledged. There is the pretense that it based on the fact that people are selling and buying stocks because the are distrustful of the market. That is only part of the truth. It is because Americans are shifting their priorities to meet their new existence of joblessness and homelessness. If you had a choice to keep your money in stocks or to save your home or feed your family, then you will sell the stocks. Also, as companies layoff employees they are selling the stocks as they relinquish all ties to the organization. This has never been mentioned as a potential reason for the lower numbers and it never will be as the "powers to be" want to continue instilling the fear and intrepidation into the hearts of Americans on the economy.

Tuesday, March 3, 2009

Erosion of the Middle Class

There has been a continued emphasis on the Middle Class and how tax cuts and the stimulus package will benefit the Middle Class. With the economic crisis, the Middle Class has been significantly reduced as many wage earners have been reduced from the high five figure yearly incomes to the meager four and low five figure incomes as they join the millions of Americans that are considered the lower class. Many of the Middle Class were auto workers, bank employees, and mortgage personnel that have felt the effects of the financial crisis in America. They have been relegated to the mass of individuals seeking unemployment benefits that barely cover their current living expenses. The Middle Class of the 20th century is not the Middle Class of the 21st century. The dynamics of the Middle Class are change dramatically as many are being forced down the economic ladder to the near poverty level. Many of the Middle Class are facing foreclosures and on the brink of bankruptcy and they try to rebuild their shattered lives in a economy where jobs are scarce. What will happen as many more companies continue to downsize and lay off employees? Will the Middle Class be totally eliminated and there be only two classes … the Lower Class and the Upper Class?

Monday, March 2, 2009

AIG gets another $30 billion

AIG issues a fourth quarter loss of $61 billion dollars. That is in only one quarter. Let’s be realistic. How can a company have losses of $61 billion dollars? In the article listed below, it was indicated that the loss is due to rapid deterioration in certain markets. The explanation for the loss is very vague. The federal government has allotted another $30 billion to assist the troubled insurance giant. However, the monies are supposedly on a “standby” basis, whereby, AIG may not need to funds, yet they are there if necessary. The continued bailout of these companies seems to be rather derogatory. Government is willing to offer bailouts of billions of dollars to these giant corporations that do not seem to be able to achieve profitability. It is like throwing “good money after bad”. AIG continues to have the same board and the same CEO even though the organization has not been able to financially resolve its issues. When the automakers asked for monies from government, there was the requirement that the Big Three needed to provide strategic plans that would demonstrate how they could complete a “turnaround” strategy to make the companies solvent again. In reading the article, there was no indication that AIG needed to provide a strategic plan or that the same scrutiny that was imposed on the Big Three would be utilized with AIG. Why the double standards? Why should AIG get more monies when they are proving that they are not a sustainable organization?

The articles is available at http://news.yahoo.com/s/ap/20090302/ap_on_bi_ge/aig_rescue;_ylt=AnSOLF7vbGVl3TSRyN2KFjlv24cA;_ylu=X3oDMTE5a2oxbDI4BHBvcwMxBHNlYwN5bl90b3Bfc3RvcmllcwRzbGsDZ292dGV4dGVuZHNu

Friday, February 27, 2009

Developing Strategies for Personal and Professional Growth

Developing strategies is not just for organizations, it can be used by individuals, as well. Just as organizations need to develop strategic plans to achieve their organization goals and to maintain profitability, individuals can do the same for their career goals. Many individuals are at a “crossroads” in their personal and professional lives. They are unable to determine the best course of action for making improvements in their professional lives even after obtaining a college degree. For some of these individuals, it is a period of stagnation and for others the opportunity for a new beginning. These individuals can use assistance in evaluating career alternatives, developing strategies to get the career they desire, and knowledge on developing, maintaining, and sustaining healthy relationships both personally and professionally.

While individuals are focusing on their education and careers, many are neglecting their personal lives, which can have a significant impact on their professional career growth. It is imperative for individuals to be able to balance career and family to achieve their professional and personal goals. This balance can be achieved by developing, implementing, and evaluating life strategies that promote individual continuous improvement, a concept that has been relegated to organizations in the past, but when used appropriately by individuals can have a significant impact on their decision-making abilities.

Thursday, February 26, 2009

Like a good neighbor

We hear so much about “why are we helping people that were not responsible in their borrowing?” or “why should I fit the bill for my neighbor?” What happened to the “good neighbor” philosophy, where neighbors were concerned about each other and it was okay to borrow a cup of sugar or to welcome new people to the neighborhood? It got lost in the greed and ambition of individuals as their incomes increased and they realized that they did not need the assistance of their neighbors.
In the good ole’ days, the neighbors helped each other by babysitting providing food and even helping with the bills when there was a need. Now you cannot ask your neighbor for even a cup of sugar without their being a hassle.
The financial crisis is affecting us all, not just your neighbor. Higher prices, lower housing property values, and loss of jobs within the community are not just your neighbor’s issue, but your issue, as well. As neighbors we can work together to overcome some of the issues that are occurring by helping each other while in need, whether it is emotional, financial, or spiritual. Once we get back to some of the core values that made our ancestors so strong, we will be able to see how important it is to “love thy neighbor”.

Wednesday, February 25, 2009

Chris Brown and Rihanna

There has been some publicity and controversy concerning the Chris Brown and Rihanna incident that resulted in Rihanna being treated for injuries at a hospital and Chris Brown charged with domestic violence. While we do not know the details of the incident, we do know that one party did sustain injuries and the other party faces criminal charges. In the time since the incident, neither party has disclosed much information concerning the incident, other than to state that Rihanna is recovering and Chris Brown can not disclose any details due to the legal implications and that he is seeking counseling from friends and family. There have been many opinions expressed concerning the matter from celebrities, the media, and even the general public as to the responsibility for the incident and what should occur. With the incident, Rihanna has maintained her contracts, while Chris Brown has been steadily losing contracts and some popularity. Yet, we do not know the extent of the incident and what caused the couple to become embittered to the point that a physical altercation occurred. Are we right to judge Chris Brown so harshly without due process? Is Rihanna the only victim or is Chris Brown a victim, as well?

Evenings of Dialogue old posts 3

Wednesday, March 25, 2009

To Impeach or not to Impeach?

To Impeach or not to Impeach? That is the question.

Many states are experiencing significant financial crisis with many citizens homeless, unemployed, and destitute. The Federal Government is offering stimulus funds to the states to assist in alleviating some of the financial burdens that are plaguing the states and to get the economy “flowing again. However, some decision making bodies are being selective in the funds that they will accept due to the fact that they “fear” there is too much Federal Government control being exhibited and they do not want their decision making capabilities to be affected by the potential for Federal Government mandates on State or City processes (of which many are probably antiquated and need to be revised). Well, American Citizens are subjected to government mandates daily both personally and professionally. Why should state government be any different?

The big question becomes … Why would a decision maker deny its constituents funding based on the perception of how the funding may or may not affect the future of the state, when the citizens are suffering financially? Because the decision maker is “out of touch” with their constituents. When you live in a state funded home and your livelihood is funded by the state, then you cannot understand the plight of your constituents. You do not understand that they need assistance now to survive rather than be concerned about 2, 3, or even 5 years from now. With the condition of the economy many are not even sure they will be alive over the next few years, if they are homeless or destitute.

Now the question for the ordinary citizen is whether the decision maker is committing an offense that could be considered “impeachable” so that they could be removed from office and a more amicable decision maker elected that would represent the people and make decision based on the “welfare” of the people. In researching impeachable offenses the only term that could be applicable is “Impeachment for High Crimes or Misdemeanors”. Is a decision maker that refuses stimulus funds that could improve the public welfare and in the public interest committing a “high crime or misdemeanor”? Is the non-acceptance of stimulus funds that are focused on education, unemployment, medical records technology, and public safety violating the public welfare and the public interest? You decide.

For more on Impeachment visit http://essential-book.org/books/impeach/#eleven

Thursday, March 19, 2009

No more money for the Mortgage Industry lenders. Explore other options.

No more money for the Mortgage Industry lenders. Explore other options.


Thank you Federal Reserve for releasing another $1 Trillion into the American Economy to provide more money for banks to buy other banks, to pay off other banks, and to give retention bonuses on the pretense that it will reduce mortgages and enable banks to start lending again. The first monies released did not alleviate the credit problems. What makes you think that another Trillion dollars to the mortgage industry is going to do any better. The fallacy is that the Federal Reserve is under the false ideology that if they continue to give money to the mortgage industry that the economy will improve. The premise of the additional infusion of monies is that interest rates will be lowered and homeowners will be able to afford the lower mortgage payment. The issue with the premise is that there are millions of homeowners that are unemployed and no matter how low the interest rate is the homeowner “WILL NOT” be able to make mortgage payments based on their unemployment benefits. In addition, the mortgage industry gives the false impression that they are concerned about the homeowner, when they are the very entities that caused the foreclosure dilemma. Rather than infusing monies into these organizations, the Federal Government needs to switch these homeowners over to the Housing and Urban Development Programs, such as the Section 8 program, for low income homeowners whereby the Federal Government subsidizes part of the mortgage payment and the portion that the homeowner pays is minimal. This would continue until the homeowner became employed again and then the payment would increase in proportion to their income. Utilization of the Housing and Urban Development Programs, such as the Section 8 program, which is a Federal program, American Taxpayers would know that their tax dollars are truly assisting them. The mortgage industry would not be privileged to taxpayer dollars that they can use for any purpose without accountability. There should be more options explored rather than immediately assuming that the only avenue for improving the foreclosure crisis and the problems that homeowners are experiencing is to keep “shoveling” monies into the mortgage industry.
For more information on the Housing and Urban Development Programs, such as the Section 8 program, visit http://www.hud.gov/offices/pih/programs/hcv/homeownership/

Take a Walk in an (Unemployed) Americans Shoes

Take a Walk in an (Unemployed) Americans Shoes

The Federal Government and President Obama continue to use the top down spending method rather than bottom up spending. There is not the realization that spending does not occur as much with the Middle Class as with the lower class. Many middle class families have purchased most of the “big ticket” items and are only spending on basic needs items. It is the lower class that has been the true spender purchasing big ticket items with disposable income. Most Middle Class families are saving disposable income rather than spending it. It would seem that the Federal Government and President Obama are not relating to the plight of the unemployed taxpayers. They cannot understand the “Plight of the Unemployed and Low Income Americans” because they have not walked in their shoes. When you have money and a job, you cannot understand how these Americans are not surviving. There are many Americans unemployed receiving unemployment benefits that do not cover even their basic needs. There are Americans homeless and living in tents. There are families living in cars and without food or water. Yet, the Federal Government and President Obama are concerned with how big corporations are “faring” during the financial crisis. As a country, we are concerned with Third World Countries and providing food and monies for improving their living conditions, yet we cannot even resolve our own conditions of American citizens. Charity begins at home. The Federal Government and President Obama have got to start to think about the American people and what they need to survive in these bad financial times. There is this perception that the Federal Government does not want to provide monies directly to the people. How else can spending be generated? If money can be “loaned” to big corporations with the “assumption” that it will be paid back over time, then why can’t the American Taxpayer get a loan so easily to assist them in overcoming their financial barriers that are really not a product of their own doing, but that of the very corporations that are receiving these taxpayer dollars.

Wednesday, March 18, 2009

Bad Performance, Bailout Money … How about a Retention Bonus?

Chrysler is the next organization that received bailout funds and yet they are still considering paying retention bonuses to its top executives (http://www.freep.com/article/20090318/BUSINESS01/90318099/1003/NEWS) despite the Free Press warning Chrysler to “think hard” before making the same blunder as AIG. Chrysler contends that the US Treasury knew about the bonuses when they provided the bailout monies. Do the American Taxpayer care what was said before March 15, 2009, concerning payment of retention bonuses? No. The American Taypayers are concerned that these big companies received such absorbent bailout monies on the pretense that it was needed to remain solvent and yet they are paying out bonuses that is really taxpayer monies. We want our monies back!!! The average taxpayer could survive for years based on our standard of living if we received the retention bonuses of these executives. There is no excuse that the CEO of Chrysler can provide for paying the retention bonuses based on how the organization is functioning. As we have stated about AIG, why would you reward incompetence? Get rid of all the executives, hire new ones and let the organization start with a new slate. The Federal Government needs to send in a “Sweeper” When organizations initiate a downsizing or re-engineering process, they may utilize a ”Sweeper”. “Sweeping” entails terminating non-productive employees and replacing them with new employees. These executives have shown that they are non-productive. The CEOs continue to indicate that the organization could not function appropriately and profitably without the executive. Let’s be realistic, the organization is in the current financial state due to the performance of these very CEOs. As “stockholders” in Chrysler, due to the utilization of taxpayer monies, the American Taxpayers request that the Federal Government excise its right as representative for the people and demand that these organizations not pay “ANY” retention bonuses until the organization is profitable and has paid back all of the loan monies. In addition, the salaries of the executives should be scrutinized and reduced for lack of performance. If a regular employee was not performing, they would be either terminated or demoted. Why are these executives still in their positions? Receiving the same salaries? And even being considered to receive retention bonuses? Call them all before the Senate and the House and let them occupy the “Seat of Shame” that was occupied by CEO Liddy.

Contact your US Senator and Representative and let them know “We are not going to take it anymore”. We want our monies back, now!!!

Tuesday, March 17, 2009

Presidential Call to Action on Credit Card Companies that received TARP funds

Presidential Call to Action on Credit Card Companies that received TARP funds

Credit card companies are preying on the plight of Americans that are already in a financial crisis. Many credit card companies are raising annual interest rates on credit cards making minimum payment raise an average of 30-50% regardless of the consumer credit scores or payment history. These are banks that received taxpayer government assistance under the TARP program and now they are receiving double benefits through their hikes in minimum monthly payments. As the already financially strapped consumer tries to make the minimum monthly payment to at least maintain their good credit through the economic crisis they are finding themselves in a significant dilemma of whether to continue making the payment, seek debt relief, or simply default on the credit card payments and accept the credit hit. Credit Card companies hope that the consumer will chose the last option so that they can receive more bailout monies as the demonstrate to the Federal Government that they are unable to meet their own financial obligations.

As taxpayers that has already given a hefty bailout to these credit card companies through the banking system, it is up to the Federal Government to step in and regulate the interest rates that banks can charge during this economic crisis. If a bank has received bailout monies, they should not be able to increase interest rates over the next ten years to allow consumers and the economy to recuperate from this economic dilemma that they have created. Why should the American taxpayers receive a double hit, bailout monies and increased monthly payments, to supplement the high salaries of the executives at these banks (http://www.moneymorning.com/2008/12/23/executive-compensation-at-banks/)? The concern of many is that there was not due diligence by the Federal Government to investigate past practices of these organizations to determine what caused the financial instabilities prior to the bailouts. There was no financial analysis of the organization to determine where the organizations sustained the losses and why. When the banking industry indicated that they would fail without government assistance, there was no government officials saying “why, when, how, where, and what”.

When a taxpayer requests government assistance through the Department of Health and Human Services, they are subject to intense scrutiny. They have to provide their income, household information, bank data, and everyone within the household income. Many are subject to interrogations as to why they need the money, why they are not working and limitations are put on how long they can receive the money and what it can be used for. When the banking system requested assistance, the only question was “How much?” What is wrong with this comparison? Ordinary citizens are homeless, without utilities, families are living on the streets while what are rightfully taxpayer monies is being used by the Federal Government to increase the wealth of the CEOs.

This is a call to action for the Federal Government and President Obama to intercede with the credit card companies and banks and indicate that if they received bailout monies they cannot increase the annual rates and that they should actually be lowered to less than 10% to allow the American taxpayers to be able to “survive” in this economic crisis. While there are debt relief organization that can assist consumers, they are of little assistance when the consumer can barely make payments and while using the debt relief organization they are paying a fee for the organization to be an intermediary. There should be automatic debt relief programs offered directly from the credit card companies for consumers that are unemployed so that they are not subject to the continuing interest rates while unemployed. Federal Government and the President have an obligation to the consumers to enforce that reduction of interest based on the utilization of taxpayer monies to assistance these companies.


Visit http://eveningsofdialogue.blogspot.com/ for more blogs.

Monday, March 16, 2009

President Obama and Education Reform

I applaud President Obama and his new agenda for education. Education Reform needs to be conducted of schools system nationwide as so many are substandard and need a complete overhaul. I do differ on Education Reform focused on increasing the number of hours that students are in school daily or yearly (shortening the summer break). Children are already in school for over 10 months. We want our children to have a healthy balance of education and life, which is something that they will not have when they become working adults based on the careers of today and the future. The key to Education Reform is the “Work Smarter, not Harder”. By extending school hours we are really working harder.
For true Education Reform to occur, we need to analyze the schools systems and do an overhaul of the educators from the Principals to the Janitors. Most of these individuals have a negative attitude toward school children and their ability to succeed. If you are not a 3.5 – 4.0 student, then you do not warrant the assistance of the Teachers, Guidance Counselors, and Principals in maintaining your educational endeavors in elementary and high school because you lack the potential to excel at a college or university. Therefore, you are relegated to the students that are not “college material” and thus should be concentrating on joining the working class rather than going to college. I gleamed this knowledge when working as a Admission Representative for a school. When approaching the Principals and Guidance Counselors, about visiting the schools, the typical response from many Michigan High Schools was, “Our students are not college material and it would not be beneficial for you or them to visit the school.” If I am receiving these message just image the verbal abuse that the students are receiving on a daily basis.
The strategy for Education Reform should be an analysis of all of the entities that directly or indirectly interact with the students and a determination of whether they are focused on student success or on providing barriers to success for the students that can become so imbedded that the student is destined to fail. Every school system need to develop a strategic plan for how they are going to improve the graduation rates and the federal and state funding that they receive should be determined by their strategic plan and the feasibility of its implementation in meeting Education Reform. Work Smarter, not Harder!!! It is not the length of the school day or the school year that will improve the graduation rates, but the improvement of the school environments that will be more conducive to providing educational services to the generations of today and the future.

Sunday, March 15, 2009

AIG duped the Federal Government at Taxpayers Expense

AIG duped the Federal Government at Taxpayers Expense

The Federal Government “gave” $170 billion in taxpayer monies to AIG on the pretense that it would not survive unless it received government assistance. AIG posted a fourth quarter loss of over $61 billion. Yet, the company is paying out bonuses in excess of $165 million. The Federal Government was duped. AIG just told the entire world that the Federal Government is financial illiterate and unable to comprehend basic accounting principles and business acumen. When a business posts a loss of such significance and then pays out bonuses that is awarding for not just individual poor performance, but organizational poor performance. How can any business justify the paying of such enormous bonuses when they are in financial crisis … by hiring attorneys that “justify” the expenditures. There goes that “old” legal argument that we have contracts and we have to abide by the contracts. We Americans want to see the contracts and the legal terminology. AIG is saying that in the contracts there is no clause that states that if the organization is not financially sound, then the bonuses will not be paid. That is ludicrous that an organization would not provide some type of financial protection within the contract. In addition, where are the AIG policies and procedures concerning bonuses and incentives within the company handbook. Typically, that indicates that if the company is not profitable then bonuses will not be paid and it supersedes any individual contracts. I am just bewildered that the Federal Government and our President would just allow this type of behavior with “Oh, Well! We are upset, but there is nothing we can do about it”. How can the Federal Government be so nonchalant about taxpayer monies. Where is the due diligence, transparency, and accountability that we as Americans expect the Federal Government to exhibit?

In working for companies that have exhibited losses, no matter what the employment contract states, if the company is in the “red” then that is justification enough that “NO” employees will receive bonuses regardless of their performance. I do not understand how the government could be duped. We have a President with a JD, we have cabinet members with PhDs and MBAs and yet they are not able to find a legal “loophole” that would prohibit the paying of the bonuses. It would take a simple “injunction” against the AIG prohibiting the payment of the bonuses until more legal research could be conducted. Because the government “gave” the monies to AIG, they should request that the monies be returned in their entirety immediately. Now AIG find the monies from somewhere else to pay your company executives. Maybe I am a simpleton, but I know that the Federal Government gave our monies to AIG and we have the right to request that the monies be paid back immediately since they were obtained under false pretenses. AIG should be charged with fraud and dismantled immediately. All of the executives including Libby should be terminated and the organization should file bankruptcy. Who really cares if the fail? The typical American could care less. They get what they deserve for defrauding the government and using taxpayer monies for their own personal gains. The Federal Government needs to let the American Taxpayers know that the Federal Government will not be duped and continue on with business as usual.

In the end, AIG is saying to the Federal Government, American Taxpayers, Foreign Governments and the whole world, “How you like me now!!!”

Americans should request that AIG to return the bailout monies with interest within 14 days and provide complete financial statements so that the true financial worth of the company can be assessed. The Federal Government provided taxpayer monies for the bailout and as such we should be the new stockholders for AIG and not just the Federal Government. Each citizen should receive stock certificates for AIG regardless of their worth.

Write your Senator or Representative and tell them we want our monies back immediately and we want AIG to be prosecuted for fraud and dismantled. Not tomorrow, but today.

Visit http://eveningsofdialogue.blogspot.com/ for more interesting dialogues.

Evenings of Dialogue old posts 2

Tuesday, April 28, 2009

Call for Federal Intervention: Closing US Auto Plants is not the answer

Call for Federal Intervention: Closing US Auto Plants is not the answer

Closing US Auto Plants is not the answer for improving the failing financial economy. It is only contributing more to the economic crisis. For many organizations, the first option is layoffs and closing offices or businesses. This is only a short term “fix” because when you close plants you are really only adding to the economic crisis and causing your organization more economic problems. Closing US Auto Plants increases the number of individuals seeking unemployment and reduces the disposable income of families. Thus families are unable to spend more on buying US Cars or in buying goods and services that can increase demand and make the supply chain more profitable. The key to long term sustainability for organization is to reduce wages and benefits while keeping employees on the payroll so that the employees are not reduced to unemployment benefits which do not cover their basic needs and in reality can cause the individual to join the millions of homeowners in foreclosure. Before organizations consider downsizing, there should be an evaluation of other options that would keep the organization viable and yet maintain the current workforce. This is not often done. Management and leadership consider layoffs as the first alternative. Salary reductions are never considered, especially at the leadership level where the most amount of salary expenditures are. Closing US Auto Plants and sending more then 19,000 workers to the unemployment lines should not be an option for the General Motors. The US Taxpayers have already suffered enough in providing bailout monies to the US Auto Industry and now for the Federal Government to “allow” them to increase the economic crisis by laying off workers is diabolical. We need an accounting of what the General Motors and Chrysler used the bailout monies for that has continued to cause them to be in such a financial state. When an organization has received such enormous amounts of bailout monies and not seen any viability, it indicates that the organization has a problem with mismanagement of funds rather than that their sales are not appropriate for maintaining the organization. General Motors and Chrysler are actually “living beyond their means” when it comes to their accounting practices and their expenditures. There are oversight committees that were established to determine how General Motors and Chrysler can become profitable organizations again. The problem with the oversight committees and the current leadership at General Motors and Chrysler is that they are still “leadership styles and ideals” from the 20th century. They are not utilizing the leadership and management ideals of the 21st century. When you have the same people that have been in the organization for the past 10-20 years “running the ship” the potential for “Out-of-the-Box Thinking” is significantly reduced. These organizations need “NEW BLOOD” infused into the leadership that brings a new way of thinking and that brings fresh ideas to the organizations that are essential for removing the old biased and misconceptions of how organizations should function. We can see this in the case of Chrysler Financial that refused the Federal Bailout monies because they do not want to adhere to limitations on executive pay rates (http://money.cnn.com/2009/04/20/news/companies/chrysler_bailout/index.htm). This indicates that Chrysler Financial is more concerned with its executives “draining” the organization dry rather than the survival of Chrysler. Thus Chrysler Financial is more concerned with lining the pockets of its executives than ensuring that the employees at Chrysler, as well as, Chrysler Financial continue to have a job for the next six months. In 2006, General Motors did indicate it was cutting salaries and bonuses for its executive (http://www.theage.com.au/articles/2006/02/08/1139379572293.html). However, let’s be realistic, their salaries are so high that the reductions probably did not make a “dent” in their actual compensation. General Motors and Chrysler have got to get serious on what it means to truly reduce executive level compensation, which has more of an impact on the profitability of the organization than the hourly workers compensation. As a matter of fact, an investigation of General Motors and Chrysler would probably find that many of the leadership and high level managers are still receiving outrageous salaries and benefits that are not conducive to ensuring that the organization restructures so that it can be more profitable.
The Federal Government needs to intervene and indicate to General Motors and Chrysler that any monies received are to be used to sustain the US Autoworkers and that they cannot close any more US Plants without government approval. The Federal Government can establish a subsidy program that provides a portion of the US Autoworker salary until it can be determined how to restructure the organization. In addition, the Federal Government may need to establish a “new” Auto taskforce that consists of individuals that are not in the auto industry, but are strategists that can provide a “new perspective” on how the organization can reach a sustainable stage over the next few years based on an unbiased approach that is not focused on the old views and concepts of what the auto industry should be and on the beliefs, values, and norms of the Industrial Revolution.

Sunday, April 19, 2009

The Bank of the United States of America

The Bank of the United States of America

For decades banks and credit card companies have taken advantage of the American Taxpayers through high interest rates and bad lending practices. The duped the Federal Government and the American Taxpayers during the 3rd quarter of 2008 by indicating that they were in financial distress and without Federal bailout monies they would not be able to survive, when in reality they wanted to use the Federal bailout monies to pay millions of dollars of executive level compensation packages. These banking entities were never in any type of financial crisis, which in seen in the fact that less than six months later, many are indicating that they have billions in profit and are ready to pay back the Federal bailout monies because they do not want to be “regulated” by the government in how they award and pay executive level compensation. It is time for the Federal government to make banks realize that there can be competition in the banking industry that will limit their abilities to remain so profitable that they are able to even pay executive level compensation. There are complaints from politicians that with government intervention, the United States is moving from a Capitalist Society to a Socialist Society. If this is the case, then the American Taxpayer should be able to decide if they want to live in a Capitalist Society derived from the greed of business owners or in a Socialist Society where they have a choice of how they want to live. The Treasury Department and the Federal Reserve need to establish The Bank of the United States of America (BUSA), a government controlled and sponsored banking entity. The Bank of the United States of America would bring some competitiveness to the banking industry as it would offer interest rates between 5-16% for credit cards and higher interest for deposits than the current banks. The BUSA would start to refinance mortgages directly, bypassing the banks, which would allow more homeowners to remain in their homes and alleviate some of the “bureaucracy” of the current banking industry which is not focused on helping homeowners. As there are many banks that have become insolvent and their facilities are now empty, the BUSA would be able to open branches in major cities to allow American Taxpayers to begin making wire transfers from their existing banks and transferring credit card balances. The BUSA would also offer online banking services to allow American Taxpayers to establish accounts online and receive debit and credit cards via the mail just as the current banks do. The advantages of opening The Bank of the United States of America is that the interest monies received could be used to reduce the Federal Deficit, it would alleviate the size of banks that are thought to be too big to fail, it would create jobs locally as new offices are opened, and it would provide the American Taxpayer with a better solution for investing and saving their monies than in the current banks that are using the monies to pay the executive level bonus compensation packages.
It would be a “win-win” solution for the American Taxpayers and the Federal Government and let the current banks know that the American Taxpayers have a choice in how they want their hard earned monies to be used.


How to start a bank: http://www.ehow.com/how_2062432_start-bank.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

Wednesday, April 15, 2009

Spring Cleaning: Strategies for School Districts to reduce deficits

Spring Cleaning: Strategies for School Districts to reduce deficits

All across the nation, school districts are indicating that there are millions in deficits that must be addressed for the school system to remain viable. The strategy that many school boards are utilizing is to layoff teachers and support personnel, not administrators. Teachers are the “front line” workers that facilitate the learning environment for the students. An alternative strategy can be to evaluate the need for administrators. In many cases, schools have multiple administrators performing the same tasks and duties within a school or even district. These administrators are making high five to six figure salaries, which in many cases could keep 2-3 teachers employed. In some schools, there may be as many as five principals in the same school, the Main Principal and Principals for each grade level. In addition, there may be many different “Area” offices that provide the same services only to different schools within the district. When indicating strategies for reducing deficits, there has been no indication that administrators will be terminated or laid off as a method of reducing the deficits. In Los Angeles, 5,400 teachers and support personnel may be laid off. In Detroit, over 600 teachers and support personnel will be laid off. It is time to review the School Boards and their logic for the layoff teachers when classrooms are already overcrowded with teachers instructing so many students that is it hard to maintain order within the classroom, let alone provide the necessary instruction for students to strive and excel in the educational environment. While it is understood that a strategy must be developed to reduce the deficits, it would seem that financial managers and school boards are opted for the same old strategy, reducing the teaching workforce. While a Turnaround Strategy may be applied that focuses on Capital Expenditures and Workforce Reduction, it should not be relegated to the layoff of teachers, but rather to analysis and reduction of Administrators, as well.
School Districts need to conduct a “Spring Cleaning”, which entails working from the “attic to the basement” and depending on how many floors the cleaning may be extensive. When cleaning the attic, an analysis of the Administrators and their roles needs to be conducted. While longevity and dedication can be applauded, many of the Administrators have been in positions for decades utilizing archaic educational practices and sometimes just drawing a paycheck for sitting behind a desk. If “Spring Cleaning” is conducted effectively, much of the deficit will be reduced in the termination of high paid Administrators and redundant positions and the replacement of some with new Administrators at a lower salary. President Obama signaled a new era with the concept of “Change” and how organizations cannot continue to operate under the same status quo that they have for decades and even centuries. This is true of school districts as well. School districts cannot expect to become fiscally sound if you keep the same leadership in place that has made “poor and inappropriate” decisions in the past. Reorganization and restructuring should start at the top with Administrators and Leadership, rather than teachers. If School Districts find it necessary to reduce the number of teachers, then it would be more appropriate to retire older teachers and reduce Administrators to maintain an equilibrium within classrooms that does not alienate the students which results in higher drop out rates.

LA School Board to layoff 5,400 employees:
http://news.yahoo.com/s/ap/20090415/ap_on_re_us/la_schools;_ylt=AkAHM3ZtTnIVUzgV.gGbRDRH2ocA;_ylu=X3oDMTJkdG9rMnF1BGFzc2V0A2FwLzIwMDkwNDE1L2xhX3NjaG9vbHMEY3BvcwM2BHBvcwM2BHNlYwN5bl90b3Bfc3RvcmllcwRzbGsDbGFzY2hvb2xib2Fy

Detroit to close 23 schools, layoff 600 teachers:
http://www.azcentral.com/news/articles/2009/04/09/20090409detroit-schools0409-ON.html

Friday, April 3, 2009

Tammy Bruce … Eat Your Heart Out!!!

Tammy stated: ”That's what he's married to," Bruce said. "...You know what we've got? We've got trash in the White House. Trash is a thing that is colorblind, it can cross all eco-socionomic...categories. You can work on Wall Street, or you can work at the Wal-Mart. Trash, are people who use other people to get things, who patronize others, who consider you bitter and clingy..."

Tammy Bruce called the Obamas “Trash in the White House” because of the First Lady’s discussion with children on getting an “A” and being called out for “talking like a white person”. Thank you Tammy Bruce for your perspective on the First Family, We truly admire your candor. At the same time, we can only surmise that the demonstration of your ignorance and insolence is an indication of your anger that there are finally “African Americans” in the White House and not as servants. That you could have the gall to call the President of the United States and the First Lady “trash” demonstrates that you are truly prejudice and discriminatory. Laura Bush visited many schools and even had commercials with children promoting education in which the children were not allowed to touch the First Lady and she looked very distant and uncomfortable in the “situation”. That the First Lady can look so natural among the children and that she is a success story in her own right is enough to make the most conservative American cringe as they realize that there is hope that minority children around the nation can grow up to be successful business people and entrepreneurs despite the fact that they have been oppressed for so long. Ms. Bruce, Eat your Heart Out, that you are not a First Lady and that your brand of journalism is not the type of news that appeals to the masses of American that are offended by your labeling of the First Lady as “trash”. When Ms. Bruce defines trash as “colorblind”, she was missing the point that “trash” is a substandard individual with low morals and self-esteem that is demonstrated in their behavior. With that being said, take a look in the mirror and see the true nature of “trash”. Based on the definition that Ms. Bruce puts forth, “Trash” is someone who uses others to get things, to patronize others and that are bitter and clingy. What a great reflection of Ms. Bruce. The only recourse is the pity Ms. Bruce that she would have to lower herself to such standards of calling the President and First Lady “trash” to identify her perception of self. Your analysis of the First Family only demonstrates your jealousy of individuals that you wish you could be.

http://www.huffingtonpost.com/2009/03/23/tammy-bruce-calls-the-oba_n_178109.html

Lay offs: The Follow the Leader Philosophy

Each day we see more organizations that are in the process of a lay off of employees. It started with one organization and the cycle has continued daily. Is it really necessary for these organizations to lay off employees? That is a good question. Are these organization really in the financial crisis that they state or just “following the leader” so that the perception that they are in a financial crisis is displayed. Some organizations are indicating losses rather than profits. In some cases, this can be a falsehood.

Scenario:
Organizations predict their profit for the year. ABC Organization predicts that it will have a $1 million profit for 2008. The profit for 2007 was $500,000. ABC Corporation did not hire any new employees during 2008 and expenses remained constant. ABC Corporation has a $510,000 profit for 2008. The company indicates that it has a loss of $490,000 based on the fact that it predicted a profit of $1 million for 2008. However, the company really is sustainable based on the profit of $510,000 as the profit was more than in 2007 and covered the expenses and overhead that the company incurred for the 2008 year. The companies will layoff employees on the basis that they did not meet the anticipated profit for 2008.

Companies are laying off employees to follow the “current trend” of the market that formulates that the economic crisis is causing less of a demand for goods and services. While the unemployment rate is 8.5%, there are still 91.5% of the American citizens that are still employed. Therefore, there is spending that is occurring and businesses are still having some profit. It just is not the profit that they are predicting. The solution … reduce profit expectations to a realistic amount. Each year, corporations increase profit predictions by a “certain” percentage and when that percentage is not reached, then a loss is indicated. This is Accounting 101. As demand for products increased, companies increased their profit expectations. This cycle has continued for years and now that there is a “perceived” financial crisis, companies are using the “inflated” profit expectations to indicate that their company is in financial turmoil and to base the need for lay offs. When in reality, the company could continue with the current workforce based on the historical profit margins of the past and by maintaining current expenses. An Audit of the organizations would find that these organizations have significant reserves generated from years of profit that would provide the “capital” needed to sustain the organization and its current workforce without lay offs.

Call 911 The Stock Market is a Joke!!!

Call 911 … The Stock Market is a Joke!!!

“Call 911. The Stock Market is a joke in your town”. The World bases whether the economy is improving on the buying and selling of stocks on a stock exchange. How ludicrous is that. The stock market consists of a combination of corporations and small businesses and their stock volume, along with the value of the stocks. Each day, we watch the stock market and see the ups and downs of how the stocks are faring. STOP!!! We do not have enough information or access to information to determine the validity of this process as a basis for how the economy is progressing. How do we know what stocks are being bought and sold? It could be the same stocks each day? All we see is that the stock market is increasing or decreasing based on supposedly what the stockbrokers believe as affecting the market, such as an economic crisis, raw material shortages, politics, etc. These stockbrokers are “playing” with our lives. They are giving the illusion that our economy is in a financial crisis based on how the stocks market numbers are being displayed. WE need to take this information with a “grain of salt”. Why don’t we know what stocks are being bought or sold? Because that would eliminate the ability of the stock market to provide the illusion that has made it so famous today. Government and society needs to stop putting so much faith in the stock market as an indicator of the economic condition. If this perception can be changed, then it will lead to recovery. As long as, we are made to believe that the stock market is an indicator of the economic conditions of the world, then we will continue to limit our spending. Stop investing in the stock market. Why provide the stock market with the ability to utilize your funds for the improvement of the wealth of stockbrokers and corporations that have already striped the nation of its dignity and that continue to increase their own coffers with no consideration for the American taxpayer. The stock brokers control our perceptions based on their activities. If they want to continue the fear of economic crisis, then they can sell stocks and the stock market shows a decrease in the value of stocks. If they want to make it seem like the economy is getting better, then they can buy stocks. The stock market needs to be discounted as a basis for economic status as it is controlled by human behavior and not by economic indicators. Strip these stock brokers of their ability to control our lives and begin to develop your own perceptions of the economy. Once you take the stock market out of the equation, you will find that the economy can rebound as businesses begin to use their own forecasting and strategies to improve their economic condition and not rely heavily on the buying and selling of corporate stock that we have no significant information on. Is it GM stock or IBM? We have no idea and thus we become the believers of a cruel joke that never ends.

Want to know more about stock trading: http://www.straightdope.com/columns/read/2116/how-does-the-stock-market-work

Wednesday, March 25, 2009

Memo to Mr. DeSantis

Memo to Mr. DeSantis

Date: March 26, 2009
To Mr. DeSantis
From: The American Taxpayer
Subject: Resignation


Thank you so much for your resignation letter from AIG. While we applaud your action to resign from AIG, we would also like to express that we are not empathetic with you and the rationale for your resignation. You are upset that after we, the American Taxpayers, provided AIG with billions, not millions, of dollars in bailout monies that we do not see the need for retention bonuses to be paid to “ANY” AIG employee regardless if you were instrumental in the organization’s despicable behavior that has significantly contributed to the financial crisis that the American economy is experiencing. When a company indicates that they are not profitable, then how can they pay bonuses to employees without profit? Think logically. Your complaint is that you are not receiving over $700, 000 in retention bonuses. I can only imagine what your salary must be. While you are crying “foul”, there are American Taxpayers that provided the bailout monies to AIG that are homeless and destitute and you have the audacity (and that is not “of hope”) to contend that Attorney Generals Cuomo and Blumenthal should be embarrassed for threatening to expose you to the American Taxpayers and to place you in the “Hall of Shame” for which you belong. Wise up!!! You have been “playing” on the ignorance of the American Taxpayers for so long that you have actually begun to believe in your own superiority. So as the American Taxpayer that now holds 80% equity in AIG, I accept your resignation and also tender that no letter of recommendation will be offered. I will contest any applications for unemployment benefits and lastly, you have just subjected yourself to the “Hall of Shame”. Your picture and name will be forever remembered by the American Taxpayer as a member of the illustrious group of people that crumbled the American economy and expected a “reward”. With that being said, do not complain if the American Taxpayers continues to harass you or if you are not “snapped” up immediately by another firm, as you will be forever “blacklisted” by the American Taxpayers as an unsavory character that has lived in the “life of luxury” so long that you are out of touch with reality and the Middle Class.

More on Mr. DeSantis resignation: http://news.yahoo.com/s/ynews/ynews_bs272