FRUSTRATED ACHIEVER (Guest Post)

I received an e-mail from a relative, and with his permission I am posting it. Because of his position, he asked not to be identified. But just let me say that he is an accomplished man...an entrepreneur, businessman, MBA, and Professor.

His personal experiences over the last little while shine a bright light on what is wrong (or at least part of what is wrong) in our nation today. I wanted to share it with you all.



I have had an interesting experience in the past few days. I'll try to relate the key parts to you.

We recently had our bank: New Frontier Bank in Greeley, Colorado, closed down by the FDIC. Yes, they had made some bad loans, and being a relatively small bank they did not qualify for a bailout or other help. Did the bank officers put the bank in jeopardy? Why, it appears that they may have! They made what appear to be some very bad decisions. Do they deserve to be put out of business? Probably so, if you believe in capitalism, as I do, and the FDIC was right about their situation.

Yet, in my 60 years of life, they are the best bank I have ever dealt with. They knew what customer service was about. We moved to Texas 2.5 years ago, but kept our bank in Greeley, because they recognized us as customers and took care of problems efficiently and in a friendly manner. I've never had a bank like that before.

Let me say, that I don't believe in bailouts... this is supposed to be a capitalistic system we live in. Those that do well thrive, and those that don't, don't. That's why I'm especially peeved that large banks are getting handouts to the tune of hundreds of billions of dollars. New Frontier Bank was just too small I guess. Yet the large banks seem to have made the same kinds of errors in spades, and I'm paying, as a taxpayer, to save their bacon. That is upsetting.

I understand that depositors should remain largely whole. That is what the FDIC is for. Investors, on the other hand, took a risk with their money, knowingly. I have quite a bit in bonds with GM. We have had the money invested there for several years. When you take a capital position or make a loan, you take a risk. I'm not crying in my soup, but we will probably only get pennies on our dollar when all is said and done. Yet, GM, the government, and the auto workers will likely come out nicely. I get to pay twice... once for my investment losses, and again with my tax dollars. I'm willing to take the loss. I don't like it, but I took a risk...it didn't work out. But paying again with my taxes... (I'm one of the 50% or so in this country that actually pays federal taxes) irks me.

But, the best is yet to come!

In moving accounts from our old, now defunct bank, to our new bank, we had to contact the holder of our mortgage to transfer automatic payment from our old bank to our new bank. Wells Fargo Bank, NA, holds our mortgage. In talking with us, they asked if we would be interested in refinancing our mortgage. Out mortgage is at roughly 6.5%. It is for 30 years. We pay bi-weekly, thus making an extra month's payment each year, and we also pay $500 additional each month to knock down principal faster. We should be able to pay it off in 14 or 15 years instead of the 30.

Well, apparently there are now government programs where you can refinance at 3% or so. That sounds pretty attractive, with no or very low fees, etc. We, naturally checked into this with Wells Fargo. No, we don't qualify. Don't qualify we asked? Nope. Seems that you have to be in arrears on your mortgage, or have to have missed a certain number of payments in the last year in order to qualify. Oh, but we do qualify if we pay a $3,500 fee up front and want to pay about 5.8%. Well, when you run the numbers, it doesn't make sense for us to take that "deal." It sure appears that the government programs, backed by the government through lending institutions, are encouraging loans of the same sort that got banks into this mess to start with.

So, here we sit with our credit score of about 800 when last we checked, not qualifying for a low interest, low fee loan, because we have acted in a responsible manner with our finances. And, we get to subsidize a bunch of folks who haven't been so responsible....and the lending institutions that made loans to them to boot. Worst of all, banks are being encouraged to make basically unsound loans once again.

I don't have a lot personally against our current President. Personally. I'm not crazy about the fact that neither he nor most of congress seem to have any inkling as to how capitalism works... but people elected these folks. Actually, our President reminds me a lot of Jimmy Carter. Nice, altruistic guy, without a lick of common sense. Y'all remember Jimmy don't you? Tried to make nice with the world, do the right thing morally, etc. We paid for it in rampant inflation and many other ways. Still paying for his good will toward Iran... Of course, that is all opinion.

Anyway, within the next four years or so, if all the legislation gets passed, federal taxpayers will likely, for the first time, be in the minority. I figure it will be about 40% that are paying the freight for the rest before too much longer. Then the wholesale catering to the new majority can really begin. Soak those rich bastards! Hose them good. The poor and downtrodden need more help. (Of course, they could help themselves by staying in school and/or learning a trade.)

I read recently in Business Week that there are 3 million jobs going begging in this country. That is a VERY bad sign for the economy, I'll tell you why:

3.2% of (625 thousand) jobs in Education and Health Services are presently vacant.

2.7% of (471 thousand) jobs are vacant in professional and business services.

1.7% of (392 thousand) jobs in government are vacant.

Etc.

Down to....

0.4% of (26 thousand) construction jobs being presently vacant.

Why is this bad for the economy? Well, in a time when the economy is bad, should there be so many good jobs that can't be filled? Only under one set of circumstances...when no one who is qualified can be found to fill the jobs. We have a real problem. In many places, 60% high school dropout rates are the norm! We even have the military turning people away as unqualified. Yet, many of these folks are the same folks that are demanding our help. I don't mind helping people who are helpless. I do mind helping people, at my expense, who are unwilling to help themselves. People have to do the things necessary. Stay in school, take hard classes, learn a trade, make something of yourself... Don't give up, don't expect the good life without some sacrifice and at some price.

This is no longer a racial thing in this country. (Not sure it has been for quite some time now.) It isn't even an immigrant thing. There is now a growing divisions in this country based on academic and trade preparation, willing to forgo instant gratification in order to gain qualifications, and work ethic. It cuts across all races and ethnicities. For the first time, the doers and builders and investors in this country are beginning to be alienated and be treated as second class citizens and suckers. For the first time, they are the minority, expected to support the new majority, and at the standard that the new minority have worked hard for, have sacrificed time, energy and effort for.

I don't know that there will be a revolt of any violent sort. I doubt that there will be. (Builders tend not to tear things down.) Besides, the system may just be too rotten to salvage. There will be a quiet revolt. A revolt along the lines of what happened in Great Britain prior to Margaret Thatcher. A revolt along the lines of well educated people who are leaving Russia and China whenever they have the chance. It will be a brain drain. Those that do, those that can, those with ideas, those with a work ethic, those who have put aside the childish notion of instant gratification to obtain advanced degrees... will simply leave, as soon as a place with opportunity for those sorts of folks can be identified. The U.S. used to be that place. Maybe it could be again, but for the first time in my life I am disillusioned. I can't see it turning around. So, my eyes are on the horizon. Looking for a culture that values what built America.

I'm sad to have written this missive. Very sad indeed. I just don't know what else to think at this juncture in America's history.