Under the Mattress

UTM Moving Party

2008-10-28T09:35:00.000-07:00

Hey - hopefully this doesn't mess anything up too much, but do to compatibility issuses and a couple of other things, Under the Mattress is officially becoming a Blogger blog until further notice. Free blogging platforms often leave much to be desired, but with our present goals and situation they way they are, this is the way it's going to be. Hopefully we'll be able to make the transistion smoothly and everyone can find us again. Go ahead a shoot us an e-mail if you've got any questions! Things are a bit 'ugly' right now, so if you see some random code or a malfunctioning script, that's why - we're working to get it all nailed down this week, hopefully by tomorrow. In the meantime, check out our RSS feed and tell your friends!

Paper or Plastic?

2008-10-28T09:31:00.003-07:00

When your friendly grocer asks this question, they're usually wondering what kind of grocery bag you want to take your graham crackers and applesauce home in. While UTMGal and I were waiting in line waiting to check out with our milk and bread, I noticed something I hadn't seen before. Tucked in between the king-size Snickers, the bubblegum and the batteries was financial advice. That's right - financial advice. We were shopping at a Smith's (which is owned by Krogers) and I picked up three financial advice pamphlets titled:
- 1-2-3 Rewards MasterCard (0% intro APR on Balance Transfers for 12 months)
- Pet Insurance (Because pets are family, too)
- Identity Theft Protection (You need more than a shredder)

I thought they were advertisements for another company, but nope, the website listed on the front of the pamphlets is: www.smithsfoodanddrug.com/finance (check the link for a picture of all of the different brochures and advice they offer.)
They include loans and other types of insurance.

So... would you take financial advice from your grocery store? After reviewing the pamphlets, it looks like the services Smith's offers are bare bones, and not always essential. For example, take the pet care brochure, which features this quote:

"Cinnamon, just like a kid, had an unexpected injury. Having PetFirst insurance (the pet insurance Smith's offers) enabled me to concentrate on her well-being and recovery. Instead of the $1,000 cost, 90% was paid for insurance! Now I can spend my money spoiling Cinnamon! I highly recommend PetFirst!"

Now I understand loving your pet - my family had an old cocker spaniel while I was growing up and as she got older and older and started to lose her sight and hearing we collectively mourned and were very said when she died. But is it worth $29.95/month for a cat or $39.95/month for a dog? (the price for premium care) In a year you'll have forked over $479.40 - enough for almost for any kind of basic dog a family would like. This is obviously a luxury for those who don't look at price tags. We run into similar situations with both the credit card (which has a rate of 12.24%) and the identity theft protection, which costs $11.99/month (for a yearly total of about $144). Both products are readily available from other locations for better prices.

The lesson from this? Don't get sucked in to whatever offers show up in front of you - and just because something costs less than $20 a month doesn't mean that it's a good deal. It's important to do your research and take some time just before you sign up for something that will save you $10 on groceries or get you 20 cents off a fill-up of gas (both of these offers are made in the brochures.)

Howdy Everybody!

2008-10-28T09:31:00.001-07:00

We're glad you've made it to Under the Mattress. We know we're the new kid on the block, so when we say thanks for coming, we mean it.

We've got new visitors finding us everyday - we've already had a 150% increase in visitors since yesterday. Most of you are checking out Glenn Beck's long (and detailed) informational e-mails where he talks about the economy. If it's your first time Under the Mattress, don't leave thinking that's all we've got to offer! We just posted our first book review, a look at "You're So Money," by Farnoosh Torabi, and we've also posted our weekly link round up which includes some great ideas for cheap Halloween costumes.

If you're liking us so far, just wait and see what we've got planned for the future. Want us to come to you? Hey - we can do that. Just check out our quick and easy subscriptions page and you can have the UTM feed delivered daily to your inbox, RSS reader, or just about anything else that can catch us. We've noticed it's a bit quiet in the comments feed out there (we can hear the comment crickets chirping) - we want you to talk to us, tell us what you want more of and less of - and we'll try and make it happen! (You never know what'll happen if you comment at UTM - our first brave commenters may find it worth their while....) Check it all out, make yourselves comfortable and look around.

"You're So Money" Book Review

2008-10-28T09:30:00.002-07:00

Alright - the moment you all (well, at least me) have been waiting for - our review of Farnoosh Torabi's book "You're So Money" (Live Rich, Even When You're Not)!

If you want to pick up You're So Money: Live Rich, Even When You're Not from Amazon.com, check it out!

What They Say (the back of the book): "Finally a savvy, realistic finance book for those of us who love our Starbucks mocha lattes and Razr cell phone but don't want our Jimmy Choo shoes or Bose headphones buried under a pile of burgeoning debt. Twenty-something financial reporter Farnoosh Torabi tells you that you can satisfy your sophiscated tastes and achieve financial bliss.

The Key: Prioritizing your expenses according to what you want to most - splurging when you can and saving on other things. From sensible grocery shopping (yes, you can have your organic yogurt and eat it, too!) to cyberbanking, empower yourself to live a guilt-free Gucci and gadget-clad good life without sacrificing financial security"

Does the book deliver on it's promise? We give it four stars out of five. The book does offer tips on getting you to your financial need-wants (as the book calls them) like an HDTV or an Audi, but the solution is nothing earth-shattering - it's just cutting back on other things. This is a good book people need, because often, instead of cutting back, people end up using more and more credit and bringing on more debt.

Who the Book is For: This book is a great primer for those just getting their feet wet (college students, recent grads, those just starting out on their own). It covers quite a bit of topics in a real, humorous, and informative way. "You're So Money" is a great introduction to all things money. The book covers things like purchasing cell phones, buying cars and houses, 401ks and IRAs. Basically - if you don't know anything about finance, money, budgeting, or you're just not comfortable when things start getting "mathy" or "technical," you should check this book out.

Who is the book not for? The book covers a lot of topics lightly, so anyone looking for deep technical information, deep explanations, or information that isn't available to everyone should probably try another source. The book is also light-hearted and modern, and is definitely geared towards a younger audience. (References to texting, iPods, etc., might throw off an older generation).

Whatcha might not know: The book also includes a forward and investing tips (part of a chapter) from Jim Cramer, an investing guru, host of CNBC's "Mad Money," and a co-founder of thestreet.com.

What's In the Book?
Here are the chapter headings:
1. Life is Good
2. No More Debt Drama
3. Banking in Bed and Scoring
4. Rich People Dress Good
5. Accessorize Right
6. Lucky Money
7. Adults Only!
8. Homeward Bound
9. Cruise Control
10. Social Cents
11. Because Life Happens
12. Getting Covered
13. Just Say No!
14. Money is Everywhere

Would We Buy the Book? We did! Actually, we own the book, but we 'won' it on a contest on Geezeo, our online budgeting site (more on that later).

Basically... this is a great introduction to the financial world for those with little or no experience. We enjoyed the book. It's written towards a college-age generation, and the lessons it teaches ring true. Check this book out if you need some basic information to get you started, and good specific advice on transactions that might be coming your way in the future (cell phones, cars, apartments...) grab a copy!

If you want to pick up You're So Money: Live Rich, Even When You're Not from Amazon.com, check it out!

We're working on our next review.... want a hint? Let's just say it's about... money... :)

Welcome Tip'd Friends! (and Weekly Links)

2008-10-28T09:30:00.001-07:00

Hey - UTMGuy here - looks like we've been getting quite a bit of traffic from Tip'd, the social news site for financial news and information. Welcome, friends! We've seen 37 of you in just a short while. We're glad you're here and hope you come back soon. To get our content delivered to you, check out our RSS and email subscription links on the right, or visit our subscription page.

Now for the links of the week (from what we've been reading).

Halloween is just around the corner (one week from tomorrow!) Don't get left costume-less - check out FrugalDad's Cheap Halloween Costumes post. I think my favorites are the spa girl and the bunch of grapes. Great costume - no cost.

If you're interested in CD's and other information about potential bank fees and problems, check out this post from the Bank Deals Blog. I hadn't visited this site before, but it looks like a great source of bank-specific information, so I'll probably check it out again soon.

One of our old favorites, Budgets are Sexy, had two great posts this week. The first deals with a tried and true method of saving, paying yourself first. While included in many financial advice books, this advice is really, really underrated. We can only spare about 10% of our combined income each month, but it adds up faster than you think. J. Money has great advice for viewing the savings just as you would a bill you have to pay to another company, which might help you pay it. His second post, which I just found today, deals with emergency funds. More specifically - the question of whether or not it's ok to use them. J. answers an e-mail from a reader and has some great advice - a good read.

GetRichSlowly features an insightful post that talks about different ways to cut back on household products in an effort to save money.

Broke Grad Student links to some good articles in a post titled "25 Resources to Help You Get Through the Financial Crisis."

We're excited you're here and hope the information we enjoy is interesting to you, too. If you like this, make sure and tell your friends - we could all use a few extra bucks!

[digg=http://digg.com/business_finance/Weekly_Links_Cheap_Halloween_Costumes_and_More]

UTM Special Edition Update

2008-10-28T09:29:00.000-07:00

Hey everyone - we've now posted the complete text of the Glenn Beck e-mails on our "special edition" page. They're long, but insightful and educational. Beck covers quite a few things, especially in his last e-mail, and touches on politics, Bill of Rights Issues (gun ownership, etc.), the moral standing of our country and its leadership, the economy and the bailout, all of which are very interesting to read and paint the complete picture, but the main reason we posted this was for the solid economic advice which he offers. Like we showed in the quotes below, people in America are beginning to realize that everyone can do things for themselves to insulate themselves as much as possible from the economic rollercoaster that has been the past few months. Living within our means, paying off debt as smartly and quickly as possible, and prioritizing needs above wants (more on this when our review of "You're So Money" comes later this week) will help people somewhat stablize their own finances. It'll make you think, for sure.

UTM Special Edition Full Post - Beck on Economy

2008-10-28T09:26:00.001-07:00

*** Is this your first visit to Under the Mattress?
If so, make sure you subscribe to our RSS or E-mail Feed
To find out more about who we are, check out our About us Page.
You'll also want to check our blog for other great articles.
We're really glad you're here - Come back and visit again soon!***

Glenn Beck on the Economy

Part 1 - What Happened?

Glenn Beck: What happened?

October 8, 2008 - 1:47 ET

Glenn's letter to his family explaining how we got into this economic crisis...

Yes, another email letter from your crazy brother. You raised a lot of
questions in your last email and I am going to try to answer all of
them.

I think all of your questions fall into three areas: (1) how did we
get here; (2) what's coming; and (3) what can I do to prepare myself
and my family.

Consider this email as my answer to your first question, "how did we
get here?". I'll be sending you 2 more emails answering your other two
questions. Since there's a lot of misinformation out there I will
document each of the facts in my emails so you know where I pulled the
information from and where you can go to read and learn more.

What you shouldn't do is panic. We'll get through this--don't pull all
of your money out of the bank but have enough cash on-hand to meet any
possible emergencies.

First, you've got to get the stock market's ups-and-downs out of your
mind. The recent drops and upticks are short-term. Our economic
problems are much bigger and deeper. Too many people believe that if
the stock market goes up our problems are behind us and that's simply
not true.

Last week the market had big drops and big upswings. In the end, the
market ended down more than 800 points and lots of 'experts' were
shouting it was a time to buy. I don't see it that way.

Did you know that just two days after the stock market crashed in
October 1929 the market actually gained ground the next two days? The
New York Times reported that "the market quickly regained its poise
and stability...." Today, Wall Street 'pros' are telling us it's a
good time to invest because Warren Buffet is investing. A lot of
people were probably using the same argument when the Rockefeller
family was buying stocks right after the 1929 crash, what they didn't
know was that it would take Wall Street ten more years to see those
prices again.

Our current economic crisis was caused by politicians, both Democrats
and Republicans, who perverted the American Dream by treating home
ownership as an undeniable right rather than what it really is, a
privilege. President Bush aggressively promoted the benefits of home
ownership through various policy positions, including a reckless zero
down-payment initiative for some homebuyers and praised Fannie Mae and
Freddie Mac even after concerns about their accounting standards began
to surface.

Home ownership has always been part of the American Dream. It allows
individuals and families to build wealth by having them pay themselves
instead of a landlord or rental company and vests people in their
communities by grounding them in local schools, stores and government.

The concept that owning a home was a privilege and not a right began
to change in 1992 following a flawed Boston Federal Reserve Board
study which allegedly found subtle discrimination in loan and mortgage
lending by banks and mortgage lenders.

Politicians didn't care that the study was full of errors. The study
found discrimination took place when five minority applicants were
rejected for special low-income loans even though the applicants were
rejected because they made too much money to qualify for a low-income
loan, not because of their race. The report also classified as
'rejected' the applications of eight minority borrowers even though
these borrowers voluntarily withdrew their mortgage applications. The
study's sloppiness also went the other way.

The study reported that a white applicant was approved for a
$3,115,000 loan in order to purchase a home valued at $445,000. It was
later demonstrated that the actual loan was approved for $311,500, far
less than $3 million reported and more importantly, less than the
home's purchase price. When these and other errors were corrected no
evidence of discrimination existed.

But politicians didn't care. They used this report as the basis to fix
a problem which didn't exist. Leading the charge for change was
President Clinton who immediately set-out to rework the Community
Reinvestment Act to give federal officials the power to pressure banks
to make loans they otherwise considered too risky or uneconomical.

Traditional lending requirements were labeled 'outdated' and
discriminatory. What 'traditional lending requirements' were viewed as
'outdated' and 'discriminatory'? (1) banks were told that a "lack of
credit history should not be seen as a negative factor" and that "past
credit problems"
should be viewed and considered in light of any "extenuating
circumstances" so loans could be extended when they otherwise would
have been denied; (2) banks were encouraged to let borrowers without
enough money for a down-payment make-up any deficiency with "gifts,
grants, or loans from relatives, nonprofit organizations, or municipal
agencies" even though banks considered this risky as the home buyer
would have little or no equity in the house; (3) banks were also
instructed that borrowers who received child support, welfare payments
or unemployment benefits could count that as 'income' for borrowing
purposes.

Call me crazy but if you need to count child support money that's
intended for your child, or are in such bad economic shape that you're
relying on welfare payments to make ends meet or are unemployed,
maybe, just maybe, you shouldn't be buying a house. Too bad our
politicians and the 'best and brightest' on Wall Street couldn't
figure that out!

Community groups like ACORN, threatened to cry racism if banks didn't
increase their loans to subprime borrowers. Banks typically avoided
subprime loans as they carried a greater risk of default, but with law
on its side, ACORN and other groups intimidated lending institutions
into making such loans.

Banks soon learned, however, that making subprime loans actually could
increase their profits without increasing their risk. Once the banks
extended a loan to a subprime borrower that loan could then be sold by
the bank to Fannie Mae or Freddie Mac, two government sponsored
entities charged with making home ownership affordable to all
Americans.

Banks, Wall Street, and mortgage lenders were soon eager to extend
mortgages to subprime borrowers because they could make lots of money
without carrying any risk. Fannie and Freddie carried all the risk
once the original lending agency sold the loan to them. And once
Fannie and Freddie bought the loan this freed up the banks to make
even more subprime loans.

So everyone was a winner. The subprime borrower got the money to buy a
house. The banks generated mortgages and made a nice profit and Fannie
and Freddie executives made tens-of-millions of dollars in salaries
and bonuses by hitting their annual goals.

The problem was that in order to keep all of this going lending
standards were continually lowered to help the next level of subprime
borrowers qualify for mortgages and no one had an incentive to make
sure that the new subprime borrowers would actually be capable of
making regular mortgage payments. The banks which extended the loans
really didn't care because they were just going to sell the loan off
to Fannie or Freddie. Fannie and Freddie weren't too concerned because
it wasn't their money-they knew that they were insured by the 'full
faith and credit' of the federal government (that's government lingo
for "you and me").

So when federal regulators began to warn the executives at Fannie and
Freddie about the increasing risks of non-payment by subprime
borrowers the companies did nothing and when the regulators took their
concerns to congress their warnings were met with scorn and contempt.
The politicians who received the most political contributions from
Fannie and Freddie, by pure coincidence, just happened to be their
biggest defenders: Chris Dodd (D-$133,900), John Kerry (D-$111,000)
and Barack Obama (D-$105,189).

Representative Barney Frank, who has been a fierce defender of Fannie
and Freddie, actually said, while arguing against more regulation, "I
want to roll the dice a little bit more in this situation towards
subsidized housing.... " It's nice to know that he doesn't mind
gambling with our money. Senator Chris Dodd, in praising Fannie and
Freddie said, "I, just briefly will say, Mr. Chairman, obviously, like
most of us here, this is one of the great success stories of all time.
"While Senator Charles Schumer said, "And my worry is that we're using
the recent safety and soundness concerns, particularly with Freddie,
and with a poor regulator, as a straw man to curtail Fannie and
Freddie's mission."

Barack Obama has received more money from Fannie and Freddie than any
other senator, with the exception of Senator Dodd, in the last four
years. Before entering the senate, Obama filed a class-action lawsuit
against Citibank, alleging that the bank was red-lining, or not doing
enough lending in certain areas. That lawsuit was eventually settled.
Arguably, Barack Obama helped cause the problem he now wants to fix.

The Federal Reserve Board was doing its part by throwing huge piles of
cash at would-be home buyers by keeping interest rates too low. With
low interest rates speculators began to look at houses as business
opportunities, while others began to look at their homes as a giant
piggy bank rather than a place where you actually lived and raised a
family. Alan Greenspan encouraged this type of behavior and proudly
said, "American consumers might benefit if lenders provided greater
mortgage product alternatives to the traditional fixed-rate
mortgages..." President Bush, responding to September 11th unwisely
encouraged us to "go shopping" rather than hunker down financially and
contribute to the War on Terror in other ways (can you say home equity
loans?).

The SEC also shares in the blame. It failed to do its job (failed to
adequately regulate mortgage brokers, the credit rating companies, and
naked short-sellers), acted only after the markets froze-up (finally
addressed mark-to-market rules) and refused to examine how the
credit-default-swap market could grow from $919 billion in 2001 to
over $54 trillion by 2008 (which allowed companies to make wild
financial bets with the false confidence that 'insurance' would be
there if the deal went south).

So what happened? Home-ownership rates which had been relatively
constant for 25 years began a 10 year upward climb beginning in 1995,
around the same time that government began its push and pressure for
banks to make more subprime loans. The politicians, banks, lenders and
Wall Streeters were thrilled because they were all making gobs of
money.

Today we are all paying the price for the decisions made long ago. I
have spoken to people involved at the highest levels and they now are
all saying the same thing, "it is worse than anyone knows" and "worse
than I even thought." Political and business leaders who I respect
have told me that the economy is on the edge of an abyss.

The bailout is an outrage and is designed only to buy time for the
politicians. It will delay the real hard times from hitting until
after the November elections. Not one politician has said that this
bailout legislation will put us on a better financial footing or that
our economic problems will be put behind us. In fact, we'll be worse
off because our politicians, even in this crisis, can't stop
themselves from spending. This bill includes an extension of the rum
tax benefits for Puerto Rico and the US Virgin Islands ($192 million),
tax benefits for companies which manufacture wooden arrows for kids
($6 million), car racing tracks ($128 million), a provision which
forces insurance companies to treat mental health problems like
physical problems ($3.8 billion) and many, many more.

International markets don't offer any better alternative. Germany,
England, the Netherlands, and Russia have all come out with their own
government backed bailout plans. There are now calls for more
international regulation (presumably led by the United Nations) and
China has taken this opportunity to call for "a diversified currency
and financial system and fair and just financial order that is not
dependent on the United States." Meanwhile, there is increasing
international indications that the dollar will lose its place as the
reserve currency of the world.

The politicians from both political parties continue to lie to us.
They promise us better healthcare and more government programs. The
only thing either party will be able to deliver is higher, much
higher, taxes as the debt swells and government revenues fall. The
same politicians remain silent, while capitalism, which brought us the
highest standard of living in the world, is increasingly attacked and
discredited by its enemies.

But it's not capitalism which has been discredited by our current
crisis, it's greed that has been shown to be at the root of our
present economic uncertainty, and greed is unfortunately a universal
human trait and has demonstrated its reach in socialism, fascism,
communism and capitalism. The greed of Wall Street is nothing compared
to the greed of our politicians who have continued to expand their
power and influence at the expense of their country.

Our children and grandchildren will ultimately pay the price for their
failure to act prudently and in the best interest of our country
because they will be the ones saddled with mountains of debt and
diminished standard of living.

I hope that this summary gives you a better idea of how the people who
caused this fire are the same ones who are now telling us that they
know best how to put it out and a reason not to believe their current
promises.

We have faced tough times before. We fought the Nazis in World War II,
defeated communism in the Cold War and Americans fought each other to
keep our country together in our own Civil War. These tough times
require us to educate ourselves and help others understand what has
brought us to this point and the grave consequences of what will
happen if we let this continue-that is our fight.

In my next email letter I will answer the other question you asked,
"what's coming?"

Sis, I know you will always consider me your crazy brother but please
pass this message on to all of your friends. There are too many
rumors circulating and I want to put the facts out there. This isn't
about slamming the Democrats or Republicans--this is about getting the
truth out to as many people as possible. The more people we can
wake-up the more people we will have restoring the hope, promise and
opportunity of our great country. Please pass this on.

Glenn

Part 2 - What's Coming?

Glenn Beck: What's Coming

October 9, 2008 - 3:58 ET

Guys,

If you thought my first email letter answering the question "how did
we get here" was on the scary side you're really going to find this
email letter that answers the "what's coming" question very sobering.
I promise you though, my next letter addressing "what you can do to
prepare you and your family" will be positive.

Here's my answer to your question of "what's coming."

The economy is going to get worse. I know that's hard to believe
considering that in the past 15 months Americans have lost over 2
trillion dollars of retirement savings, that Iceland which has a GDP
of $14 billion and liabilities in excess of $100 billion held by its
banks and is on the brink of bankruptcy and the International Monetary
Fund has just warned of a global "major downturn" in 2009.

A Second Great Depression?

Just how bad will things get? Recently, I had an off-air conversation
with one of the titans in the business community. He has been in the
thick of what's happening on Wall Street, the credit crisis and the
economy. I've been speaking with him about these issues for about two
years and he has always been an optimist. Every argument I would make
about how bad things were going to be he would counter with an equally
optimistic economic prognosis. For the first time he's now told me
that our economy is in for a very "rough landing, at best" and that if
our politicians don't get the bailout exactly right we could see our
GDP (a measurement of the total value of all the goods and services
produced every year) falling between 15%-20% in one year.

So what does that really mean? A 15%-20% reduction of GDP would be
like wiping out between $2.1 to $2.8 trillion dollars from our $14
trillion GDP. To show you how big that number really is, consider
that in one year we spend about $583 billion to run the entire Defense
Department, $43 billion to fund the entire Department of Homeland
Security and have spent less than a trillion dollars fighting in Iraq
since that war began.

By way of comparison, in the Great Depression, our national GDP fell
29% over a four year period (1929-1933) and in that period we saw 7000
banks fail, a 25% unemployment rate and a Dow Jones industrial Average
suffer an 80% decline. And that was when the pain of a shrinking GDP
was spread over 4 years!

About three weeks ago I had the opportunity to walk with very
successful billionaire who has spent over seven decades doing business
in America. I asked him what it would mean if our economy suffered a
15% reduction in GDP in one year. He stopped mid-stride, thought for
a few minutes before saying, "I can't begin to imagine how bad things
would be if that ever happened."

Credit Card Debt and Greedy Politicians will Prolong our Problems

All the financial 'experts' are telling us that whatever is coming our
way will be short-lived. Yes, times will be tough, but we'll quickly
emerge and be stronger. I agree that we'll survive and that we'll be
stronger, but I don't think it will be a quick recovery.

Unlike the Great Depression we don't have a large industrial base that
will assist in our recovery and too many people don't have the savings
to help them weather the storm. Instead, the average American
household carries at least $8,000 in credit card debt. Lastly, our
political leadership will be a burden, rather than a help, in getting
us back on track. Barney Frank, Chris Dodd, Nancy Pelosi, President
Bush and Secretary Paulson wake-up each morning and gobble-up larger
pieces of the economy and American businesses. They tell us that 'we
need to do this or things will get bad' but none of them have gone on
record and told us that if we follow them we'll be better off.

The Great Depression showed us that government intervention, at best,
will only delay the eventual belt-tightening and pain that must take
place to bring the marketplace back into balance. The overbuilding
and liquidity excess of the past 10 years has to be brought back into
balance. Despite 10 years of government programs under Hoover and
Roosevelt accompanied by massive government spending it was not until
World War II began that unemployment fell below 10%. It was not a
coincidence that the stock market finally regained the strength it had
in 1929 only when the prospect of global war appeared to be inevitable
in 1939.

How Hedge Funds Could Make things Much Worse

If the government regulated banks can be in as much financial trouble
as they are now, just imagine the problems lurking in the unregulated
hedge fund world. Hedge funds are a 2 trillion dollar industry. That
2 trillion has been leveraged by several multiples giving it much more
influence than the 2 trillion would suggest.

The super-rich invest their money in hedge funds because of their
traditionally higher returns. Along with the super-rich, teacher
unions, government employee unions and large mutual funds invest in
hedge funds, in short, if you have money invested in the market
there's a good chance some of it is held and managed by a hedge fund.

In September, hedge funds around the world recorded their biggest drop
since August 1998. Investors that wanted to pull their money out were
prevented from doing so by mandatory 'lock-up' periods imposed by
hedge funds that prevent investors from pulling their money out
without giving advanced notice, typically 60 or 90 days. I can only
imagine that lots of people have given notice and when they can, will
be pulling out their money. When that happens the smaller hedge funds
will be wiped out and the larger ones will take big financial hits.
The next big test for hedge funds will be October 23rd when an
estimated $400 billion in Lehman related credit-default swaps will
have to be auctioned and settled, those hedge funds that can't come up
with the money will be wiped out.

Our Politicians keep Playing Politics while our Country is on Fire

Look for our politicians to take advantage of this crisis to promote
their own agenda. They keep treating this like a game and are taking
actions only after weighing whether their action will help or hurt
'the party' at election time. Our country is at the edge and our
politicians are worried about elections. This can't be about
Democrats or Republicans. This has to be about saving America.

It's shameful that Obama and McCain haven't told the American people
that there is no money for all of their proposed spending plans. No,
our candidates continue to promise us new plans when we don't have
enough money to pay for the ones we already have.

During the last debate Obama told us that America is the richest
country in the world and that we need universal health care. Maybe
one of his advisors should tell him that this richest country in the
world is borrowing 2 billion dollars a day from foreign countries
because that's how much more we spend than take in, and that was
before we started bailing out Wall Street, Main Street and homeowners.

Obama is unbelievably still planning on redistributing wealth in the
middle of an economic crisis by taxing those who earn in excess of
$250,000 and then redistributing that money to those who make less
than $200,000, including sending people who don't pay any taxes at all
$1,000 check. His plan has been called a New Tax Welfare Plan. Call
it what you want, we don't have the money to pay for it.

McCain's plans for revamping our health care system and his support
for a carbon-tax plan are also unaffordable. He should come clean
with the American people and tell us that. His failure to so
demonstrates that he really doesn't understand what is taking place in
our homes and businesses.

Congress wants in on the action too. Nancy Pelosi, Harry Reid, Barney
Frank and Chris Dodd will flood our country with new programs. The
progressive ultra-left has taken over the Democrat Party. They are so
liberal and so out-of-touch with mainstream America that Senator
Lieberman, a longtime Democrat, left the party and is now an
Independent who is publicly thinking about no longer caucusing with
the Democrats. Longtime Democrat and chief fund-raiser for Hillary
Clinton, Lynn Forester de Rothschild, has said that her party is too
far left and is now actively campaigning for John McCain.

Politicians Waiting to Exploit the 'Right' Tragedy

Too many politicians are anxiously waiting for the right moment to
expand government. They're waiting for the "Megan Law" moment. That
moment when the stars align so politicians can pass legislation over
any objections, whether it's good or bad.

Megan's Law is named after a 7 year old girl who was kidnapped, raped
and murdered by a repeat violent sexual offender. The public had
finally become so outraged that the politicians had to act. Megan's
Law requires the posting of information about sexual offenders to the
public. Passing Megan's Law was the right thing to do but it
shouldn't have taken this tragedy to do it—but it took Megan's tragedy
in order to overcome the opposition from the ACLU and other groups who
kept screaming about the rights of the accused.

Pelosi, Reid and the progressive left as well as many Republicans
still don't believe that our very survival is at stake with what is
going on today. They still look at this meltdown as just another
opportunity to score political points. If the Democrats in the House
of Representatives really believed that our country's economic
security was at stake then they would have passed the bailout bill.
They didn't need any Republican support. They had the votes. But
Pelosi and the Democratic leadership didn't want to risk a massive
voter backlash so they didn't push the bill through. That is playing
politics. If the Senate believed that our country's economic security
was at stake they would have passed a bailout bill without the $100
billion in 'goodies' attached. That is playing politics. Do the
right thing for the country, stop playing politics.

As the crisis worsens and takes a higher emotional toll on the public
we will see tragic stories. We will see more stories about people
giving up hope, losing focus on what's truly important and ending
their lives and the lives of people they love. And when the 'right'
story comes along, it will be exploited to take away more of our
freedoms, to shred the Constitution just a little more and grab more
money for the government from the people who earn it.

We can also expect our international/foreign enemies and competitors
to take advantage of our current economic crisis.

Inexpensive oil is the lifeblood of our economy. It helps us plant
our crops, is needed to make the clothes we wear, and keeps us moving
freely by car, plane, and ship. America benefits when oil prices are
low. Russia, Iran and Venezuela (along with several other countries)
benefit when oil prices are high. Iran recently misreported that it
forced a U.S. military airplane to land (it turned out to be a
Hungarian plane carrying relief supplies). This was an attempt by
Iran to spike oil prices temporarily, and it worked, until the truth
came out.

Russia's invasion of Georgia wasn't about South Ossetia. It was about
sending a message to the West that our efforts to build and maintain
an oil pipeline through Georgia relied on the good graces of Russia
and they didn't want the West to forget that. Iran has continually
petitioned OPEC to cut back on production in order to keep oil prices
high and Venezuela is using its petro-dollars to spread his form of
socialism.

Russia is also using its massive petro-dollar supply to buy influence
on the international front. Remember all those banking problems
Iceland is experiencing? Russia is now working with Iceland on a
bailout package in an attempt to leverage this crisis into
strengthening its international influence. Russia is also reaching
out and strengthening its ties to Syria and Iran. Syria announced
that it is dredging its fishing port of Tartous so it can accommodate
Russian warships.

Iran will continue to develop its nuclear program. The countries of
the world will increasingly be focused on reviving and in some cases,
saving, their economies. Iran will take advantage or our collective
distraction. I am increasingly in the camp that thinks Israel will
have to take unilateral action against Iran before it develops a
nuclear weapon and that would explain why we've decided to sell Israel
1,000 bunker busting bombs.

In the past four weeks Venezuela hosted two strategic long-range
Russian bombers, and held joint navy exercises with a fleet of Russian
ships, including a nuclear-powered missile cruiser. President Chavez
has also been busy working with Columbia's FARC terrorists and last
week renewed his goal of building a 'civilian' nuclear program and has
called for revolution throughout South America.

These countries will increasingly use more aggressive methods to drive
up the cost of oil and expand their sphere of international and
regional influence by generously spreading around their petro-dollars.

Meanwhile, North Korea doesn't have any oil so it's using the next
best thing, the threat of nuclear weapons to get what it wants. It
wasn't too long ago that President Bush was touting a new ironclad
agreement between America and North Korea. Well, after promising to
verifiably dismantle its nuclear power plants in exchange for
financial aid and fuel, the North Koreans have vowed to resume their
suspended nuclear program. You can expect the guy with the crazy
haircut and glasses to demand more money, fuel and aid for him to play
nice again.

Closer to home you will see that Americans are increasingly feeling
isolated and detached from their government. Part of the reason is
that we don't think politicians care what we think anymore. The $700
billion bailout bill passed the Senate at a time when only 30% of the
country supported it. We felt that a giant stick was poked into our
collective eye!

59% of Americans would vote the entire Congress out of office but due
to the self-serving way the politicians have drawn their election
districts it's just this side of impossible to do it. Only 49% of
the people believe that this congress is currently doing a better job
than a group of individuals selected randomly from a phone book would
do and 33% of us actually believe the group selected at random would
do a better job!

Politicians play Politics with our Economy by Playing Politics with
Energy Policy

But our politicians just don't get it. Look at energy. We need
inexpensive oil to make our country work and maintain our standard of
living. To be perfectly clear: without inexpensive energy our
economy doesn't work and our standard of living dramatically falls.

You would think that our politicians, who understand this, would put
our national interest above their petty desire for re-election, but
they don't. Look at what happened with offshore drilling. The
federal moratorium on offshore drilling legally expired at the end of
September. In theory, oil companies could have started drilling the
first week of October but instead no oil company is even drafting
plans to drill, why? Because they know that the politicians aren't
serious about offshore drilling. They know that too many congressmen
are servants to the extremist environmental movement and as soon as
the election is over will vote to either prevent offshore drilling or
impose onerous conditions on any drilling. So the politicians will go
home to their districts and tell the voters they are for drilling and
then turn around and collect big fat donations from the environmental
lobbyists who oppose drilling.

The same thing can be said about coal and nuclear power. Obama tells
a national audience during his nomination acceptance speech that he
and Joe Biden are for clean coal. Less than 90 days later Joe Biden
is captured on tape telling a woman that coal isn't going to play a
role in an Obama Administration energy plan.

Obama and McCain have talked-up nuclear power on the campaign trail
but have done little to actually make it happen in their many years of
service in the U.S. Senate. Meanwhile China plans on building about
one nuclear power plant a year up through 2020.

There's a real disconnect between our elected leaders and the people,
but the majority of Americans are willing to work through this
disenfranchisement. We want to reform government. We want to improve
our country and communities but there is a fringe that is actively
trying to exploit this disenfranchisement. I have someone on my staff
that monitors the extreme blogs—stuff that most people, thankfully,
haven't even heard of. These blogs contain a call to revolution. One
writer said that we need to "join with your brothers in arms and
through force, return what is rightfully the peoples to the people"
and another entry encouraged the reader to "rise up and join us before
our nation is taken from us by the crooks and bastards that waste our
air, one nation, taken back by the force of the peoples militia…".

Guys, I told you that this was going to be a sobering letter. We are
on the edge of a giant abyss that could swallow not only our economy
but the freedoms and security we have enjoyed for over 200 years.
Believe it or not, I don't think that this letter captures the urgency
that I feel, but I didn't want to include wild speculation because I
can't see into the future but I wanted to give you a sense of the
Perfect Storm that I have talked about and how the pressures that our
economy and country face at this time are once again placing our
"lives, fortunes and sacred honor" at stake.

Please ponder and pray about what I've said and then pass these email
letters along to as many people as possible so they can prepare
themselves and their families. Then, the more people there will be to
help us overcome fear and desperation.

There is good news. We can prepare ourselves and our family for
what's coming and work to prevent the worst from happening. We have
to focus on value and values. Those things that our parent and their
parents lived but somehow too many of us have forgotten. But that's
for my next letter to you.

With love, glenn

Part 3 - What Can I Do To Prepare?

Glenn Beck: What Can I Do to Prepare?

October 15, 2008 - 3:00 ET

Guys,

Here is the third letter I promised you. In my earlier letters I've
explained "what happened" and "what's coming." Today, I want to answer
the questions you've asked regarding "what can I do to prepare myself
and my family."

The focus has to be on 'value' and 'values.' These are the concepts
that too many of us have forgotten, celebrities dismissed as
old-fashioned or politicians tried to convince us were no longer
necessary.

The good news is that our current economic mess is manmade. We did
this to ourselves by continuing to elect politicians who sold our
country to militant community activists, greedy mortgage brokers and
Wall Street types who placed profits above anything else. We were all
involved, Republicans, Democrats and Independents. We made this
problem by choosing to believe the lie that we could have it all and
have it right now. But being manmade means we also have the capacity
to solve it.

It is not going to be easy. I believe that the economy is going to get
a lot worse. The 'experts' are telling us that we're headed towards at
least 10% unemployment and a possible 10 year period of economic
stagnation. I fear it could be much worse and so do many of the people
that advise me on these matters.

What follows are the things that my family is doing to prepare for
substantially tougher economic times.

Your Finances

I'm not a financial expert but even the 'experts' didn't know what our
grandparents knew: unnecessary debt is something you have to avoid, it
is not a good thing. In our version of the Roaring 20's, the financial
elite had lawn parties in the Hamptons where invited guests arrived
via helicopter. The parties we had didn't involve helicopters and
other excesses but our job as responsible Americans will be to
identify our 'helicopters.'

Soon, the Wall Street crowd will turn to the actual economy and the
conversation and pressure will change to consumer spending. Remember,
YOU are the engine of the US economy. Wall Street NEEDS you to spend.
I pray that we hold fast to the 'storm clouds' that are still
gathering and ignore the lures and lies that will attempt to hook you
back into your old style 'lawn party.' We will continue to spend and
consume. We just need to focus on a few out of fashion American values
such as thrift, value and moderation.

You know what your family can afford and what it needs. Kids still
need to go to college, broken cars still need to be repaired and
worn-out appliances still have to be replaced. What needs to change is
how we shop. We need to look for value and we MUST live within our
means.

How do you know when you're getting something for a good value? Just
imagine buying it (whatever it is) in front of dad. Can you imagine
telling dad that you 'need' to spend an extra $3,000 so your car can
come with that 'must have' automatic self-closing sunroof option? Or
paying an extra $650 on a washing machine option so it can connect to
the internet? I'm beginning to think that if dad won't spend the money
on it, I probably don't need it. Dad is great at spotting value and
it's his sense of values that makes him so good at it. I always try to
think like my grandfather when I want to buy something, if in my head,
he says, "Why, you've got a perfectly good one now," I know I don't
need it.

The economy is in for a very rough landing. I think it's more and more
probable that we hit a major long-term recession. That's not a reason
to panic but if we know what's coming we can start to prepare now.

I don't know who you get your financial advice from (advisor, friend,
on your own) but you need to ask these two questions:

First, what caused the current economic crisis?

If you can't answer this question or your financial planner can't give
you an easily understandable answer, please get more information or
think about replacing your financial planner. You need to know what
got us here because that will help you understand what's coming.

Second, how bad will things get?

No one knows what's specifically coming our way but I do know that all
possibilities are on the table. Whoever you're getting your financial
advice from must be willing to admit that he or she doesn't have all
the answers and that we are in relatively unchartered waters. If they
don't think that this is a once in a lifetime event and just about
anything could happen, move on.

Hyperinflation: Printing Money is Not the Answer

This is the real devil in our 'bailout' packages that seem to be
coming every day. The same people that told me that there is no way we
could go into a recession, let alone, a depression now tell me Wall
Street and our politicians are too smart to create these doomsday
conditions.

I don't know about you but I sure haven't been impressed with the Wall
Street and Washington genius so far. After all, they weren't smart
enough to figure out that 0% down on a 125% loans to individuals that
were not required to present ID or a paycheck stubs was trouble.

I do know that if the answer was just to print more money our
politicians would have solved this crisis $1.8 trillion dollars ago.
But printing more money is not the answer, in fact, it's causing other
problems and possibly setting us up for a long-term disaster. Every
American must read up on and ponder what I believe is the real
possibility of hyperinflation.

This past summer we had a $152 billion stimulus package, followed by a
combined $123 billion bailout of AIG, which was followed by another
$700 billion bailout bill. As I write this, politicians are promising
swift action on yet another stimulus plan and the government has
announced a direct injection of $250 billion into several large banks.
No problem has ever been solved by just throwing money at it but
plenty of problems have been caused by doing just that.

Countries that have tried to spend their way out of an economic crisis
have always triggered inflation (i.e. Argentina, Israel and Iran).
Hyperinflation is caused when people lose faith in the value of a
currency, too much money is printed and there is no corresponding
increase in productivity. So instead of printing $50 and $100 bills
the government prints $300 and $500 bills but your $500 bill only buys
$50 worth of goods. Soon the $500 bill is replaced by a $1000 bill.

One of the best examples of hyperinflation is the Weimar Republic
where that government actually printed a one-trillion dollar bill and
you still couldn't buy a newspaper with it.

Germany took its first inflationary steps when it decided to fight
World War I on borrowed money. It didn't want to raise taxes and there
was relatively little in national savings so it borrowed money to
build and arm its war machine. Does this sound familiar? It should,
it's what we're doing now.

The War which started in 1914 officially ended in 1919 and during that
same period of time the prices of goods in Germany doubled. In other
words, inflation was running about 20% a year.

Three years later, in 1922, those same goods doubled in price in just
5 months! The process continued to accelerate until menus in cafes had
to be re-written throughout the day just to keep up with rising
prices. When someone got paid they were met by their spouse who would
literally run to spend the money as quickly as possible and no one
saved money because the longer you held on to it the less you were
able to buy. With no one saving and no countries lending any more
money, the government did the only thing it could do, crank up the
printing presses and print more money.

The same economic laws that applied to the Weimar Republic apply to
America today.

Our government tells us that inflation was recently running at 5.4%.
What they don't tell you is that in 1983 government changed the way
they measure inflation. If the government used the same inflation
measures that it used in 1983 inflation would be running between
10%-12%. Naturally, when the government altered the way it measured
inflation it coincidently found that it wouldn't have to pay out as
much money in Social Security and other benefits pegged to inflation.

We won't see a true spike in inflation until next fall. It's coming
unless the government makes serious changes. If we continue to borrow
billions of dollars a day from foreign countries while printing
trillions more we are inviting, no begging, for hyperinflation to come
and pay us a visit. Please consider this as you decide who to vote for
in this upcoming election. Anyone, at any level, running for office
who isn't talking about REAL and considerable cuts in government
programs and avoiding new spending is either a fool or lying about
what's coming.

You can prepare your family for economically tighter times. Our family
has been preparing by buying food now that will last us for another 3
to 6 months. I want to be clear: we didn't run out and buy it all at
once. Instead, when we went shopping and saw something on sale that we
new we would be using in the next 3-6 months we bought a few more than
we normally would. We're in the process of doing the same thing with
our kids' clothes and shoes. They're growing-up and will need the next
size-up in pants, shirts and shoes so Tania and I keep our eyes open
for sales and when we see something that's a good value we buy it now
knowing that in a year or two our kids will be able to use it and that
prices could be substantially higher.

I think this is a good investment and a good way to spend money today
that may be worth less tomorrow. Don't run out and liquidate your
savings or assets to buy shoes and shirts for the next 10 years, plan
and purchase with prudence and moderation.

Guns

You've asked me if you should go out and buy a gun. This is a very
personal decision and I struggled for over 2 years trying to make this
decision. I never wanted a gun in the house but after discussing it
with Tania (and Adam) we decided it was the right decision for our
family to have a gun in the home for self-defense.

Before we even thought of buying a gun and bringing it into our home,
we spent countless hours at various gun shops asking lots of
questions. We also reached out to the NRA (which, as you know, is one
of the only organizations that I believe in and belong to) and took
several courses in shooting and gun safety. If you're willing to make
that kind of commitment then, and only then, can you start to consider
whether or not you should purchase a gun.

If you decide to buy make sure you have a home safe that can be easily
opened by you and your spouse. Also, when selecting a gun, make sure
you ask your dealer for a gun that doesn't take exotic or hard to get
ammunition.

The gun laws may DRAMATICALLY change with the election of the next
President and a new Congress. Time may be of the essence on this issue
so vote with that in mind.

Values

Why are we so different from grandma and grandpa? Remember how they
made our clothes? They knitted sweaters and gloves, mended tears and
placed patches over holes in our jeans and shirts. What do we do
today? We go out and buy our kids clothes that are intentionally
faded, frayed or torn. Our grandparents would think we were nuts for
doing that.

How many times did we hear, "who left this light on" or "turn off the
light when you're not using it." They didn't say this because they
were swept up in the latest environmentally friendly fad; they said it
because they hated waste. They didn't see themselves as
conservationists but at their core they were the first truly 'green'
generation.

It's their example that inspired me to re-discover the traditional
American family eating plan in our home. This plan applies to mom, dad
and all four kids. It's simple: if you don't finish your dinner, it's
wrapped and put in the fridge and the next day you have to finish your
leftovers.

What a great decision this has been because I'm more careful about
what I put on my plate and have already had dinner table discussions
with my kids about being grateful for what we've been blessed with and
why it's important to avoid wasting food.

Gardening

Tania and I are planning on planting our very first garden next year
(yes, I promise to send you pictures to prove it). We've already
bought the fertilizer and seeds. In a way this is going to be our
modern day Victory Garden our parents and grandparents planted during
World War II.

A lot of people think we're planting the garden just for the food and
although that's part of it, Tania and I really believe that our family
will grow closer by all gardening together. Our hope is that our
children will have a greater appreciation for the meals they eat when
they experience the work in growing the food they will eat.

We've got so much to learn. I've already learned that there is a
difference between heirloom seeds (not genetically modified) and those
seeds which have been genetically modified. There are advantages and
disadvantages to each type, so familiarize yourself with their
respective pluses and minuses. Research what grows well in your area
and what you will need to keep your plants healthy and growing.

I do want to share something I learned about seeds. Heirloom seeds are
capable of producing viable seeds. So you will always have seeds to
plant for the upcoming year. Several genetically modified seeds have
'terminator technology' (that's their phrase, not mine) which will
prevent these seeds from reproducing viable seeds.

I'm for reasonable and safe genetically modified seeds and food. They
allow people to grow crops where they normally wouldn't be able to and
are more robust against disease and predators. Coming-up with all that
technology is expensive so these seed producers recoup their costs by
limiting the ability to reproduce. You need to have those seeds that
are capable of reproducing.

Out of everything I have planned for next year, I can tell you that
gardening ranks at the top. It is long term, it brings the family
together on a project and it not only teaches my children science but
the value of hard work. Does that make me a true sick freak?

Good Books

This is going to sound hokey but we all need to read the Constitution,
the Declaration of Independence and the Federalist Papers. We need to
go to the original sources, not someone's interpretation of them.
Reading these documents will remind us of what our Founding Fathers
really intended for us. Their words will inspire us and renew our
faith in America.

We need to familiarize ourselves with the founding principles our
country and Constitution are built on. We need to better understand
the Founding Fathers, what they believed and how they lived their
lives.

The books we read should teach us about our heritage. They should
inspire us and educate our children. We need books that tell us the
greatness of America's past and the promise of her future. We need to
read about the mistakes the government has made so we can avoid taking
those same paths. The books that I think best capture these principles
are:

The 5000 Year Leap
The Real George Washington
The Real Benjamin Franklin
The Real Thomas Jefferson
Each of these books dramatically demonstrates that America was built
on the collective sacrifices of individuals who willingly gave their
"lives, fortunes and sacred honor." They remind us that real power
rests with "We the People," not Wall Street, Washington or Hollywood.

Also, read books on history that can help you see what may be coming
based on our past. The parallels are truly frightening. We are going
down the same path by making the same mistakes. These books include:

The Forgotten Man (on the mistakes of the great depression)
Woodrow Wilson and the Roots of Modern Liberalism (arguably the
world's first fascist leader and one reason why our children are now
taught in school that the Founding Fathers and the Constitution are
irrelevant)
Liberal Fascism (reveals the real danger and roots behind the nanny
state mentality and what it means to America's future)
Family Time

As a country we've neglected our most important asset and resource:
our children. We've become so busy trying to provide the best for
'things' and opportunities for them that we work longer hours, spend
more time away from home and too often don't give them the attention
they need and deserve. If the economy starts to sink, this situation
will get worse.

One of the best things we can do now is to build stronger ties with
our spouse and children. Our family gets together once a week for a
'family night.'

This past week Raphe had the lesson, "my favorite animal." I was in
charge of the game, everyone had to imitate their favorite animal and
Tania baked cupcakes for our snack. It's amazing what miracles have
taken place in those short 30 minute 'family night' get-togethers. We
may have forgotten this in our 'Roaring 20's' mentality but it remains
true: simple things have real and lasting value.

Tania and I also set aside time for just the two of us. We have date
nights where just the two of us go out. It's usually nothing fancy.
Sometimes we go out for a walk or just window shopping. We've even
gone on a 'date' to the grocery store to pick-up some groceries. It's
not really what you actually do but the fact that we spend time
together. It refreshes me. It brings us together. I love this time.

Finally, just continue to seek out those sources you trust and
continue to ponder and think the unthinkable. While these things
hopefully don't ever take place, they are certainly possible and
unfortunately becoming more probable everyday.

The good news is that there's still time to prepare ourselves and our
families. We created this problem and we can solve it but there won't
be any shortcuts or an easy way out.

We must vote for those candidates of any party that reflect these
values: hard work, self-determination, smaller government, fiscal
responsibility and honesty. Look to the character of anyone you chose
to support. Their past does matter if they haven't learned from it.
Their personal life is as relevant as their public one. We must be
able to trust those who will be advising and leading us on what our
country must do next.

The problems we face in this country can be traced back to the lack of
trust. Our whole system fails if we do not trust it and right now we
do not have that trust. In the last 20 years we have lost trust in our
presidents, congress and court system. It was lost when politicians
argued over the definition of 'is,' the duplicity on our border
security, during the OJ trial, by a renegade 9th Circuit Court of
Appeals, the 2006 Republican Mark Foley sex scandal and the 2008
Democrat Tim 'more moral future' Mahoney sex scandal and so many other
hypocrisies and double-crosses. Our lost of trust was inevitable.

Our political system was not designed around the people in power or
really even us. It began with the core belief that we were created and
given rights by God. For America to truly fulfill its promise we must
restore our faith in the only thing that is solid, unchanging and
real: God.

As we find ourselves not trusting our leaders, institutions or even
our currency, remember the secret is simple and found as close as your
pocket or purse. How appropriate that on the symbol of our present
troubles we find the answer: IN GOD WE TRUST.

Only those who are mentally, emotionally, spiritually and temporally
prepared will be strong enough to help themselves and others. Many
will be fearful if these things come to pass but if you prepare now,
fear is the one thing you will not have to worry about. You are not a
victim. You are not a survivor. You are a leader. You are an American.

We are all Americans. Let us recommit that, regardless of where we
stand politically, we will do the tough things to save our nation
because the task at hand requires no less.

The Americans of the past did not look for leadership to come from the
politician in the White House for they knew American leadership only
came from your house.

Fear not, stay strong and lead the way.

glenn

UTM Special Edition Full Post - Beck on Economy

2008-10-28T09:26:00.000-07:00

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Glenn Beck on the Economy

UTM Special Edition - Glenn Beck on the Economy

2008-10-28T09:22:00.000-07:00

UTMGuy Here, wasn't planning on posting anything big on the economy this week, but just recieved an e-mail I thought was rather interesting. Glenn Beck, talk-show host on CNN, has reportedly been e-mailing friends and family members his thoughts on the economy, with his unique take and information from his research. The e-mail we recieved was actually quite a long one (three long ones all sent to us at the same time) so I'm still sorting through it, but I thought I'd post some parts from what I've read. His e-mails cover 3 main topics:

How Did We Get Here
What's Coming
What Can I Do To Prepare Myself and My Family?

These quotes are from the last section, about preparation. They won't be 100% clear without reading the whole e-mail, which I'll try and post soon, but I thought they were relevant anyway.

Soon, the Wall Street crowd will turn to the actual economy and the
conversation and pressure will change to consumer spending. Remember,
YOU are the engine of the US economy. Wall Street NEEDS you to spend.
I pray that we hold fast to the 'storm clouds' that are still
gathering and ignore the lures and lies that will attempt to hook you
back into your old style 'lawn party.' We will continue to spend and
consume. We just need to focus on a few out of fashion American values
such as thrift, value and moderation.
You know what your family can afford and what it needs. Kids still
need to go to college, broken cars still need to be repaired and
worn-out appliances still have to be replaced. What needs to change is
how we shop. We need to look for value and we MUST live within our
means.
How do you know when you're getting something for a good value? Just
imagine buying it (whatever it is) in front of dad. Can you imagine
telling dad that you 'need' to spend an extra $3,000 so your car can
come with that 'must have' automatic self-closing sunroof option? Or
paying an extra $650 on a washing machine option so it can connect to
the internet? I'm beginning to think that if dad won't spend the money
on it, I probably don't need it. Dad is great at spotting value and
it's his sense of values that makes him so good at it. I always try to
think like my grandfather when I want to buy something, if in my head,
he says, "Why, you've got a perfectly good one now," I know I don't
need it.

Some interesting stuff to think about. I'll get the rest of the e-mail posted later today - it's a long and statistically involved e-mail, but a good educational read.

UTM Week Ahead

2008-10-21T09:22:00.000-07:00

As the site begins to come to live, we've got a couple of things we're excited about right off the bat. UTMGuy is working through the book "You're So Money" by Farnoosh Torabi. As soon as we're finished we'll review the book. Also, a review of online financial management sites, tips from around the $$ blogosphere on celebrating the holidays in style while maintaining your budget, and some tricks we've learned about lightbulbs and our electricity bill are on tap. Check us out in the coming days for all this and more!

Dontcha Mess with My Money

2008-10-21T09:05:00.000-07:00

Hi - UTMGuy here with the first post on the Under the Mattress Blog. UTMGuy is married to UTMGal. Both are college students working part-time, trying to make ends meet. We've recently become extremely motivated to learn about money, learning how to earn it, save it, make it work for you, and get the best bang for our buck. This blog is not necessisarily a money-making venture, though it sure wouldn't hurt if it did. We hope this is a place for real-world information. We're working on some book reviews, financial sites and online service reviews, and many other things we're learning through our research. We know that teaching others something you learn is the best way to learn something, so hopefully this will be mutually beneficial to both us and you. The tagline for the site comes from the song "Don't You Mess With My Money" by blues artist Sterling Harrison. It can be found on the album "South of Snooty Fox." We picked this as the tagline for the site because not only is Harrison's sassy voice and swinging vocals a ton of fun to listen to while blogging, it's a good mantra to live by - "don't mess with my (your) money" - do it right and live happy! Stay tuned as the site gets fleshed out and comes to life over the next month or so.