The roller coaster that the United States of America has just ridden through the debt ceiling crisis has revealed something that was devastating and unnerving. Many of us did not realize it, but the government has raised the debt ceiling 75 times since 1962. Few increases got any mainstream media attention but this circus brought an enormous amount of attention to a real problem that many of us, including business and global leaders, did not properly understand. We have all known that the government lives outside of its means, but until now most of us probably didn't focus on how much out of its means the government lives.

Taking the next generation's money to pay this generation’s bills is the ultimate Ponzi scheme. It dwarfs by a factor of a million, the damage that was done by the criminals that we've heard of over the last few years, including Bernie Madoff, Allen Stanford and others.

Why are the markets not responding favorably to the delightful debt decrease that our legislators and president have agreed upon? The answer is that now everybody better understands what is really going on under the sheets in Washington. We are living way beyond our means, borrowing from the future to pay for today.

Under this week’s plan, debt is not decreasing at all. Expenses over 10 years will be cut so that we can borrow that amount in the next 2 years.

In the last three years, haven't most consumers learned that they have to get off of the credit card diet? Everybody has learned it, except for the federal government, who has accelerated its spending.

So the reaction by the markets is clear. The stock markets are not happy with the amount of spending reduction, and they are worried about the country’s economic future as a result of it. How many people in our society have their pension plan, IRA funds and other monies tied up in the stock market? Consumers have very little idea about what is going on with their stock market investments. Even though the rules are designed to promote transparency, the complexity makes that transparency, for most consumers, completely elusive.

It sounds like a dangerous place to put your money. But what choice do you have?

You have plenty of choices – but you have to ask for them. You can “self-direct” your retirement funds, which means that you have to take your assets away from people who are consumed with serving themselves and put your money into the hands of people who either are paid to look out for your interest (such as Registered Investment Advisors), or into the hands of people who are on the same side of the table and share profits - making money when you do. More on that next time.

In the mean time, keep an eye on the markets because they are unstable. If you don’t understand the markets, then reevaluate whether or not you should gamble you life savings there. In the meantime, think about Charles Ponzi. Is the government doing what it condemns?                                                            

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Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenues and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and is an astute investor. Joel is CEO of Bullseye Capital , a full-service real estate company supporting owners and buyers of real estate assets with brokerage, leasing, property management, and mortgage services. Joel is also the founder of the Bullseye Capital Real Property Opportunity Fund, LLC , which is an investment company that acquires distressed real estate by working with accredited investors.

A leader in real estate syndication, we offer seminars to assist others in acquiring the skills needed to raise syndicate capital to acquire properties. Imagine knowing how to pool funds to purchase any real estate investment, whether single family, multi-family, commercial, or anything else. For more information and complete details, please go to http://www.syndicatefast.com/.

 

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Question from a Reader:
I’m signing a note for 60% of the purchase price of an apartment building and I am putting together the syndication. How much is my guarantee worth?

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One of the original attendees of our Deal Making Symposium and Syndication Seminar called me recently with an opportunity that he wanted to discuss. Someone wanted to help raise capital for an alumnus and he wanted help with those issues. However, the fund raising and related securities issues are not the purpose of this article, but rather to educate that it's possible to pay people for helping to arrange financing of different kinds – even the equity tranche.

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How often has it happened to you when you call up a large company, such as an airline or a phone company that you provide their electronic telephone system a pile of information about yourself such as: your account number; your balance; your flight number or something else, only to eventually be transferred to an agent who knows nothing about your case - and then you have to start the whole process over again? It is more common than any of us would like to admit and as hard it is to understand, it happens all the time. But it shouldn't happen at all, because if we give them our phone number or our account number, shouldn't that information just transfer to the agent? It seems to me like it should but from your experience, how often does it?

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Every year, in anticipation of the Consumer Electronics Show, which this year will be held January 6-9, 2011, in Las Vegas, Nevada, we review products that we believe will help and advance the cause of entrepreneurs locally and around the globe. Exhibiting companies send us their products to review, and we evaluate those products for their utility, their cost, their ability to add efficiency, and for the ability of entrepreneurs to make more (or save more) money because they are using these products. And sometimes we look at products just because they add a little bit of fun to the entrepreneur's day.

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It is with mixed emotions that I share with you that my longtime colleague, business partner, and friend, Matt Zembruski, is moving on to pursue other goals and dreams for his business career. Matt has been the general manager of Growth-Logic, Inc, also known as Bullseye Capital, for the last six years and his contribution has been immeasurable I am happy for Matt, but consider it a loss because Matt has brainstormed with me; Matt has organized with me; and Matt has helped to lead our company into many of the wonderful programs that have helped so many people over the years.

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I always recommend that people and companies position themselves as world-class experts (see http://tinyurl.com/2dqrykh). Pick a niche that you can be great at, go after that niche ferociously, and make sure the world knows you're one of the best at the tiny little niche that you have picked. There's more money in niches and it’s the best way to stand out. Unfortunately, many entrepreneurs are nervous to limit the scope of their services because they worry they will miss out on something. But it is well known that you'll make a lot more money in the long run when you specialize, because you will have less competition, better brand recognition, and you will produce better results when you do the work that you are best at. More on These Guys Know Parking

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This isn't the first time that I have written about the customer service provided by Ladin Lincoln Mercury & Hyundai and their Sales Manager Gary Faga. See http://tinyurl.com/ygeyx4w. Here is an update on Gary and his company.

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I was having lunch with a group of filmmakers this week — I make it a habit to meet with several filmmakers a month, partly to see what deals they're working on and partly to provide education and mentorship to these individuals who work hard to make their Hollywood dreams come true.

 

These weren't "wannabe" filmmakers. These were sophisticated people — people who had advanced degrees. One was a CPA who prepared the private placement memorandum for his production company so that they could produce their latest film. Another was a 20 year veteran of the studios who now wanted to work independently. But what everybody had in common was the extreme frustration that comes with raising capital. 

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This article is the third in a series by my colleague and friend Eric Shaw of http://www.nycreditinc.com. Eric is one of the top credit analysts in the market. I regularly go to Eric to help me analyze client issues and for assistance in making a variety of business decisions. Not to mention, Eric is a rock star when it comes to networking. He has a lot to offer and I would like to bring it to my readers over the next several weeks:

 

Beginning of Contributor Notes:

 

When you're not satisfied with the information standard credit data provides, several often overlooked tools can make you more comfortable about extending credit - without the hassle or UCC fillings.

 

Eric Shaw, president of New York Credit, Inc., explains how using these low-cost, under-utilized tools can help you determine a customer's creditability and guarantee payment. 

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