Brad Korn's Recap of the
Dave Ramsey Town Hall Meeting.. HOPE
HOPE, Town Hall Meeting with Dave Ramsey
6,000 locations did Live Webcast
We want to help spread the message Dave wants to share with the whole world!!!!
The American Economy has been doing great. When things are going great…we can get a little “sloppy”. When things are going good…any idiot can make it. He made comment, even a Turkey can fly in a tornado!”
Doesn’t understand why some were melting down and freaking out about the market, and other of his friends didn’t. Some had just let fear in.
Some Economist think the government is going to need to get involved to bail this out. Dave doesn’t know what “book” they are reading because he isn’t reading the same book. He really doesn’t think the government getting involved is the answer. He went back into history and went over the 1930’s when Roosevelt was in office. John Mainard Cains. He is the one that suggested the Gov’t has to bail out. By 1944 the recession is over and the next boom is in place, and the success was based on that idea. This is what economist have been taught. The Gov’t spending got credit for what the War actually did.
Milton Freedman began to challenge these ideas and prove the Govt’ spending model was wrong. Dave Ramsey is doing that again tonight.
Dave is a believer in Capitalism. However, some take advantage of that. Business’s need to have moral restraint. Those in business are called to serve our customers…not milk them like a cow. We need a moral in our business system that value their employees and values their customers.
When he has employee come in and ask for bigger base…he says, no… you need to go get more sales. When someone gets rich, it doesn’t leave others less. In fact, our economy is set up where everyone can have as big of a piece as they want. However, it is up to you. That is how Capitalism really works.
He talked about how we need to reintroduce the word “NO”. You can’t have that corvette…you are too young and inexperienced, you get the 80 chevette!. No… I am not going to do business with you or anyone like you. I refuse to be ripped off and taken advantage of anymore. We need to quite going crazy and say NO.
He did say that many Christians sit around and pray that things will get better. The reality is that you can pray WHILE you are working! It is up to us to take care of “us”.
He took questions from calls, emails, text message, twitter and talk about the economic situation. David Asner was the MC for the evening.
-Dan from NY. Is this our generations great depression. What are diff from now and then.
Dave: the people from the great depression were changed and got smart with their money. Grandpa pulls a nail out, straightens it out and puts it in a can to use later. How many of us have a grandpa that did that, and how many of us do that? In great depression unemployment was 25 percent and REAL breadlines. Stock market lost 97% of value. Today we have only lost a little more than 50% of value. Great depression had inflation of 11%...today, we don’t have inflation. It is non-existent right now. This isn’t near as bad as the 70’s or 80’s tough economy.
We have to stop the “freaking out” the fear is driving all this hysteria
-What options do we have for investing (401k’s, mutual bonds, looking bad, etc)
I know wisdom says long term is good…but the fear is making us question everything. Were there is not vision, the people will perish. Patience during a recession is a major thing. When you live your life, thank god its Friday or oh no its Monday. When you invest and try to time the market…when you live in a panic, you will always buy at the wrong time, and sell at the wrong time.
Will they all be perfect…no. but as a group, those will be worth more 15 years from today.
Dave is continuing to invest in stock market and continuing to invest in Real Estate. It is like you are at K-Mart and the blue light is on!!!!
-bought in May ’07. When can he expect value to rebound back to its old value.
Dave – of course he doesn’t know. His opinion is that Housing will probably bring us out of this recession. At 4 3/8th interest rate. This is an ABSOLUTELY FABULOUS time to buy…and they are all ON SALE! (40-42min into town hall meeting)
The Dam is buiding. There are a bunch of buyers that havn’t bought, and they are all going to flood the market at once, that that is going to pull us out of this economy. 35 counties represent 50% of the foreclosures. It is in isolated areas? Of course the foreclosures are up…but not anywhere near Panic mode…. But the fear is causing everyone to hold back.
When existing inventory sells off, and new construction starts, the existing home prices will come back up close to the new construction. It cost just as much to build a new home today as it did a year ago. BUT….don’t buy a house if you are broke! You must have your reserve of 3-6 months in place.
-audience member, single mom, quit job, went back to school and getting ready to put son through school.
Who to trust and where should I put my money?
52% of single moms live below poverty line.
Do the baby steps.
1) get 1k cash in bank as fast as you can
2)get your debt paid off
3) finish emergency fund,
Now laid groundwork to start your investing. That’s retirement. Stock Growth mutual fund.
Use your instincts on who to trust. If you talk to financial advisor and feel you are being sold…get up and leave. They should be teaching you, coaching you, if you are learning. (48-50 min into program)
Made prediction that 10 yrs from today she will be killing it.
-Chris from Youtube. Had question about his bank. How does he know his money is safe.
Dave doesn’t do business with big banks. They have not soul. With a small banks you can go into the bank and put your hands around someones neck (kidding of course). He does not want to be a digit….he wants to talk to a person that cares.
-Jazz in Text messages. With all the $$$ going into circulation…what do we do with our savings?
Dave says – congress is out of control. If they don’t get it under control and quit flooding the market it is making it worth less, causing inflation. If they don’t, will it break it? No… I don’t think the gov’t, in our time will fix it…let alone, break it.
Invest in things that go up when inflation goes up. Real Estate is a great example… Housing goes up rapidly. Back in the 70’s houses were going up 1% a month. 110k house worth 110k in one month. In two months, it went to 121k. With that type of investment you have a hedge fund against inflation. You are riding the wave up.
Pay for it, don’t bet on inflation to bail you out…that is the definition of bankrupt. (52-54 min into program)
-had question about wether or not to buy gold.
Dave says Gold is the snuggie of investments. If it’s sold on midnight cable and if you buy it, it will make you look stupid. From 1833 to 2001, Gold is averaged 1.5% per year. From 01- today it averaged 15%. Gave example of Dot Com got over 100% but next year was zero.
People think Gold is going to be the medium of exchange. Gold hasn’t been used in a failed economy since the Roman empire. Katrina in New Orleans with it’s failed economy, gold didn’t become the exchange. But a bottle of water, a tarp were worth a lot. Goods and Services are what become valuable.
-should I start a businesss in this economy? (this caller was starting a tile company)
Dave said the buiding may be a tough thing to get started in, but be smart. Most extremely business’s were started in bad times. Look at Bill Gates, He started Microsoft right around a depression. David who started Hobby Lobby and started in garage in ’72 (’73-’74 were the worst recession). They are doing so well now, he looked at all employees and everyone making less than $10 an hour was bumped up to $10. While this recession was going on, there sales have gone up 5%...he knows he needs to take care of his employees.
-Chick Filet…was brought to market in ’46 right around the World WarMichael Dell started Dell in his Dorm room just following recession
I hope you liked this information. We are proud to be selected by Dave Ramsey as a preferred Real Estate Team for the Kansas City area. You can see our ELP status on his website at www.daveramsey.com . We are proud to be associated with Dave and truly run our business as he discussed in the Town Hall Meeting. We are here to educate you on the Real Esate opportunity...not just get another sale.
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