Notes From Gordon: Something is Broken in Consumer Credit

From The Video:  “Student loans, auto, credit cards, mortgage and Buy Now Pay Later are all coming under stress. What happens when student loan borrowers currently not paying anything have to pay again? What happens in October when borrowers who have delinquent student loans are no longer eligible for loss mitigation workouts? Cracks are forming everywhere…”

A Note From Gordon: It’s all beginning—the great economic “crackup boom.” Like when you’re skating on a pond and spider web cracks begin to form in the ice. That’s when you lay down flat, spread your arms and legs and use the tips of your skates to slide slowly towards the shore. It’s called risk management.

Trump will likely get blamed for what’s coming, just like President Herbert Hoover got blamed for the Great Depression. But that’s the way the gilded cookie crumbles. Trump may have to sell a skyscraper, and Melania may have to list some of those Gucci bags on Mercari. But I’m sure they’ll be OK. The rest of the public? Not so much.

Traders use risk management tools like the “stop loss” which allows taking a modest, predetermined loss in order to protect and preserve remaining equity.

Millions of families should be doing the same, right now: placing a stop loss under their entire lifestyle. Take profit from the recent realty boom (in the early stages of correcting), downsize to something affordable and save every penny.

But they won’t. They’ll allow themselves to max out their credit cards, default on their car loans, get upside down on their mortgages, bottom out, enter crisis mode and then turn to friends, family and government for help.

Why? Because they don’t know any better. And who is there to help them? Their TV? Their five closest friends? Their pastor? What about their financial advisor? They’re probably too busy reading Advisor Today to learn which mutual fund to recommend next.

All of which and more is why I am founding Gordon Phillips Academy. I’ve spent 30 years helping families make financial decisions, sometimes routine and sometimes difficult. And every time it was gratifying to be able to make a real difference in their present day financial security, as well as their plans for the future.

Over the years I’ve received some much appreciated compliments which you can read HERE.

Actually, managing family finances is easy. You simply have to remove all emotion from the process and go where the math leads you. But you say you hated math in the 7th grade?

OK, now we’re in trouble … lol.

Now Available On Amazon: “The Risky Reader”

Seventy compelling (and dare I say, educational?) essays on the true state of political freedom. What better way to spend a few long and concerned summer evenings? ;- )

• Learn why governments always fail.

• What is the fate of America?

• What is the role of the citizen?

• Is it possible to live an inconsequential life?

• How can today’s youth create a better future?

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