It's About Time:
The President Agrees With Us!

As you may have heard, the President spoke to the Economic Club of New York on Friday, and we couldn't pass up the chance to share our take with you since his speech focused on so many of the financial issues we've been talking about lately.

The President began by observing, "I showed up in an interesting moment at an interesting time." He went on to say that in a free market there will be good times and bad times, and that the economy is currently going through a tough time.

We've been saying that for months, and it's about time the administration admitted it!

While we don't think much of the President's assertion that the foundation of our economy is solid or that the tax rebates to boost consumer spending will do anything to get us out of this mess, it is comforting to know that at least the administration realizes the temptation for Congress to make rules and regulations in the heat of the moment and often end up doing nothing but creating bad laws. As the president said, ill-thought out laws and regulations only make it harder for markets to equalize.

Dealing with the Credit Crisis

Much of the president's comments focused on the current crisis with housing prices, mortgages and foreclosures, so let's talk about that for a moment.

Congress recently floated an idea to use $4 billion in taxpayer dollars to buy abandoned and/or foreclosed properties. However, the President correctly pointed out this plan will only help lenders and speculators - not folks who are about to lose their houses.

He also explained the idea of re-writing the bankruptcy code to allow judges to write down or nullify mortgage documents would send the wrong message to lenders, making loans even harder to get and further rattling credit markets. (To protect yourself from filing for bankruptcy, read our article for important information you need to know.)

Along with that, the President said that propping up home prices, which has been suggested by some members of Congress, would be no help to first-time homebuyers and that by delaying the correction we will only extend the problem. He further called on Congress to extend tax relief, cut earmarks in half, and stop spending more than the budget allows - words all of us, including Congress, should live by!

One distressing bit of news that came out of the speech was about FHA Secure and the Hope Now Alliance, two government programs that are beginning to show success with economically-challenged homeowners. We were concerned to learn that people are not responding to mortgage assistance letters which have been sent out offering help.

If you are facing the possibility of foreclosure and receive one of these letters in the mail, please open it and read it. Even if you're not in the foreclosure process right now, it's important to take the necessary steps to protect your home. Click here to listen to our special audio alert for specific actions you can take now.

The most positive idea we received from the speech is that the President fully realizes the more government involves itself in free markets, the worse the situation becomes and the longer it will last.

If you disagree with our statement, we heartily recommend that you read Amity Shlaes' latest book "The Forgotten Man."

It makes a very forceful case for why The Great Depression lasted far longer than it would have had the Roosevelt administration not enacted market stifling laws and regulations.

We believe your point is well taken, Mr. President.

There's no question times are tough right now, and we want to help you make the smartest moves with your money. If you haven't yet, we recommend you check out:

• The Dolan Recession Survival Guide
• Pros and Cons of 401k Loans
• 7 Ways to Protect Your Job in a Recession