Is Our Nation’s Future in Jeopardy?

Nation’s Future 10.13.11DetroitJewishNews-1 (Column appearing in Jewish News – 10-13-11)

Is Our Nation’s Future In Jeopardy?

Ken Gross

October 13, 2011

Many of us marvel at and are frustrated by the troubling economic problems of the era. Without question, these are serious problems and the prospect of a short-term solution is dim. We have suffered horrific losses to our net worth — by virtue of the real estate freefall and a recession that, for all intents and purposes, is starting its third year. We wonder and debate — what should we do as individuals and as a nation?

In recent weeks, I’ve pondered the future of our nation as I witness a deploable commitment to partisan politics and deadlock among our elected representatives. I say to myself,“As a nation we are only 235 years in existence. The Roman Empire lasted more than 2,000 years before its arrogance claimed its lifeline. What chance do we have?” At first blush — my conclusion — “It’s not looking good.” Last week, I happened to watch the newly released miniseries The Kennedys and gained a different perspective. I was reminded of the turbulent ’60s — the fight against communism, the battle over civil rights, the Bay of Pigs, the Cuban Missile Crisis, Vietnam and our loss of cherished leaders who stood for principle beyond economics — Jack, Bobby and Dr. King. I realized that other than the era beginning post-Vietnam and abruptly ending on Sept. 11, 2011, we have been at war, on its verge or just beyond its conclusion, or in the midst of some form of economic trauma or civil rights controversy for our entire history. Ultimately, we face and overcome these problems, and it is usually because leaders emerge that have the guts to stand for what is right and are able to overcome those who seek to perpetuate the mistakes of the past.

As we age, we gain the benefit of experi-ence, as well as the knowledge that our insight and what we know is limited by our experience — which also applies to our elected representatives and pro-claimed political leaders. So what do these revelations mean and how to they bear upon the financial crisis? Since controversy is part of our American way of life, we should embrace it rather than fear it. We must question those in authority that demonstrate an unwillingness to seek new solutions and simply continue to preach unsupported claims of the past. We need to take such action that we can to improve our situation — and we need to take such action based upon the current times without regard to what others think is the right thing to do. Individually, this means looking at opportunities to recoup the losses sustained as a result of the economic disaster that has ensued, by shedding debt and seizing opportunity. As a country, the time is now for leadership — for someone to emerge that fears not what to say because of political expediency — a leader who can reach to our nation’s soul and carve a path that addresses what is best for our future.

Ken Gross is an attorney with Thav Gross and host of the Financial Crisis Talk Center, a radio program that airs weekly at 10 a.m. Saturdays on WXYT 1270 “Talk Radio.”

MESSAGE TO THE PRESIDENT – WE NEED YOUR SUPPORT

Mr. President,

I respectfully wish to remind you of a campaign pledge and promise repeatedly made – to the millions of American’s who are underwater in their homes ..and have suffered elimination or severe decline in incomes. The current word is that the Democratic leadership is going to abandon the cram down legislation when Spring term returns. In states such as Michigan, the 80-105% program means nothing, because property values have declined too dramatically – leaving home values too low in ratio to mortgages to qualify.

You are a pragmatic individual – so you understand that the lenders will not negotiate in good faith to reduce principal balances unless there is a leverage point (i.e. a stick). Thus far, virtually no lender has agreed to reduce principal on any mortgage.

I’m an attorney in Metro Detroit. In November, we began a radio show, “The Financial Crisis Talk Center” on Saturday mornings (www.financialcrisistalkcenter.com). The show allows callers to call in and vent; we also include guests and our suggestions to tell people how to whether this storm. For the past 4 months, I have been telling listeners to wait – that the Homeowners Relief Act, which has your support, will pass – and then, and only then, will we be in a position to negotiate meaningful mortgage modifications outside (and if necessary, inside) the bankruptcy process.

What am I to tell them now? Yesterday, I informed them how the political process works. When it wants something – it talks about it and the media then dives into the issue for more buzz. When it wants something to go away – it stops talking about it – so the media has nothing to ask. This is precisely what you are doing with two critical issues that face Michigan and the Midwest. The first, is the Bankruptcy legislation – here you have stopped talking about it – which means you’re abandoning it – and now it is going away.

The second – on the auto front. Before you acknowledged that bankruptcy would decimate the country because – (1) people will not buy cars from a company in bankruptcy because of (a) warranty concerns, and (b) recognition that resale value will be nil; and (2) that 3 million jobs downline are at stake.

Now – the “floated” notion of a 361 Bankruptcy for GM is being talked about – and the solution to put all at ease is that the Government will back the car warranties.

What is silent – and therefore not challenged by the media – is that no one will buy a car due to the resale issue; as well as the 3 million lost jobs.

Bottom line – good people are suffering real hardship in the Midwest. Many of these people broke rank and voted for you – and believe in you. I respectfully submit, however, that you need to follow through on the support y you pledged to them – and keep in mind, from here, the support of the banks, insurance companies and credit card issuers is looking a lot like the trickle down … that doesn’t trickle.

Of course, you are welcome to call in and address these issues as a guest on our show, next Saturday at 9 AM. Our US Congressmen (Thad McCotter and Gary Peters) appear as guests on a regular basis.

Most important – please “talk about the Bankruptcy reform” and make it happen. I recognize the monumental tasks you face – but I, like most of Michigan, believe in you and believe you can make it happen if you remember the people.

PLEASE WRITE PRESIDENT OBAMA AND REQUEST THAT HE RENEW HIS PLEDGE AND SUPPORT FOR THE CRAM DOWN LEGISLATION THAT WILL HELP HOMEOWNERS UNDERWATER IN THEIR HOMES …. YOU CAN REACH HIM AT:

www.whitehouse.gov/CONTACT/