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You can't afford to ignore these eye-popping insights from NostraDover: He's been accurately predicting this mess at least 14 months ahead of the rest of the nation's [ahem] "experts"...
These insights aren't popular because they're not positive...just bone-chillingly honest predictions from the same person who predicted $1 trillion bailouts and global financial meltdowns back in the Summer of 2007.
G'head! Check out some of Ben's predictions posted on this website earlier this year!
Question 1: We keep hearing the same questions: What are your Top 3 points for consumers during the economic crisis? Tell us something fresh and different and not the same old stuff we keep hearing everyday in the news.
Answer #1: The current Doverview of our nation's situation:
a. Prepare for the worst/Part I: There's no reason to believe reports that we'll be turning around any time soon. The stock market has a long way to go down-and will-meaning it could take at least 5-7 years to recover.
b. Prepare for the worst/Part II: If you depend on your available credit lines like most Americans do, draw those credit lines down now while you've still got 'em, or risk losing them for good. Put the money in the bank and use as you would if you were drawing them down through conventional methods.
c. Prepare for the worst/Part III: Be honest with yourself and your family-tough times are here and could be staying for quite a while. "We have to re-think every single thing we've taken for granted and go back to basics. This means cutting budgets as deeply as possible. No more buying lunches or Starbucks or fast-food dinners. Brown bags, a full travel coffee mug before leaving the house or the office, and it's time to fire up the oven/stove for a change."
Question #2: What are the most important things people should know during the economic crisis?
Answer #2: Time is about to become your most precious commodity:
a. When you're trying to get re-employed, trying to pay bills or hoping to qualify for unemployment insurance or an extension of unemployment benefits, time will soon become as valuable as money itself.
b. Don't  get sucked into the "it'll be over soon" placating predictions media mouthpieces continue to dish up: Yes, I know producers would rather say something positive than negative-but wouldn't they be true to the canons of journalism and doing their job properly if they served up the truth rather than "feel good fiction?"
c. Know your rights and options! Dover's Lucky 13 follows: Get clear on what your rights and options are in a wide variety of areas, such as...
i. Unemployment benefits
ii. Electricity or heating fuel financial assistance programs
iii. Tuition assistance and student loan repayment deferral options
iv. Prescription drug giveaway or subsidy programs
v. Reduction of child support or alimony payment options
vi. Reduction or forbearance of life or health insurance payments
vii. COBRA health insurance options or extension of benefits options
viii. You don't have to put up with harassing/threatening debt collector phone calls: Fire 'em by invoking federal law.
ix. Renegotiate your mortgage payment: It's even easier to do if you're in an illegal/predatory loan...here's where to go for help!
x. Find out if you've been paying for ‘credit insurance' on your credit cards: If so, you might not have to make payments on covered cards as long as you're un or under-employed but be warned: They love to take your payments, but hate to pay out claims, so expect these weasles to make your life miserable when you try to collect!
xi. 401K or IRAs: Contact a credible/licensed CPA to find out what your options are-you may be able to withdraw from these accounts with zero penalty or a deferred penalty
xii. Rent or mortgage payment assistance: Get to work to find out what your untapped-because-they're-unknown community, state or federal subsidy benefits are
xiii. Time to hit on creditors now for debt forgiveness and better repayment terms...or else! Or else they can get ready to see you in bankruptcy court. Don't be shy-now is the time to play hardball, while you've got some time and while they're in deal-making moods.
Question #3: What should we not do at this time? Unload our stock? Consolidate credit cards?
Answer #3: Do NOT follow the herd: Ever heard the expression "sheep led to slaughter"? It might make editors and producers feel good, but market prognosticators espousing such tips such as:
i. "The market has capitulated! We're near the bottom. Don't sell now!"
ii. "Time shows us that the market always rebounds and over time will return ??%"
NostraDover's bottom lines?
iii. I'd love to see where these assorted experts have their money parked: And I'd like to know how long ago these fund managers dumped their personal holdings before they moved their funds out of positions.
iv. I love their "time-tested" market rebound references: These are not normal times. If you wanna go back to time-tested examples, then go back to the U.S. circa 1930s. This country has never been in a GLOBAL RECESSION-about-to-be-a-DEPRESSION.
We've never screwed-up this bad and to this degree, so you can sh**can your time-tested examples, because those same theories are what put this economy upside down to begin with.
b. They talk about "averaging" your position in a stock or mutual fund-buying increments as the stock goes up or down: Think seriously about aggressively averaging your liquidation of a position into cash. Sitting on your hands, gnashing your teeth and white-knuckling every time you see your investments drop another 10% here, 5% there is only gonna result in you being as deep in the hole as everyone else. Trust me: Misery does not like company. Grow some cajones and make a decision and don't look back.
c. Consolidate credit cards? That's so passé...so yesterworld: Wake up to the fact that the credit card companies and banks are coming up with new rules and you will be the last to know. Consolidating to a lower rate cards sounds good...but then again, so does winning the lottery. In other words: Don't hold your breath-the credit markets are going to continue to tighten like a noose around an al-Qaeda member being interrogated by the CIA down at Guantanamo Bay.
d. Don't bite on deals offered up by strangers ready to help you through your crisis: From business opportunities to debt consolidations to foreclosure rescues to headhunters/employment agents/agencies...if it sounds too good to be true well, you know the rest. Desperate consumers are among the most gullible and easiest targets to take advantage of during stormy financial times. Oh sure, what they're offering is a money-back guarantee. Really? Who's holding the money in the mean time? Exactly...
e. Don't overlook easy "deals" that are waiting to be had if you only knew to ask for them: Remember, this is just like dating-all "they" can do is so no to your requests...
i. Contact your cellphone company: If you're out of your contract period, call your carrier and tell them you're getting ready to jump to another carrier and will-unless the make you an offer to stay that you can't refuse. They'll entice you to stay by offering stuff like increased minutes for free or lower rates, increased number of text messages for less money or even free, better rate plans, additional phones for free on the same plan-which means the entire family should be consolidated and on the same carrier for maximum benefit.
ii. Contact your cable company or satellite carrier/Part I: Tell them you're about to jump to the competition, and see what they'll offer you to stay. Many times you can get better program offerings, DVRs, etc. for staying...but remember the goal is to cut expenses. These companies are terrified of this economy, because they know customers will start trimming or dumping service-so they'll do all sorts of dealing to retain you as a customer.
iii. Contact your cable company or satellite carrier/Part II: The companies love to bundle services, so investigate what services you can "bundle" to save overall ca$h outflow. Landline telephone service and broadband Internet access are no-brainers for bundling with your cable or satellite service.
iv. If you're in a state that offers deregulated electricity service, play the "I'm gonna jump ship" game: Once again, it's crucial for consumers to understand that they ALWAYS have the upper-hand-but especially in a tight economy. It's much easier to make a deal to retain an existing customer than have to spend the marketing dollars to get someone new on board. Energy providers are no different.
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