The sub-prime mortgage meltdown has been in the news a lot lately.
A Wall Street Journal article (8/14/07) recently recounted tales of some of the people who’ve gotten caught in the cross-fire.
One woman applied for and was given a $1 million mortgage on her house in Marietta, Georgia. It was a typical come-on deal. Low interest upfront with a “piggy back” loan priced at 12%. Her payments have since jumped to $8,200 a month.
The idea was that she’d refinance later at more favorable terms. Well, later has come and not only is the house no longer valued at $1 mil (appraisals are coming in at $890,000 and less), but also the banks are no longer interested in “no down” loans. Now they want her to put up significant cash to get a new fixed 30 year loan.
— Say what?!
Anyway, the part of the article that jumped out at me was what she borrowed the money for: according to the article “to help fund a start-up that sells a patented fishing-rod holder.” Not surprisingly, the investment has not paid off.
What amazes me is not that this individual made such an investment – disastrous small business investments are made all the time – but that the Journal only mentions the deal in passing.
Granted this was an article about fallout from the sub-prime loan debacle, but still…$1 million in cash invested in a start-up…that sells a fishing rod holder?
To me that’s like glossing over the fact the person you’re interviewing has three heads or an extra arm.
— The cost of poor education
This speaks to the bizarre illiteracy that manifests itself daily in so-called business journalism. The same guys who write about what Rupert Murdoch is doing seem to be absolutely clueless when it comes to the mechanics of real business.I don’t know whether it’s deliberate or their “big business” bias is so strong they just don’t see how dumb they (the reporters) are. Probably the latter.
But God help anybody who is trying to get a picture of how business really works from reading the Wall Street Journal, Fortune, Forbes or any of those rags.
Where do people learn the realities of business?
The school of hard knocks…an experienced friend or relative…or taking a chance on the seminar merry-go-round.
It’s a testament to the tenacity of small business owners everywhere that anyone succeeds in creating a profitable business in this kind of information-starved environment.
Ken McCarthy
P.S. There is an alternative.
http://www.TheSystemIntensive.com
Since 1994, I’ve been working hard to even the information playing field for small businesses.
Thanks to the System Seminar and other training programs I’ve created over the years, small business owners have had access to training in Internet marketing superior to what’s available to most Fortune 500 companies.
My “students” – many of them millionaires in their own right now – were the first to get the clue on the power of e-mail marketing (1994)…banner advertising (1994)…auto-responders (1996)…pay-per-click advertising (2000) and Internet video (2005).
— Taking it on the roadÂ
For the first time ever, I’m taking System-level training on the road and personally conducting sessions in cities all over the US, Canada, and the UK.
(Hey, if touring is good enough for the Rolling Stones, it’s good enough for me.)
I just delivered the first Intensive in Chicago last weekend and from the reaction I received I know I’m on the right track.
“The System Intensive helped me take everything I’ve learned over the years and put it all together into a comprehensive strategy. Again, I was amazed by the quality of the content and the people I met.”
— Kristie McDonald – www.nitro-toyz.com (featured success story in this month’s StomperNet newsletter.)
“If you have any interest in developing an Internet-based business or integrating Internet marketing into your brick and mortar business, this seminar is a MUST. It will save you a lot of time and money and put the focus on the things you need to know to make money that are based in reality.”
— Martha Conway – No nonsense PR expert who has worked with Dan Kennedy
We’ve got trainings scheduled this fall for New York City, Phoenix, Los Angeles, San Francisco and Vancouver.
If you’re in one of these places or are up for a trip, check this out and see what we’re up to:
http://www.TheSystemIntensive.com
– Ken McCarthy
P.S. For over 25 years I’ve been sharing the simple but powerful things that matter in business with my clients.
If you’d like direction for your business that will work today, tomorrow and twenty years from now, visit us at the System Club.
Ken,
I look forward to seeing you when you get to San Francisco. Maybe we can get together a few days in advance and do some brainstorming?
All good wishes,
Doug
Ken–
Our solution has always been to find
deeply undervalued properties. Still
moving them–even in this market.
Thanks
Mike
http://www.usapropertyfinders.com/update.htm
Will you be coming to Dallas Texas?
Ken, do you have a date for Vancouver? I tried the link today but got a 404. I’ve been to the site before but you didn’t have a date yet for Vancouver. Please let us know as soon as you have the right numbers so we can get it in our calendars. Thanks for coming out west! And thanks for all the work!
Thank God for blogs
1. Yes – We will be coming to Texas and Florida too.
Most likely in January or February. Just opt-in for the city you’re interested in and you’ll receive a notice when the date is set.
2. Re: Vancouver page.
Seems to work. I passed your comment on to tech. Sorry for the problem.
3. The idea behind these trainings is to save you wear and tear and the expense of air travel and hotel.
Also, to help people get up to speed in what matters – and what doesn’t – in marketing.
Because of the ever-thickening cloud of BS and nonsense that’s being peddled out there, I find people are LESS prepared and MORE confused about marketing and business than ever before.
The purpose of these trainings is to put people on the right path. Less wasted time, less wasted effort, less wasted money and a much quicker attainment of your goals.
Ken,
I’ve been keeping an eye on your blog for some time and had the chance to read one of your books this summer on the beach.
I appreciate your no-nonsense insights, and look forward to hooking up with you at one of your upcoming events.
I am in Montreal, not so far from you, it might be nice to see if you can fill a room here…hows your french?
My French is terrible, though I do try.
And I love Montreal. I visit there several times a year every year for fun anyway.
Before I book a date there though, I want to see how Toronto pans out first. I’ve never been to Vancouver (strange but true) and I’ve gotten some big offers of promotional support if I bring the training there.
Mike makes a very good point.
Markets may slow down (or even stop for a few days), but there’s always action going on. Things rarely go to zero
It’s just that the form of the transactions that change.
Mike’s taken the smart position of:
1. Knowing the real values in his marketplace
2. Only buying into situations the market has undervalued
This formula is most commonly associated with real estate, but it’s actually the secret to success in any business.
The problem: Few want to do their homework. It’s easier to write a check than to think.
I applaud Mike and other people who take the time to learn and think before they leap. Really, that’s what this whole game of business is all about.
I also picked up a copy of Mike Filsames 7 figure Code, and enjoyed your training presentation on that package.
I have made numerous changes to my online strategies directly as a result of your input.
Can you outline how you would position your smaller local events like Vancouver to the Chicago annual event your hold?
Ken –
Toronto!!
You MUST come to Toronto!!
Your insight and knowledge is ALWAYS welcome but coming to Toronto would be great.
Howard
I’m sad for others that the country seems to be going in the toilet financially but it sure increases our sales of products geared to saving money. A couple more joint ventures and maybe I’ll be able to sneak away from my 8 kids and come and learn how to make some real money instead of peddling reports like “How I Feed My Family of Ten for $100 a week” . Thanks for the tips, inspiration and encouragement. Hope to shake your hand here soon.
vs
http://www.arkessentials.com
Great Article Ken!
It is interesting how so many are asleep at the wheel……
Jeff
Vancouver, B.C
P.S your system seminar I attended in San-francisco in 2003 Was awesome!It is amazing how many marketers from that seminar are doing so well Ed Dale, Frank Kern,John Reese, Alex Mandossion not to mention the late great Gary Halbert.
Hmmmmm……Now whos asleep at the wheel?…I guess Gary isnt doing so great is he?
Jeff
UK?
One million for a business….whew!! I thought I spent a lot when I spent $3000. And she spent that much for just one product. The world is changing too much and too fast to get into the “One of anything” game.
Gary may be doing just fine. If he is in heaven, then he doesn’t have to worry about making a buck anymore. All bills are paid!!
Ken,
The subprime meltdown is just getting my attention now too. A pretty good guy explained it in his blog today. He’s WB Busin at timing market turns blog. I have read his market letter for a year too. He’s has been right on the spot for what is going.
The greed in people is all over these stories. The people with big business degrees are in this deep to. banks and others too. it’s not just the reguler people.
He thinks it will get worse but that it’s a needed cleaning.
You write good truths too. Thanks for trying help all of us
re David Rothwell above …
I’m another one hoping that there will be a UK date.
Thanks
R
Yes, UK. I promise. Probably in early 2008.
I love England. If I didn’t have so much going on here, I’d gladly move there for a year just to soak it all in.
It’s one of my favorite places and when you get tired of the weather, you can hop on a plane an in an hour or two be someplace completely different. Pretty darn perfect if you ask me.
To answer the question from Dan:
What’s the difference between these trainings and the annual System Seminar?
Let’s see…
At the annual System event, I have over twenty faculty members and over twenty-five large and small group sessions. Hundreds of attendees too.
VERY detailed. VERY nuts and bolts.
In contrast, the intensive are me and a guest expert and around 30 participants.
My goal for these small events is simple: to teach you all the stuff I used to teach to people like Yanik Silver, Alex Mandossian, John Reese and a slew of other present day gurus who used to pick my brain when they were trying to get started.
HEY WHAT ABOUT ORLANDO???
What do you Northerners have against Florida??
Florida is fine. Beautiful place and nice people. It’s the culture of scam artists in places like Orlando and Miami – and in Las Vegas and LA too – that’s hard to take.
Then again, I guess New Yorkers shouldn’t throw stones, but I live in the countryside (not all New York is NYC) and I voluntarily left Wall Street over 20 years ago.