Indo-Canada Outlook | Welfare for the Rich by Frank Corbin

Welfare for the Rich

Frank Corbin *

As we all know, the US financial system is currently in a mess. Institutions like Fannie Mae, Freddie Mac, Bear Sterns, Lehman Brothers, Merrill Lynch, Bear Stern, AIG and now Washington Mutual are struggling to keep their heads above water. These organizations are either declaring bankruptcy, being bought out by other big financial institution or looking at the US Government for a financial life-support.

As with any business model, we must admit something went very wrong with these financial institutions. These CEO's have led their organizations down a disaster trail and are now looking to the government for a financial life-line. Let's call this one what it is, this look like "welfare for the rich". If the government jumps to rescue these private and publicly traded companies with financial support - much like a welfare system - the worst is yet to come. The middle-class tax payers would have to again pay for these greedy, corporate mistakes. Welfare should be for individuals under tight financial strains, and not for institutions sitting on assets worth billions of dollars. I must say this, "Keep the government and politicians out of your businesses."

Personally, I believe this problem will result in thousands of people losing their jobs and even worst, millions of people who invested in these institutions for their retirement will not be able to retire as they planned. In a matter of weeks, trillions of dollars invested in these companies has basically disappeared. Investors, who have worked for years investing in a retirement, will not be able to reap the benefits because of extreme corporate greed.

Handing Your Money Over To Strangers

For years, I have been educating people on taking control over their investments. With stocks, your control is limited in every aspect - it is limited to the CEO's of the companies, the employees, the accountants, the financial securities and even the clients. These companies have the freedom to do whatever they want with your money, and there is absolutely nothing you can do about it, but suffer the consequences of losing big.

These same situations happen with BRE-X (Gold), the Dot.com (technology) and now the financials. Who would think these PHD and MBA graduates, managing these institutions would make such a big error in their corporate management or perhaps... it was purposely done for personal financial gain. The answer is... we won't ever know. My question is..., when are we going to wake up?

Make no mistake, I am not advising you against buying stocks or investing in private or publicly traded companies, but I do recommend you invest your money where you have more control and leverage.

Taking Control

I recommend REAL ESTATE!

Why Real Estate? In Real Estate, you have unlimited control over your investments. You control where you buy, how much you invest in a property, which institution you get to finance the property, you choose your tenants, and the list goes on. With this kind of control, your earning potentials increase exponentially, giving you the opportunity to manage your business with effectiveness and efficiency.

You are probably thinking that I am very biased, being a real estate mentor by trade. For the reasons stated earlier, I will always recommend buying real estate over most other investment vehicles. However, analyze the situation for yourself and let me know if you find a better answer. My point is if you allow others to control your investments, their interest will always comes first ... not yours.

Frank Corbin is the founder and CEO of REMIC CORP, a real estate mentorship company located in Mississauga, Ontario. He is one of Canada’s leading voices on real estate, real estate investing and wealth estate building, became financially free by age 22 after buying his first property at age 21. Frank is also a licensed real estate agent both in Canada and the United States. He offers free seminars. His website is: www.remiccorp.com. Or he can be contacted @ 1-888-88-REMIC (73642)

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