The securitization of mortgages is of interest to me (I know, I’m a nerd), as it ultimately affects the individual taxpayer.  Basically, your loan originator funds your mortgage, then sells that mortgage to other entities (sometimes, dang it).  

Those entities then create bonds backed by the guarantee of the payment of your original loan (the process of securitizing loans).  Some of these entities (Ginnie Mae, Freddie Mac, or Fannie Mae) are backed by the US government, which is supported by my tax dollars.  And since these entities are losing their shirts right now, I’m a little worried about this market (as you should be).  Here is a techy write up on this subject, which I thought was interesting.

Some of these original loans are of pretty good quality (solid lenders dubbed “prime” lenders) and some are not (dubbed “subprime” lenders).  The difference is between good and bad credit ratings, or even loan applications that originally had poor documentation on the borrower’s income (called Alt-A loans).  When the entities backing these latter subprime loans are guaranteed by the US government, basically that means you and I back these instruments (although very indirectly).

And now that Fannie Mae is booking huge losses (see here, here and here), I start to get worried about how that will affect you and me.  Will taxes be raised?  The government is always trying to come to our rescue, so I’m worried they’ll be doing the same again.

Most everything in the economy gets back to me and you, and more specifically your tax bill.  This is just another example.

Any more examples of how specific issues in the economy or the news my affect you and me?

Thanks, Jason M. Blumer

As a business owner, I think it’s so important to give back to the community that has given our firm so much.  I believe that businesses making a profit should give back to those less fortunate.  And as a Christian, I believe God has called me to look where I am, thank Him for all of His provision and look around for those needing material goods and encouragement.

Our firm supports Food For Life Ministries, a ministry to the homeless in Greenville, SC.  My brother, Paul Blumer, chef and “preacher to the homeless,” runs this ministry and my family (and many other supporters) helps out.  And they (my dad writes it) have developed a blog to let the community know of what they are doing and why.  The blog is called “Homeless on Tuesday”, because that is the night Food For Life has been serving food to the homeless in Greenville for over 5 years.

This most recent post on the Homeless on Tuesday blog was very eye-opening, and poignantly makes an incredible point that we should all heed.  There are those that do not have a voice in this world: the unborn, little children and ,of course, homeless people.  Food For Life Ministries gives to the homeless when they have nothing to give back.

Here is a quote from the blog:

“They can not exercise any right for justice or equal treatment and have no influence among the community. They rely on ministries like ours to speak for them, to give them “a voice” so they can speak for themselves. We do this by listening to them and helping them without expecting anything in return. We are concerned about their health, whether they are cold at night, have any food to eat, and their spiritual condition. We speak for them each Tuesday night.”

Is there anywhere your influence could begin helping others?  Maybe your business has had a great year, and its time to say thank you - with dollars, not words.  Somebody may need you to speak for them - look around you and help “give a voice” and “lend an ear” to the less fortunate.

Thanks, Jason M. Blumer

1.  What is Web 2.0? - GoSee

2.  The Kauffman Index of Entrepreneurial Activity, 1996-2007, recently reported some interesting tidbits about entrepreneurial activities in our country.  Of note, immigrant entrepreneurial activities are sharply on the rise, matching Intuit’s Institute for the Future research project (check out the fact sheet) on the future of small business - GoSee    (The Journal Blog brought this to light)

3.  StartupNation has a list of 10 businesses to start on a tight budget (although, I’m not so sure I agree with most of them) - GoSee    (they do, however, have a great searchable franchise database if that’s your flavor)

Thanks, Jason M. Blumer

It seems that entrepreneurial education has been catching on lately, according to a recent article from the New York Times.  This subject is now being taught at universities across America.  A subject typically reserved to the “School of Hard Knocks” and experience has a formal curriculum now.

With this move to more traditional eduction in Entrepreneurial Studies, I wonder if the up and coming generations will be more apt to survive the difficulties of starting and running a small business?  Not sure, but the article did make a good point.  As stated by Marjorie Smelstor, the Kauffman Foundation’s VP for the Kauffman Campuses Initiative and Higher Education Program (which spends $50 million to finance entrepreneurial programs at various universities around the country):

If it [entrepreneurial studies] is taught purely in a traditional classroom with lectures and talking heads with an emphasis on a theoretical approach, then no, it won’t be taught or learned.

But, she goes on to say, real-life experiences will truly make this teaching more real world, thus making the students better and more successful entrepreneurs.  What a welcome change to current higher education - a focus on doing business rather than simply learning about it.

I welcome the focus on a younger level of entrepreneurs.  Here’s to our future.

Thanks, Jason M. Blumer

More on entrepreneuriship: Entrepreneurship Week USA, Entrepreneur, the magazine, the Entrepreneurial Mind blog (where we learned about this article), Small Biz Labs blog, Forbes

1.  Here is a good marketing reminder (from John Jantsch of the Duct Tape Marketing site) for small businesses during a “recession” - GoSee

2.   ”Companies today aren’t managing their knowledge workers’ careers. Rather, we must each be our own chief executive officer,” this from a Harvard Business Review article I saw on BNET.  The article speaks to the art of managing yourself - GoSee 

3.  I’ve been reading a lot about this study lately, and I know it to be personally true.  The study conducted by the University of Utah purports that the use of larger monitors or dual monitors at work can increase productivity.  My productivity definitely went up when I added the second - I won’t ever go back! - GoSee

Thanks, Jason M. Blumer