Why Nonprofit is Big Business in a Failing Economy

Website Photo Credit – Symbols of Love Organization www.symbolsoflove.org  By Richard Peacock

Nonprofits are becoming the majority.  More predominately now, than ever before.  The reason you ask?  Well we have to start at the beginning of the entire economic meltdown to obtain that answer.  In a failing economy cash is king, many businesses which have failed have done so because of the lack of cash flow and a failing economy is a direct result of cash hoarding.

The current economic situation is very similar a stock market meltdown; the shareholder (consumer) looses faith in the stock (services & products which businesses sell).  The investor (consumer) at which time, sells the stock which they are invested in, off at market.   If the investor then begins to fear the entire market may be flawed, the investor becomes opposed to the idea of re-investment.  Thus, driving the stock further into the ground, as a chain effect starts to take place as a direct result of the investor becoming poisoned by fear.

The investor (consumer) sells the stock (service and/or products which business have to sell), the stock at which time drops in value (cash flow recedes) as other investors now begin to  “lost faith” in this particular stock (unwanted product and/or service) and begin to sell off their shares as well.  As fear continues to prevail and spreads like an epidemic, affecting many of the other stocks (products/services) which reside on the market (economy).  The media assists in the administering (broadcasting) of this poisonous venom (bad news) as it continues to interject it into an already failing system (the economy).

Those who have “lost faith” in a particular stock (product/service) soon thereafter sell all shares within their possession (cease their purchase of services/products).  The stock market plummets to the ground (economy).  Businesses then begin to dry up; as they grasp at new ways to “cut expenses” they begin tightening up their purchases as well eliminating many of their office supplies and other unnecessary expenditures.  As these struggling businesses and now consumers alike, have eliminated the purchase of such products and/or services.  This in turn, affects the businesses, which were at one time were financially supported by the consumers purchase.  As the consumer has now deemed that particular service or product produced obsolete.

Businesses begin to cut back on payroll, which affects their employees’ paycheck amounts, and as a direct result of a “paycheck on a diet”, the employee then starts similar cutbacks within their daily lives and home product consumptions, creating a vicious domino effect, as they continue to cut their finances and or expenditures, other businesses feel it.  Eventually businesses begin layoffs as they attempt to offset their losses and ride out the recession, these businesses eventually begin to dry up (cash flow) and ultimately fold as the cash hoarding continues.

With many of the businesses that once succeeded in a “good economy” having now failed and become nonexistent, and former employees of such businesses now out of work, out of money and in many cases without the necessary funds to maintain food, clothing, shelter & health care.  What type of business would be desperately needed at this point?  And if the consumer can’t consume what type of business would be needed?  That’s right, assistance programs (nonprofit)!  You get an “A”!

Nonprofit is the business model that is the obvious choice.  In desperate times, with so many having lost their home, their income, and don’t know where the next meal will come from?  The only correct answer is nonprofit.  Nonprofit is necessary to rebuild a failing economic system.  When the system is weak it relies heavily on nonprofit, when it is strong it relies on job growth and massive consumer consumption.  Without either there must be something to fill the gap.  Nonprofit… it’s old business that’s new again for 2013.

Double Dip Recession!!!??? Sounds like a recipe for BS!

Enough of the double dipping already! Only a moron would report this type of journalistic B.S. in an already recovering economy! The road to recovery is a difficult and winding one, as we got here in this place much faster, than we will be able to get back to where we started over 4 years ago, of course we aren't springing back right off! Of course we will have some back lash! But this DOES NOT MEAN DOUBLE DIPPING!!!!

I would hope that most of us are more intelligent than the media and government gives us credit for! The only way we take a dive twice is if we collectively decide to do so, and if any of us buy into this sort of destructive reporting, then we are all doomed and at the mercy of the US Government reports! I have said this from the beginning of the mess, the deeper the B.S. the further we sink and the more we buy into it the weaker the economy gets.

We the people control the economy, not them the government. Its exactly like the stock market, bad reports = tanking stock share prices = stock market crash! Bad economic reports = everyone and their, mother, grandmother & uncle tightening up on the spending, which in turn equals loss of revenue for businesses, less employees, less product choices carried, less spending on credit from the businesses, manufactures and consumers, which in turn equals loss of JOBS/UNEMPLOYMENT!!! And the saga continues... as we all chase our tails around in a circle.

A turn for the better...

Whilst watching the local channel 7 news this morning I watched an interview with a local man
Who was asked the question: do you feel that things are getting better in the job market?
The man replied something to the effect: looking at his friends financial situations he felt that we have not quite hit bottom
And that we are definitely not quite on an upswing just yet.

I definitely disagree! We are definitely on an upswing at this point, I see many local businesses working short of employees
In many of my local stores. And I have also witnessed several bidding wars for many of the properties in my area!
The way this recovery will most likely work is you will not see the same jobs which were most recently lost,
Be the first to immediately spring back.

Just because they were the first to fold, does not mean they are the first to recover.
We will continue to see many more businesses close as well as many more individuals lose their jobs depending
on their field of work over which they are in over the next year or so.

At the same time there will be many different areas where job growth will be evident! It just depends on where
The general public find it necessary to place their money toward, in their day in and day out daily activities.
Entertainment, food and clothing (particularly used clothing) always seem to be the things most still need and desire
in a down market.

At any rate, hang in there! We are about to make a turn for the better!

I heard the news today oh boy!

OK, we have officially started to turn this sinking ship around, and all pumps are set to max! You can almost hear the rush of the water as it vacates the empty hull of the vessel. It will take another year or so before we see prices starting to climb for the home owner who would like to sell. As it seems many, many more "Bank Owned" properties are about to hit the market once again as the next wave of foreclosure properties are listed. For the home owner that would like to sell, your time will come, but not for a year or so from now... however, I would not sell even at that point. Hold on for a few more and I believe things will be much, much better for everyone! And until then... do everything you can to get your piece of the American dream! Right now, home prices are at the bottom, in fact, they were there a couple of months ago. There is a LOT of competition out there right now, but, if you are a first time home buyer willing to pay the price to get that bargain home at a slightly higher price than the investors are willing to go for an investment property. Then, bid at least 20 to 30% higher than asking and with a bit of the "luck of the Irish" you may just be a first time home owner, or the proud owner of the home of your dreams. Get them now while they are hot! And lock in your taxes on the lower re-assessment now! After all, when the home prices go back up, so do the taxes, which are assessed at the time of purchase. So, it is truly in your best interest to get that home at a third of the price it once was just two short years ago. Good luck!

Mark my words... Buy two they're small!

This recent flood of "Bank Owned" property combined along with the ridiculously low asking price and the surprisingly "good" condition of many of these homes has prompted me to advise almost anyone who is able to afford it to "take two, they are small". I am predicting that approximately 1 and a half years from this date April 28, 2009 that the real estate market will soon regain approximately 55-65% of what it has lost in value in just under a year now. The market should start to compete in a similar arena in which it did back in 2006-2007. Just as soon as most of the decent "Bank Owned" properties have been bought up and held by all the investors & home owners who were able to catch one of these great deals! And the prime properties which were purchased will be few and far between, it is then at this point in time which home owners and investors alike, who had purchased intelligently, will be able to almost name their price for their wise investment(s). I see more and more individuals out there just in the past two months, starting to compete with one another on bids for these homes! There are multiple offers where once the Banks were lucky to get any. Yes, it was a very dark and depressing time back in December '08 - February '09. And now! Well it is not quite the case any longer! If you are out there looking, stop looking and start buying! They are moving much faster than you would assume! Good luck! -R

Moving right along... Today's Economy.

It never ceases to amaze me, just how much speed we have picked up on the way down this recent landslide of major economic issues... I find it amazing just how fragile the structure of the economy actually is. And just how the media and information play into the recipe for this "Perfect Storm"... "Recession... turn Depression". I have always followed how easily swayed the stock markets are and how they are entirely driven by information and media. But to see just how an entire countries economic situation can be brought down first hand by such... well... that is something I don't think anyone of us would have thought we would have seen in our lifetimes! Not after the 1930's depression and all our experience with what created it! Not after all we have achieved, invented, learned, constructed and over come! Not to mention how much this entire situation has affected the structure of most of the worlds economic situation and how they depend on the US for so much! I wish everyone could take a step back and analyze the situation which they are now in, a situation which was created by EVERYONE'S recent and current actions/reactions stemming from the semi-recent news that we are now officially in a recession. In fact I wish that the group of individuals employed by our US government, who are and were responsible for the analyzation of our economy within our US government, would have done their job period. I am sure a government job is not unlike so many of the jobs in any business or office facility. I am also quite sure that with so many Americans out there who are just showing up to a job to mearly collect a paycheck, and then going home for the day without actually spending time doing any actual work and actually working harder not to get their work done and find ways to keep busy through out their work shift with e-mail and socializing with whom ever is around their work space etc... I know the way it works... lazy managerial types giving you the old "Just handle it, so I don't have to, and if I have to handle it, then, your going to take the fall for it" attitude. I am sure our US government works quite the same way for lack of a better word. Whomever was and probably still is in charge of the analyzation of our economy's trends and the analyzation of action and re-action of economic situations etc... should have seen this ENTIRE situation coming, I mean with all the ill choices that were done through out this past 5 to 6 years, someone was overseeing most of this "Legalized Gambling" which was being done with loans around our US of A! If our US government would have done it's job and for seen the tragedy which lie ahead, maybe we would have been able to dodge this "imaginary bullet"! Of course we are in a recession and heading for a depression... everyone is told to stop spending and save your money for the coming recession... then, the government tells them they want to create an economic stimulus! Okay, so now you want me to start spending again? Then, we are told to "save for hard times ahead"... Okay... now that we have created a nice healthy dose of confusion, and most everyone has stopped going about their normal daily, weekly & monthly spending habits! Now all we have to do is wait... and it could not have been timed more perfectly! Wait for all those mortgages to balloon in payment, and let's get started with this recession just before Christmas, that way we can maximize the effect that the lack of spending will have upon most every business down the chain... it will be at a time which most business rely on to turn a profit... okay, now, let's review... our recipe for the "Perfect Storm"... "Recession... turn Depression"

1. Tell the people we are headed for recession.
2. Tell the people we are in a recession.
3. Tell the people they need to save their money.
4. Tell the people they need to spend their money.
5. Give hundreds of billions away to large companies, banks, insurance companies & vehicle manufactures.
6. Wait for the companies which rely on the consumer to spend their money to start to fold.
7. Give more money to big business and wait a bit more for the out of work employees which rely on their jobs which folded to stop paying their bills & best of all stop paying their mortgages.
8. Take their homes from them and let the homes sit vacant, and become vandalized, because that makes perfect sense, now doesn't it? Not getting what you want in mortgage payment? Cut your income out all together! Why continue with the same mortgage payment that filled your pockets so nicely at least until this "imaginary recession" has subsided.
9. Don't tell them that most of this economic hardship has been created by the power of "word" and the way information spreads like a wild fire! MISSION ACCOMPLISHED! Now the rich can become richer and the poor can become poorer.

And oh yeah, by the way... we are now officially in a depression.

-Richard Peacock- March 21,2009