Coach Jon just sent me this AP article to post. This article does a fantastic job explaining what has happened to all the money that has been lost from our economy…

NEW YORK - Trillions in stock market value — gone. Trillions in retirement savings — gone. A huge chunk of the money you paid for your house, the money you’re saving for college, the money your boss needs to make payroll — gone, gone, gone.

Whether you’re a stock broker or Joe Six-pack, if you have a 401(k), a mutual fund or a college savings plan, tumbling stock markets and sagging home prices mean you’ve lost a whole lot of the money that was right there on your account statements just a few months ago.

But if you no longer have that money, who does? The fat cats on Wall Street? Some oil baron in Saudi Arabia? The government of China?

Or is it just — gone?

If you’re looking to track down your missing money — figure out who has it now, maybe ask to have it back — you might be disappointed to learn that is was never really money in the first place.

Robert Shiller, an economist at Yale, puts it bluntly: The notion that you lose a pile of money whenever the stock market tanks is a “fallacy.” He says the price of a stock has never been the same thing as money — it’s simply the “best guess” of what the stock is worth.

“It’s in people’s minds,” Shiller explains. “We’re just recording a measure of what people think the stock market is worth. What the people who are willing to trade today — who are very, very few people — are actually trading at. So we’re just extrapolating that and thinking, well, maybe that’s what everyone thinks it’s worth.”

Shiller uses the example of an appraiser who values a house at $350,000, a week after saying it was worth $400,000.

“In a sense, $50,000 just disappeared when he said that,” he said. “But it’s all in the mind.”

Clearly, Realtors who know how to do short sales are the agents who will control the market. Start here now, download the free 7 Part Agent ShortSale Secrets crash course. Instant Free Download Now.

Though something, of course, is disappearing as markets and real estate values tumble. Even if a share of stock you own isn’t a wad of bills in your wallet, even if the value of your home isn’t something you can redeem at will, surely you can lose potential money — that is, the money that would be yours to spend if you sold your house or emptied out your mutual funds right now.

And if you’re a few months away from retirement, or hoping to sell your house and buy a smaller one to help pay for your kid’s college tuition, this “potential money” is something you’re counting on to get by. For people who need cash and need it now, this is as real as money gets, whether or not it meets the technical definition of the word.

Still, you run into trouble when you think of that potential money as being the same thing as the cash in your purse or your checking account.

“That’s a big mistake,” says Dale Jorgenson, an economics professor at Harvard.

There’s a key distinction here: While the money in your pocket is unlikely to just vanish into thin air, the money you could have had, if only you’d sold your house or drained your stock-heavy mutual funds a year ago, most certainly can.

“You can’t enjoy the benefits of your 401(k) if it’s disappeared,” Jorgenson explains. “If you had it all in financial stocks and they’ve all gone down by 80 percent — sorry! That is a permanent loss because those folks aren’t coming back. We’re gonna have a huge shrinkage in the financial sector.”

There was a time when nobody had to wonder what happened to the money they used to have. Until paper money was developed in China around the ninth century, money was something solid that had actual value — like a gold coin that was worth whatever that amount of gold was worth, according to Douglas Mudd, curator of the American Numismatic Association’s Money Museum in Denver.

Back then, if the money you once had was suddenly gone, there was a simple reason — you spent it, someone stole it, you dropped it in a field somewhere, or maybe a tornado or some other disaster struck wherever you last put it down.

But these days, a lot of things that have monetary value can’t be held in your hand.

If you choose, you can pour most of your money into stocks and track their value in real time on a computer screen, confident that you’ll get good money for them when you decide to sell. And you won’t be alone — staring at millions of computer screens are other investors who share your confidence that the value of their portfolios will hold up.

But that collective confidence, Jorgenson says, is gone. And when confidence is drained out of a financial system, a lot of investors will decide to sell at any price, and a big chunk of that money you thought your investments were worth simply goes away.

If you once thought your investment portfolio was as good as a suitcase full of twenties, you might suddenly suspect that it’s not.

In the process, of course, you’re losing wealth. But does that mean someone else must be gaining it? Does the world have some fixed amount of wealth that shifts between people, nations and institutions with the ebb and flow of the economy?

Jorgenson says no — the amount of wealth in the world “simply decreases in a situation like this.” And he cautions against assuming that your investment losses mean a gain for someone else — like wealthy stock speculators who try to make money by betting that the market will drop.

“Those folks in general have been losing their shirts at a prodigious rate,” he said. “They took a big risk and now they’re suffering from the consequences.”

“Of course, they had a great life, as long as it lasted.”

One of the best opportunites to help people and make money in this real estate market is knowing how to do shortsales. Over the coming economic recession Realtors who know how to do shortsales are going to be in huge demand. Start here, download your free 7 Part Agent Short Sale Secrets crash course. Instant Free Download Now.

LISTEN TO REPLAY NOW….LISTEN TO REPLAY NOW…LINK BELOW..

Hello,

Quick reminder…..

Join Tim and Julie Harris tomorrow for the HREU

F-R-E-E Realtor Superstar Interview.

This weeks interview is going to be something special…

Many of you have requested that we interview current students
who are experiencing huge levels of success DESPITE the market.

So, that is exactly what we are going to do for you…..

When you attend this weeks call you will learn directly from
3-4 fellow Realtors a few things they are doing to:

1)    Make money NOW.
2)    3-4 things they are doing that is working (and what isn’t)
3)    How to have the mindset of service and gratitude.
4)    Have pure and powerful mindsets even in this market.

Here is the information for tomorrows call…..

EVENT:  SUPER STAR INTERVIEW
DATE & TIME: Friday, October 10th at 9:30am Pacific
FORMAT: Simulcast! (Attend via Phone or Webcast — it’s your choice)

LISTEN TO REPLAY NOW…CLICK THIS LINK:
http://instantTeleseminar.com/?eventid=4447326

Speak with you soon!

Tim and Julie Harris
Harris Real Estate University

P.S. Have you visited the blog lately? You will want to do this now…new information just posted about this market www.TimandJulieHarris.com

Yesterday the stock market fell by nearly 800 points!

But did you notice that the price of oil fell 10 bucks?

Gasoline prices fell sharply. I mean very sharply.

In the next 30-60 days, we will experience a lot lower prices at the gas pump.

The prices of grains fell. The prices of everything fell.

So you’ll pay lower prices at the supermarket.

That’s GREAT news!!

But did the media talk about that? No. They are all about bad news bad news bad news.

The bailout failure was a triumph of democracy for a change. Great news for taxpayers.
Guess what….our representatives actually listened to us….

In an interview one Republican Senator said that he had to vote against

the bill because he has been receiving calls and emails telling him 100:1 not to vote for it.

And the measly drop in stock prices…the headlines today…hey, who cares. I own a bunch of stocks and last time I checked, they go down as well as up.

Haven’t you found that you are better off if you simply ignore the news? How about this…for the next 30 days have 100% Media Free Lives. Challenge yourself…no TV, No Radio, No Newspapers..nothing. No Media.

Think if you clear your mind of the media clutter you will have a better mindset?

Newspaper and television reporters are not the brightest people. And they are negative people by profession.

Do you know that good news doesn’t sell? Bad news sells. So we all go around the day with bad news everywhere, including what plays in our heads.

I don’t want bad news to play in my head. I want good news. I make my own news. I meditate and talk to myself with positive self-talk. And I don’t pay attention to the news headlines and take it seriously.

Prices of houses and food and gasoline and oil are falling and that means we will get back to a reasonable price level.

The media are mistaken: prices falling is good news.

The sooner prices fall, the quicker we can get on to recovering from this debacle. The bailout was a disasterous attempt by the Powers That Beto keep prices high.

Congress did one bright thing. They said “no.”

Now, you say YES and grab your free copy of the 7 part Agent Short Sale Secrets Crash course. Free Instant Download Now.

Billionaire Mark Cuban summed it up here:

1. The Bailout Hits. Euphoria on Wall Street. Stock Market goes up.

2.  Banking Balance Sheets improve, Banks of all types say the problem is solved. They loan money to their biggest corporate and very rich clients. They have to, they dont want to lose their business. Of course, those corporate and rich clients borrow as much as they possibly can because they dont know when and if credit will dry up.

3.  Wall Street Analysts say they are optimistic that retail sales will be stable with last year, and possibly even up as consumer confidence has shown increases

4. We start to hear complaints from consumers and small businesses that loans are not available to them , or when they are, the terms are unreasonable.

5. Dec sales for retailers are below last year and below analyst expectations.  Retailers say its due to lack of credit availability to consumers.

6. Mortgage default rates start to increase

7. Stocks fall hard

8. The Treasury Department says it underestimated the amount of money that needed to be pumped into the system in order to create liquidity for MainStreet.  They announce they will use the ANTICIPATED profits from the 1st bailout to fund the next 500B of bailout

9. They time the 2nd 500B “investment for the taxpayers” to be on the 101st day of the new administration.

10. The Recession grinds on and on and on

So…this means again MORE foreclosures, more shortsales.   But we’ve been saying that for years now, since way before the mess.   And it’s nice that a Billionaire agrees with us.

And if you haven’t heard what all the fuss is about?   Download your free 7 part REO secrets guidebook now… www.AgentREOSecrets.com

Top 11 Ways to Stay Motivated In The 4th Quarter.

In the Chinese language, the symbols for the word “crisis” are translated as “Opportunity Riding on the Dangerous Wind.” In other words, crisis and opportunity are synonymous. Learning to persist and respond effectively through a crisis is the essence of personal growth. To avoid becoming distracted, depressed or frustrated during 4th quarter, follow these 11 steps and take control of your future:

1. Stop brewing and start doing. Action is one of the best methods of overcoming stagnation. Walking, running, speaking with people, learning something new…ACTION is the best cure for inaction.

2. Remember that persistence can turn adversity into greatness. As the Reverend James Keller once noted, “Abe Lincoln lost is job in 1832. He was defeated for the legislature, also in 1832. He failed in business in 1833. He was elected to the legislature in 1834. His sweetheart died in 1835. He suffered a nervous breakdown in 1836. He was defeated for Speaker in 1838. He was defeated for nomination for Congress in 1843. He was elected to Congress in 1846. He lost his re-nomination for Congress in 1848. He was rejected for land officer in 1849. He was defeated for the Senate in 1854. He was defeated for the nomination for vice president of the United States in 1856. He was again defeated for the Senate in 1858. Abraham Lincoln was elected President of the United States in 1860.”

3. Inventory your BAG regularly: Review your Blessings, Accomplishments, and Goals. You’ll be surprised how many reasons you have for being grateful, rather than depressed, anxious or worried.

4. Focus on what you are here to GIVE.  Be in a mindset of service.  How can you help as many people as possible 4th quarter?

5. Stay connected.  Cultivate lilies and avoid leaches.  If someone or something is bringing you down, replace it with someone or something that brings you up.  You have this choice every day.

6. Stick to your Media Free Morning.  No news, talk radio or print…Instead, choose to read inspirational nonfiction, listen to uplifting music or books on tape, and congregate with lilies, not leaches.

7. Take the blame and credit. Acknowledge your position in life honestly and openly.  How did you get here and what are you doing to change?

8. Make a self-evaluation list of two columns. In the “I am” (or “Assets”) column, write down 10 things you are good at. In the other column, write down 10 things you need to improve on. Take the first three liabilities and schedule an activity to help you improve each of these three areas. Forget about the rest of your liabilities. Relish and dwell on all 10 of your best assets. They will take you anywhere you want to go in life.

9. Invest in your education. Since the only real security in life is the kind that is inside each of us, practice what Ben Franklin wrote: “If an individual empties his purse into his head, no one can take it from him.” If you aren’t taking action in your real estate practice because you don’t know how to, ask for help.

10. Concentrate all your energy and intensity on the successful completion of your current goal. FOCUS = Follow One Course Until Successful.  Forget about the consequence of failure. Failure is only a temporary change in direction to set you straight for your next success.

11. Own your future.  After this call, take 15 minutes and a fresh sheet of paper.  Describe exactly what you’d like your 4th quarter to be like.  Write 3 things that will make 4th quarter the best quarter of your life, and 3 action steps to make sure it happens.  Post that piece of paper on your wall on the way out of your office…make several copies and keep them everywhere.

Have you downloaded the Free Agent REO Secrets Guide Book yet? Grab your free copy now. Instant Free Download.

Your Mission, Your Job and Your Business

By Tim Harris

Massive Action March…

As you may know HREU offers free coaching calls. On a daily basis we get up to 20 requests for free coaching calls.

Most of the questions we received were regarding where we got our information and how we stay so far ahead of the curve. Fellow agents want to know how we are able to seemingly ‘predict’ the

direction of the housing markets.

There are several easy ways we do it. First, we talk with all the great coaches at HREU.  As many of you know we are in constant contact with  all the great HREU coaching students.

From that, Julie and I keep our fingers on the pulse on what’s going on in virtually every real estate market across the country.

We also pay very close attention to what’s being published on the Internet and on different blogs. Blogs are often more timely than main stream news features.

Of course, you can simply subscribe to our blog now and we will do the research for you. When you subscribe you will be sent a daily updated of the newest articles on www.timandjulieharris.com
.

By Julie Harris

Massive Action March is a HUGE SUCCESS!

There have been many fantastic emails coming in. Many of you are re-connecting with past clients you haven’t spoken to in a year or two. Some of you have been surprised at the open arms you’re finding when you reach out to those people and in most cases people are pleasantly surprised by the results they’re getting, so keep those stories coming in.

I’ve had a lot of other stories about some interesting ‘For Sale by Owner’ experiences people are having, proving people who are doing this on their own haven’t actually given it a lot of thought. They’re just trying it out, throwing a sign out seeing if they can save some money for a couple weeks, but they’re not that committed to actually doing it on their own.

Think about it, who wants to actually sell their house on their own? All of you have done it, so you should have a great appreciation for what they’re going through. It seems like an appropriate phone call for you to be making since you sell real estate for a living and they clearly have a house to sell. Keep the challenge going.

The quote for today was discovered on the voicemail of one of our fantastic coaches.

”We make a living by what we get, but we make a life by what we give.”

– Sir Winston Churchill

Universal Law of Reciprocation

By Julie Harris

As part of Massive Action March we’re going to do a one-week challenge to keep everybody focused. Here’s how it works.

Focus on being of service. When you’re calling  past clients, centers of influence, your farm, your lead follow-up, Fsbo’s, expireds….keep these thoughts at the front of your mind:

“How Can I Help You?”

Contact as many people as you can this week. At the end of the week email the list of who you spoke with to us: coachjulieharris@gmail.com The top three people who make the most contacts this week will receive a free coaching call.

So whomever makes the most connections with people talking about real estate will receive a free coaching call.  You have one week to complete this.

Remember, focus on how you can be of service to others. When you have this mindset everything seems to happen easier with much less effort.