Steve Hoffacker's Sales Quips

Our government would have us believe lots of things - even conflicting information.

Several months ago, they wanted us to believe that the major financial institutions in this country were on the brink of total collapse and that if we didn't immediately pump massive amounts of TARP bailout dollars into them and force the larger banks to put their arms around the struggling ones that our economic system was doomed.

Then they said that we didn't do enough - that more money was needed. They're still saying this.

There has been persistent talk of a major depression - but that comes and goes.

Then several csars started appearing to administer all of this new money.

Then banks were supposed to lend money to small businesses and refinance mortgages but haven't gotten around to it yet.

Then we had to buy GM and bailout Chrysler (for a second time). We couldn't afford to let the market handle this. These companies were just too big to fail.

Then there has been talk of the recession being mostly behind us - depends on who is talking and when.

Then there is speculation that there is another wave of devastating economic news to come.

Then we have to pay people (but only a few) $8,000 to buy a home and $4,500 to buy a car because the government has convinced us that this is the only thing that will save two major industries - but if it's such a great program why is so limited?

Just yesterday, the government tells us that they are so busy spending the one billion dollars and having a hoot selling cars (did you know that they are in the car business?) that they don't have time to determine where the rebates are going or how many units have been sold - or where.

Before that, the government ousted the GM CEO and decided that 2,600 GM dealerships and 789 Chrysler ones had to close their doors in a cost-cutting move that wasn't and then reversed itself and let them stay.

Now we have to hastily pass health care reform or we won't survive.

Oh, the unemployment that couldn't go above 8% is now double that in some areas.

Our government also wants us to believe that Members of Congress are just too busy and too important to read anything before they pass it - perhaps they're just afraid they might actually determine that some things shouldn't be passed if they knew what was in them.

Our government also wants us to believe that the scores of spontaneous demonstrations of disgust that we are showing for the way they are doing their jobs have been carefully orchestrated - but they have told us they aren't even paying attention anyway. SO how do they know about them?

Now cover your ears and repeat as loudly as you can LALALALALALALALA!

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings.

© Steve Hoffacker, 2009. All Rights Reserved.

Local GM auto dealers - they ones that have been allowed to remain - are hoping that nothing has changed and that they can continue basically as if nothing has happened. I've heard several interviews with dealers expressing this point of view.

Unfortunately, this is wishful thinking. Things have changed,  The dealer ranks have thinned. The brands are changing. Pontiac is no more, and Hummer has been sold. The parent company is no longer solvent. The parent company is no longer in control. No one knows if they can turn the corner on sales, rebound from no buyer confidence, keep dealers supplied with parts, and compete with other stronger companies.

Then, there's the warranty issue, but not to worry. The government has vowed to honor all warranties. I don't even want to think about how that might work.

One thing is clear, it's not business as usual.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com  for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings . © Steve Hoffacker, 2009. All Rights Reserved.

With owning nearly 3/4 of General Motors (it's OK to call it Government Motors since technically that is what it is) the US Government (using the American tax revenue as working capital) first told rival Chrysler to change its CEO, then told both GM and Chyrsler that they would need to seriously pare back the number of dealerships, and now says it has no interest in running GM. Mighty interesting way of showing this lack of interest.

Everyone is talking about green cars, hybrid cars, fuel efficient cars, this kind of car and that - and making unsubstantiated claims that this will solve the problems that have precipitated today's action.

From my vantage point, the problem with American auto makers is that their product is too expensive, doesn't hold its value, and doesn't appeal to the consumer. It doesn't sound like any of this is slated to change under the new GM so not sure why a turnaround is foreseen.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com  for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings . © Steve Hoffacker, 2009. All Rights Reserved.

OK, so the feds required "stress tests" of 19 hand-picked banks, and some analyists are scratching their heads as to why this was even necessary. Was it a prelude to another round of TARP? Regardless, all the results were supposed to be released at once except that some were leaked.

On top of that we knew that GMAC was getting a pass anyway because they were tapped by the feds as the guarantor of the Chrysler package - something that couldn't very well happen over a 4-year period if they weren't going to be around - meaning that the feds were willing to keep them pumped up with cash.

Now, Bank of America needs another $34 billion. Or else what? They fail? Goodbye! However, they feds have vowed that they will not allow Bank of America to fail.

Imagine that, our government won't let companies fail!

Would someone please change the song? This one is getting tiresome.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings. © Steve Hoffacker, 2009. All Rights Reserved.

In a power play executed by the feds, free enterprise was unceremoniously driven from the field of play and out of bounds today.

I didn't have a good vantage point, but this is what I have pieced together from eyewitness accounts.

Chrysler today declared Chapter 11 - finally. Even Obama said it was a good thing. This coming from one of the companies deemed too big to fail, but it isn't a real bankruptcy because the feds and not the courts are going to sort this out. After all, they are a major stockholder now.

Earlier today Chrysler sold one-fifth (20%) of their bankrupt company to Fiat with the possibility that Fiat may eventually get over one-third of it at 35%. How can you sell your company if you are in Chapter 11? Must be part of the fed's behind the scenes deal.

The UAW is now set to own more than half of Chrysler - who are they going to blame when the cars still don't sell and the company still loses money?

Obama fired Chrysler CEO and now has told the company that they need to cut their dealerships by more than half (from 3200 to 1500) - and GM, too? The government is telling private enterprise to cut locations? Since when can they do this? Oh, since now. This is a new game with rules being made up along the way. I'm not sure free enterprise is going to be reentering the game. It looks pretty battered.

And then GMAC, the financial subsidiary of soon-to be-formally-declared bankrupt GM, is guaranteeing funding to Chrysler for 4 years. A company with no money is guaranteeing to fund another bankrupt company? Wow! Should be interesting, but must be something the feds already know is going to work as the set about keeping GMAC afloat for at least those 4 years.

Then I hear that the feds are going to guarantee the new car warranties for all Chrysler cars. Look for government garages and mechanics to be coming to a location near you, Hey, maybe they'll use those dealer locations they just threw under the bus.

One thing is sure, Chrysler is going to be running on fiat money.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings. © Steve Hoffacker, 2009. All Rights Reserved.

Where's it going to end? The bailouts, the handouts, the free lunches?

Better yet,  is there anyway we can get in line?

Actually I'm not really interested in any government bailout because this is just not the way to help our economy. If the Treasury wants to give every citizen a few thousands dollars and then forget about their ideas for the stimulus or bailout plans, I might be interested in that. Otherwise, no. Besides, I think we're a little late for this discussion.

After the banks got their TARP money - which many of them didn't want but were forced to accept and still others who want even more money - life insurance companies are getting in line with their hands out.

Get this. Behind them are the likes of BMW, Harley Davidson, Nordstrom, Target, and Home Depot.

Where is this going to end? After the country is totally broke?

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings. © Steve Hoffacker, 2009. All Rights Reserved.

When I hear of TARP I think of a large canvas. I won't go there, although there likely is a lot of truth to hiding the issue disguising it rather than dealing with it. Then if you type too quickly, you get TRAP instead of TARP. This is very close to the truth.

By throwing billions of dollars at an imaginary problem (because it was largely created by the mark-to-market fiasco and therefore is not real) we have created victims out of our major lending institutions and caused millions of Americans to look to the federal government for even more unwise bailouts and giveaways.

Let's return to the free market where banks (and auto makers or any other business) had the right to fail if they were mismanaged or over-indulgent.

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For more information on my coaching and educational programs and services, sales tips, insights, or strategies, visit my website stevehoffacker.com or my other blog homesalesinsights.com. © Steve Hoffacker, 2009. All Rights Reserved.

It's been a long time since I was this frightened on Friday the 13th. No, superstition has nothing to do with it - but Congress (at least the ones who voted for it) and the President do. This legislation and the spending it authorizes is really scary.

Do you realize the impact of the colossal knee-jerk, anti-free market, out-of-control stimulus spending bill that has just been approved? It won't officially pass until the White House flies the 60th Senatorial vote back from his mother's wake in Ohio later tonight (I wonder at who's expense).

This is a blow to capitalism and to the free enterprise system. All of us who are entrepreneurs should be outraged. I am.

Given time, markets correct themselves. In fact, the housing market is doing that right now.

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For more information on my coaching and educational programs and services, sales tips, insights, or strategies, visit my website stevehoffacker.com or my other blog homesalesinsights.com. © Steve Hoffacker, 2009. All Rights Reserved.

Maybe with a portion of that nearly $800 billion spending spree program, they can find a few bucks to purchase a dictionary. I don't think the administration or Congress know the meaning of the word stimulus - and the really sad part is that I'm not sure they care.

Spending is clearly the issue, and the underlying premise seems to be that if you spend enough money to get enough people beholding to you, they'll want even more and then you'll be able to ride this horse for a long time.

Strange how a stimulus bill as massive and as secretive as this (nearly 1,000 pages that virtually no one has read in its entirety) has over half (a reported 53%) of the expenditures slated to occur after 2011.

And here I thought that a stimulus was designed to provide immediate relief and growth.

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For more information on my coaching and educational programs and services, sales tips, insights, or strategies, visit my website stevehoffacker.com or my other blog homesalesinsights.com. © Steve Hoffacker, 2009. All Rights Reserved.

Well, it looks like we're going to get our big spending bill that allocates more money than ever before on projects that we don't need with resources that we don't have. Other than to satisfy several campaign promises, why are we doing this? Name me one thing in the nearly 800 pages of legislation that actually stimulates the economy - with the possible exception of the printing industry.

I have never supported the bailout bill in any form. And even if you thought that increasing or augmenting the provisions of the housing tax credit would have stimulated sales (which I never did because it did nothing to reduce the purchase price, made customers wait until they filed next year, and was not an absolute number anyway), I'm not seeing any indication that this is included in the bill.

All that remains is unprecedented spending.

The only thing that would have made any sense at all was a large cash (at least 5-figures and possibly low 6-figures) disbursement to everyone in this country. It would have cost less, helped to make people right that needed mortgage relief, provided a stopgap for people recently unemployed, and would have put money into circulation that would have bolstered savings (helping the banks) and promoted consumer spending on products and services that ultimately would preserve and expand jobs. Along the way, homes and cars would have been purchased. This plan actually would have been a stimulus.

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For more information on my coaching and educational programs and services, sales tips, insights, or strategies, visit my website stevehoffacker.com or my other blog homesalesinsights.com. © Steve Hoffacker, 2009. All Rights Reserved.