This book made very interesting, albeit depressing, reading. An inside look at the way politicians are in bed with the big financial companies, Poorhouse provides you with a front-row seat to the causes of our current financial problems as a country and as individuals. White unflinchingly looks at the way both parties have enacted “reforms” that have done very little reforming — and in some cases made things worse for consumers. She also offers a look at the “advice” we have been given with regard to 401k retirement plans, home ownership and college education, and why even those who try to do what’s right end up in financial trouble when they attempt to do what’s right and responsible, but are stymied by a lack of good information.

But the book is more than an indictment of our institutions and politicians. It also includes a number of reforms that might actually work, and what you can do to join other consumers to lobby for reform. (Be forewarned: Some of the proposed reforms in the book are a bit radical, and some the more conservative-leaning will find them unacceptable. I think they’re great, but others will disagree. However, most of the book offers information that anyone can appreciate.) White also includes practical advice about what you should do in the meantime to salvage your financial future. White offers rules about saving for retirement, tips for getting a mortgage that you can afford and paying it off quickly, and ideas on rethinking the way you pay for college. There is also a helpful section aimed at helping you create an action plan to get out of debt.

In the end, Welcome to the Poorhouse is an interesting read. It will open your eyes to the history behind our current system, and why it is the way it is. And it also provides you with actionable information that you can use to improve your own financial situation.

Post from: EveryJoe

Book Review: Welcome to the Poorhouse

• Losses are still expected to mount for some financial institutions. Credit card charge-offs are increasing, and commercial real estate continues to fall in value. And foreclosures could still continue to cause problems.
• More regulation may be coming. Even with TARP and its requirements behind big banks, the President has proposed regulatory overhaul, and banks are wary of what it will entail, and concerned about how it might limit profitability.

However, it is possible — even likely — that, in the future, financial institutions will raise their dividends to some degree. But I doubt they will return to previous levels anytime that could be considered soon. It will take years before banks feel good enough about economic recovery to boost their dividends.

Image source: sxc.hu

Post from: EveryJoe

Don’t Expect Banks to Increase Dividends