WINTER 2014

MFDA 18th ANNUAL GOLF

MFDA 18th ANNUAL GOLF OUTING WILD TURKEY GOLF CLUB - SEPTEMBER 22, 2013 more photos on page 191

THE DISTRIBUTOR’S LINK 181 OVERLOOKED SOCIAL CHANGES continued from page 179 Loss of Integrity One often overlooked lesson of the recession is that no one really has to pay their bills, especially a mortgage. The government has developed plans whereby a homeowner whose home is valued at far less than their loan can negotiate or walk away from the obligation. The reality is that with judicious timing they can negotiate for a short sale, buy a similar distressed or empty home next door with a far lower mortgage payment and then repurchase their old house when it comes back on the market for a pittance. This ploy wipes out the mortgage debt without bankruptcy. In hindsight the recession could have been avoided completely simply with a ruling that any loan that was “underwater” (property appraisal at under the value of the loan) would be regarded as acceptable provided the borrower continued to pay on time. In effect the banking system is trusting in the integrity of the borrower…which is definitely a radical The gifted teacher who would answer a bright student with a question is becoming extinct. concept for the Government, but an everyday process for a Distributor. Instead a lot of people who invested their lives in the Great American Dream went bankrupt unnecessarily. Simultaneously the finger pointing has been in every direction except at the government programs that encouraged the run away process and continues to fund/fuel it. What does this mean for your operation For you and your customers it means increasing reserves for bad debt and this takes away from capital funding to enhance and grow the business. For your employees removing the stigma of bankruptcy and negotiating their way out of accepting responsibility are trends that can seriously compromise your business if they bring these paradigms to work. For all of us integrity of personal and business relationships is being seriously challenged. Jim Truesdell’s article in the last issue of this magazine, “Watch Out! Standard Forms are Getting More One-Sided” is one manifestation of this new business ethic. please turn to page 182