Unless you’ve been hiding under a rock, you surely know about the public outrage against the pending $700 billion bailout of Wall Street package currently being considered by Congress.  Why should the average American who angsts over gas prices put her hard earned dollars up to bail out Wall Street banks, who have cashed out to the tune of billions of dollars during the housing boom.  However, putting aside the blame (even though there is a lot to go around), this is what this country needs to get us out of this credit mess.  Why?  Basically, banks and depositors don’t trust each other now, and credit is extremely tight.  No one knows if the collateral on banks’ balance sheets are worth what they say they’re worth, despite repeated markdowns.  Banks are deathly afraid of incurring more loan losses, particularly given what has already happened to Bear Stearns, Lehman Brothers, AIG, retail bank Washington Mutual, and potentially Wachovia, one of the largest commercial banks in the country.  This is where the $700 billion package comes in.  Banks are afriad to lend to one another and to you, the average homeowner, small business owner, car buyer, etc.  If the government comes in and buys those mortgages and takes them off the books of the banks, they are free to rebuild their balance sheets and other financial institutions will have more confidence to start lending to one another.  Moreover, the bank account holders like you and me won’t be so freaked out that we run to our bank and withdraw all of our deposits.  The banking system will stabilize and the credit freeze will start to melt.  Businesses will once again be able to borrow against lines of credits, payrolls will be met, and financial commerce will continue. 

The big question is:  will the American taxpayer be stuck with hundreds of billions in losses?  Not likely, IF the Federal government acquires the mortgage securities at a significant discount, marked down to what healthy banks are currently paying for the assets of failed banks.  The government will likely hold these mortgages for some time as the economy slowly recovers.  Despite the wave of foreclosures, housing prices aren’t going to zero.  At some point, when confidence in the economy is restored, housing purchases will pick up.  The housing market will strengthen and unemployment will decline.  In turn, the mortgage securities will become more valuable as the underlying assets increase in price.  Under this scenario, the plan may indeed be an excellent long-term trade.  Warren Buffet has commented that this is what he would do if he were there. He’s been right more times than he’s been wrong.

Have you been itching to start that side business but between a full time job, family, household chores, etc, all you have time to say is “I don’t have time!”  That’s the dilemma that I’ve been struggling with as I am planning my new business while balancing a full workload at the office and a 7-month old baby at home.  But I recently read a guest post on personal finance blog Get Rich Slowly by Erica Douglass.  Erica, who has her own blog, erica.biz, says that all of us waste an average of 750 hours a year (drum beat) mindlessly watching television or surfing the internet.  That breaks down to a little over 2 hours a day, time you could spend cracking open that novel, planting vegetables, training for a triathlon, or starting a business.  I have to confess that I have heard this advice before.  My Uncle Frank, a successful entrepreneur, has admonished me not to mindlessly watch so much TV when I complained that I didn’t have enough time to start my business plan.  I have noticed that motivated people will block out time during the day to work on their passions, whether it be exercise, volunteering, or a side business, likely at the crack of dawn or after a full day at the office, because they make it a priority.  So, instead of watching my reality favs like “The Biggest Loser” and (I have to admit it) “Dancing With the Stars,” it’s time for me to get off my couch and pursue my dreams.

When you think you have to invent some fancy shmancy website to hit it big, just realize that the simplest ideas frequently are the best ideas.  The creators of the social networking site, www.bebo.com, who just sold bebo to AOL for a cool $750 million, have turned their attention to www.birthdayalarm.com.  I know, I know, it sounds so simple but is much harder than it looks.  But you’ll never know until you try.

After a particularly hellish day at work, have you ever fantasized about waltzing into your boss’s office and telling her to “take this job and shove it?”  Or better yet, picking up your purse or briefcase and simply walking out, computer still humming, unopen emails still beeping?  As a long-suffering member of the legal profession, this thought has occurred to me more than a few times. 

The reality, however, is like a bucket of cold water thrown in your face.  Most of us cannot afford to leave our day jobs, even if we’re convinced we have a million dollar idea.  Who’s going to pay the mortgage, put food on the table, and put clothes on our backs?  But, alas, there is still a way to pursue your dreams.  Not surprisingly, it involves a bit of sacrifice.  The title of this post, appropriately enough, I heard from a frequent guest on the Donny Deutsch show on CNBC, “major in reality, minor in your dreams.”  This is more the reality for most than those 20 something billionaires who started their companies out of their dorm rooms (e.g., Dell, Google).  When you want to pursue a business idea, but feel trapped in your job, turn that mental attitude around from a negative to a positive.  Instead of nashing your teeth about how much you hate your job and how you would like to quit to start your own business, use your job as motivation to get off of your duff at home.  I’ve heard all the excuses - “I never have time.”  But let’s face it - most of us have more time than we think.  Instead of watching endless episodes of “CSI” or Netflix’ing (is that even a word?) the latest releases, use some of your leisure time to start researching your idea and taking action.  Becoming self-employed is not an all-or-nothing proposition, especially when you have a mortgage, kids to feed, and a thirsty SUV.  But take the aggravation at your job as a serious incentive for you to do those things you’ve always wanted - write a screenplay, train to become a masseuse, build a widget that stops nosebleeds, whatever.  Just do it!