Posts Tagged ‘Red Plague’
The New York Stock Exchange reduces its listing requirements from $25 million in minimum market capitalization to $15 million. They call it temporary, but how long is “temporary”?
The new Secretary of the US Treasury Master Geithner and boss of the boss of the IRS intentionally underpaid his taxes for a series of 4 straight years, and when he was caught on two of the years, properly paid for only two of the four years. Only when he was in the nomination process to be Secretary did he make good to the IRS for the balance he underpaid. (Oh, by the way, he must have perjured himself under oath in saying “Oh, I forgot.” But that is a story for another day.)
Not to beat on Master Geithner but, Master Geithner, even before earning the Senate’s blessing to carry on the irrational and inconsistent policies of the Goldman Sachs Governmental Programs (aka Paulson and Friends), has begun a new WAR with China. He has explicitly stated verbally and in writing that China is manipulating their currency. Meaning that He and Our New Fearless Leader President Obama believe that the Yuan is undervalued relative to the dollar, as China has stepped in over the past year and stopped its long-term appreciation against the dollar. Any Econ 101 C grader or better knows that it China did not brindle its Yuan, then the value of their US $ investments would fall, their appetite for US Treasuries (at a time when we desperately need them to buy $3 trillion USD of our bonds) would collapse. Their banks would become troubled and their economy, rather than being on a growth mode and trying to stabilize would be thrown into a state of chaos, not dissimilar to that of out own. WHY WOULD HE TRY TO TAKE THEM DOWN WITH US? WHAT IS THE BENEFIT?
China is considered one of the global leaders in capitalism!!! With the recent and further steps in US Socialization and Nationalization of Companies, Industries and Spreading of Wealth, China is better looking than we are. (Unless the mirror we use is warped, fogged and scratched!)
NY State’s new Senator to the US Congress is a Democrat with Strong Republican traits (oh, I almost wrote “taints”.) A committed member of the NRA, advent opponent of gun control, an anti-fan of the GLBT and others groups, and an ardent “non-compromiser”. At least she we know she won’t be toeing any party lines as she goes in!
Russia can shut down its gas pipelines supplying Central and Western Europe and hold them at ransom, as we saw over the past two weeks.
Unofficial underemployment in the US is at an all time high in excess of 20% currently and projected to hit 28% before this thing turns.
Detroit will stop building and designing cars for car buyers but instead to please their political owners and our new industry/political czars or dictators.
After the worst year in the stock markets’ history, the US markets continue to plunge in the first three weeks of the new year. So much for the optimism from a new administration and “Hope and Change”.
Mortgage rates on the conforming 30 year have increased almost 0.5% even though Uncle Sam and his family members have been talking about moving it lower. (What, are they now powerless? Or are their capabilities limited or muted?)
Please help me out. Add some additional ideas, as I know I have only touched on the tip of an iceberg.
Also check out http://alphainventions.com/ a great website for all new posts!
Ge, which had for all intents and purposes closed down GE Capital, its finance division, in November, has finally announced layoffs.
Back in November, GE very quietly announced that it would not be doing any financing through GE Capital, except to only the highest rated credit risks. They completely killed their Senior Bank Lending programs, their Health Care Financing, their trade financing and reviewing of most new deals.
Their announcement came as a surprise to Wall Street investment bankers, who had come to rely on GE Capital as the leading source for Senior Bank Debt when doing M&A. With GE out of the market, hundreds of deals died on the table in the 4th quarter.
GE had inidicated they would review their position re GE Capital and new lending in the first quarter. They had made some remarks in a news release, but it was very unclear as to what steps they were taking.
With the layoffs announced today, comprising of 11,000 highly paid financial professionals (15% of the employees of GE Capital), GE’s intentions and expected operations are quite clear.
GE Capital, which had once generated approximately half of GE’s net income, will be no more as we knew it. Thus, GE’s earnings, as we knew them, will be no more.
The main questions that still exist have to do with the level of potential write-offs that exist on GE Capital’s balance sheet.
Also check out http://alphainventions.com/ a great website for all new posts!
See layoffs for the month of January, by the largest US employers, at:
http://www.forbes.com/2009/01/09/january-layoffs-fires-lead-cx_kk_0109january09layoffs.html
Also check out http://alphainventions.com/ a great website for all new posts!
Thanks for reading and feel free to comment and link to this blog for more great insight!
Amazingly, the US Department of labor reported only 524,000 jobs were lost in December. The market was almost overjoyed, as they had expected a number in the range of 650,000 to 750,000. The 524,000 did not include the “revision” to the prior months numbers downward by 154,000. Thus, adding the 154k to the 524k, one may come to a sum of 678,000, right in line with the nightmare expectations.
There is also further distortion due to a “birth-death” quotient applied by the Department of Labor, but we will not get into that here, except to say that it is currently making the reported numbers look better than they really are, rather than worse.
Other very weak numbers not reported in the headlines include:
Average workweek has declined to 33.3 hours among all employed workers in December. This is the lowest number of hours worked since Uncle Sam started watching these numbers in 1964. (Some economists anticipate that this number will correlate to another 500,000 job losses in the coming months.)
Since January 1, nine calendar days ago and 6 business days ago, major employers (those with 5,000 plus employees each) have announced job cuts of more than 30,000. On a daily basis this is an average run rate of 5,000 per day, or annualized rate of additional 1.1 million of job cuts!
Some may say that the run rate of 1.1 million is less than half of the newly unemployed of 2.5 million fellow Americans in the US during 2008, but there are numerous other facets as well.
Keep in mind, when an unemployed worker takes a job at because they must at 30%, 50% or 75% of their former compensation, they are no longer statistically unemployed.
Key numbers to continue to watch includes average compensation per hour, average numbers of hours worked, and the U6 unemployment numbers which reflect a much broader and economically relevant calculation of the unemployment levels.
Also check out http://alphainventions.com/ a great website for all new posts!
Thanks for reading and feel free to comment and link to this blog for more great insight!
Citi yesterday agreed to “cramdowns” for resetting mortgage amounts and rates for troubled borrowers.
Politicians all across America declared that this was a breakthrough, etc.
One would not think it at all surprising though, given the $45 billion pumped into Citi by our great Uncle, and our Uncle’s willingness to absorb more than $300 billion of future Citi losses.
Socialism clearly has some benefits. With a tight leash (like Citi is on), the master can dictate many things.
Today’s Wall Street Journal had a small article buried within the paper which once again demonstrated how screwed up our American Government/Financial Systems are.
See http://online.wsj.com/article/SB123094029211850265.html
Fannie Mae announced on Monday that it is raising its fees to lenders for guaranteeing or buying certain mortgages. The article notes that the fees will increase to 3.25% of the loan amounts after April 1st, from the current 1.25%.
At a time when our Federal government is spending billions to buy up mortgage paper with the effect of lowering market rates for conforming mortgages, the two agencies now under conservatorship have the gaul to raise the fees. This has the same impact of adding 2 points to a mortgage or stepping the rates back up.
The Federal Housing Agency spokesperson has stated that they will review the public’s objections to the rate increase.
Crazy, but believable…………… Help us Barney Frank!!!!
Lending Club Review: A Leading Peer To Peer Lending Network
by Stacey Doyle on January 2, 2009
Our review on Lending Club, a leading peer to peer lending and borrowing social network.
Because of updated credit card regulations, fewer people are qualifying for traditional credit and loans. And now that the subprime loan industry has slowed down, people may be taking a second look at P2P lending. We’ve covered Prosper here sometime in the past, so we thought about reviewing its other competitors — especially as the economy has turned. Case in point? Lending Club, one of the leading companies behind the practice of P2P lending.
As the economy continues to worsen and banks tighten, P2P lending will continue to fill a need within the marketplace.
Please share your comments and experiences….
Congrats to Chip for taking such a dire subject and injecting a sense of humor and a bit of hope.
From our perspective at MoneyAssistant.org there is a ton of pain ahead. In addition to expected spikes in unemployment and further underemployment, tightened credit and higher interest rates, and expected deficits at all levels of government, housing and other asset values are continuing lower.
With an expected $2 trillion of consumer debt defaults over the coming year, many of us will either be in various modes of workouts with our lenders, creditors and governments.
There is much to fear out there in the business community. This is evidenced by continued severe tightness of credit markets, recent bond issues by some fairly solid companies at rates between 13% and 16%, the bond markets pricing in default levels of 12%+ (more than 1 in 10 large companies are expected to go bust), and corporate valuations that are at 60% of values just 12 months back.
Thankfully, Uncle Sam has put bailouts, restructurings, recapitalizations, and HOPE into the current language of our economic chaos (I refer to it as the Red Plague.) If they will expand the circle from Wall Street, Banks, Detroit, to include Main Street and its small businesses and the consumers/homeowners, we may all survive and be in better shape at the end of this ordeal.
See https://guruatmoneyassistant.wordpress.com for additional comments and thoughts.
Refer to http://www.moneyassistant.org for resources and additional information
More on Economy
Read the Article at HuffingtonPost
Great article.
Lots of risk and parallels, but fortunately (hopefully) different due to FDIC protection of depositors and fast government intervention.
See additional thoughts at https://guruatmoneyassistant.wordpress.com
Read the Article at HuffingtonPost
The author is right on target!!
With real unemployment continuing to rise, corporate and private bankruptcies spiking, earnings levels eroding tremendously, asset values tumbling, and credit severely restricted, the “tide” must first recede before it turns and begins to improve. Things are continuing to get worse. Thus, they can not, on average, get better. We must wait and then let the tide reverse.
In addition to coordinated intervention by the governments and cooperation from our financial institutions, we must be patient….
The challenge is to financially survive while being patient.
Two Wall Street Journal columns jump from their website today.
After Dow’s Collapse, Guarded Hope
After the U.S. stock market’s third-worst year in more than a century, many investors are hoping for a turnaround in 2009. But considering the pain that has continued for more than a year, they are reluctant to bet on it.
Stimulus Versus Recession
The U.S. is preparing massive efforts to battle the twin threats of deep recession and deflation in 2009. The results will affect the investment climate for years to come.
These two observations are right on target, but the impact and implications so grand, that the folks at the WSJ should be shouting from the building tops in Manhattan, Greenwich, The Hamptons, and DC.
First, it should not be understated but the International Monetary Fund had estimated financial security losses in the range of $1.4 trillion as of this past October. To date, US institutions have only written off less than $800 billion! The IMF estimates were before the $50 billion evaporation of Madoff assets and the severe financial market declines of late October and November.
Additionally, there have been several estimates in the area of $2 trillion for the total losses to be expected by the inability of the “two pillars” of homeowners/credit users and small businesses to obtain any lifelines quickly and without “strings” of steel to further sink them. The lifelines are not appearing on Uncle Sam’s drawing boards at the moment, which means that we should not count on them in the near future. Uh, oh!!
Current LIBOR based mortgage rates are in the area of 2.25% currently for up to $2 million!!! The rates are less than the average yield of a local CD for a few months. Fixed rate conforming mortgages are at less than 5% for 30 years. We can expect mortgage rates to further decline as the Fed continues to intervene in the market for Fannie and Freddie securities. (They have billions of $ in their pockets to manipulate the market and lower the rates further.) Unfortunately, other than the variable LIBOR loans, jumbo fixed mortgages are still in the range of 8% or so. Because the government is ignoring this sector of the market, there has been only increases in the rates as the riskiness of the credits have increased.
Banks are demanding more collateral, rather than less. In a time of declining asset values, with collateral worth less, fewer and fewer are able to meet the stricter lending requirements. Where is Super Paulson and our Hero Bernacke when we need them???????? Will HOPE and CHANGE help? Or should we turn to God as our only salvation?
Today’s WSJ made the analogy of an individual escaping from a very painful marriage. The journalist stated that this individual would be very likely to resist remarrying. The journalist paralleled the experience to a stock investor during 2008 and their fear of buying stocks in 2009. I thought this very appropriate.
In a world of great interconnection, with great uncertainties, the need for faith and confidence in systems and governments, unified and coordinated efforts are crucial. Given all we have seen from our government over the past year and years, can we have confidence? Should we have hope?
Given the way America has been raped and brutalized by Wall Street, can we have faith in the Heroes of Capitalism to save us?
Please share your thoughts and ideas………
According to a press release, “The Federation of Small Businesses is . . . calling on the Government, the banks, local councils and consumers to play their part during the year by providing support to small businesses in fighting regulation, accessing finance and maintaining cash flow to buck the increasing trend of business closures.”
The Federation for Small Businesses needs to do more than just issue a press release.
The government has financed the banks, protected Wall Street and back stopped the auto industry, but government and our political and financial leaders have ignored the needs and potential catastrophic impact of the small business failure.
Limiting interest rates is just one limited step. Encouraging banks to lend, promoting a major SBA program similar to “HOPE for Homes”, encouraging lenders to extend credit rather than reduce amounts available, are but a few of the many steps they could take.
The FSB is to be commended, but at the same time must call upon the communities across the US to mobilize and lobby Uncle Sam to work to protect our small businesses, their employees, and the core of the American Economy.
As a small business owner suffering from a reduction in income levels due to the recession, I am very familiar with the shortage of credit for small businesses. It impacts the small businesses directly, as credit cards and other signature loans are their liquidity lifeblood. Also, customers and clients rely on credit to purchase services and products and with credit levels being reduced and credit needs not being fulfilled, consumption and purchase levels are down significantly.
Much comes back to the Federal Government and their missteps regarding the TARP and providing capital to our banks. One would think that the government bailout would have helped the small businesses indirectly, but then again, nothing has been as “one would have thought” over the past 6 months.
Now that the government has bailed out Wall Street, the Banks, the insurance companies, the auto makers, and countless others, the real question is “Is it enough?” What needs to be done to get our economy back on track? Are we on the verge of being “back on track”?
The latest Forbes magazine refers to the “Depression on the Fourth Quarter” and is cautiously optimistic about improvements possibly already underway. They refer to their Chirps Index and are hopeful.
See http://www.forbes.com/forbes/2009/0112/037.html
The index referred to above is a great index. Its optimism is refreshing and encouraging. We all hope that things get better from here.
After all the government assistance and economic support, there are two pillars of our economy which are still faltering. One pillar is comprised of the over-leveraged homeowners and consumers who have no option to refi their mortgages at today’s attractive rates due to excessive declines in the values of their homes or in their credit scores.
The other pillar that has seen no support from political or economic leadership is the small business owners. Millions of small businesses were decimated in the Mini Depression of the 4th Q, due to revenue fall offs of 10-90% and the drawing down or elimination of available credit by those “saved” by Uncle Sam. Many of these millions of small businesses, employing between 1 and 10 employees are on the verge of closing their doors, filing personal and corporate bankruptcy and becoming wards of the economic state. As the US economy and its economic growth over the past 20 years has been powered by our small businesses, their mass genocide due to the economic environment will be costly and painful.
There is an estimated $2 trillion of potential defaults and write-offs that could result from further deterioration of the remaining two pillars.
Hopefully, new leadership in DC will force the hand of the beneficiaries of the government’s handouts and cheap money to assist (1) the homeowners and consumers and (2)the small businesses of America.
If these two pillars falter then the “Chirps” the new index is hearing are just echoes of chirps from the past.
On December 15, 2008, Peter Zeihan wrote “Falling Fortunes, Rising Hopes and the Price of Oil”. See it at:
Stratfor is the world’s leading online publisher of geopolitical intelligence. Thus, it is an amazing source of real news and analysis.
Mr. Zeihan’s article begins: Oil prices have now dipped — albeit only briefly — below US$40 a barrel, a precipitous plunge from their highs of more than US$147 a barrel in July. Just as high oil prices reworked the international economic order, low oil prices are now doing the same. Such a sudden onset of low prices impacts the international system just as severely as recent record highs.” Please see it at the link for the full article.
My thoughts:
I would emphasize the tremendous risk economically, politically, and globally that severe volatility (both on the upside and downside, of valuations for energy, currency, food, labor and more) can and will present to the US and all global economies and cultures.
Though economically, the US will benefit from significantly lower energy costs and many, many other commodities which have inflated over recent years due to the the rising energy costs and the great speculation/investing in “hard assets”, the risks to our way of life and our economic vitality are potentially greater.
The article describes the potential impact on governments and regimes, and the possible instability that will likely ensue, given human nature. Interestingly, I have been pounding the table with my equity investor clients on the reasons to purchase stocks in defense oriented companies, due to these very reasons. This article, plus the recently announced government spending plan, fully supports the strength of the sector and the essential need for continued development, irregardless of our incoming government’s timetable for Iraq.
Interestingly, our financial leaders are extremely concerned about the potential for spiraling deflation. They have defined deflation as the deferral of purchases in anticipation of lower prices. From my vantage point, the deflation that we are currently experiencing is more of the reversal and undoing of inflation of past years. Additionally, in the economic studies I have read recently, the decline in current consumer spending has not been due to “waiting for lower prices” but due to the lack of money to buy goods and services within neighborhoods and communities throughout our country and in many places in our interconnected world. The volatility economically and emotionally of having significant access to money (through savings or credit) to having little or no discretionary spending capability should be an area of focus for our national and global leadership.
In this holy season, as well as this season of new beginnings, we all must be optimistic about tomorrow and at the same time pray for political, economic and social stability locally, nationally, and globally .
All the best for the New Year!
The following was written by a friend. I thought it unfortunately appropriate for this holiday…………
Christmas eve… All the presents are wrapped and hidden from the kids. All, meaning one for each kid. For me, I hope I do not get anything. Not that I do not want anything, but because I know the money would be better spent on food or gas or books for the kids over the next week or two.
This is the first Christmas without money, without credit, without cash…. It feels horrible. I know we are not alone. That helps a bit, but still…. It is Christmas, a time for gifts and joy.
Holiday sales are a great opportunity to buy some gifts, but only if I had spare money. The money I have I need for food and necessities, not toys and games and things to throw away. As I look through our local paper this morning, I see many advertisements for 50% to 75% off. So what…. Even if it were 90% off, I would not buy do to the reasons noted above. Yeh, they can give it to me for free, but I am not a charity case, just someone impacted by the economic collapse of 2008 and the credit crunch.
I am sure tomorrow will be filled with joy and Love. The kids will really appreciate the few gifts they receive. Maybe even more than in past years, as they now understand how tight the money is.
We do have much to be thankful for, and that is really what we will focus on… Fortunately, good health, smart and good kids, a regular paycheck (though it is way too small), and health insurance…. plus much more, I am sure.
It has been a very different holiday season, and tomorrow will be a very different Christmas. It is all part of life. Struggles, success, failure, agony, money, no money, abundance and famine, etc… I am hopeful for the future, not necessarily tomorrow, but maybe the proverbial “day after tomorrow”. We can only be hopeful, and also thankful…..
God bless.
2007 and the first half of 2008 were marked by hyper inflation, on a global scale. Is this all but forgotten? There were fears the world would run out of oil and gas and market prices reflected those fears. All the corn in the world was being consumed by the soda makers and the ethanol refineries, leaving no corn left for food. Because of the corn prices skyrocketing, the price per pound of beef, pork and fish bounded higher. The global effects caused rice prices in Asia to move higher by 150% and the prices of bread in South Africa rose to beyond the reach of the typical laborers.
About the same time, the fear that there was not enough copper, steel, cement and investment bankers forced pricing on a global scale higher and higher. The US dollar was devaluing because the US did not produce anything that was to be needed by a commodity hungary world, but for our corn and ethanol, and investment bankers.
How the world has changed in less than 6 months!!!!!!!!!!!!! Pricing on all commodities, except gold, has crumbled. Oil is trading at less than 30% of it’s July pricing. Prices of copper, steal, wood, cardboard, and other commodities have stumbled. Mergers are being called off. Capital expansion plans cut. Factories closed and layoffs announced, daily.
The global movement of capital, the life blood of economic vitality, has ceased. All that follows the flow of capital has ceased as well. Demand for goods, not only in the US but around the globe, is off by 20+%, forcing prices down further.
All that capital is looking for homes and has found it in the US Treasuries, for the time being. Thus, the yields on Treasuries has crashed to unheard of lows.
We went from the cycle of fear regarding inflation to the publicized fear of deflation. The Fed is afraid. The media is afraid. The world has become afraid, and PE Obama and his team are afraid.
The fear is that consumers will defer purchases, as they await further reductions in pricing. This has been documented today as “already occurring” per the Wall Street Journal. The percentage of ordinary folks who state they are done holiday shopping is down from last year. People claim they have been waiting for more sales and lower pricing.
I can tell you what people have been waiting for. It is the same reason US (and foreign) car sales have plummeted since September. It is the same reason people are eating out less. It is the same reason that the wealthy are drinking only one expensive bottle of wine at dinner, rather than three!
People do not want to spend money. They are deferring spending out of fear, not waiting for lower prices. People are waiting for money before they spend (a) what they do not have, (b) what they have lost in the markets, or (c) what they have lost to theft, fraud or incompetence of the Treasury, Wall Street, Madoff, Peterson, the Greenwich Hedge Funds, or Dubai real estate.
People are not waiting for lower prices!!! They are waiting for money!!! They are waiting for credit! They are waiting for some positive economic news! News that indicates the worst is behind us. News that the markets will get better. News that the ranks of the unemployed will go down, that compensation will go up, that layoff are a thing of the past.
We are seeing in pockets of real estate markets, no matter how low the price goes, inventory is not clearing. Condos that in Naples, Florida, for example, once sold at $350,000, went to market at $250,000, were reduced to $150,000 and the owner would gladly sell it at $100,000 to relocate to see her grandchildren. That’s not happening though. No takers. There are six other units in the same building with similar stories, and other stories like it from Miami, to NY, to LA and Michigan and everywhere in between.
People do not want to spend. Many people can not spend. Many must wait to spend. It is not a question of pricing, they are not looking to get more for less, they are looking to buy something only when absolutely needed, and when they have the excess $ to purchase. Otherwise they will go without………………
The Road Will Be Long, With Many (a) Winding Turn(s)………..
The Red Plague spreads further. The virus embeds and morphs…………………
With the skyrocketing unemployment, there are many out there espousing the need for the government to provide tax credit to employers, encouraging employment….
Unemployment is only part of the issue. Underemployment is the full issue. As part and parcel to the Red Plague of losses, credit freezes, staffing cuts and cost reductions, compensation levels at all levels of the employment chain are falling for 70% of the populace. Over time is being cut, bonuses eliminated and spending allowances and benefits slashed.
Many of those who have not lost jobs, do not fear unemployment. They instead fear significant reductions in their incomes.
Thus, supporting staffing levels and compensation levels, as well as spending levels, are all needed in the grand scheme of supporting consumerism and halting the spread of the Red Plague.
With credit lines continuing to be cut, banks not negotiating outstanding loans, and new loans only being extended to those who do not need the money, there is but ONE QUESTION: WHERE IS THE MONEY?
How can $340 billion have not have any impact? How can Paulson and Congress let the greed of the banks and institutions destroy whatever remaining confidence Americans had in the government?
As Dr. Michael Savage has said, the US has just witnessed the greatest legal theft of $340 billion in the history of the world. The only beneficiaries have been the creditors, shareholders and CEOs of those institutions receiving the $. Please show me examples of the Americans and Main Street who have benefited!!!!!!!!!!!!
Paulson, Bernacke, Bush and our favorites Pelosi, Reid, and VP Cheney are all to be blamed. The should be held accountable for the fraud they have perpetuated on the American Taxpayers. We have been duped.
Those without jobs, those who have lost and will lose their jobs and credit, will pay. Pelosi, Reid, Cheney, Bush, Bernacke and Paulson can continue to dance all day until the sun sets and beyond, while we all suffer from the Red Plague they have contributed in spreading!!!!!!!!!!!!!!!
Tell me your thoughts…………
http://rpc.technorati.com/rpc/ping
Yesterday’s Wall Street Journal reported that the number of miles driven in America had fallen by 8.9 billion miles or 3.5% in October 2008 versus October 2007. The Department of Transportation reported that this was the largest decline for the month of October since 1971. They noted that this decline came despite the fact that gas prices have declined from above $4 per gallon to less than $2 over the past 4 months.
The Federal Tramsportation Secretary, Ms. Mary Peters, was quoted as follows: “The fact that the trend persists even as gas prices are dropping confrims that American’s traveling habits are fundamentally changing.”
What??????????? Since when do a few months when the world is in a state of economic and social chaos make a “trend”? What about other factors besides “Americans’ Passion to Drive”?
Does Ms. Peters know and understand that unemployment levels across the country are tremendously elevated? Has she read or heard anywhere that many hundreds of thousands and more are threateden with job loss? Has she been informed by her brilliant staff that the volume of new car purchased have crashed? That the equivalent of more than 2 million cars are being retired off of the American roads?
Has she heard the pundits and “talking morons” saying “The American People have voted. And, they have voted they do not want GM, Ford and Chrysler vehicles?”
Has she thought about the connection between consumer credit and vehicle usage, whether for personal enjoyment purposes, business travel, or shopping? With available credit lines being reduced cumulatively by hundreds of billions of dollars and interest rates on cards rising to up to 35% per year, might these things have an impact on driving patterns?
Would one (with any clue) conclude that with all these changes going on in the economic and cultural climate, that the use of one’s car and the miles driven may be impacted? Would one consider these changes permanent (which in my mind is defined as “set forever”)?
I think not. But then again, I am not in DC and nor am I a “leader”.
Maybe President-Elect Obama will select his DC Leaders based on intellect, ability, reading comprehension, and their understanding of the area they are to oversee? Would that be asking too much? Might that have a positive influence on the future of America?
May God help us!
businessThe biggest banks that have received the biggest free giveaway of American taxpayers’ wealth, are now stealing the life blood of every household and the economy and our government is either blessing the theft or ignoring it. The Red Plague of losses, illiquidity and falling values and prices continues.
Traditionally, interest rates on credit cards were competitive and set based on one’s credit ability, payment history, and market rates. Today, credit card companies are bumping their rates up to 30+% because they want to. This is in the face of the 10 year Treasury bond below 3% and the billions in free dollars they have received to stimulate the economy from our dear Uncle Sam.
At these rates, the amounts due will double over less than 3 years. These rates are userious, abusive and immoral. But, Mz. Nancy and Mr. B Frank ignore the issue. This is an issue that can not be ignored.
If outragious mortgages are reset, foreclosures abayed, and homeprices attempted to be stabilized to protect the American citizens’ balance sheets and financial solvency, the system will collapse around the explodign levels of consumer debt.
The average American with outstanding balances will get eaten in userious rates and ensuing fees. Bankruptcy and further financial chaos of the American financial system, banks, Wall Street and Main Street can not be too much further behind.
God help America from the Death Wish of America’s Financial System and Greed (and the Blindness and Ignorance of the regulators tasked with protecting us)!!!!
The biggest banks that have received the biggest free giveaway of American taxpayers’ wealth, are now stealing the life blood of every household and the economy and our government is either blessing the theft or ignoring it. The Red Plague of losses, illiquidity and falling values and prices continues.
Traditionally, interest rates on credit cards were competitive and set based on one’s credit ability, payment history, and market rates. Today, credit card companies are bumping their rates up to 30+% because they want to. This is in the face of the 10 year Treasury bond below 3% and the billions in free dollars they have received to stimulate the economy from our dear Uncle Sam.
At these rates, the amounts due will double over less than 3 years. These rates are userious, abusive and immoral. But, Mz. Nancy and Mr. B Frank ignore the issue. This is an issue that can not be ignored.
If outragious mortgages are reset, foreclosures abayed, and homeprices attempted to be stabilized to protect the American citizens’ balance sheets and financial solvency, the system will collapse around the explodign levels of consumer debt.
The average American with outstanding balances will get eaten in userious rates and ensuing fees. Bankruptcy and further financial chaos of the American financial system, banks, Wall Street and Main Street can not be too much further behind.
God help America from the Death Wish of America’s Financial System and Greed (and the Blindness and Ignorance of the regulators tasked with protecting us)!!!!
The markets today gave up all their gains of last week! Though the Black Friday numbers were much better than expected, the economic numbers regarding economic activity and future activity were horrendous.
The official group that announces recessions, announced today that the recession started December 2007. Brilliant!!! It took them 12 months to figure it out??? Just look at any economic indicator and it is abundantly clear!
But, now that we are officially in a recession, it will either good worse or get better. Its like alcoholism. To be treated, first you must acknowledge the problem. But, of course, it is not that simple.
Typically the Fed will lower rates and the lower cost of funds will encourage lending and capital investment. The lower rates would also boost home prices through more affordable mortgages and refinancings. This time, banks are not lending, companies cutting back on investing, and people generally unable to refinance due to the significantly reduced values of homes! What’s Mr. Bernacke to do?
He will continue to reduce rates and flood the channels with money.
There is an old saying “Don’t fight the Fed.” That is definitely going to be the case. The question is how soon?
The reduced rates will ultimately make stocks more attractive. The government bailouts, forced refinancing, numerous programs, etc. will make things look better. People will start feeling a bit better. But, not until some more pain is incurred and fear speads like the Red Plague……
So, it can go lower. It can go much lower. It likely will retest lows over the next few weeks and then rally through inaugeration. From there, it is the new administration’s problem, and ours………………
It is a certaintly that as the economy settles lower and lower and the Red Plague spreads, the crime rates and rates of thefts and scams will skyrocket further! Unfortunately, it is only human nature based on Maslow’s documented Hierarchy of Needs.
We all must be judicious for ourselves, our neighbors and our families. Many scams will look and smell sweet, seem innocent and be presented by apparently trustworthy souls. Caution is the watchword.
The tales of woe I hear generated from folks in the jaws of foreclosure and bankruptcy are heartwrenching. Tales generally go something like this: Scammer will buy your house and then promise to payoff the mortgages. Sounds great. Unfortunately, they do take title to the victim’s house but they do not pay off the outstanding mortgages. Thus, the poor victim has gone from a bad situation to a worse situation!
Other similar scams have to do with putting money up first, for the “lender” to assist!
I have heard that no, I repeat NO real foreclosure counselors (if they are real) will take money upfront. (Take a look at the resources pages on http://www.moneyassistant.org http://www.moneyassistant.org/index.php?option=com_content&view=section&layout=blog&id=9&Itemid=27 )
Also scams are becoming common place with annuities being sold door to door, by unprofessional scammers. They can have the victim complete paperwork to make an investment or move an existing annuity investment, and the scammer can then change paperwork to benefit themselves or another party, rather than the investor.
Simple steps to take to help guard against getting ripped off include:
- Do not make investments into annuities or stocks, etc. with a cash payment. Always make the payment with a check and be sure to receive a detailed receipt.
- Only deal with an advisor who works out of an established office. It is too easy to rent an office for a day or to no have an office at all, to make fake cards, and to scram with the money….
- Ensure you receive a copy of your annuity contract, statements, confirmations, etc. on a timely manner, direct from the insurance company or main office of the investment company. (We have all heard too many stories of advisors printing statements on their PCs and printers!)
- Always read statements and notices received. Follow up immediately if it seems a payment has not been received or something is not clear. Make sure you get good answers for your questions.
- Keep copies of all paperwork.
- Do not sign blank forms.
- All insurance companies and investment companies have compliance offices and fraud offices. If you suspect anything, call immediately.
Be judicious and cautious. You have worked too hard for your money to give it away to a stranger, against your will.
Feel free to share your stories or comments!!!
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