Apr
10
Government Employees Go on Credit Card Spending Spree
April 10, 2008 | 1 Comment
I’ve said it many times and I’ll say it again: The government is the single biggest threat to wealth in this country. Employees of the federal government are using their government issued credit cards (or purchase cards as they call them) to buy everything from baseball tickets to lingerie to breast implants.
The US Senate released a report on government credit card abuse on April 7th, 2008. Government credit card abuse isn’t …
Apr
30
Economic Stimulus Payment - Child Support Questions
April 30, 2008 | 246 Comments
Many questions about the Economic Stimulus Payment keep coming up. Some of the most common involve child support. The questions fall into two categories: owing and receiving child support.
If You or Your Spouse Owes Child Support
The IRS will withhold your payment up to the full amount, if you owe back child support. If you file a joint return and one spouse owes child support the IRS can withhold the …
Comment by marsha: … I did get the stimulus check in September. $600 …
Nov
11
Worry About Yourself First
November 11, 2008 | Leave a Comment
When asked about their current economic condition, most people respond with something like "I'm fine but the guy down the street is really in trouble." I think it's time that to stop worrying about the people down the street and worry about your own problems.
If everyone in the country would just take care of their own business we wouldn't be in this mess. Government programs designed to help the "little …
Oct
30
The Right Time To Save Money
October 30, 2008 | 3 Comments
So the economy has taken a down turn. You've decided you might need to start saving some money. Well, it's too late. You should have been saving five years ago. But there's hope.
There's a Chinese proverb about the best time to plant a tree.
The best time to plant a tree was twenty years ago.
The second best time, is today.
The right time to save money was the time you got your …
Comment by Trish: … saved money in the past and you know what? I think it …
Oct
29
Securitization - Good Idea Gone Bad or What Just Happened
October 29, 2008 | Leave a Comment
I used to work for a credit card/finance/mortgage company. I always wonders how they got around the capital requirements I learned about in Money and Banking class. Well know I finally understand the big picture. Most of the expansion in the last 20 years has been a result of securitization.
What the Heck is Securitization?
The government requires that every bank hold a certain amount of money in reserve in case their loans go bad. So for instance if you get a …
Oct
22
Fed Chief Pushes for Another Stimulus Package
October 22, 2008 | 2 Comments
Ben Bernanke, Chairman of the Federal Reserve (the bank's bank) told Congress he supports another stimulus package. What does this mean for you?
In testimony before congress Bernanke said that he supported another stimulus package. President push also supported another stimulus package. However, Bush wants the new package to be "targeted, temporary and timely."
What is the Plan?
Right now the plan is still …
Oct
14
A House is a Consumer Good Part 2
October 14, 2008 | 2 Comments
I published an article about house as consumer goods over the weekend that was meant as a draft. So instead of fixing that post, I'll finish my thought in this post. Houses are consumer goods.
A house is not an investment. A house is a place to live.
Definition of Consumer Goods From Answers.com :
Goods bought for personal or household use, as distinguished from Capital Goods or producer's goods, which are used to produce other …
Comment by Jeff: … only criticism is the lack of discussion about the value …
Oct
9
Bank Loans Have Not 'Dried Up'
October 9, 2008 | Leave a Comment
It's important to note that even though the hysterics of Washington bureaucrats indicate otherwise, lending has not stopped. It may cost you a little more, and you might have to actually, well, you know, qualify for the loan, but the banks are still lending money.
I talked to a banker buddy of mine and he confirms that yes, indeed they are loaning money, and by the way, do I need any. Of course, I don't but maybe later.
The …
Oct
6
Are Scandals Inevitable in Regulated Industries?
October 6, 2008 | 1 Comment
As the financial system comes crumbling down, the 20/20 hindsight begins. Of course the casualty of this latest fiasco will be free markets. But when you examine the industries that have had massive scandals, you'll find a list of the most highly regulated industries including telecoms (WorldCom), energy/utilities (Enron, NorthWestern) and banking (too numerous to mention).
This idea came to me …
Comment by Jeff: It's the old chicken or the egg …
Oct
3
Back To Basics
October 3, 2008 | 1 Comment
The major news right now is the so called credit crises. Banks aren't lending to each other so the government is going to spend close to A TRILLION dollars to fix the problem. It's depressing but we can't dwell on it. (Just remember if your congress(wo)man voted for it in November, voting is the best revenge.) What we need to do now if re-focus on the financial matters we can control. …
Comment by Jeff: … good advice…for the vast majority of people following a …