NFL lockout loans: Money for players without salaries

For every $100 loaned to consumers via same day loans, a 15 to 25 percent fee is added for the convenience. This amounts to $50 or $60 in most cases, which is hardly earth-shattering. According to Yahoo! Sports, now there’s a high-dollar variant of such instant pay day loans for disenfranchised athletes: the NFL lockout loan. In this case, lending agents are coming to the players with offers, knowing the salaries aren’t coming and cash needs continue to exist. Article resource – NFL lockout loans: More money, more problems by MoneyBlogNewz.

The problem with 36 percent Annual Percentage Rate on lockout loans

A 36 percent Annual Percentage Rate on a loan as little as $300 to $400 will not mean much while it can cost quite a bit for NFL lockout loans of over $60,000. Yahoo! Sports states that there have been players from 16 NFL teams that got these loans.

Some players have been better off with the NFL Players Association lockout while others have had a very difficult time keeping up with finances. Hardly any players listened when the National Football League Players Association advised players to save three game checks. This was given as advice to players in preparation of the 2011 lockout. The NFLPA told players to do other things to make money such as refinance homes, fly coach and do things for instance autograph signings, MSNBC states.

Paying NFL players a lot just to have them waste it

From a young age, star athletes are surrounded by enablers, according to psychologists. By the time players reach the professional ranks, it is not uncommon for them to lack real world financial knowledge, as they’ve never had to take responsibility for such things. Millions being given to someone who was poor might also be an issue. These individuals might just spend it all up. This is perhaps why as much as 80 percent of retired NFL players have declared bankruptcy, according to a Sports Illustrated estimate. MSNBC indicates that as many as 380 of the NFL’s 1,700 players live from paycheck to paycheck, even though the average NFL annual salary in 2010 was $1.87 million. About $320,000 was paid on average to a rookie. Nevertheless, after taxes and agent payments, players could end up poor.

Rogers supports lockout loans for players

Sherard Rogers, a financial adviser to numerous NFL athletes, told Yahoo! Sports that lockout loans are a legitimate product that meets player demand. It might be really hard for any players that are used to spending.

“Every NFL team was valued at over $1 billion, so they can weather the storm of a lockout. But could players if there weren’t resources to cover this short-term labor dispute?” asked Rogers. “The key is to figure out how to solve the short-term liquidity issue and put the pieces in place to ensure they don’t have this liquidity issue again.”

Information from

MSNBC

msnbc.msn.com/id/41855264/ns/business-personal_finance/41855226

Philly Sports Column

philly.sportscolumn.com/showthread.php?t=11751

The Real Athlete Blog

accessathletes.com/blog/blogDisplay.cfm?/Education-is-Key-for-Pro-Athletes-596

The Post Game

thepostgame.com/features/201104/tpg-exclusive-cash-strapped-nfl-players-seeking-high-risk-lockout-loans

Both sides are feeling the ‘deal heat’

youtu.be/CQD7MvhD3sI

First-time homebuyer tax credit: Be ready to pay

Working class individuals who claimed the $7,500 first-time homebuyer tax credit two years back need to get ready to pay come tax day 2011, states the Philadelphia Inquirer. On Monday, April 18, the first of fifteen annual payments is due on that loan. Source of article – First-time homebuyer tax credit: Get ready to pay by MoneyBlogNewz.

How the first-time homebuyer credit worked

There were many home buyers able to get a fantastic tax credit in the United States These buyers could get a maximum of $7,500 for 10 percent of the home purchase price. The tax credit could be divided by unmarried homebuyers or married individuals filing separately could get $3,750 each, according to the House and Economic Recovery Act of 2008. The credit applied to homes purchased after April 8, 2008, but before January 1, 2009.

As you can imagine, this first-time home buyer tax credit proved to be wildly popular. However calling it a “credit” was always problematic, as it was actually an interest-free loan. These homebuyers eventually will be repaying the government. This could be done in installment payments yearly for 15 years. Someone who gets a credit of $7,500 will end up paying $500 a year. This is not charged if the house is sold quickly though. At that point, the entire remaining amount comes due right away.

The homebuyer tax breaks given

The first-time homebuyer tax credit was not the only thing Congress did. There were two other tax credits extended. Any first time home buyers that signed contracts between January 2009 and April 30, 2010 got an $8,000 credit. As long as the contract had been signed by April 30, the sale might be completed by September 30, 2010, and the taxpayer could qualify for the credit. There was also a $6,500 credit available. This was for long term homeowners that bought, between Nov 7, 2009 and April 30, 2010, a new or existing home.

The tax credits, whether it be for $8,000 or $6,500, had to be repaid by the homeowners if the home is sold within three years of purchase or if it is a secondary residence. It is easy to sell within three years nevertheless. There are ways around it. The home buyer only need to repay what the profit is if the home buyer makes a profit on the sale of the home.

Issues in the IRS

Numerous glitches that impacted tax refunds for married couples filing joint returns have caused aggravation for the IRS, writes the Inquirer. With the Form 5405: “First-Time Homebuyer Credit and Repayment of the Credit,” many filed before February 22, 2011. That means manual returns were required taking a long time to process.

IRS projections indicate that about 1 million United States households will be repaying the $7,500 first-time homebuyer tax credit. You are able to go to IRS.gov and look at the “Where’s My Refund?” link to find out more if you do not have your refund.

Information from

Housing and Economic Recovery Act

frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h3221enr.txt.pdf

IRS

irs.gov/newsroom/article/0,,id=204671,00.html

Philadelphia Inquirer

philly.com/philly/phillywomen/119915874.html

How Canada helps first-time home buyers

youtube.com/watch?v=lg_i8SRhMO0

Fourteen financial institutions to pay back property owners back for wrong foreclosures

Property owners which were wrongfully foreclosed on by financial institutions in the robosigning scandal could be paid back, as 14 large mortgage lenders have been required to pay these individuals back by the government. Though the people who have had to endure this injustice can be repaid, the exact number of people who were foreclosed on without having done anything wrong is not known yet.

Financial institutions paying homeowners

In the robosigning scandal, there were difficulties where paperwork was signed and sent through the system without doing the proper checking of facts which now, federal regulators and financial institutions have come to a settlement about. The financial institutions that wrongly foreclosed on homes have to pay back the victims as part of the agreements, Reuters states. USA Today states the 14 corporations involved were Ally Financial, Aurora Bank, EverBank, HSBC, Sovereign Bank, SunTrust Banks, MetLife Bank, OneWest Bank, and PNC, U.S. Bank, Wells Fargo, Bank of America, JPMorgan Chase, Citigroup and subsidiary Citibank. There will even have to be payments made by loan service businesses MERSCORP and Lender Processing Services. Soon, affected homeowners could be contacted. Arrangements can then be made.

Total fallout to be determined

The numbers of people that need to get paid or the fines that can be placed have not been added together yet. Government officials like the idea of giving a $20 billion fine to the financial institutions. The settlement is only with the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Federal Reserve. Other settlements with other federal agencies are nevertheless pending also as every state attorney general in the nation.

Mortgage costs to go up

The regulation and legislation are being increased for financial institutions. That means property owners have to worry about increase mortgage costs. New Federal Reserve rules on mortgage officer compensation, according to MarketWatch, may cut into commissions for loan officers. Mortgage brokers and loan officers at lending institutions can’t receive a commission depending on the interest rate at which a mortgage is lent at any longer, which analysts predict will eat into profits. The Center for Responsible Lending, a consumer advocacy group that has endorsed reform of financial products from mortgages to payday loans, insists that costs to customers won’t go up, however decreasing revenues are typically passed to customers in the form of increased costs.

Information from

Reuters

reuters.com/article/2011/04/13/us-financial-regulation-foreclosures-idUSTRE73C3DV20110413?pageNumber=1

USA Today

usatoday.com/money/economy/housing/2011-04-13-wrong-foreclosures-repay.htm

MarketWatch

marketwatch.com/story/home-loan-brokers-face-new-limits-on-pay-2011-04-11

Banks fighting to corner market for EMV chip charge cards

In an effort to attract customers that frequently travel, banks are rolling out a new line of EMV chip credit cards. The chips are actually a microchip and integrated circuit built into a credit card instead of a traditional magnetic stripe. Magnetic stripe cards are really only used by those backwater, un-evolved hill-folk called Americans; most of the world has gotten on the EMV chip bandwagon. Post resource – Banks fighting to corner market for EMV chip credit cards by MoneyBlogNewz.

Fixing the international credit card issue

American credit cards are hard to process by European merchants because rather than having common EMV chips in them, they have magnetic strips, reports Bloomberg. This is what many who travel regularly complain about. Both Wells Fargo and JPMorgan Chase have decided to fix this issue. As a service, the high end credit cards will have EMV chips in them. This summer, Wells Fargo will pilot the program while having EMV chips put into the cards of 15,000 customers. Any high net worth clients in the Palladium program can be getting EMV cards from Chase bank who isn’t even piloting it.

The money lost in Europe

The EMV card is necessary. It is not a joke to laugh about. In 2008, $ 4 billion in losses to merchants and $ 447 million in card provider revenue was lost because of the technology gap as few merchants in Europe take magnetic strip cards. Wikipedia points out that Smart Cards are not just like magnetic stripes. They use “Chip and PIN” technology. The information for the user is stored in Chip and PIN cards with a small computer chip and circuit board about 3 by 5 millimeters. A smart card reader is carried by merchants to read the card. The user simply gives their Personal Identification Number, and the sale is made. The benefit is that smart cards are less easily corrupted by thieves.

Card businesses already have them

The EMV chips were developed between Eurocard, MasterCard and Visa, calling it “EMV,” which is just one type of smart chip. There are EMV chips in American Express cards already. Its Express Pay line has the chips. Europe has more of the smartcard reader technology than the U.S. This is because America has trouble adapting technology from other countries sometimes. All consumers will eventually have access to EMV chips at JPMorgan. The business is just giving them to high end consumers before this.

Citations

Bloomberg

bloomberg.com/news/2011-04-14/jpmorgan-pushes-chip-cards-to-wealthy-in-race-with-wells-fargo.html

Wikipedia

en.wikipedia.org/wiki/EMV

GOP budget strategy based on supply side economics

April 5 Rep. Ryan, R-Wis., unveiled a long range budget plan with the grandiose title “Path to Wealth. Reducing tax rates is the gist of supply side economics, which contends that such action leads to job creation and the resulting increase in government revenue. Supply side economics were the principle behind the Bush tax cuts of 2001, which gave record profits to corporations while producing the weakest job growth since the Great Depression.

Supply side economics versus reality

About $100 billion in tax revenues could be created if spending and taxes are cut, Ryan believes. By 2021, this is supposed to bring joblessness down 2.8 percent. Ryan wrote “Path to Prosperity” with the help of the Heritage Foundation, a conservative Washington think tank formed to advance supply side economics. The unemployment will fall to 6.4 percent from 8.8 percent in just one year if the corporate tax rate drops from 35 percent to 25 percent. There can be runaway inflation though if joblessness got to 4 percent in just four years. Interest rates would be elevated a lot by the Federal Reserve to make it stop.

The job-killing Road to Prosperity

The tax cuts will create a ton of jobs booming, the “Path to Prosperity” suggests. In Ryan’s plan, next year’s housing investments look really good. He says it would be $89 billion in just the one year. The foreclosures backlogged and unsold homes worry several though. This and the falling home costs make several believe the housing market is not getting better anytime soon. By 2012, 200,000 jobs would be lost if 61 billion in spending cuts happened like the GOP wants, according to Fed chairman Ben Bernanke. Another issue is the decrease in GDP predicted by Goldman Sachs. It forecasted a 2 percent decrease. The poor, elderly and disabled are the only ones impacted by the “Path to Prosperity” tax cuts Ryan suggests. The report didn’t talk about the U.S. businesses with billions of dollars. These businesses aren’t hiring anyway.

One example is the Bush tax cuts

The best predictions for the future of the “Path to Prosperity” lie in the past. When George W. Bush signed the 2001 and 2003 tax cuts into law, he boasted that he had launched a new era of sustained economic growth and prosperity. In reality, from 2001 to 2007 United States millionaires and billionaires got richer while average household income fell for the first time in history, jobs grew at the weakest pace in more than 60 years, the federal deficit rose to record amounts, and the financial industry careened to the brink of collapse. While jobs weren’t growing, a brand new bill was passed to give companies a break on taxes. About $362 was lost due to this. Shareholders got most of this money rather than hiring.

Information from

Fortune

finance.fortune.cnn.com/2011/04/08/lower-corporate-taxes-wont-create-more-jobs/

Huffington Post

huffingtonpost.com/jake-berliner/the-magical-economy-broug_b_845233.html

National Journal

nationaljournal.com/budget/ryan-plan-pushes-optimism-to-the-outer-limits-20110405

Political Correction

politicalcorrection.org/factcheck/201011190001

Government shutdown would harm employees more than deficit

The looming issue in Washington D.C. has been a potential government shutdown. If Congress can’t agree on a budget proposal, the government may have to temporarily close. There are individuals that are likely to be hurt by a shutdown if it takes place, though it appears that winning approval from less than the majority of the American individuals is more essential that other considerations. Government employees would feel the majority of the pinch.

Shutdown may not stop anything

Getting a spending bill passed has been very hard for congress. May 16, a government shutdown might happen if this isn't fixed. If a shutdown occurs, basic services will continue. Since the United State USPS is self-financed for the most part, it will continue to operate. According to MSNBC, any government service “involving the safety of human life or the protection of property” cannot legally be stopped in a government spending budget showdown. There may also be Social Security benefits continuing.

No more pay for government workers

This government shutdown is bad for government employees. They lose the most on it. Some won’t have to worry; air traffic controllers will still be needed, and allowing members of the military to miss a paycheck would be political suicide. Any clerical, managerial or financial companies can have a hold put on the company though. The Obama administration froze the pay for these employees already. It could be bad for government contract workers also. They’ll, reports the Wall Street Journal, lose money due to it. Any revenue that contractors or government employees lose is probably not reimbursed.

Plans for this

There are some contingency plans in case a government shutdown happens. The Credit Union Times reports that any members on temporary federal government shutdown layoffs can be able to get zero percent interest furlough loans from the Cabrillo Credit Union in San Diego. Government employees were offered a program comparable to this during the shutdown in 1995-1996 which several employees should search for at local credit unions. Reuters reports that Treasury Secretary Timothy Geithner said he might end up going into the Social Security Trust fund and other sources to help with the shutdown giving funding to employees if there’s a shutdown.

Information from

Wall Street Journal

online.wsj.com/article/SB10001424052748704587004576241033511757282.html?mod=googlenews_wsj

Reuters

reuters.com/article/2011/04/04/us-usa-budget-debt-idUSTRE7335BY20110404?pageNumber=1

MSNBC

msnbc.msn.com/id/42380178/ns/politics/

Credit Union Times

cutimes.com/2011/04/04/cabrillo-offers-0-interest-government-shutdown-loa

Payday loans online: Nevertheless right for Kentucky

According to Kevin Borland of the Kentucky chapter of the Community Financial Services Association of The United States, the truth that pay day loans will live on in the state after House Bill 182 failed to install a 36 percent APR cap is an affirmation of customer freedom of choice. He writes in a Lexington Herald-Leader op-ed that this battle for freedom of choice sits at the heart of almost all arguments for the short term installment loans industry. Resource for this article – Right for consumers to choose preserved in Kentucky by MoneyBlogNewz.

House Bill 182 stopped for a while

A 13-10 vote was used to defeat Kentucky House Bill 182. Still, the bill will likely be introduced in 2012 by opponents of payday cash advances. Such stubbornness illustrates how much Kentucky activists misunderstand pay day loans, writes Borland. Personal loan companies aren’t allowed to charge interest in the state law. In Kentucky, the product is categorized as a single-payment, fee-based product.

Borland suggests that the opposition’s use of Annual Percentage Rate as a yardstick is “an attempt to trick legislators and the public” into thinking that short term installment loan pricing is exorbitant. Depending on the lender, it is just a 15 to 25 percent fee in a flat fee of $15 to $25 on every $100 loaned.

CLOUT’s opinion

House Bill 182 was supported by the AARP, the Citizens of Louisville Organized and united Together (CLOUT) and the Kentucky Coalition for Responsible Lending (KCRL). The quick installment loan market has banks and credit unions in them, funded by CLOUT and KCRL that compete. CLOUT and KCRL can be attacking payday lenders like this while the competition hands over money. It is great for competition in the free market without this additional bit of bribery though. Borland states that there should be some kind of disclaimer about the involvement.

The payday loan company has AARP as a competitor directly. Chase Financial is used as a credit card. These allow AARP members to obtain money advances, which Borland claims bears a high rate of interest.

Best choice by consumer

Every situation is different for every customer. Still, payday advance are sometimes the best choice. Borland believes that CLOUT, KCRL and AARP would do better to discover alternatives if they think short term loans are harmful. The belief that those organizations do not do so may suggest that the attacks are all bark and no bite.

Information from

CLOUT Funding

cloutky.org/page3/page3.html

KCRL Coalition

kyresponsiblelending.wordpress.com/coalition-membership/

Lexington Herald-Leader

kentucky.com/2011/04/11/1704022/consumers-won-with-defeat-of-payday.html

The CFSA encourages responsible lending and borrowing

youtu.be/OZQr_nh7GZA

Investing fundamentals and how NOT to invest

Individuals invest because they want to create wealth. Day traders may savor the adrenaline rush, but profit is the reason. The right approach requires just a couple basic guidelines. The basic ideas contain knowing how not to invest, interestingly enough. Resource for this article – Investing basics and how NOT to invest by MoneyBlogNewz.

The 401(k)

It is advised by experts that as early as possible that you try to get a 401(k) plan started from you place of employment. If your retirement money sits in an account and earns capital gains, interest, and dividends; it won’t be taxed. Retirement will only grow if you leave your money sitting.

A 401(k) isn’t really an investment. It is more of an account that saves money and builds interest at different rates.

The storm will come so saving is highly significant

Make certain you do not overlook savings. Financial advisors can tell you what to conserve, but there are plenty of free tools online such as Motley Fool.

Roth and Traditional IRA accounts should be maxed out

A Roth IRA retirement account gives you the flexibility to make contributions after taxes, so taxes are paid only upon withdrawal. Maxing out your contribution limits will enable you to build a fine nest egg. Those who don’t qualify for a Roth IRA can nevertheless use traditional IRA accounts with more flexibility than several other accounts.

The choices are wider than just retirement accounts

Producing additional wealth can mean opening a brokerage account and buying stocks. Prior to investing, have a clear picture of what you try to achieve. Know what you want and just how long it will take you to get there based upon the amount of the investment and rate of return.

Charge card debt should be paid off

Probably the most detrimental debt to a person is charge card debt due to their interest rates. Make sure you pay all your charge card debt off before you even start to try and invest in stocks.

There are negative ways to invest

The market is highly unpredictable, however Motley Fool still suggests investing. Their theory is that if you do not invest anything you won’t gain anything. Compound interest only matters when you have something to have interest in. Make sure that before you invest you are prepared to pay attention to the market or you will lose everything. Pay attention to your stocks and make a switch when the time is correct. You should be prepared to lose big if you leave your comfort zone.

In and out is expensive

When using a brokerage firm, in and out trading costs a lot with fees, and also could be risky. This works well for day traders but it does not work well for long-term investors. Motley Fool advises those looking for short-term investment to consider CDs or money market funds.

Citations

About.com

beginnersinvest.about.com/od/investing101/a/how-to-start-investing.htm

Motley Fool

fool.com/investing/beginning/why-should-i-invest.aspx?source=iibedihpo0000001

From socks to stocks

youtu.be/50PBUcwfe-w

City of San Francisco awards Twitter a payroll tax break

The San Francisco Board of Supervisors has voted to extend a new employee payroll tax holiday to Twitter, reports the Los Angeles Times. The 1.5 percent tax shelter could be good for the next six years, providing corporations like Twitter maintain their physical San Francisco offices. While San Francisco Mayor Lee sees this as a good step toward keeping Twitter around and revitalizing sagging business districts within the city, critics view the ordinance as a major misstep toward allowing corporations to hold cities as economic hostages. Source for this article – City of San Francisco grants Twitter a payroll tax break by MoneyBlogNewz.

Keeping Twitter there is necessary for ‘rejuvenation’

Offering Twitter a payroll tax break was necessary to keep the social media giant in San Francisco for years to come, said Lee.

“This moment represents a real step forward in the effort to revitalize and transform the Central Market area,” he said. “Central Market and the Tenderloin have been burdened with high vacancies and blight for decades.”

Lee said that he appreciated Twitter's help in those districts to the San Francisco Chronicle although Twitter officials did not make a statement about the Wednesday tax exclusion. Those areas need some job creation. It would help out San Francisco a lot.

“There is great synergy between Twitter and the arts organizations and small retail businesses who are looking to expand in the area," said Lee. "The city can work collaboratively with businesses, community-based organizations, property owners and area residents to catalyze meaningful change.”

Companies will expect the tax holiday, critics claim

Through the next six years, the Twitter payroll tax break is projected to save the company about $22 million on its taxes, the Chronicle reports. John Avalos as a city supervisor pointed out San Francisco really needs that $22 million.

“I don’t believe giving an exception to our payroll tax is the way to go,” he said. “I believe that businesses in San Francisco and around the country should be socially responsible. … If we allow a company to threaten to leave, then give them a tax break so they don’t, we’re setting a bad precedent."

Citations

Los Angeles Times

latimesblogs.latimes.com/technology/2011/04/twitter-gets-6-year-payroll-tax-break-from-san-francisco-board-of-supervisors.html

San Francisco Chronicles

sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/04/05/BA7R1IQM9D.DTL

San Francisco Mayor's Office

sfmayor.org/index.aspx?page=330

Minnesota Gov. Tim Pawlenty on corporate tax holidays and offshoring

youtube.com/watch?v=MIRncAiu9Vw

Recovery Watch: Credit card mail has increased dramatically

A lot of people discover a mailbox filled with credit card offers unappealing, however look at the bright side: It’s a sign the squeeze on customer credit may be loosening. Bankrate reports that the consumer credit industry has experienced a kind of renaissance when it comes to charge card mail offers. Media monitoring business Mintel Comperemedia found in a recent study that charge card mail offers almost tripled in the U.S. from Q4 2009 (551 million pieces of mail) to Q4 2010 (1.4 billion). Source of article – Recovery Watch: Credit card mail has increased dramatically by MoneyBlogNewz.

Credit standing out in the sea of offers

No foreign transaction charges, no transfer charges, and low introductory charges; all contribute to the growing benefits of charge cards. Waiving balance transfer fees is particularly popular. Senior V.P. Andrew Davidson of Mintel told CreditCards.com that banks will do almost anything to grab the competitive advantage. In 2010, a study showed that around 40 banks offering credit completely cancelled their transfer fees, and those who did keep them only kept the fee around 3.06%.

Working to be your intercontinental champion

The foreign arena or currency conversion charges are a large competitive area for credit card issuers. While not as visible as Annual Percentage Rate, annual fees and balance transfer charges, foreign transaction charges are important to everyone who travels, whether for pleasure or business. Most cards add a 3 percent surcharge for each foreign transaction, a tax that can add up easily. Past year a study conducted showed that over 90 percent of bank cards consist of this type of fee.

Chase, Citibank, HSBC and others currently waive foreign transaction charges on several of their cards, said Mintel.

Customers like extended introductory rates

Perhaps probably the most hotly contested area in the credit card mail wars is the extended introductory rate. A low initial APR for balance transfers and purchases is appealing to consumers, and some charge card issuers even dangle a zero-percent APR.

Mintel reported the introductory rate was around 13 months for the fourth quarter of 2010. According to Davidson, that number is expected to grow.

“The squeeze on credit observed during mid-2009 is being reversed, and many issuers are now offering durations of 15, 17 or 18 months or more,” he told Bankrate. “We have even seen offers with 24- and 30-month intro rate durations in recent months.”

Rates of interest are low due to Credit card regulations

The Credit Card Accountability, Responsibility and Disclosure Act (CARD) have helped stabilize credit card APRs. 14.03 percent was the average Annual Percentage Rate in the fourth quarter of 2010, according to Mintel. “Many credit card companies have contrasted their APRs against the relatively high prime rate as a consumer draw,” said Davidson.

Citations

Bankrate

bankrate.com/financing/credit-cards/4-trends-in-credit-card-mail/

CreditCards.com

creditcards.com/credit-card-news/foreign-exchange-fees-going-up-1267.php

Pew Trusts

pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Credit_Cards/PEW-CreditCard FINAL.PDF

WhiteHouse.gov

whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/

Shop around for a better credit card than this

youtu.be/FunpS4QXcRI

Large banks considering prepaid debit cards

It has been a few months since new card fees, banking rules and overdraft regulations went into impact. Prepaid cards are potentially a new product that many big banks are considering. These cards would provide a new revenue stream for these big banks. Pre-paid cards are lauded as a fantastic financial option by trade groups. Customer groups, however, are warning that these cards can come with high fees. Article resource – Expensive alternatives to checking accounts becoming more popular by MoneyBlogNewz.

Growth in the pre-paid card market

There was a rise from 700,000 to 3.4 million in the number of active prepaid cards used between 2005 and 2009. The growth of the industry is expected to continue, according to the Wall Street Journal. There can be around 7 million users by 2014. These numbers don’t contain payroll cards, which are very comparable to pre-paid cards. There could be over 9 million in the prepaid card market in the U.S. combined.

The argument for prepaid cards

Most prepaid debit cards do not come from banks. Non-bank businesses are responsible for them. These are offered by several locations. These consist of grocery stores, convenience stores and instant payday loans stores. Many big-box stores such as Walmart and Target offer branded prepaid cards. A customer with a prepaid card can be pay much less in fees than a traditional financial institution account holder according to a report done by Bretton Woods Inc., which Network Branded Prepaid Card Association employed as a consulting firm. When it comes to money management, prepaid cards are also good. Those with the cards can only spend what is already loaded on. Customers who do not have access to a traditional financial institution will even like the idea of pre-paid cards.

Reasons not to get a pre-paid card

Customer States publisher Consumers Unions did a report that states checking accounts are typically cheaper than pre-paid cards. Nine of the 12 cards studied were more expensive than the five comparative checking accounts. Dependent upon what is used, checking fees range per checking account. They’re generally between $0 and $438 a year. Between $18 and $606 is charged for pre-paid debit cards. That’s the average range. Most pro-prepaid studies just used overdraft fees as part of the checking. Only about 22 percent of consumers are willing to get overdraft protection though since the Dodd-Frank laws came out saying that it had to be something customers chose. Traditional checking accounts can be cheaper than prepaid cards. It may be a nice idea to get a prepaid card. Nevertheless, those doing this, need to watch out for fees that could be charged with them.

Articles cited

Consumer Reports

news.consumerreports.org/money/2011/04/debit-cards-banks-checking-acounts-fees-consumers-union-analysis.html?EXTKEY=AAOLWP05

Bretton Woods

bretton-woods.com/71501/index.html

Wall Street Journal

online.wsj.com/article/SB10001424052748704377004575651072113863694.html?mod=WSJ_PersonalFinance_PF4

Construction sector continues to restrain more robust recovery

construction spending, an important driver of the economy, has been in freefall for months. The construction industry has gotten so weak, spending in February reached its lowest level since the fall of 1999. New home construction is leading the retreat and has reached its lowest level since the government has officially documented its performance. Source of article – Construction sector continues to hold back more robust recovery by MoneyBlogNewz.

February as a bad month for construction

It has been years since the number of projects breaking ground in a month was as low as it was in February. There were fewer homes, apartments and government projects being started. Construction spending in February dropped 1.4 percent; it was the third straight month of decline. The construction annual rate of spending was at its lowest since October 1999 with February spending at $760.8 billion. The construction industry has been getting worse while the rest of the United States economy seems to be getting better. There are fewer corporations wanting to build office buildings, hotels and shopping centers still even though the recession is over. Nevertheless, the construction market has to deal with this. Half of the $1.5 trillion level that is considered "healthy" for construction was reached in February. It has been estimated that construction will not recover from the housing bubble that triggered the recession for another four years.

End to housing bubble means end to new homes

A 3.7 percent decrease in private residential construction occurred in February. It went down to $228.5 billion total. Because of the foreclosures and unsold homes, there were less single-family and multi-family homes created. Home inventory needs to go down to help new home construction. This is the only way it will get better. The National Association of Realtors states that existing home sales went down about 3 percent past year. In this same time frame, there was a 28 percent drop in new home sales. In February alone, new home sales dropped 16.9 percent, from an annual rate of 301,000 to 250,000 — the lowest level since the government started tracking the numbers in 1963.

Purchasing and building are both down

New home sales are necessary to the construction market. The Gross Domestic Product is part of this. The National Association of Realtors states that right now, buying a new home is about 29 percent more expensive than an existing home, which is not normal. About 4 percent of February home sales were foreclosures and short sales, which is hurting the market. The foreclosures have to end while the inventory of new homes needs to go down. Until this takes place, home builders will stop building homes. The recession was hard on the recession. Before it, 80 percent of builders needed financing. The National Association of Home Builders reports that this number dropped quite a bit. Now it is at 20 percent.

Information from

Associated Press

finance.yahoo.com/news/February-construction-apf-1467794995.html?x=0&sec=topStories&pos=8&asset=&ccode=

Market Watch

marketwatch.com/story/buyers-shun-new-homes-1301521568482

CNN Money

money.cnn.com/2011/03/23/real_estate/new_home_sales/index.htm

McDonald's hiring spree will make 50,000 jobs on April 19

McDonald’s can be serving up jobs at a record clip this month, reports MSNBC. McDonald’s will hire as many as 50,000 people in-restaurant and via its corporate website on April 19. Improved sales in recent months made the employment spree doable. Source of article – McDonald’s hiring spree will produce 50,000 jobs on April 19 by MoneyBlogNewz.

Seven percent increase in workforce due to McDonald's

There will be a 7 percent increase to about 700,000 employees at McDonald's including restaurant workers to senior managers. Every restaurant may have to employ three or four new employees.

Spending, spending, spending

McDonald's wages will increase quite a bit, claims a California state University professor. He said that in 2011 there will be over a $518 million increase. FOX Business reports that about $1.4 billion in annual spending, or $3.5 million a day, could be spent because of the employment which will also mean an extra $54 million in more payroll taxes.

The increase can be good for the United States job industry. FOX reports this will be the case no matter what. After 192,000 added jobs in February, the U.S. job industry had an increase in March of 216,000 jobs showing the warming trend in the industry. In February, there was a 240,000 job increase in the private market while March showed a private sector rise of 230,000 new jobs.

The 24-hour goal for the Golden Arches

There are about 14,000 restaurants in the United States for McDonald's. The franchisees operate about 90 percent of these. More McDonald's restaurants will be able to stay open all day with the McDonald's employment spree, or "McDonald's Hiring Day" as it’s also called. Such is the case with the 111 Golden Arches locations in southern Nevada, where the joblessness rate is currently 13.7 percent – 14.2 percent in Las Vegas – and 193,000 Nevadans are unemployed.

Ron Smith is the Co-op McDonald's V.P.. He knows very well the job industry is bad.

"We feel that it's very important, especially in light of the critical economic situation, that we put as many people as possible back to work," he said.

Only part time positions are being offered at Nevada McDonald's. Still, those with financial struggles should be able to get a little help with flexible hrs and free meals.

Best employees

The importance of employees to success in McDonald's was confirmed by USA President Jan Fields.

"Our restaurant employees are the foundation of our business. They are the men and women who interact with our customers every day, enhance the McDonald’s experience and continue to help make our business strong,” she said.

The McDonald's hiring spree is one you are able to get more information about easily. Just go to your local McDonald's or to the McDonald's Careers site. Applicants must be at least 16 years old.

Information from

Fox Business

foxbusiness.com/2011/04/04/mcdonalds-looks-hire-50000-workers-april-1/

Fox 5 Las Vegas

fox5Vegas.com/news/23661640/detail.html

McDonald's Careers

mcdonalds.com/us/en/careers.html

MSNBC

msnbc.msn.com/id/42412605/ns/business-consumer_news/

McDonald’s hiring spree set for April 19

youtube.com/watch?v=2qh8jsK54Lc

Ask for an Extended Payment Plan whenever you face payday loan default

Despite preparing and the best of intentions, sometimes people discover themselves unable to repay their payday loans when they come due. If the lender is a member of the Community Financial Services Association of America, you can ask for an Extended Payment Plan (EPP). These types of private loans enable customers to repay their loans over a period of additional weeks although there is the reason for default and free of additional charges.

Lenders determine, after the state, EPP rules

Depending upon the state in which payday loans originate and whether the lender is a CFSA member, the stipulations of an Extended Payment Plan will vary. State laws are followed if the law already provides an EPP for consumers on payday loans. In states where there is not already a specific law, members of the CFSA will follow these requirements. eHow Money states that CFSA-members typically need to let customers repay in four equal payments in four paydays all the loans. Sometimes an EPP payment is missed. In this case, additional fees might apply.

Get an EPP from lenders in CFSA

• Lender should be CFSA. Try and get this. The lender that is in CFSA may have its blue oval logo on display. This could possibly be on the website or in the office of the lender. Even if the lender isn’t a CFSA member, it may offer its own extended repayment plan. Get the details by asking.
• The lender needs to be contacted. Do this before the due date end of business day. If you’re going to run into trouble repaying your payday loans, contact your lender just before close of business on the day before your loan is due. You can go to the office if you have to. You may be able to contact the lender online too. Ask for an Extended Payment Plan. You’ll then need to sign an agreement form that will specify the additional due dates. Read the extended repayment plan carefully just before signing.

Go ahead and complain if a lender was not willing to give you an EPP in the last 12 months and is a member of CFSA. During the Eastern time business hours, you can go call 888-572-9329 (fax 703-684-1219) or email cfsa@multistate.com to contact the CFSA. Alternatively, contact the CFSA by mail at 515 King St., Suite 300, Alexandria, Va., 22314.

Information from

CFSA Consumer Complaint Form

cfsaa.com/cfsa-member-best-practices/how-to-file-a-customer-complaint.aspx

CFSA

cfsaa.com/cfsa-member-best-practices/what-is-an-extended-payment-plan.aspx

eHow

ehow.com/how_5906522_extended-can_t-pay-payday-loan.html

Nasdaq rebalancing lessens unpredictability potential of Apple

To temper the volatility of Apple shares, Nasdaq officials will rebalance the Nasdaq-100 index in May. The Nasdaq rebalancing lessens the weight of Apple stock on the total value of the Nasdaq index by half. Nasdaq’s stirrings will shrink the propensity of financial institutions of the hedge fund type to cynically disrupt the natural rhythms of Apple stock so that average Joes can count on a more reasonable possibility of return on investment down the road.

Shifting Apple to fix the Nasdaq

A rise in Apple stock has also been an increase in the Nasdaq-100 in the last few years. Since the market bottomed out in 2009, the Mac, iPhone and iPad have driven Apple shares skyward more than 250 percent. Apple stock went up since then another 150 percent. That is more than 20 percent of the Nasdaq-100 total value. In accordance with Nasdaq officials, Apple stock has ballooned to more than twice the weight it should have on the index. Apple shares will be less than 12 percent of Nasdaq-100 shares after the May 2 Nasdaq rebalancing. The adjustment to repair for Apple realigns the ratio for the company's stock and outstanding shares with the way the Nasdaq-100 is calculated. The change also decreases weighting for 81 other companies. Apple rivals may gain due to this. A Microsoft raise is expected. It should go from 3.4 percent to 8.3 percent total. Oracle will rise to 6.7 percent, Google will rise to 5.8 percent, and Intel will climb to 4.2 percent.

How hedge funds manipulate the market with Apple rumors

Any future manipulation by hedge fund traders that could hurt the Nasdaq-100 or short Apple will be prevented by the lower ratio of Apple shares. Jason Schwartz at Seeking Alpha describes a recent instance in which unconfirmed conjecture about Apple based on vague sources subjected Apple stock to irrational price swings. There was a rumor that the iPad 2 would be delayed until June in February by hedge fund Yuanta Securities when Apple was trading at $360. Yuanta Securities shorted Apple shares while the rumor spread. It only took two days to decrease Apple stock. It had a $20 decrease. Shortly afterward, Steve Jobs, who was given six weeks to live by bloggers, announced that the iPad would go on sale March 10. Investors who should have known better felt duped, and Yuanta padded its returns. The Nasdaq-100 was affected because of this.

Can't even see the impact anymore

The Nasdaq rebalancing doesn’t take impact until next month, but money managers are already rebalancing their holdings. A drop occurred on Tuesday in Apple stock during this. It brought on a $4.19 decrease from $337 to $341.19. The ability of hedge funds to manipulate the market using Apple already has been diminished. Analysts do not expect the latest iPhone delay rumors (which would freeze the iPhone market and hurt Apple if they were true) to work because Apple stock remains about $15 below its high and is trending upward again. Apple is anticipated to do better than expected in first quarter earnings while investors and traders can trade Apple shares.

Citations

Fortune

tech.fortune.cnn.com/2011/04/05/a-good-day-to-buy-aapl/

Mac Observer

macobserver.com/tmo/article/nasdaq-100_to_cut_apples_index_share_nearly_in_half/

MSN Money

money.msn.com/market-news/default.aspx?feat=e52a3c86-3053-48e5-91eb-970765febdcc

Seeking Alpha

seekingalpha.com/article/260887-hedge-funds-bloggers-and-the-origin-of-apple-rumors

Real price of nuclear power apparent at Fukushima

Before the Fukushima disaster, nuclear power appeared on the brink of a comeback. But as a direct consequence of the Japan earthquake and tsunami, nuclear reactors worldwide have been turned off and construction of nuclear plants has been put on hold. Measures to protect nuclear reactors from earthquakes in the future might be so expensive that investors will think twice before believing that an investment in nuclear energy can be profitable. Post resource – Fukushima disaster lays bare the true cost of nuclear power by MoneyBlogNewz.

What it will cost with nuclear power

In a 2010 Gallup poll, about 62 percent of responders said that using nuclear power as a clean, reliable power source was a good idea. To be able to get nuclear power plants built, the Obama administration is preparing on providing $54.2 billion in loan guarantees for construction projects. The Vermont Law School's Institute for Energy and the Environment's Mark Cooper explained that building nuclear reactors in the United States was unlikely prior to the Fukushima disaster anyway. In a presentation prior to the House of Commons in Ottawa, Canada, Cooper said the United States nuclear industry was a bubble about to burst. Billions in loan guarantees were put out for nuclear energy by the Bush administration in 2001 which was when the bubble began. By 2008 it became evident the nuclear industry could not deliver on costs. It ended due to the recession, many other clean energy options and cheap natural gas.

Nuclear power starting to cost more

In the wake of the Fukushima disaster, building new reactors could become even more cost prohibitive. After the 1979 Three Mile Island accident in Pennsylvania, construction costs for nuclear reactors rose 95 percent, according to Cooper’s research. As a result, households paid 40 percent more for electricity. Construction costs went up 89 percent causing electricity to rise 42 percent in 1986 after the Ukraine Chernobyl disaster. The price of construction goes up quite a bit after accidents occur for nuclear reactors. This is as the safety needs to be addressed causing a design change. The Nuclear Regulatory Commission has already assembled a task force to investigate the design changes required for planned nuclear plants in the United States, based on lessons learned from Fukushima.

Too much of a risk

Now the Fukushima incident has occurred, investors are worried about where they put their money. Instead of invest in nuclear power plants, they are more likely to put money into clean energy alternatives for instance solar, wind and natural gas. The nuclear plant risk is one utility might pass on also. Sometimes you don’t want to pay much for energy. If this is the only consideration, nuclear energy makes the most sense. Before taking into account the cleanup costs of a nuclear accident, onshore wind farms, for example, are up to 35 percent cheaper than nuclear plants. The nuclear power plant financial and ecological costs are avoided with alternative sources can effortlessly help strength the world. For savvy investors, clean energy alternatives promise more profitable opportunities.

Articles cited

Reuters

reuters.com/article/2011/03/25/idUS423443138820110325

Fast Company

fastcompany.com/1742619/what-are-the-economics-of-nuclear-power-after-fukishima

The National

thenational.ae/lifestyle/personal-finance/japans-nuclear-woes-add-pressure-to-invest-in-green-energy