Shortly, Social Security Disability Insurance will go bankrupt

In 2005, the Social Security Disability Insurance fund began to dish out more money than it was bringing in via tax receipts. That trend has continued each year – plus the number of Social Security beneficiaries grew by 489,488 last year, the highest one-year increase in history. This has led experts to predict that Social Security Disability Insurance will exhaust surplus funds in four to 7 years, reports the Wall Street Journal.

Losing $22 with Social Security

There’s a $153 billion projection for Social Security on benefits and costs. This will hit by 2015. Americans can have to face the problem that comes with this considering $22 billion less is anticipated to be taken in with this. The Social Security retirement fund is anticipated to last until 2040 while Medicare is only expected to last until 2029. Government auditors explain that change has to happen. This is the only way that Social Security Disability Insurance could be able to last more than seven years.

Number of applications Social Security has

The Social Security program got more applicants than normal with the recession. There has been a huge increase in the last decade of the number of individuals getting Social Security. This number increased to 10.2 million individuals from 6.6 million. There are lots of United States and territories that use SSDI funds. They’re needed by many. Texas’ enrollment has reportedly increased by 85 percent over the last 10 years, while New Hampshire’s has grown by 69 over the same span. West Virginia gets more SSDI than any other state when considering the percentage of total population.

The cause that many suspect is the manual labor related health troubles that many states with manufacturing and agriculture are facing. In the last few years, military bases and factories have been closing in U.S. territories for instance Puerto Rico. That means more people are relying on Social Security there. The highest joblessness is usually reported in these states also. Puerto Rico politics are another issue. There is a lot of corruption.

Getting doctor's approval for SSDA

Social Security and Medicare are both age-based programs. SSDI, on the other hand, is about medical opinion over other things. Local medical officials don't have any reasons to stop enrollment since somebody else pays for it. Government benefits are given with Social Security Disability Insurance benefits although they’re around $1,064 a month on average in 2009. Working class individuals end up picking up the tab. David Autor works at the Massachusetts Institute of Technology as an SSDI expert. He said that regular SSDI benefits to one person can add up to about $300,000 over a lifetime.

Is possible to have higher taxes?

Increasing the Social Security fund would be the only way to conserve Social Security Disability Insurance without increasing taxes. Retirees would lose benefits pretty quickly since the retirement fund would be lost. However, as Nancy Altman of the activist group Social Security Works contends, something must be done.

“This is a program of crucial importance to every working American and his or her family,” she said.

Citations

ssdi, social security, social security disability insurance, social security bankrupt

Social Security Disability Insurance may go dry in four years

By 2005, the Social Security Disability Insurance (SSDI) fund was cashing checks its tax body couldn’t cash. As nearly half a million individuals went on Social Security past year, a clear financial issue arises. In accordance with the Wall Street Journal, SSDI could be empty in 7 years or fewer. Post resource – Social Security Disability Insurance may go dry in 4 years by MoneyBlogNewz.

$22 billion deficit for Social Security

By 2015, projections indicate that Social Security will spend $153 billion in benefits and other costs. There could be a $22 billion deficit from what is being taken in. Americans are going to have to deal with this issue. It is anticipated that Medicare will last until 2029. The Social Security retirement fund is anticipated to go much longer to 2040. Government auditors explain that change has to happen. This is the only way that SSDI could be able to last more than seven years.

Too many individuals applying for Social Security

Because of the recession, more individuals have wanted Social Security. They have been applying like crazy. There has been a huge increase in the last decade of the number of individuals getting Social Security. This number increased to 10.2 million individuals from 6.6 million. The Social Security Disability Insurance funds are needed by a lot of states and territories that the U.S. owns. Texas’ enrollment has reportedly increased by 85 percent over the last 10 years, while New Hampshire’s has grown by 69 over the same span. Measuring the amount of Social Security Disability Insurance a state gets is done with the percentage of total population that has it. In this way, West Virginia gets more Social Security Disability Insurance than any other state.

The trigger that many suspect is the manual labor related health troubles that many states with manufacturing and agriculture are facing. United States territories like Puerto Rico heavily depend upon Social Security, considering the rash of factory and military base closures in recent years. The highest joblessness is generally reported in these states also. In the case of Puerto Rico, political corruption is also an issue.

Doctor determines SSDI

Social Security Disability Insurance is more about medical opinion rather than being depending on age such as Medicare and Social Security. In these cases, somebody else pays for what is going on. That means there is no reason for local medical officials to stop allowing enrollment. In 2009, payments were around $1,064 in Social Security Disability Insurance benefits although they can be modest. David Autor works at the MA Institute of Technology as an SSDI expert. He said that regular Social Security Disability Insurance benefits to one person can add up to about $300,000 over a lifetime.

Should we expect higher taxes soon

In the short term, the only way Congress can conserve SSDI without tax increases is to fold it to the main Social Security fund. Retirees would lose benefits pretty quickly since the retirement fund would be lost. Nancy Altman is in the Social Security Works activist group. She says something has to be done about this.

“This is a program of crucial importance to every working American and his or her family,” she said.

Citations

Social Security Online

ssa.gov/disability/

Wall Street Journal

online.wsj.com/article/SB10001424052748703752404576178570674769318.html

Milton Friedman on Social Security: Save your money

youtube.com/watch?v=rCdgv7n9xCY

Social Security Online

ssa.gov/disability/

Wall Street Journal

online.wsj.com/article/SB10001424052748703752404576178570674769318.html

Milton Friedman on Social Security: Save your money

youtube.com/watch?v=rCdgv7n9xCY

Apple lawsuit doesn't prevent Amazon from opening Appstore

The Amazon Appstore opened for business, officially, on Tues, March 22. This is in spite of a cease-and-desist order and federal trademark lawsuit filed by Apple computer over the use of the name "Appstore". This is one of multiple lawsuits over the use of the term "app," all of which could be driving up price to consumers.

More people purchasing from new Amazon Appstore

Tuesday morning, the Amazon Appstore was opened for any apps for Android. About 3,200 applications for Android based systems for instance phones and tablet computers are accessible in the store. The Amazon Appstore also offers most applications already accessible on the Android Marketplace, also as a few exclusive applications. Pay between 99 cents and $4.99 for an app. This is the typical price range. In the Android Marketplace, the developer sets the price of their program and hopefully does well with it. In the Amazon Appstore, the price of the developer could be requested although the store chooses the price ultimately.

Appstore means an Apple lawsuit

Just a couple days before Amazon opened its Appstore, Apple filed a trademark infringement lawsuit. The Apple "App Store" trademark is supposedly being violated by Amazon. The "unspecified damages" were claimed in the lawsuit initially. Amazon apparently ignored the cease-and-desist order by opening the Appstore anyway. There is another lawsuit from Microsoft against Apple Computers that states "App" and "App Store" are too generic to brand which means there are more people concerned about the "App Store" trademark. More than likely, these will be very long legal cases.

Appstore lawsuit will mean consumers have to pay

It will be a long time before these federal brand infringements lawsuits are settled. Years will be taken to do this. The "court costs" charges have to be paid for somehow. Because these are federal courts, the taxpayer money pays for them. consumers have to pay for other "hidden" costs of legal cases. This consists of paying for the boost in the company cost. More than likely, the apps won’t go up in price. They’ll stay relatively low. Usually, developers are willing to do apps either for free or for hardly anything. The "App Store" lawsuit might result in being a huge issue financially just due to what one business want.

Citations

Dailytech

dailytech.com/Apple+Slams+Amazon+With+Lawsuit+Claiming+Its+Android+Appstore+Infringes/article21188.htm

CNN

tech.fortune.cnn.com/2011/03/22/where-is-amazons-appstore/

Moco News

moconews.net/article/419-amazon-launches-its-appstore.-is-a-tablet-or-a-handset-next/

One community tries to evict squatters by shaming landowners

The small town of Webster, Mass., is intending something new. Rather than spending $9,000 per year on enforcing property or home maintenance laws, the city is purchasing signs. The hope is that signs will disgrace owners into doing something with the property or home.

Deserted buildings kept up by Webster

Most U.S. cities have laws saying that real estate have to be maintained by building owners. Webster has these laws too. Since the downturn, large buildings in city have been abandoned though. The buildings are going into disrepair, and squatters are taking up residence in many of the buildings. The city of Webster is spending almost $1,000 a month sending law enforcement officers to these abandoned buildings to kick out squatters and survey conditions.

Programs for buildings

Rather than sending police officers to deserted buildings, the city council of Webster has chosen a brand new enforcement method. The city can be posting 4-by-8-foot signs outside abandoned buildings. The signs may have personal information from the building owner. This includes the name, phone number and address of the person. Hopefully the landowners will be called to come clean up property or home and keep out squatter by passer bys.

Do not ignore squatters' rights

MA is not the only state that squatters' rights are coming back to. Many states are seeing these rights used more and more. Squatters are starting to claim properties since there have been a lot more properties abandoned. Getting squatters' rights easily most likely will not take place in Webster Mass. There has to be 20 years of "adverse possession," or living without permission on the property, before it becomes their property or home. While police across the nation spends millions trying to evict squatters, some question the wisdom of this move. Some squatters may actually take better care of the property or home than a landowner who doesn’t live there. Having squatters might help the neighborhood. Property values would increase. It may be harder to take a home that has been foreclosed on and sell it with squatters in it though.

Articles cited

MSNBC

msnbc.msn.com/id/41849729/ns/us_news-weird_news/?gt1=43001

Legal JustAnswer

justanswer.com/law/0hit8-tell-squatters-rights.html

Legal Dictionary

legal-dictionary.thefreedictionary.com/Squatters+rights

As Troubled Asset Relief Program ends, opinions mixed about results of plan

As the TARP comes to an end, its director has deemed the bank bailout a success. In remarks to the Congressional Oversight Panel at its final hearing on TARP, Timothy Massad, the program’s director, said Troubled Asset Relief Program gave the government the means to fend off a devastating meltdown of the financial system. However, some panel members, citing unemployment, housing and economic recovery, said TARP was not almost effective enough.

Troubled Asset Relief Program considered by Treasury to be successful

Finally, on March 4, the TARP was finally finished. About $411 billion was spent to bail out homeowners that had foreclosure risks to them, the U.S. auto industry and even the Wall Street banks. The Congressional Oversight Panel for Troubled Asset Relief Program had a presentation given by Timothy Massad who’s the assistant secretary for the Treasury Department's Office of Financial Stability. He said that the U.S. government had no other option but to use TARP to keep out of a depression, which worked. Congress authorized $700 billion for Troubled Asset Relief Program at the height of the financial crisis in October 2008. About $475 billion will ultimately be spent. Initially, the cost to working class individuals was projected at $341 billion, but TARP is estimated to end up costing just $25 billion. Big Wall Street banks, for instance Goldman Sachs, Citigroup and B of A, have paid back their bailout money. About $277 billion in TARP money was already paid bac! k to the government.

Troubled Asset Relief Program is a dysfunction, states critics

The Congressional Oversight Panel pointed out the severely underperforming TARP-funded Home Affordable Modification Program as evidence that government bailout funds benefited Wall Street however left the rest of America in the lurch. The administration said two years back that HAMP would help several Americans. About 4 million homeowners facing foreclosure would be helped through the program. However, only about 600,000 homeowners have received loan modifications to date. The oversight panel estimated that the program would prevent less than 800,000 foreclosures, information House Republicans are using to justify killing HAMP. Massad does not like this idea. He warned against it. He pointed out that the economy is not getting any better right now. Several homeowners would be left in the dust if the program were to end.

The moral hazard with TARP

Critics of TARP on the oversight panel contend that TARP condoned moral hazard by assuring Wall Street banks that they are indeed “too large to fail.”. The Wall Street banks know that in the future they’ll be bailed out. This is why they’ll continue to maximize profits with unnecessary risks. TARP critics refused to acknowledge Massad’s claim that TARP was successful because the banking system has returned to the status quo, joblessness remains unacceptably high and the U.S. economy remains weak. Troubled Asset Relief Program was a "dismal failure" in accordance with Nobel Laureate on the oversight panel Joseph Stiglitz.

Articles cited

Market Watch

marketwatch.com/story/treasury-tarp-ranks-among-best-crisis-responses-2011-03-04

ABC News

blogs.abcnews.com/thenote/2011/03/treasury-official-praises-tarp-expresses-concern-for-housing-sector.html

Reuters

reuters.com/article/2011/03/04/usa-financial-bailout-idUSN0422157520110304?pageNumber=2

Walmart of Weed - weGrow facility expanding as a business

The California “Walmart of weed,” weGrow, is planning on opening a second location. Though several individuals who shop in these shops use the products to grow cannabis, the store itself does not sell marijuana. The so-called "Walmart of weed" offers hydroponic supplies, growing classes and other gardening support.

WeGrow is the Walmart of weed

iGrow was what WeGrow shops were initially named in Sacramento. Hydroponic growing is the purpose of these. The shops are very careful to not specifically call themselves the “Walmart of Weed” or mention marijuana directly, because growing weed is nevertheless a federal crime. However, the shops offer classes on hydroponic growing, fertilizers, equipment and a variety of other products targeted toward medical cannabis patients in a 10,000 square foot warehouse.

WeGrow growing

The business hopes to become well-known nationwide soon after the first step in California for weGrow stores. The plan is to put shops in all states that have medical marijuana laws including putting more in California. This involves Arizona, Colorado, New Jersey and Oregon. The "Walmart of Weed" does not actually sell any medical marijuana which is left to the independent dispensaries to do. The established shops are there and ready for when marijuana becomes legalized. They’ll then sell the stuff themselves. The business limits the legal problems with business shops instead of having them all business owned.

Marijuana and legal troubles

Medical weed in the United States is in a tough in-between status. Even though the federal government is not doing much about this, weed is nevertheless a Schedule 1 illegal drug. The federal government regulates this list of drugs with weed on it including heroin, GHB, ecstasy, peyote and others. Despite this, several states have passed laws that allow legal medical cannabis use. Medical marijuana is in a place that nobody knows how to proceed with. The federal government could put business owners in jail that are getting licenses from the state to operate and are paying sales taxes on it all. WeGrow offers only growing equipment; for instance hydroponic stuff because of this.

Citations

Seattle Times

seattletimes.nwsource.com/html/health/2014335429_potstore26.html

Libyan turmoil increases fuel and food prices, states UN

CNN Money states that increased oil costs in the wake of political unrest in Libya have sent the cost of food goods upward. A report by the United Nations Food and Agriculture Organization indicates the food price index, which measures the price of a basket of food goods, was up 2.2 percent in February. Currently, the index is at its highest point since it was created in 1990.

Rise in food product prices

While sugar prices were slightly lower in February, costs for cereal, dairy products, meat and almost every other food commodity rose substantially. According to the U.N. Food and Agriculture Organization, U.S. consumers should expect the price of cereal to remain high throughout 2011, as inventories of wheat and coarse grains are low, and demand has remained high. When compared to February 2010, there was an increase in exporting costs this Feb.. This increase was a 70 percent increase.

Increase in oil costs

Due to the Libya violence shutting oil production down, the price of oil barrels went over $100 for the first time since fall 2008. In just the past 10 days, U.S. drivers have paid 25 cents more per gallon. The U.S. Energy Information Administration reports that this is the average in the U.S. for increased gas prices. FAO director David Hallman explained that global food prices aren't doing well.

“Unexpected oil price spikes could further exacerbate an already precarious situation in food markets,” writes Hallam. “This adds even more uncertainty concerning the price outlook, just as plantings for crops in some of the major growing regions are about to start.”

The connection between food and oil costs is clear to Jeet Dutta. Dutta is an economist for Moody's Analytics. Food production includes transportation. It cannot be forgotten.

“Energy is a big part of the cost bucket in food production,” Dutta told CNN. "Retail prices lag behind commodities, so consumers haven’t felt the full extent of recent increases."

Less food exported

Even as global harvests expand, exporters are tightening the reins on such product materials as corn, wheat and soybeans. This chokes global supply, which in turn raises costs. When compared to Wednesday's closing price, wheat is expected to go up 23 percent to $10 a bushel, soybeans up 7.6 percent to $15 a bushel and corn up 15 percent to $8.30 a bushel, in accordance with USB AG, a global financial services company.

These high food prices have brought on several to be put into poverty. Just since June 2010, says World Bank President Robert Zoellick, there have been 44 million individuals that have had this problem. According to World Bank data, those 44 million join the more than 900 million individuals globally who go hungry on a daily basis.

Citations

Bloomberg

bloomberg.com/news/2011-03-03/food-prices-to-extend-gains-as-stockpiles-rebuilt-led-by-corn-ubs-says.html

CNN

money.cnn.com/2011/03/03/news/economy/food_prices/

U.S. Energy Information Administration

eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html

Strife in Libya and the impact on fuel prices

youtube.com/watch?v=A_wDDi9RzrQ

Diving interest rates have made mortgage loans low cost loans

Everyone who can are eligible for the financing can get inexpensive loans for purchasing real estate, because of low mortgage interest rates. Rates for 30-year fixed, 15-year fixed and five-year adjustable mortgage loans are beginning to slip again after housing data indicates growth has stalled in real estate. Many think that a double dip in the housing market is now very much a possibility. Article resource – Plunging interest rates make mortgages low cost loans for now by MoneyBlogNewz.

Those who qualify might get a steal on a house

Currently, the market rates for home loans are starting to trend downward as demand is waning for housing. Any qualified buyers might start looking. Really inexpensive loans are available. MSNBC states that all time lows are being hit with the five-year arm, or ARM, just went down to 3.72 percent from the 3.80 percent it was. A 3.23 percent rate was reached with five-year ARMs in Feb.. This means it has really gone up. The 30 year fixed home loans hit a 40 year low of 4.17 percent in Nov while now they have gone up to 4.87 percent. Currently, 4.15 percent is what a 15 year fixed mortgage costs.

Possibly even double dip

It is feasible that a double dip might happen for the housing industry. CNN states the possibilities of this happening. That doesn’t mean an individual will ever be able to buy a home by taking out a couple of payday advances, but it probably will not be pleasant to view the real estate industry to slip even further to the abyss. Case-Shiller Index co-founder Robert Schiller explained that the costs of homes might be "falling another 15, 20 or 25 percent.". It seems very feasible for a real estate double dip to occur since housing costs are at the lowest amounts they have been since the 2008 crash. The economy might get even worse if this happens. State budget difficulties would get worse if that is the case since property taxes are relied upon in several states for revenue.

Rentals wanted more than ever

Since the latest recession started in the housing industry, it has called into question whether it is better to rent or buy. Buying a home when values go down can be good. This is only if the person can then sell it after the values go back up. When putting in lots of equity or having paid off the mortgage, it’s even a better investment. The property tax and maintenance do not have to be paid when leasing though. When renting, money ends up being put into nothing. When owning a house, at least your monthly payments are going towards your mortgage.

Citations

MSNBC

msnbc.msn.com/id/38770102/ns/business-real_estate/

CNN

money.cnn.com/2011/03/03/real_estate/housing_buy_or_not/index.htm