Record Of Special Events: February 2009

Friday, February 27, 2009

Republicans Lash Out at Budget Plans

Stage is set for budget battle

Boehner

Republicans are once again throwing around the s-word — that’s right, socialism.

Of course, the rhetoric is aimed at President Barack Obama’s budget plans. With $410 billion dedicated to spending on government programs and a push for universal health care, it’s to be expected.

Harsh words

It’s been shown already that Democrats have control in congress. The stimulus bill passed without a single Republican vote in the House. So Republicans know that if they want to win a fight, they have to pull out the big guns. And it shows.

John Boehner, Republican leader in the House of Representatives, on Friday called Obama’s new budget proposal and recently passed economic stimulus plan “one big down payment on a new American socialist experiment.”

Loud voices, minimal effect

It’s likely that the Republicans’ ranting won’t amount to much as far as blocking the budget from passing. After all, the gigantic economic stimulus package passed with only three Republican votes.

Every little bit

But there were those three, and it needed those three to pass. From my point of view, it seems the “socialism” battle cry is aimed at making sure that every single Republican is on the same page regarding the budget.

And it appears it might be working. Those three Republicans who voted for the economic stimulus package have already expressed reservations about the budget proposals. ... click here to read the rest of the article titled "Republicans Lash Out at Budget Plans"

Before You Buy, Study Rules for New Tax Credits

I hosted an online discussion recently and one of the participants was particularly perturbed because he had purchased a new car on President’s Day, Feb. 16.

Key Principles of Internet Marketing

Internet Marketing?

Internet marketing is about giving rather than getting. Internet marketing also exploits the networking capabilities of the Web by leveraging online community activities, linking, affiliate marketing, viral marketing, email marketing, and loyalty programs.

Products and Services

Internet marketing is best suited for:

Products and services that require a lot of information such as travel.
Products and services that people feel strongly about such as books, music, and movies.
Products and services that are bought by the Internet demographic. Those working in technology and academia are very well represented.

Online Advertising

Online advertising does not have the same impact as television or glossy media because of bandwidth restrictions. Studies indicate that most consumers avoid interactive ads because they simply take too much time to download. The real power of online advertising is in its ability to reach niche markets and target just the right consumer with just the right product. Advertising success is claimed by opt-in email-based marketing where consumers request information on a particular product or service.

Internet Marketing is Part of the Overall Package

The objective of internet marketing should be to integrate it into the overall marketing strategy. Internet marketing supports offline marketing activities. Offline marketing arouses the consumer's interest. They have questions. The web site can provide comprehensive information about the company's products or services. But remember, people are not coming to your web site to read the brochure again.

Email Marketing

Consumers must actively decide to go to a web site, but with email they join a database in which they can be regularly informed of products, services, and offers that the organization has. The key to email marketing success is getting people who want the information to join a database. Of course, the information they receive needs to be of a type and quality that they signed up to get. ... click here to read the rest of the article titled "Key Principles of Internet Marketing"

Affiliate Marketing on the Web

What is affiliate marketing?

Affiliate marketing is about paying for performance. In short, it is a type of marketing in which one merchant induces others to place banners and buttons on their Web sites in return for a commission on purchases made by their customers.

Amazon.com

Amazon.com is the pioneer of affiliate marketing. It allows other Web sites to publish information of their own choices of books. When people click through to Amazon and buy these books, the Web site in question gets a commission. Affiliate marketing can open up new channels to market for the affiliate sponsor, and be a source of extra revenue for the affiliate Web site. When investigating affiliate marketing, consider:

affiliate marketing is more suited to products than services;
you’ll need to work hard with your affiliates if you want it all to work;
a well-designed compensation package will be critical to success.

Is your business suited to affiliate marketing?

There needs to be a substantial number of Web sites that are attracting your target market. These Web sites need to show a willingness to join an affiliate program. You might be selling medical supplies but that doesn’t mean that hospital Web sites will become affiliates.
Affiliate marketing is better suited to products than to services. It is much harder to track whether another Web site sent you visitors who, after prolonged negotiation, decide to pay you for your services.
Is the market already saturated with affiliate programs? It would be difficult to set up an affiliate program today that offered commission on book sales.

Have a strong value proposition

As with all good ideas, there are a huge number of merchants offering affiliate programs. How is your program going to attract new members? The level of compensation/commission you will offer will be important. However, on its own it will rarely be enough. You will need to work hard with your members by organizing regular competitions, special offers, and other incentives that make for an attractive value proposition both for your affiliate members and the end customer. ... click here to read the rest of the article titled "Affiliate Marketing on the Web"

Latham & Watkins lays off 440 | Death of Big Law Firms?

Legal giants slashing and burning

David Lat and Elie Mystal of the legal blog Above the Law report that the worldwide legal firm Latham & Watkins have laid off 440 employees (190 associates, 250 staff). According to Above the Law, Latham & Watkins managing partner Bob Dell announced the layoffs via this company wide E-mail:

From: Robert Dell (SF)
To: #ALL L&W PERSONNEL
Sent: Fri Feb 27 08:00
Subject: Executive Committee Announcement

To: All Personnel

From: The Executive Committee

It is with deep regret that we are announcing and implementing today a layoff of associates, paralegals and staff, which will affect approximately 12% of our associates (190) and 10% of our paralegals and staff (250). Everyone who is directly impacted by this workforce reduction will be notified personally today, and will be offered a comprehensive separation package, including payment of six months salary (up to total severance of $100,000) plus six months of continued medical coverage (through August 31, 2009), as well as other resources to support this transition.

We deeply appreciate the many valuable contributions and committed service of those affected by this decision. We made this painful decision with great reluctance and only after concluding that demand for legal services in this troubled economy will not provide enough work for all of our attorneys. Needless to say, the depth and duration of this recession could not have been anticipated. While our diversified practices and global platform continue to provide us the stability and strength to navigate these unprecedented global economic conditions, our structure was built to serve even greater demand based on the significant and steady growth we experienced before the rapid onset of this global recession. ... click here to read the rest of the article titled "Latham & Watkins lays off 440 | Death of Big Law Firms?"

Great Depression Cooking with Clara - Saving You Money

Be frugal, be fed during latest Depression

OK, can we really hide this anymore? We’re in a depression. That’s why it’s very important that we find any means necessary to make our dollars stretch. That’s what 93-year-old Clara Cannucciari has been doing since America’s last Great Depression.

Lindsay Goldwert of ABC News reports that Cannucciari, a great-grandmother, knows her way around a kitchen and knows how to prepare cheap, nourishing, quality meals. According to Ms. Cannucciari’s blog (she has one, don’t you?), her food is so tasty that she gained weight during America’s last Great Depression. You can learn about that and more by checking out her cooking show blog, “Depression Cooking with Clara.”

She learned from her mother

“My father had to have his pasta every day. And my mother insisted we always have a little meat too,” Cannucciari said. In fact, she and her brother liked meat so much that they would pretend to be sick in order to get more, despite the rationing that was necessary during the Depression.

Cannucciari was born in Chicago in 1915. She attended high school until she was a sophomore, when she had to leave to work for her family. At 20, Cannucciari worked for Hostess, filling Twinkies with creamy filling. ... click here to read the rest of the article titled "Great Depression Cooking with Clara - Saving You Money"

Tips for Tax Time | Know the Rules, Avoid an Audit

Better safe than sorry

You may think that with all of the other problems the government is dealing with they don’t have time to worry about whether you did you taxes right. However, the opposite is true.

In the last 10 years the IRS has more than doubled the amount of audits it conducts. It uses a complicated formula to decide who it will audit, but there are a few steps you can take to decrease the chances that it will be you.

Take advantage of technology

There are plenty of web sites out there that will let you submit your taxes online. Filing electronically is helpful in a lot of ways. Forgetting to sign tax returns is a very common mistake, but tax software and web sites won’t let you submit a return without an electronic signature.

Most sites and software programs also have built-in programs that check for mistakes on your paperwork so you can catch and correct mistakes before you submit your taxes.

Keep track of donations

Taxes are a good example of a time when doing the right thing can come back to bite you. Deductions for large charitable donations will raise red flags for the IRS. Average charitable donations are usually no more than 2 percent of a person’s income. If you have donated more than that, make sure you explain what the donation was for and why it is so big. Also, it’s very important to include receipts.

Proof to back up big deductions

Other large deductions will raise red flags, too. Many medical bills can ean deductions, but if you have an especially large medical bill that amounts to a large deduction, make sure you have careful documentation. Make sure you have copies of your bills, especially they amount to more than $50,000.

If you’re itemizing reductions, remember that any deductions for meals or entertainment that cost more than $75 require a receipt. ... click here to read the rest of the article titled "Tips for Tax Time | Know the Rules, Avoid an Audit"

Marketing your Business: Becoming #1

How to be # 1 in your business

It is a misconception to believe that you have to have a better product or service to be number one in your business. However, if you are number one, people believe that you have the best product or service.

Start a new category

So, how do you become number one without having the best product or service? The answer is, start a new "category" and be the first in that category.

Tide

When Procter & Gamble introduced Tide many years ago, they could have called the product a “new, improved soap.” Then, Tide was soap, and Tide is soap today, in the sense that soap is a “cleansing agent.” But Tide was made from synthetic materials rather than the fats and lye found in traditional cleaning products like Ivory, Oxydol, and Rinso. Tide could have been called a synthetic soap, but that would have nailed the brand to the soap category. So Procter & Gamble called Tide the “first detergent,” a totally new category and even today, Tide is the leading brand of detergent.

Charles Schwab

When Charles Schwab set up Charles Schwab & Co., he could have focused on providing better service to stock buyers. But he didn’t. Instead he decided to launch the first discount stock brokerage company, and today Charles Schwab & Co. is one of the leading stock brokerage firms in the country.

Dell Computer

When Michael Dell set up Dell Computer, he could have sold his “better” products through conventional computer stores, but he didn’t. Instead he launched the first brand of personal computer sold direct by phone. Today Dell Computer is the world’s largest seller of personal computers and still doesn’t sell any computers through conventional computer stores. ... click here to read the rest of the article titled "Marketing your Business: Becoming #1"

Save Fruits, Vegetables and Money with Proper Storage

Keeping food fresh can save cash

We all have great intentions when we fill our carts with fruit, vegetables and other fresh, healthy groceries.

However, according to a study by the University of Arizona, average American households throw out a quarter of their fruit and vegetables. That adds up to a big chunk of change.

Saving some green

There are some simple steps you can take to make your food last longer. For instance, make sure fruits and vegetables are dry when you put them in the refrigerator. Store them in resealable bags with paper towels inside.

Store fruits separately from vegetables because fruits, such as apples and pears, can give off gasses that make vegetables go bad.

Staying farm fresh

Many refrigerators have egg holders in the doors, but those are the worst place for your eggs. Eggs should be left in the carton and stored at the back of the fridge. The door is the warmest part of the fridge, and eggs shouldn’t be exposed to so much air.

Delicious dairy

Sara Moulton of ABC News says that if you store your milk in glass bottles it will last twice as long. Glass gets colder and doesn’t let in as much air as cardboard. She says any glass container with a lid is the best place to store your milk. She didn’t talk about plastic versus glass, however.

Making the most of meat

That “meat” drawer in the fridge is there for a reason. It’s the coldest part of fridge, so always use it to store your meat. Make sure you store meat in resealable bags with all of the air squeezed out. ... click here to read the rest of the article titled "Save Fruits, Vegetables and Money with Proper Storage"

General Motors Bleeding Cash: A Blow-By-Blow

General Motors: building better cash coffins

Joe Weisenthal of The Business Insider reports that General Motors is officially America’s “national money pit.” The automaker is bleeding cash at an astonishing rate. One wonders when they’ll file for bankruptcy, particularly after posting a $9 billion loss in the fourth quarter of 2008.

That amount includes special items; if the numbers for normal operating expenses are taken into account ,the loss was “just” $6 billion. According to Weisenthal, that was $1.5 billion worse than analysts and pundits had predicted. Cash on hand is currently at about $14 billion, which according to Phil Lebeau is only $2 billion higher than the “bare minimum” it takes to run the company.

For all of 2008, the company lost about $31 billion.

Breaking it down

Not surprisingly, the management of General Motors wants $16.6 billion more from Washington. If they get it, it would be shocking if President Obama would allow the same leadership body to remain in charge.

But let’s look at this from a slightly different angle for a moment. A $9 billion fourth quarter loss? In order to swallow these numbers, break it down by the day. It so happens that General Motors was losing $85 million per day in the fourth quarter, which is still monstrous. Let’s go deeper:

General Motors losses…
Quarter: $9 billion
Day: $85 million
Hour: $3.5 million
Minute: $58,333

Give thanks to The Business Insider for sharing these stupefying calculations. Per minute, General Motors lost more than the average household income for the United States in 2007. It’s certainly more than what my household earned. How about you? Would you put that money to better use? ... click here to read the rest of the article titled "General Motors Bleeding Cash: A Blow-By-Blow"

Chinese Investors Looking To Buy U.S. Homes

Cash-rich tourists from mainland China are coming to the United States to cruise neighborhoods with a lot of foreclosures or unsold developments. They are looking for bargain-basement buys. These recent home-buying tours to the U.S. have become one of the most popular tour group packages in China. Rob Schmitz reports for member station KQED.

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Thursday, February 26, 2009

New California Gold Rush-the Housing Market

The global recession

Everything is deteriorating. The stock exchanges that we thought would be down for a couple of months before they drag themselves back onto their feet, have stayed down. For some reason nothing induces them to get going again. The housing market is a disaster, the auto industry is dead and refuses to lie down, and the terrible financial disease is spreading around the world like a wildfire out of control.

The horror stories

The horror stories are starting to emerge. This guy worked his whole life and paid his insurance and pension premiums every month, even in the months when he had to scrape the money together. Now aged 68, he's still here but the insurance and pension company has disappeared. Immigrants who arrived from other countries in mid-life are destitute and are begging on the streets. A guy loses his great job at a hi-tech company, defaults on a couple of mortgage payments while he is racing around the country looking for something else, and his house is repossessed.

Are you running to the California Gold Rush?

But not all is darkness. There is always someone who profits in the worst of times. The price of houses is down and down and down. The good news? Why, there's a special on houses in California, a silver lining in the Golden State’s epic housing crash.

In the midst of this crash, plummeting prices and near record-low interest rates make it possible for young couples to own a home in California for the first time. ... click here to read the rest of the article titled "New California Gold Rush-the Housing Market"

Obama Reveals Budget Proposals

More money slated for struggling banks

Obama pledges to slash deficit after initial increase.

President Barack Obama unveiled his budget plans for 2009 and 2010 today. Some of the big items for this year include $410 billion for federal programs and dedicating $250 billion to bailing out banks. This is in addition to the $700 billion TARP fund.

Big budgets

The fiscal year 2009 ends in September. Obama’s proposal for the remainder of this year adds up to about $3.94 trillion. The proposed budget for 2010 costs $3.55 trillion.

Big ticket item: health care

As expected, the 2010 budget calls for dedicating $634 billion to to health care reform. The administration calls this a “down payment” on the ultimate goal of universal health care.

Pay caps on government salaries

The 2010 budget calls for a freeze on salaries for all White House senior staff. Other civilian employees for the federal government would be limited to receiving a 2 percent pay raise. This year government workers got up to a 3.9 percent salary increase.

Bumping up deficit, defense

Obama’s plans for 2009 would push the annual budget deficit to $1.75 trillion. The 2010 budget increases defense spending by 4 percent, up to $534 billion.

Military pay caps

In addition to the pay caps for civilian government employees, Obama has also proposed a cap on military salary increases. His plan would limit raises for military personnel to 2.9 percent. ... click here to read the rest of the article titled "Obama Reveals Budget Proposals"

Gun Sales Skyrocket. Obamafear?

Must buy guns, must buy guns…

For the moment, it’s good to be in gun sales. Demand is up almost across the board and your share price is on the rise. Why? Some fear President Obama could swoop down at any moment and swallow the best tactical stuff in your inventory. Anthony Mirhaydari of MSN Moneycentral reports that gun buffs across the nation are stocking up on various rifles and pistols - even assault weapons.

Assault weapons? Yes. The ban on their sale expired in 2004, but President Obama is considering reinstituting the old ban. According to Mirhaydari, the president’s main concern is the flow of the weapons south of the border and into the hands of Mexican drug cartels.

A growth industry

Gun makers Smith & Wesson and Ruger, as well as retailer Cabela’s, are reaping the benefits of increased sales. Smith & Wesson projects it will double its revenue within the next three years. Ruger showed an 81 percent fourth quarter increase on new products. It currently has an order backlog that amounts to $48 million. Cabela’s reported a 2.2 percent same-store sales increase over the holiday election season. Normally, that is a difficult time for retail merchants.

Share prices are on the rise. Recently, Smith & Wesson was up 56 percent, Cabela’s 35 percent and Ruger 44 percent. ... click here to read the rest of the article titled "Gun Sales Skyrocket. Obamafear?"

Daniel Seddiqui Gets One-Week Jobs in All 50 States

Working a one-week job in each state

Many people are finding it difficult to obtain employment is this difficult economy. But can you imagine having 50 jobs lined up for you? How about 50 one-week jobs, one in each state, one after the other? That’s what Daniel Seddiqui, 26, has on his plate.

Dinesh Ramde reports for the Associated Press that Seddiqui is on a cross-country road trip filled with one-week jobs. He has chosen each job because it “symbolizes the state’s most famous industry,” he says. He wants to “appreciate the labor” and explore each region.

The University of Southern California graduate has an economics degree. Despite a 3.7 GPA, he had difficulty finding work after college.

It began in September 2008

Since starting in Utah, Seddiqui has been a park ranger in Wyoming, a corn farmer in Nebraska and a wedding coordinator in Las Vegas. In Week 23 (late February 2009) of the journey, he was a cheesemaker in southeast Wisconsin.

“I would say cheesemaking was as hard as logging in Oregon,” he said. “Everything here is done by hand so there’s a lot of heavy lifting.”

To know someone, work a week in their job

Seddiqui insists that this is no gimmick. He sincerely wants to “learn about cultures across the country and develop a respect for what other people do” and hopes to inspire others as he has been inspired. ... click here to read the rest of the article titled "Daniel Seddiqui Gets One-Week Jobs in All 50 States"

Bailed Out Companies Can't Hire Temporary Foreign Workers

India angry over visa rules

The economic stimulus package stipulates U.S. companies that receive bailout money cannot hire workers on H-1B visas.

Most H-1B visas go to engineers from India. Because India is facing its own rising unemployment rate, many Indians are unhappy about this policy.

What is an H-1B?

H-1B visas are temporary work permits that allow foreigners to work in the United States for up to six years. These permits have also been used to outsource jobs. The country caps the total amount of these visas that can be issued at 65,000 per year.

American perspective

One of the main goals of the economic stimulus package is to create jobs in the United States. So it makes sense that the administration would not want money that is intended to stimulate the U.S. economy to go toward paying salaries of non-U.S. citizens.

It especially makes sense in the case of outsourcing, where the recipients of U.S. money don’t even spend it in another country

The cause of the upset

However, some leaders in India do not see it that way.

“This is just irrational protectionism,” says Montek Singh Ahluwalia, deputy chairman of India’s Planning Commission. “It makes no economic sense at all.”

Groups that oppose the H-1B provision in the stimulus package have started to take action.

Asking for exceptions

An Indian political group first tried to fight the new provisions by asking that Indians with H-1Bs be able to stay in the United States longer. Currently rules state that if workers with H-1B permits lose their jobs, they must leave the country within 30 days unless they find new jobs. ... click here to read the rest of the article titled "Bailed Out Companies Can't Hire Temporary Foreign Workers"

Are we Becoming a Cashless Society?

It looks as though the world is going cashless

We have all heard the expression "the cashless society" and by now we all know that where there's smoke, there's a fire somewhere. We are also all finding out exactly how powerful the influence of the internet is and at last we are learning that every household must have a computer, no matter how much the residents resist it.

Progress

But this is progress. This is how we humans adapt ourselves and move along with the times. Here's a quick example. Remember Amazon.com, the online bookstore that we older folks pooh-poohed and sneered at as we said, "It'll never work. People like to browse and touch and feel the book they are going to buy"? Well, Amazon reported recently that it sold 73 items a second. No touching and feeling in there, right? Not even time for a quick sniff! Want more proof of the way things are going? EBay, the online auction site, is stated to have the 26th-largest economy in the world.

Staggering numbers, huh? Well, here's another one. The incidence of online fraud is going into orbit.

Credit card fraud

All these examples I am firing at you are internet generated. And when it comes to internet transactions, credit card fraud is a major concern. This is what is leading the rush to a cashless society and the introduction of virtual currencies.

Paypal is an internet money transfer system which sends funds up and down using a combination of a credit card or checking account number and an email address. Anyone who uses PayPal will tell you that the system is smooth and efficient. They will also tell you that PayPal loves it because they basically watch what is happening and get a commission on every payment. ... click here to read the rest of the article titled "Are we Becoming a Cashless Society?"

Ireland's Recession deepens, seeks Bailout from their Government

Nearly 100,000 people marched through Dublin on Saturday

Ten years ago I bought a ticket from Boston to Dublin, Ireland, so that I could join the new Intel plant that was coming online in Leixlip, near Dublin. This is a classic case of déjà vu. Now I need to buy the ticket to get back to the States.

Ireland is in a state of collapse. They are facing tough government cutbacks, a deepening recession and bailouts for the banks. The Prime Minister has a ballooning budget deficit and is planning to introduce a pension levy on public sector workers and freeze their pay.

Ireland before the EU

I remember the days before Ireland joined the EU. It was then touted as one of the poorer countries in Europe. Ireland joined the European Communities, now called the European Union, in 1973 and its economy spiraled in order to keep up with its partners.

Before the current economic crash, Ireland had the fifth highest gross domestic product per capita and the seventh gross domestic product per capita considering purchasing power, and the fifth highest Human Development Index rank in the world.

The country also boasted the highest quality of life in the world, ranking first in the Economist Intelligence Unit's Quality-of-life index. Ireland was ranked sixth on the Global Peace Index. Ireland also has high rankings for its education system, political freedom and civil rights.

Hi-tech moved in

On the heels of the tremendous development and the economic upswing that took place, the hi-tech industries of the world all fell in love with Ireland and huge manufacturing plants mushroomed. Everyone is there: Intel, Dell, IBM, HP, Oracle, Lotus, Microsoft and most other hi-tech names you can think of. ... click here to read the rest of the article titled "Ireland's Recession deepens, seeks Bailout from their Government"

Samim Anghaie Defrauds NASA, Taxpayers of Nearly $1 Million

Your tax dollars at work

Mike Levine of Fox News reports that the Director of the Innovative Nuclear Space Power and Propulsion Institute at the University of Florida may have defrauded NASA out of “hundreds of thousands” of taxpayer dollars for personal use. A court affidavit says there is “probable cause” that the money was laundered in violation of federal law.

The FBI and NASA are investigating Samim Anghaie, 59, and his wife Sousan Anghaie, 55. She is president of New Era Technology Inc. (NETECH) in Gainesville, Fla. Charges have not been filed as yet.

Contract for the high life

Sousan Anghaie talked NASA into awarding NETECH “several fully funded contracts.” This included about $600,000 to develop and study uranium-related technology. But the FBI and NASA allege that in reality, Sousan and Samim used that money for personal luxury use. Among the purchases made were a $480,000 home, a 2007 BMW, a 2005 Toyota Sienna, a 2008 Toyota Corolla, a 2007 Toyota Corolla and properties for their sons. Then there was another $528,000 project. Wow…

Not surprisingly, federal agents have raided the Innovative Nuclear Space Power and Propulsion Institute.

More accountability with contracts

Among the contributions Sousan sought was $350,000 in order to pay three employees (including her son and brother-in-law). However, it is documented that those three workers received no monetary compensation for their work. Furthermore, it’s unclear whether any of the proposed work they were supposed to be doing was completed. This, according to an unsealed affidavit, is just one of “multiple fraudulent certified contract proposals” the Angahies made to NASA so that they would receive “maximum funds” for their “research projects.” ... click here to read the rest of the article titled "Samim Anghaie Defrauds NASA, Taxpayers of Nearly $1 Million"

Wednesday, February 25, 2009

Obama Names Third Commerce Secretary Nominee

Third time’s the charm?

Gary Locke

Once again, President Barack Obama has named his nominee to head the Department of Commerce.

Former Washington Governor Gary Locke is Obama’s pick to run the department. The main goal of the United States Department of Commerce is to promote economic growth.

Job description

If the Senate approves Locke, he will oversee many operations, including international trade, oceans policy and the 2012 Census. According to the Associated Press:

Obama praised Locke … as a man who shares his vision for turning around the moribund economy, and as someone who is committed to doing what it takes to keep the American dream alive.

Commerce Department saga

Obama nominated his first choice for Commerce Secretary, New Mexico Governor Bill Richardson, shortly after the November election. However, the Democrat withdrew from consideration amid allegations of wrongdoing regarding contract awards in his state.

This month, Obama nominated Republican Senator Judd Gregg, from New Hampshire, for the position. As negotiations over the economic stimulus package began to wrap up, Gregg also withdrew his name from consideration. He said he had “irresolvable conflicts” with Obama’s policies.

A little about Locke

Locke served as governor of the state of Washington from 1997 to 2005. Now he works for a law firm in Seattle. He deals with issued involving China, energy and governmental relations. He was the United States’ first Chinese-American governor. ... click here to read the rest of the article titled "Obama Names Third Commerce Secretary Nominee"

Obama Names Third Commerce Secretary Nominee

Third time’s the charm?

Gary Locke

Once again, President Barack Obama has named his nominee to head the Department of Commerce.

Former Washington Governor Gary Locke is Obama’s pick to run the department. The main goal of the United States Department of Commerce is to promote economic growth.

Job description

If the Senate approves Locke, he will oversee many operations, including international trade, oceans policy and the 2012 Census. According to the Associated Press:

Obama praised Locke … as a man who shares his vision for turning around the moribund economy, and as someone who is committed to doing what it takes to keep the American dream alive.

Commerce Department saga

A little about Locke

Westgate Capital Manager Arrested on Investor Fraud Charges

Westgate Capital manager caught

"Nice one, James."

The fallout from the Bernie Madoff disaster continues. So, when is it that you’re going to step up your monitoring of financial fraud, SEC? Any time now…

Alistair Barr of MarketWatch brings our attention to James Nicholson, 42, the manager of the investment firm Westgate Capital Management LLC. Mr. Nicholson has been ceremoniously arrested at his Saddle River, New Jersey home on charges of securities fraud and bank fraud, according to the Department of Justice.

I learned it from you, Bernie

Nicholson told investors that Westgate Capital had assets within the company that ranged anywhere from $600 to $900 million. However, in true Bernie Madoff style, the real value of Westgate’s assets was substantially lower. As a result, investors dumped as much as $100 million into a variety of funds managed by Westgate since 2004.

It’s in the brochures; must be right!

Futhermore, Nicholson’s associated Westgate Strategic Growth Fund was audited by an independent accounting firm. However, the DOJ determined that this accounting firm was actually a virtual firm registered at a virtual address. In case of telephone inquiries, an answering service was set up that would direct calls to a phone number that Nicholson provided. ... click here to read the rest of the article titled "Westgate Capital Manager Arrested on Investor Fraud Charges"

American Express' $300 Deal Shows Industry Trend

American Express announced Monday it’s offering $300 to a limited number of cardholders who agree to close their accounts. Consumers Union attorney Gail Hillebrand says the deal is a trend among credit card companies looking to protect themselves from future defaults.

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Massive Layoffs Make Massive Jump in January

Payrolls get the ax

The number of companies that made “mass layoffs” in January is up 50 percent from the same month last year. Mass layoffs are when a single employer lays off more than 50 employees at one time.

A total of 2,227 employers made mass layoffs in January, the government says.

Big companies make big cuts

Companies including Boeing, Pfizer, Caterpillar and Home Depot announced that they would make mass layoffs this year. The Labor Department’s report doesn’t count layoffs that have been announced but are not yet completed.

The 50 percent jump only represents the number of laid off workers that turned in claims for unemployment benefits.

Not even sports are safe

NFL Commissioner Roger Goodell has taken a 20 percent pay decrease, and the league has cut 169 jobs. Milliken & Co., a South Carolina-based textile maker, says it will cut 650 jobs. Zales jewelers plans to shut down 115 stores and cut 245 jobs.

More headed for the chopping block

Spansion Inc., a flash memory maker, said it plans to lay off about 3,000 employees this year. Computer chip maker Micron Technology Inc. says it will lay off as many as 2,000 workers by the end of August.

What’s this? Good news?

Consulting firm Watson Wyatt says the number of corporations that expect to make job cuts has decreased. In December, 23 percent of corporations said they expected to have to make job cuts. Now only 13 percent expect they will lay off employees. ... click here to read the rest of the article titled "Massive Layoffs Make Massive Jump in January"

Obama's Presidential Address | Easy Loans Key to Good Economy

Easy loans grease economic engine

Obama talks "bold action and big ideas."

In his speech last night, President Barack Obama reiterated the point that access to easy loans is an important factor in getting our economy back on track.

He also emphasized that “education, health care and energy were a vital part of the long-term sustainability of the economy,” says The New York Times.

Why easy loans are important

When speaking about the banking system, Obama emphasized that he wasn’t out to give handouts to failing organizations.

"It's not about helping banks, it's about helping people," he said.

The banking system must be stabilized, he said, so that credit will start working normally again. If Americans can get easy loans, they’ll be able to buy cars and houses again, and the economy will grow again.

Restoring confidence

Obama’s tone was optimistic and encouraging throughout his speech. He spoke about the United States as a nation that does not quit. He said we must seize “opportunity from ordeal.”
He told stories about a bank executive who split his $60 million retirement bonus with all of his employees. He hailed the man as a great example. He assured listeners that the days of executives padding their paychecks with taxpayer money are over.

Not nonpartisan

News organizations are pointing out many of his ideas go directly against Republican ideals. He is proposing raising taxes on the wealthy, revamping health care and reversing climate change. ... click here to read the rest of the article titled "Obama's Presidential Address | Easy Loans Key to Good Economy"

Payday Loans Abound | Bernanke Says Economy Could Turn Around

Americans need payday loans to bail them out

Ben Bernanke

More and more consumers are seeking personal bailouts in the form of payday loans as the economy continues to shrink. Also, more consumers than ever before believe that the financial crisis won’t get better any time soon.

However, Federal Reserve Chairman Ben Bernanke says there is hope.

Just a glimmer

Of course, that little ray of sunshine comes with a big IF. If the government’s bailout succeeds in stabilizing the banking system, Bernanke says the economic contraction could possibly cease in less than six months. However, he also believes that the economy is likely to shrink even more before then.

A long recovery

Even if the recession does cease, families and individuals will still need payday loans to bail them out of financial hardship for a while. The unemployment rate will continue to go up until the economy begins to grow again. Businesses must start pulling in enough money to pay off their debts plus fund more production before they begin hiring again.

Will credit be normal again?

Bernanke says the key to economic turnaround is getting credit and financial markets to operate normally again.

“Only if that is the case, in my view there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery,” Bernanke told the Senate Banking Committee.

A few more IFs

One factor that could have a significant effect on the United States’ economic crisis: The rest of the world. If countries that we trade with continue to have shrinking economies, it will hurt U.S. exports. Also, according to ABC News: ... click here to read the rest of the article titled "Payday Loans Abound | Bernanke Says Economy Could Turn Around"

Tuesday, February 24, 2009

Americans Say Yes to Obamanomics, Need Cheap Loans

Cheap loans, Obamanomics make someone happy

People looking for help when their budgets are overstretched have options, thanks to cheap loans. But despite his pledge to heavily regulate useful products like these, President Obama still finds favor with Americans when it comes to his economic policies.

A Reuters UK report by JoAnne Allen shows that according to public opinion polls, “large majorities” of Americans remain on board with the president’s plans to revive a sagging economy. His bipartisan approach has also gained favor.

Americans are optimistic

A Washington Post-ABC News poll found that 68 percent of Americans approve of how Obama is doing, while 64 percent support the $787 billion economic stimulus package and the foreclosure support package. A New York Times/CBS News poll marks 63 percent as Obama’s current overall approval rating, with over 75 percent of Americans claiming they’re “optimistic” about the next four years

Among the things both polls had in common was that they found that Obama had widespread bipartisan support. On the flip side, those polled were quick to find fault with Republicans for their divisive stance. Sixty-three percent of them felt Republicans had “opposed the economic stimulus package for political reasons rather than policy concerns.” As anybody knows about politics, however, opinion loans itself cheap; it’s a matter of which way the wind is blowing.

Will the stimulus help?

Interestingly, while 62 percent think the stimulus will help local economies, only 46 percent think it will help them personally. ... click here to read the rest of the article titled "Americans Say Yes to Obamanomics, Need Cheap Loans"

Monday, February 23, 2009

No More Payday Loans for eBay | Economy Silences Online Auction

eBay loses its hype

A few years ago, it might not have been surprising to find out that a friend took out payday loans to pay for some must-have item from eBay.

Yes, a few years ago, “Antiques Road Show” and the novelty of the newly discovered online auction were all the rage. Things are different now.

eBay and the economy

A few years ago, the economy was in great shape. People didn’t think twice about using credit to buy whatever they wanted. Thus, it was common for people to use payday loans and other types of credit to pay for items they “won” in online auctions.

Now, people aren’t even spending money they do have, let alone money they don’t have, on discretionary items.

Novelty wears off

For one thing, eBay isn’t so “trendy” anymore. As Fortune Magazine points out:

When is the last time you heard someone all breathless about bidding on some tatty piece of furniture?

The article goes on to point out that people have a lot more options for finding what they want at reasonable prices. Many people just aren’t willing to deal with the hassle of online auctions anymore.

eBay’s money troubles

eBay’s stock prices have fallen 56 percent in the last year. I found that a bit surprising because I have read so may articles about how to make money on eBay lately. There are tons of tips and publications out there with instructions on how you can use eBay to run your own business. Problem is, everyone is looking to make money. Not many are looking to spend it. ... click here to read the rest of the article titled "No More Payday Loans for eBay | Economy Silences Online Auction"

Could Short-Term Loans Help Boost Home's Selling Price?

Getting the best price in a bad market

The way your home looks from the outside can greatly add to its selling price.

One of the tests for when it’s OK to get short-term loans is whether they can actually help you make money.

Now is a terrible time to have to sell your home, as values for housing have sunk so low. But life happens, and if getting short-term loans to fix up your house could push up your home’s selling price, it could be a good investment.

Almighty curb appeal

The best way to increase the amount you can get for your home is to start on the outside, according to CNNMoney.com.

If the siding on your home is worn or damaged, replacing it is a good first step. If taking out short-term loans to get your siding repaired quickly will get more buyers looking at your home sooner, it might be worth it.

Siding tips

According to a remodeling survey, fiber-cement siding is the best way to get your money’s worth and add value to your home. Also, if only a portion of your siding is in really bad shape, consider replacing just that part. If you can get away with patching and painting the rest, go for it.

Stack your deck

If you live in a warm climate, adding a deck to your home will greatly increase its value. Eric Stalemark, a contractor and founder of Decks.com, says that cedar is the best wood to use for a deck based on durability and appearance. ... click here to read the rest of the article titled "Could Short-Term Loans Help Boost Home's Selling Price?"

Ohio HB 545 Can't Kill Payday Loans: They Live!

Payday loans and the Small Loan Act

Jim Siegel of The Columbus Dispatch reports that the Ohio Department of Commerce will not regulate payday loans into oblivion. Great, but they’re on the verge of being taken away from the public as is, thanks to House Bill 545. It capped annual interest rates at 28 percent for the high risk, unsecured loans, which is not a workable profit model. It isn’t oblivion, but it’s close.

In order to save scores of employees from unemployment and keep options open for consumers who need emergency cash but have less than perfect credit, lenders who remain in Ohio are offering pay day loans under the state’s Small Loan Act. Ernie Davis, the commerce department’s legislative director admits that lenders ”are operating under licenses set in statute.” Yet meddling politicians - driven as if their masters’ whips are at their backs - are going to look again and again to make sure lenders are “abiding by terms set in the new law.” ... click he re to read the rest of the article titled "Ohio HB 545 Can't Kill Payday Loans: They Live!"

Buy Builders, If You Dare

To be a truly contrarian investor, you need the nerves of a cat burglar. How else can you buy stuff others are unloading in disgust? And few sectors are more loathed today than homebuilders.

Bailout On The Heels Of Recklessness

In her latest commentary, host Michel Martin tells how some Americans have long been in a recession while others, who were busy stuffing their coffers, are just now feeling the pinch.

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Don't Brick Your Way to Cash Advance Ignorance

Lie to me, I won’t believe

Jeopardy answer: "What has Jerry Harper thrown up?"

Jerry Harper, a Lawrence Journal-World reader from Lawrence, Kansas writes in a Letter to the Editor that he’s fed up with cash advance lenders. Then he begins to parrot up the crackers that he’s no doubt been force fed by either a media outlet with a sensationalist ax to grind or direct from the Center For Responsible Lending. It’s wrong and we’ve heard it all before. A repeated lie will only become the truth when people stop caring.

The framework for Mr. Harper’s diatribe is discussion of a previous Letter to the Editor from Robert Baker, who Harper feels “was far too modest in describing Housing and Credit Counseling Inc.’s (HCCI) help for the financially distressed; and, far too polite in characterizing the payday loan industry.”

What’s got him twisted?

Imaginary interest rates. How original, Mr. Harper. After making unfounded, incorrect statements about sending consumers into bankruptcy, Harper parrots the “loan shark rates” of 391 percent to 441 percent annually. He even points out that the “Congressional Research Service” says this is so. Great, but payday loans aren’t annual loans. I guess “Congressional Research Service” studied apples when everybody is talking oranges. After this gaff, Mr. Harper calls for the 36 percent APR cap that would lead us all into the promised land… of increased joblessness. Bad idea. ... click here to read the rest of the article titled "Don't Brick Your Way to Cash Advance Ignorance"

Electric Cars Still Years Away From Paying Off

After years of producing gas guzzlers, auto makers are focusing more on electric vehicles. At auto shows across the country, the companies are rolling out a variety of electric vehicles. And they may pay off one day. But making electric vehicles affordable and practical will take years.

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Sunday, February 22, 2009

Free Goodies When You Buy a Home

Even with the economy in peril, we have still received a ton of mail related to the purchase of our home. Of course we have been inundated with those mortgage life insurance mailings, window treatment ads, and other related junk, but if you look through it all we have found some goodies:

10% off Pottery Barn coupon
10% off Crate & Barrel coupon
20% off 1 piece of furniture at Room Store
Neighborhood Welcome Mailing that included a free pizza and free dozen bagels from local merchants
Walgreens Drug Store coupons - $25 credit for a transferred prescription, $5 of $20 coupon, free bottle of aspirin
10% of Lowes coupon
10% off Home Depot coupon
$10 credit at Ace Hardware
$10 credit at local cleaners
Free office visit at a local veterinarian

How Quick Loans Figure into California Budget

Governor signed budget, now what?

Friday, Arnold Schwarzenegger signed California’s much-debated budget, which includes quick loans, hefty tax increases and deep spending cuts. So what’s next?

The tax man cometh

New income taxes, sales taxes and vehicle license tax will kick in on April 1, according to the Los Angeles Times. The dependent tax credit will be reduced, which will apply when Californians do their 2009 tax returns.

Switcheroo

Strangely, about seven weeks after the tax increases go into effect, California voters will get a chance to approve or deny them. Voters must agree pay the tax increases for the next two years. Well, the next one year and 10 months or so.

Banking on the lottery

On May 19, the same day they vote on the tax increases, voters will weigh in on all ballot measures related to the budget. This is where the quick loans come in.
In addition to the tax increases, Californians will vote on whether to borrow $5 million against future lottery proceedings. That way the state can spend future lottery purchases now.

How much?
Sales tax will go up by 1 cent on the dollar. Obviously, how much this tax costs individuals depends on how much money they spend. The vehicle license fee will double, bringing the total fee to 1.15 percent of the car’s value.

Income tax will go up 0.25 percent. For those on the lower end of the income scale, this will cost about $53 per year. For those making $1 million or more who have two dependents, it will cost about $2,250. The dependent tax credit will be reduced by $210 for everyone. ... click here to read the rest of the article titled "How Quick Loans Figure into California Budget"

Blasts from the Past

Three years ago today, I was writing about retirement books.
Two years ago today, I linked the the Anonymous Lawyer’s take on salaries.
One year ago today, I didn’t post, but the next time I did it was about proximity to wealth.

Today, I could be linking to any of a gazillion stories in the weekend papers that had to do with money, living on less, economic crisis, etc etc etc. It’s too much! I can’t take it any more!
Read more about Blasts from the Past…

Thinking About Diversification

Is diversification hurting you? I was talking to my friend and he told me that the key to his success was focus. He told me that so many people think “oh I have to diversify” and they end up knowing a little about everything but actually nothing about anything.

I know that in the corporate world, I’ve already been exposed to being a web developer, customer support, operations, quality control, engineering, IT management, marketing and sales (yeah I’ve been busy and not to mention that I’m blogging full time now). If I were to just stick with one field right from the beginning, maybe I could claim to be an expert by now. What do you think? Has diversification affect you?

Personal Finance Articles

There are many, many things that we should never pay for and PT Money shares with us 15 that he believes should be free. What are some of the things you think should be added to the list?
Does your employer offer the Roth IRA retirement option? If so, read up on what it is at ABC’s artcile on Roth IRA basics.
Congress is giving away money to first time home buyers but how do you actually claim it? Five Cent Nickel tells us how at the link.
In the motivational mood, Clever Dude shares his paradigm with us and how he’s going to be shifting it.
Blunt Money paid $4 bucks for a $6 lunch. Find out why!
The Smarter Wallet tells us 5 Common Financial Mistakes to Avoid.

Personal Finance Carnivals

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Saturday, February 21, 2009

7 Must Read Tax Changes of 2008

My wife sent me an email from Bank of America highlighting 7 important tax changes for the benefit of those who still haven’t filed yet.

The good thing is that most of these changes are going to help you lower your taxes so read on!

Adjusting for Inflation
- For 2008, the standard deductions is up to $10,900 for married couples filing jointly and $5,450 for singles (or spouses filing separately). If you are the head of the household, it’s $8,000.
- Dependency exemptions are now $3,500
- The 25% tax bracket level has changed to $65,100, meaning income less than that are taxed at only 15%
- For more, visit IRS’ website
Alternative Minimum Tax
Congress likes to do patches rather than fix problems all together but no matter, they made steps to temporary help millions of filers avoid AMT. The law raises the exemptions to $69,950 for joint filers, $46,200 for single filers, and $34,975 for married people filing separately. They also extended the rule that use non-refundable personal credits to offset AMT.
- Here’s IRS’ article for more.
Kiddie Tax
In recent years, the government had made steps so parents couldn’t invest in their children’s names to avoid taxes. The new law is that any children under 19, and full time students under 24 whose earned income is less than half of the child’s support will need to pay taxes at their parents’ higher tax rate for unearned income above $1,800.
IRA Limits
Finally, 2008 brings on a raised contribution limit for IRAs. $5,000 if you are under 50 and $6,000 for those 50 and up.
Stimulus Checks
If you couldn’t qualify for stimulus payments last year, you may be able to this year! Examples include people who started earning more than $3,000 this year, or if you just got your social security number.
- This article from IRS has more
Real Estate Property Taxes Deductions
They now let you deduct property taxes even if you don’t itemize your deductions! The maximum is only $500 ($1,000 if you file jointly) though.
Energy Saving Expenses
Green stands for money and environmental. The green energy system tax credits were going to expire in 2008 but they have extended it. You can get up to 30% of your expenses (up to a max of $2,000) for installing equipment related to solar, wind and geothermal. For fuel-cell equipment, the deduction is up to $500 per 0.5 kilowatt hour of capacity.

Not earth shattering but every little bit of tax breaks help. Here’s a bonus tax tip - Don’t rush when you file taxes. Get your documents together and don’t miss out on all tax breaks and credits.

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Friday, February 20, 2009

Man Loses $13,000 in Toilet | Short Term Loans, Anyone?

Short term loans to replace lost cash

These days, it feels like more money is going down the toilet and people are crying out for short term loans to fill the gaping hole in their balance sheets. Critics of of President Obama’s economic stimulus package worry that the money is not going to be used in the right way, while others are concerned that the massive infusion of money into the money supply will create rampant inflation (if we haven’t already been there for a while). Did you hear about the hyperinflation in Zimbabwe? Folks there may as we ll flush those paper zims down the toilet.

But sometimes, people who don’t mean to flush money down the toilet end up doing just that.

Sealed for freshness

Dave Graham reports for Reuters that a German businessman lost his euros in a public toilet. He had more than 10,000 euros (which translates into about $13,000 American) in a clear plastic bag. Why did he carry that much money with him into a public restroom and why was the money zipped up in a plastic bag? Is there a kidnapping/contraband/blackmail story here that we should know about? Anybody who “discovered” the money in that restroom after the man’s departure may have needed bad credit short term loans for their emergency cash needs before, but not now… ... click here to read the rest of the article titled "Man Loses $13,000 in Toilet | Short Term Loans, Anyone?"