Record Of Special Events: April 2009

Thursday, April 30, 2009

Visualizing the US/China Trade Relationship

Like it or not, the US and China have a trading relationship that has global repercussions. The plastic US flags that say Made in China don’t tell the whole story. No, not everything is made in China. In fact the US manufactures and exports almost as much as China but it consumes a great deal more. Hence, the trade imbalance. What’s interesting is exactly what the US imports, stuff like machinery and toys and as much steel and iron as it does shoes. And what we export — high-tech stuff like airplanes and medical equipment and, for some reason, 7 billion dollars worth of oleaginous fruit which is used to make cooking oil, presumably for Chinese food.

For more personal finance visualizations see: WallStats.com

The Credit Cardholders’ Bill of Rights Act of 2009

The following timeline and details will be updated as the bill progresses through Congress, and if it passes, as it makes its way to the President to be signed into law. Visit this article often for the latest information and to read the current version of the bill as it is amended, voted upon, and revised.

Credit Cardholders’ Bill of Rights Timeline

April 30, 2009: The House passes the Credit Cardholders’ Bill of Rights with a bipartisan vote of 357 to 70.

Credit Cardholders’ Bill of Rights Details

As of April 30, 2009, the House of Representatives has passed a bill commonly called the Credit Cardholders’ Bill of Rights Act of 2009. This bill goes a long way to end some deceprive practices used by credit card companies to lure and trap consumers into expensive debt. While many of the problems resulting from these practices can be avoided by using credit wisely or not at all and adjusting your expectations to assume that the companies only care about their bottom line, not their customers, not all the blame can be placed on the consumer.

Thus, the government is stepping in with this effort to protect credit card users from practices such as abrupt rate increases, retroactive rate increases, and double-cycle billing, a situation in which customers are charged interest even after the last bill including charges for spending is fully paid off.

Here are some interesting points included in the House version of the bill.

Credit card issuers will be required to maintain low introductory rates for at least six months.
Issuers must warn consumers if they are spending close to their credit limit, allowing them to avoid a penalty.
Issuers cannot charge customers a fee for paying their bill over the phone or online.

The law will go into effect one year after it is signed by the President or July 2010, which ever comes first.

Read the current version of the House’s Credit Cardholders’ Bill of Rights, H.R.627 (April 27, 2009)

Read the current version of the Senate’s Credit Cardholders’ Bill of Rights, S.235 (January 14, 2009)

U.S. House acts to protect credit card users, Reuters, April 30, 2009

Receive exclusive articles, tips and chances in future giveaways by signing up for the weekly Consumerism Commentary email newsletter.

The Credit Cardholders’ Bill of Rights Act of 2009

Banks are Struggling to Lend. Cash Advances Become More Popular

Cash Advances are quick

Cash advances are being relied upon by consumers as they try to make it through their monthly bills. A cash advance can pay for overwhelming debt or an emergency bill because it is quick and easy. Most lending companies for these types of loans make the application process as simple as possible. If you are employed, are over 18 and have an active bank account, you can apply for the loan. The lender will look into approval and calculate ho w much you are eligible to receive. If a company ultimately approves you, your funds are deposited into your account within 48 hours, sometimes sooner.

Why not banks?

The simplicity of this type of loan is gaining momentum because normal lenders are no longer available to Americans. The recent bailout is proof that the economy is suffering and it's estimated to be over a year before citizens feel some relief from the pressure.

The condition of U.S. banks

It's been a year since U.S. banks first began having major financial issues. This year profits have been growing, which is good news, however analysts caution that it isn't completely indicative of an economy that is out of hot water. A lot of the "ups" of the banking economy translate to banks suffering the "smallest losses" they have experienced in months. So while they are doing better, they still aren't performing at the same level they were in prior years. ... click here to read the rest of the article titled "Banks are Struggling to Lend. Cash Advances Become More Popular"

Banks are Struggling to Lend. Cash Advances Become More Popular

Cash Advances are quick

Why not banks?

The condition of U.S. banks

Pontiac: All good things must come to an end

The internet has made the world different

In the early days of the internet, I remarked to someone that the whole concept of a World Wide Web was amazing and I thought the world would never be the same once the internet was more developed. "I think that's a bit of an exaggeration," he replied. "It'll take more than that to change the world!" I wonder if he still thinks the world never changed because of the internet.

The world is about change

Now I am predicting that the world will never be the same after this recession. The world is always changing but the small changes are plastic and things return to where they were. But when there is major change, things never go back to where they were and we get used to living on some parallel course.

For instance, take Payday Loans, a concept that surely grew out of a need caused by a change in the times. From now on there will always be Payday Loans. That's change.

A world without Pontiac will be different

Here's another major change coming as a result of the recession. Remember the Pontiac, the once flagship of General Motors, the car known for its stylish sedans and sleek roadsters? Well they are about to be moved from the streets to the auto museums where our offspring can gape at them and say, "how could you drive around in a boat, Dad?" The Pontiac is one of the latest victims of General Motors’ struggle for survival.

Collateral damage

On Monday GM announced its plans for its 76th annual overhaul and service. This one will put 21,000 people out of work and bring about the death of Pontiac by the end of 2010. ... click here to read the rest of the article titled "Pontiac: All good things must come to an end"

Are You In Financial Need? Apply For Unsecured Personal Loans

Unsecured loans can really help

Getting fast unsecured personal loans is a lifeline for those who are facing major financial challenges. With the direction the economy is headed, unsecured loans have greatly assisted many American households get back on their feet. Companies that provide these types of loans know that the client really needs them, so processes the unsecured loans very quickly. Not many people know the difference between unsecured loans and secured loans. Companies that give out unsecured loans do not require any collateral on the loans, while collateral is necessary for secure loans.

Must I have collateral?

The reason why many people fear applying for loans is that lending institutions such as banks, requires collateral such as a house, property and even cars to be placed against secured loans. This has the effect of shutting out those individuals who are really in financial need but do not have any form of security to use as collateral. Furthermore, most people do not prefer applying for secured loans because if they are late paying the loan, the lending institutions will likely retain their property.

Why people apply for unsecured loans

With a loan that is not secured, the chance of people losing their property is eliminated. There are many reasons why you can decide to apply for unsecured personal loans. You could be facing financial constraints and need a little assistance until you are financially stable. Those with children in college may also decide to apply for the loans to help with their children’s tuition. Some get the loans to pay for medical bills, while those who want either to renovate their house for sale or to make improvements can also apply for the loans. Regardless of the person's needs, applying for the loans is easy. ... click here to read the rest of the article titled "Are You In Financial Need? Apply For Unsecured Personal Loans"

Carvel Gives Free Icebergs for 75th Anniversary

Celebrate with Carvel

Iceberg

The three-quarters-of-a-century-old ice cream shop Carvel is throwing itself a birthday party. There’s no free cake, but you can stop by for an Iceberg, a slushy drink topped with vanilla soft-serve ice cream.

Icebergs are new to Carvel’s product line, so the shop — which is now old enough to be my grandpa’s fishing buddy — is celebrating the release of a new product as well as its 75th birthday.

Where is Carvel?

Carvel has 185 locations in New York, and 500 stores total in the United States. You can find the Carvel location nearest you at the Carvel Ice Cream web site by using the store locator.

Birthday parties including free Icebergs will be held from 3 p.m. to 7 p.m. ET.

Free stuff

Americans are jumping on free stuff like it’s an interest-free cash advance. Word of any chance to get a treat and avoid using the credit card spreads like wildfire.

Actually, it doesn’t need to be totally free. Baskin Robbins gave out ice cream scoops yesterday for 31 cents and had quite the response. Imagine how people will react to a free 8-ounce Iceberg. Icebergs come in orange, root beer or cola flavor. ... click here to read the rest of the article titled "Carvel Gives Free Icebergs for 75th Anniversary"

Chrysler Bankruptcy Sets Stage for Court War

Down goes Chrysler

America’s big automakers have all been in serious need of cash advance loans and debt relief for some time now. Overproduction of consumer vehicles that burn through gasoline and take up too much room on the country’s current highway system has been the byproduct of poor planning by top automobile executives. Now the time has come for them to reap what they have sown.

Unfortunately, this means that many honest, hard-working employees are losing their jobs, thanks to the economic corpulence of those who may never have known what it truly means to struggle to survive. This time, there’s no bailout: Chrysler has bankruptcy on their minds. Chapter 11 bankruptcy.

Average taxpayers may get nothing

Following the trail of Chrysler news, Michael de la Merced blogs for the New York Times that the restructuring battle has changed locales, from board rooms to bankruptcy court. Chrysler and the Obama administration did not obtain the consent they needed from secured lenders, so Chrysler is bankrupt. ... click here to read the rest of the article titled "Chrysler Bankruptcy Sets Stage for Court War"

SCAM WATCH | fbstarter.com Steals Facebook Users' Passwords

Phishers steal personal information

Reports have been flooding in about phishing site fbstarter.com. The dummy web site poses as a Facebook login page to get users to type in their usernames and passwords.

We all know that online scams set to steal personal information such as passwords are the first step on the road to identity theft.

Phishers keep changing lure

You may recall just a couple of days ago when fbaction.net pulled exactly the same password-stealing scheme. Therein lies the problem. Facebook blocked fbaction.net and it has blocked fbstarter.com, but these scams were likely conducted by the same people.

That means these phishers are changing their scheme slightly and launching new attacks after one is thwarted.

Could be harmless — or not

The phishing scam is widely reported to be harmless. After all, fbstarter.com doesn’t ask for credit card information or account numbers so fraudsters could take out payday loans in your name. It just takes your user information so it can send annoying fraudulent messages to others that will bring them to fb starter.

However, if you use the same username and password on your Facebook page as you do to login to your bank account or pay your credit card bill, who knows what could happen?

What to watch for

This little scam works like this: You get an e-mail saying that you’ve got a message on Facebook. There’s a link so you can look at it. You click the link and it sends you to the dummy page, fb starter, which looks just like a Facebook login page. You attempt to login and voila, phishers have your password. ... click here to read the rest of the article titled "SCAM WATCH | fbstarter.com Steals Facebook Users' Passwords"

SCAM WATCH | fbstarter.com Steals Facebook Users' Passwords

Phishers steal personal information

Reports have been flooding in about phishing site fbstarter.com. The dummy web site poses as a Facebook login page to get users to type in their usernames and passwords.

We all know that online scams set to steal personal information such as passwords are the first step on the road to identity theft.

Phishers keep changing lure

That means these phishers are changing their scheme slightly and launching new attacks after one is thwarted.

Could be harmless — or not

However, if you use the same username and password on your Facebook page as you do to login to your bank account or pay your credit card bill, who knows what could happen?

What to watch for

Bank Shareholders Oust Lewis As Chairman

Bank of America shareholders have voted to separate the jobs of chairman and chief executive at the company. The move is seen as something of a rebuke of the company’s head Ken Lewis, who will stay on as CEO.

» E-Mail This » Add to Del.icio.us

Free Personalized Hallmark Card For Mother’s Day

Mother’s Day is May 10th. Get off your lazy bum and send Mom a card! Actually, since you can do this all online and they’ll even ship it for you… go ahead and stay on your lazy bum.

Hallmark is offering a free personalized paper card, and they’ll even ship it for you free USPS First Class. Just register for a free account, choose and customize the card you like, and check out using the promotional code is CARD4MOM. You should see the following:

Via SD. Order by May 1st for guaranteed delivery. Reportedly you can use coupon code APRILCARD for another free card with a separate order. Now, is it weird that the card I picked out looks like an asset allocation pie chart?

Wednesday, April 29, 2009

Ken Lewis, Bank of America Board Keeps Their Jobs

Bank CEO was protested

Despite outcry from shareholders and protests at Bank of America’s annual shareholder meeting today, Ken Lewis will retain his position as CEO of Bank of America.

The rest of the board will also remain in their current jobs. For details on protests, read my earlier post.

Thou doth not protest enough

Though shareholders were up in arms because of the purchase of failing Merrill Lynch, Bank of America spokesman James Mahoney says all of the board’s 18 members were re-elected by “a comfortable margin.”

Groups such as the California Public Employees Retirement System fund and companies including Egan- Jones Proxy Services called for Lewis to quit and voted against his re-election in the shareholder’s meeting. Nevertheless, the Bank of American board will remain unchanged, and the bank will continue business as usual, including mortgage loan modification and cash advances.

Root of the controversy

The shareholders were angered by the purchase of Merrill Lynch late last year because of a lack of disclosure on Lewis and the board’s part. The Bank of American board failed to inform shareholders of the dire financial situation Merrill Lynch was facing before it held a vote on the matter. ... click here to read the rest of the article titled "Ken Lewis, Bank of America Board Keeps Their Jobs"

Expert Weighs In On Credit Cards

Joan Goldwasser, reporter for Kiplinger Personal Finance, discusses credit cards. She answers listeners’ questions about credit card debt and interest rates.

» E-Mail This » Add to Del.icio.us

The Secure Student Program

In March, I hosted a guest post from Mike Young about the ongoing battle with lifestyle inflation. Young runs The Secure Student, a program that teaches high school students how to manage their money.

At the time, I thought The Secure Student might be worth sharing during Financial Literacy Month, but I forgot about it until yesterday. This morning I spent some time reviewing the program. According to the website, The Secure Student is designed to help young adults create lasting positive habits with credit and money before they leave home:

Our program features interactive online classes with quizzes and games, an online community, and most importantly, our habit building exercises…These exercises are key to our program and immerse the kids in activities so that they retain the information and build the habits they need to succeed, making sure that kids actually learn the importance of credit and money through application.

The core curriculum seems to be built on the same concepts we discuss here at Get Rich Slowly: good credit habits, conscious spending, and an awareness of advertising and marketing. The program even draws some of its content from Your Money or Your Life, one of my favorite personal finance books.

The site offers several free resources:

The Secure Student orientation video provides an overview of the course curriculum.
The Secure Student blog features information about funding and preparing for college.
The Secret Guide to Understanding Your Credit Rating [PDF], a detailed guide to how credit scores work. (This info isn’t just for young adults!)

The Secure Student program comprises 40 lessons, most of which are six to seven minutes long. The first lesson is available free online, and you can obtain two more lessons by providing your e-mail address. But the complete course costs $297. Is this cost worth it? I’m not sure.

I’m a strong supporter for financial literacy, and I applaud the aims of The Secure Student, but I worry that $297 is a steep barrier to entry, especially for the families that might profit most from the information. (I’m thinking of myself here — my parents could not have afforded $297 for a program like this when I was in high school, and yet I desperately needed it.)

There’s a $200 “graduation package” — which apparently contains gift cards to youth-oriented retailers — once a student completes the course, which seems to imply that the net cost for The Secure Student is only $97. But I’d rather see a $97 course with no graduation package.

Would you spend $297 to enroll your children in a financial literacy course? If not, do you have other plans to help them develop sound money habits? Has anyone in your family used The Secure Student or anything like it?

—
Related Articles at Get Rich Slowly:

Baskin Robbins 31 Cent Scoops TONIGHT, 4/29

I scream, you scream

“The only emperor is the emperor of ice-cream.”

-Wallace Stevens, a fan of 31 cent scoop night

Do phrases like “tight economic times” and “we’re in a tough recession” give you the willies? Do “recession-busting” deals make you want to dive under the covers and read copies of Popular Mechanics or Sassy?

No? Good. Otherwise I’d start worrying about you. Because honestly, who can turn down a good deal, recession or not? Installment loans and short term loans are good that way. But if that deal includes Baskin Robbins ice cream on Baskin Robbins 31 cent scoop night, wouldn’t you listen? Wouldn’t your mouth water? Provided your aren’t lactose intolerant, you would lick down into that delicious icy palace of creamy-good flavors. Admit it. You can’t resist. Neither can the spare change in your seat cushions.

31 flavors, 31 cents

Nathan Olivarez-Giles blogs for the Los Angeles Times that Baskin-Robbins, known for their “31 flavors,” is dropping per-scoop prices to 31 cents tonight, April 29. The occasion - aside from fighting back the recession with smiling faces - is to honor firefighters for the amazing work they have done saving lives, the security they bring us and our homes and the hope future hook and ladder stalwarts will bring to society. ... click here to read the rest of the article titled "Baskin Robbins 31 Cent Scoops TON IGHT, 4/29"

A Little Post on Leverage

The media seems to categorize the use of leverage with some sort of evil deed but whether it’s a corporation or individual, leverage is part of our lives like turkey is for Thanksgiving. It’s not necessary, but having it benefits everyone. Like so many products that some dislike (credit cards come to mind as another example), don’t always blame the arrow when you miss the target.

Good Use of Leverage

Instead, use leverage wisely and you might just come out ahead. Below are a few areas where good use of leverage can propel us into the road of success and prosperity.

Buy a Home - Mortgages are the most commonly talked about form of leverage. You will be hard pressed to find any first time home buyers who can pay all cash for their first house, so using your down payment as leverage is actually not a bad idea as long as you don’t over stretch yourself and buy a property that you cannot comfortably afford.
Our Power as Customers to Get Better Treatment - The customer is always right, or at least so they say. Never ever take advantage of someone else but demand to be treated appropriately or just take your business somewhere else. Always make sure everyone in the relationship know that you are the decision maker in the transaction and you will be happier every time.
The Competition - This is the heart of comparison shopping. Remember those advices that tell you to use a quote from another company to start a bidding war? It really works!
Your Expertise - You already know what you learned so why not teach someone else and earn a side income? How about offering a service part time? For example, Peter from Bible Money Matters uses his design talents to help design logos for others. Follow him and earn some money on your own too.
The Internet - We already have access to it everyday so why not leverage that access to save more money? Coupon sites give great deals and Google is an awesome place to find out what other people think about different products.
Your Time - Just because something takes time doesn’t mean it can’t be beneficial. To-Do Lists and planning are all ways to leverage your time to free up more time.
Services - Can you leverage your cell phone and turn it into the only phone service you have? Since you have Internet and so many shows are available online, could you cancel your TV subscription?
Lack of Total Transparency - When I was in an elevator during my visit to China, I saw a little TV that showed ads the whole time. I thought it was a brilliant idea but what my friend told me was even more interesting. Apparently, the company that made them started out by leveraging the lack of communication between advertisers and building owners. On one hand, they told advertisers that they have all these locations and buildings lined up that want to install the TVs. On the other, they told the building owners that advertisers are already lined up to have ads displayed. They got around the “chicken or the egg first” problem without actually trying to answer the question.
Your Assets - Think about subletting a room out to supplement your income. You may even be able to rent out your huge DVD collection. Don’t let the last word of this post stop your imagination.

Leverage Can be Bad Too

The minute you abuse anything is when disaster usually starts. Here are some uses of leverage that you absolutely need to avoid.

Our Power as a Supervisor - Overworking your employees just because they need the paycheck is not a good use of leveraging the situation. Gain respect by first respecting others and understand their needs because everyone is more productive long term.
Needy Customers - In fact, customers are not always correct. Just because you are the decision maker doesn’t mean you can do whatever you want. Again, show respect.
Excessive Risk - Whether it’s buying too much house or borrowing money to speculate on stocks, don’t risk too much or else you may lose everything.

Leverage can work in your favor or it could destroy you. The outcome is up to you.

—
Related Articles at Personal Finance Blog by Money Ning:

Read more of A Little Post on Leverage…

Tuesday, April 28, 2009

Daily Links: Taxes and Gold Edition

Part of the fun of Get Rich Slowly is writing about a variety of topics, basic and advanced. Though I’m an advocate of financial literacy, I’m not certain that I want to devote the entire month of April to it in the future. Instead, I’ll focus on financial literacy week perhaps, as well as sharing general information on the subject throughout the year. Just two days left and we’re back to a regular schedule around here.

Meanwhile, here are some interesting pieces from elsewhere on the web:

First up, a couple of readers pointed me to the financial planning toolkit, a free resource from CCH. This site has a financial planning guide, some financial calculators, and a variety of financial tools.

At Slate, Jennifer Reese wonders how cost effective is it to make homemade pantry staples? “Although I love to cook, I’ve always secretly, darkly, suspected it is costlier to craft at home what you can buy at [the supermarket].” She comes to the same conclusion that many GRS readers have: it’s not always cheaper to make things at home, though that’s often the case. But generally the quality is much better!

Every so often, I get e-mail from somebody who is eager to tell me the good news: there’s no law that says we have to pay income tax in the United States! While it might be nice to think so, it’s just not true. For more information, check out this great tax-protestor FAQ from Daniel B. Evans. It counters dozens of fallacious arguments. It’s your right to be upset at your income tax burden — just don’t try to pretend there are no laws that say you must pay.

Finally, here’s a story from Sweden about an eccentric man who turned empty cans into gold. Curt Degerman collected tin cans for the deposit money, visited the library to read about investing, and used these resources to build a fortune of over a million dollars — some of it in actual bars of gold!

—
Related Articles at Get Rich Slowly:

Thursday, April 30, 2009

Credit Cardholders’ Bill of Rights Timeline

Credit Cardholders’ Bill of Rights Details

Cash Advances are quick

Why not banks?

The condition of U.S. banks

Cash Advances are quick

Why not banks?

The condition of U.S. banks

The internet has made the world different

The world is about change

A world without Pontiac will be different

Collateral damage

Unsecured loans can really help

Must I have collateral?

Why people apply for unsecured loans

Celebrate with Carvel

Where is Carvel?

Free stuff

Down goes Chrysler

Average taxpayers may get nothing

Phishers steal personal information

Phishers keep changing lure

Could be harmless — or not

What to watch for

Phishers steal personal information

Phishers keep changing lure

Could be harmless — or not

What to watch for

Wednesday, April 29, 2009

Bank CEO was protested

Thou doth not protest enough

Root of the controversy

I scream, you scream

31 flavors, 31 cents

Good Use of Leverage

Leverage Can be Bad Too

Tuesday, April 28, 2009

Blog Archive

About Me