Online payday advance lender busted for Ponzi scheme in Utah

Two online pay day loans businesses owned by the exact same person have been hit with a fraud suit. The suit was brought in federal court by the Securities and Exchange Commission. John Scott Clark, of Utah, is being sued by the Securities and Exchange Commission for allegedly running a Ponzi scheme with two online financial services businesses. Clark is alleged to have stolen $47 million from more than 120 investors.

Online lending businesses deal with Securities and Exchange Commission fraud suit

The Securities and Exchange Commission sued the owner of two lending online payday cash advance companies for a Ponzi scheme costing millions of dollars. Impact Cash LLC and Impact Payment Systems LLC are both businesses John Scott Clark owned and were preparing on investing capital into with money given to him by over 120 investors over a five year period. This got the Securities and Exchange Commission angry and started a lawsuit. Clark allegedly recruited investors by promising an average return of 80 percent in exchange for capital, which he allegedly said would be used to fund payday loans to reliable consumers. From March 2006 to September 2010, Clark recruited investors and got over $47 million, reports the Credit Union Times, in investment.

Using investor money to get Clark a Mercedes

Clark lived the lifestyle he wanted off the money he stole from investors. Deseret News states that Clark simply needed to gain the trust of investors. Clark supposedly purchased three Mercedes-Benz cars, a 1963 Chevrolet Corvette, installed a home theater system in his home that cost $25,000 and also purchased lavish home furnishings. Clark refused to give investors their money when they started to get suspicious in 2009 that something was wrong. Clark got a lawsuit with five Securities Act violations by the SEC. A Federal judge has placed both Impact businesses into receivership and frozen the very same day loans lending companies, according to the Wall Street Journal.

A tiny mistake from one person

A lot of people have a bad connotation of online payday loan lenders. They are considered evil. This cannot possibly be true. Nobody reports honest transactions though. The individuals you give money to have to be trusted. Be careful over it. This is where the Better Business Bureau comes in. It is there to help consumers. Generally, it’s too good to be true if it sounds that way.

Citations

Salt Lake Tribune

sltrib.com/sltrib/money/51503972-79/investors-clark-complaint-payday.html.csp

Wall Street Journal

online.wsj.com/article/BT-CO-20110328-710072.html

Deseret News

deseretnews.com/article/705369480/Cache-County-man-allegedly-bilked-investors-of-millions-to-feed-lavish-lifestyle.html

Credit Union Times

cutimes.com/2011/03/28/sec-halts-47-million-payday-loan-ponzi

State of Minnesota finishes program to make mortgages Sharia-compliant

In Minnesota, mortgages targeted to increase home ownership have been ended. Pawlenty ended the program upon learning the program was compliant with Sharia law. The mortgage program was shut down by the Governor after providing three mortgages. Pawlenty cited religious freedom as the reason for shutting down this Sharia-compliant mortgage program. Post resource – Sharia-compliant mortgage program in Minnesota ends by MoneyBlogNewz.

Minnesota avoiding paying interest

A loan program was developed for Sharia law for low- to moderate-income families by Minnesota's state housing agency and the African Development Center in 2010. The borrower doesn't have to pay interest, which is against their religion, when getting the "Islamic mortgages" or "Sharia mortgages" as many call them. The borrower would pay the state for the home at a higher rate than the state would purchase the home. The payments are the exact same as a 30-year fixed rate mortgage, however the payments do not include interest to the bank. There was a larger program that this program came from. This larger program wanted to increase home ownership among minority groups.

Sharia loan program won't last long if Governor Pawlenty has anything to say about this

Upon finding out about the details of the Sharia loan program in his state, Gov. Pawlenty ordered it shut down. This decision had many asking questions. Pawlenty's spokesperson said:

“This program was independently set up by the Minnesota state housing agency and did not make any mention of Sharia Law on its face, but was later described as accommodating it,” he wrote in an email. “As soon as Gov. Pawlenty became aware of the issue, he personally ordered it shut it down. The United States should be governed by the U.S. Constitution, not religious laws.”

The way a government uses tax dollars is one the government gets to decide. In this case, the governor has not outlawed all Sharia-compliant financial goods in his state. State supported programs that support it are not allowed though.

The question of Sharia law

When it comes to conflicts between Muslims, a recent Florida court judge ruled that Sharia law can be used for disputes. This makes lawmakers worried. It’s a huge concern. The Sharia law is one that many states are considering banning. Some people against this support of the law feel like the "silent jihad" makes its way to the U.S. through this. Christian, Sharia and Jewish laws are all observed in the U.S.. As long as the state and federal law are not being violated, it is recognized. As long as religion is not being imposed on someone, observing it’s not against the Constitution. Pawlenty himself said, "The Constitution was intended to protect people of faith from government, not to protect government from people of faith." In the case of the Sharia-compliant mortgages, it appears that Pawlenty doesn’t want his state taxpayer dollars used to offer home ownership to religiously compliant Islamic residents.

Information from

Swamp Land

swampland.blogs.time.com/2011/03/25/is-there-a-double-standard-in-tim-pawlentys-disavowal-of-sharia-compliant-mortgages/

Minnesota Public Radio

minnesota.publicradio.org/display/web/2009/02/28/islamicfinancing/?refid=0

Rise in national vacancy rate not worth panicking over

The national vacancy rate is estimated to have reached 13 percent. Since that figure does not reflect how several of those houses are the; second, third or fifty-seventh home owned by the wealthy, that figure is incredibly misleading. The housing market is certainly down, but not entirely out.

Wealthy buying fewer homes in vacation hot spots

The media report numerous economic indicators, and statistics regarding real estate can cause a sense of doom on the horizon concerning the housing market. For instance, CNN recently published an article that said up to 13 percent of homes sit empty in The United States. That is a misleading statistic; CNN points out that many of the vacancies are in areas like Maine, Arizona and Florida — popular places for vacation homes. There was an increase in the last four years in vacancies from 12.1 percent to 13 percent. That is less than a 1 percent increase.

You will find more pending sales

Pending sales, homes that are being officially in the process of being sold, increased by 2.1 percent over February, according to Bloomberg. In the last few months, the number of homes selling went down. The cold conditions caused this. The housing market is not doing also still considering pending sales for February 2011 were 8.2 percent lower than they were in February 2010. Reuters reports that National Realtor's Association's chief economist Lawrence Yun believes that in 2011, older homes will sell faster than new homes meaning an increase in existing homes sales. The costs of new homes are much higher than the prices of old homes. This is how the market is right now.

Could there be a second crash?

When it comes to housing market news, the ides of a second crash is one that keeps coming back. The reality is that sales are slow, houses aren’t worth as much as they used to be, and banks may be less willing to lend. While loan providers continue to worry about lending in this economy, you will find also fewer people willing to purchase houses keeping prices low. More than likely, the individuals buying homes now will get good news. More good news shows that people who own now may have their home costs go up in the next few years also.

Citations

CNN

money.cnn.com/2011/03/28/real_estate/us_housing_vacancy_rates/index.htm?hpt=T2

Bloomberg

bloomberg.com/news/2011-03-28/pending-sales-of-u-s-existing-homes-unexpectedly-climbed-2-1-in-february.html

Reuters

reuters.com/article/2011/03/28/us-usa-economy-housing-idUSTRE72F3XG20110328

Internet news paywalls and how to keep away from them

Online news paywalls are on the way, and your information addiction may be in jeopardy. Without information, you can wind up choking in the digital dust. However don’t worry. A little misdirection and a handful of mobile apps can bring you the news for free or a very low price. Source of article – Money-saving ways to avoid online news subscription paywalls by MoneyBlogNewz.

Everything you need from news at Google

Google News links to news web sites across the Web. It’s easier to get news. It’s available every day. It’s really easy to access too with a very clear format that has local news and top news categories.

Apple app store has newspaper apps

Newspapers are an app at the Apple App Store that you pay $1.99 for in order to get links to all online newspaper web sites. You can use your iPod, iPad, iPhone or Safari to read articles. You are able to download stories and read them later. Instapaper is an example of an app to do this with.

RSS Reeder available

RSS feeds are a great way to keep up with the news that’s essential to you, and Reeder does it the clean and simple way. The iOS app is newspaper style and makes it easier to read with reformatting. Download the app for pretty cheap. You only have to pay $2.99.

There's Zite too

The free iPad app Zite acts as a kind of "personalized magazine," states Business Insider. News will be recommended to you. The Google Reader and Twitter accounts could be accessed to do this. However, simply picking articles to read from within the app can also drive your customization experience.

Don't pay for Associated Press and CNN apps

Mobile apps by the Associated Press and CNN are great iOS and Android possibilities for world, national and local news. Users of the AP app can even choose their favored local and national broadcasters and follow their stories in print and video. there are great videos accessible in the CNN app. It also has an iReport feature that lets users submit photos of news events.

How to get free access to NYT and The Daily

Users on Twitter have had access to NYT Twitter feeds. They can create a list for this. Clicking the links via Twitter or blog postings do not count toward the 20 articles per month limit the Times has imposed, so this amounts to free access. The Daily: Indexed, is a blog that the exact same thing happens with The Daily.

MediaMemo's Peter Kafka explained that there can be a limit of five referrals per day that are free from Google for NYT. This very same limit may not apply to Bing or other search engines.

The Times just blocked Google. Why is that? Because users could simply Google an article headline and get into the article without going through the front door, so to speak.

Information from

AP

ap.org/mobile/

Business Insider

businessinsider.com/how-to-get-around-paywalls-2011-3

CNN

cnn.com/mobile/iphone/

The Daily Index

thedailyindexed.tumblr.com/

What to expect with the NYT paywall

youtube.com/watch?v=jOkvPOY3VKU

Banks will cut debit card benefits next

The nation’s largest banks have been cutting customer benefits. Next on the chopping block are debt card rewards. Debit card benefits will cease entirely in July at JP Morgan Chase, after not any longer offering enrollment in the program in Feb. banks have been scaling back on consumer benefits and upping fees, as the potential loss of revenue from interchange fees is looming over the banking industry. Source of article – Debit card rewards next on the chopping block at large banks by MoneyBlogNewz.

Banks contend they’ll be brought low with interchange fee cap

The biggest banks are stopping many customer rewards for instance free checking due to the possible interchange fees cap which would stop the fees a financial institution can charge for payment transitions on debit purchases. More than likely, debit card rewards won't last long. This is the next casualty Bloomberg predicts will occur. Leading the charge in cutting back on rewards for customers is Chase, which stopped offering enrollment into the debit card rewards program to new customers in Feb.. Chase will stop offering rewards altogether on July 19, though any reward points that have been accrued by that point will still be honored. Consumers may eventually need same day loans to use their own money.

Bigger fees to pay at ATMs

MSNBC reports that raising fees for ATMs is another thing that banks are doing because of reform law changes. Chase, the second largest bank in America, is currently testing $4 and $5 fees for consumers who use Chase machines that aren't Chase customers. The program is testing $4 fees in Texas and $5 fees in Illinois. All other states will retain the $3 fee for non-Chase consumers, which are above the $2.33 national average. The fee Chase has for consumers at non-customer ATMs is $1.41 above the national average. This $2 fee will stay the same. In the nation, the second largest ATM network belongs to Chase. TD Bank and Citi bank are following suit, and Wells Fargo and Bank of America are likely to not be far behind. The idea of Chase, Bank of America and Wells Fargo having to run for installment loans because legislation prevents them from gouging customers is not likely to cause many people discomfort, but there is a catch.

Issue occurs also for credit unions

Forbes explained that interchange fees are charged by all banks, whether they’re for-profit or not. This is why the Durbin Amendment to the Dodd Frank Act is opposed by credit union trade groups like the National Association of Federal Credit Unions. For-profit banks can manage a huge drop in revenue much better than community banks and credit unions. This change would go from the average of 44 cents per transaction with the Federal Reserve proposal to a maximum of 12 cents per transaction. The House of Representatives and Senate can be looking at the bills soon while the Durbin Amendment wouldn't be able to happen for two years to study what would occur.

Information from

Bloomberg

bloomberg.com/news/2011-03-21/jpmorgan-will-cease-debit-card-rewards-program-because-of-proposed-fee-cap.html

MSNBC

msnbc.msn.com/id/42130464/ns/business-your_retirement/

Forbes

blogs.forbes.com/moneybuilder/2011/03/03/the-durbin-amendments-effect-on-credit-unions/

Movies could be viewed live on Facebook with new program

Facebook and Warner Bros. are teaming up to offer a live electronic digital film rental service. Facebook Movies only contains a few choices for viewing at the moment. If the plans go well, Warner Bros can be expanding their offerings. Following this information, Netflix stock fell, and buzzes about Facebook Credits increased. Source of article – Facebook Movies streams films directly with Facebook Credits by MoneyBlogNewz.

Screening electronic digital leases on Facebook

There’s a new Warner Bros. Facebook page features available. It is possible to rent and stream movies on Facebook. Users have this ability now. This choice is presently available for just a few films, including “The Dark Knight.” About $3 is what is paid for a 48 hour rental with 30 Facebook credits. This option is only available on a test basis to about 30 percent of United States Facebook users.

Netflix stock falls on Facebook Movies news

The information of Facebook Movies has already had an effect on the online rental business. Shares went down three percent for Netflix after the announcement. This was just in the first hour though. Netflix currently accounts for about 20 percent of all online traffic. In December of 2010, a report found that Facebook accounted for almost 10 percent of online traffic to video-sharing websites. When you combine the traffic of Facebook with in-line video sharing, Netflix could be facing its first real competition — depending on the content that is eventually made available.

The question of Facebook Credits

Facebook's system of payment that will soon be necessary may have Facebook Movies being the first non-game application to use it. Right now, $1 is paid for 10 Facebook credits with Facebook Credits. There is no assurance, however, that Facebook Credits will remain a monetary program tied exclusively to the value of the dollar. Facebook is able to increase income by changing the conversion rate very simply with its own monetary program. Facebook could effortlessly change to nine Facebook credits per dollar instead. This would lead to 1.1 cents per credit purchased instead for Facebook. Just a tiny increase like this could make a huge difference for the business. This small increase is multiplied by billions for elevated earnings.

Articles cited

Tech Crunch

techcrunch.com/2010/12/23/facebook-second-largest-source-videos/

Slate

slate.com/id/2273314/

Forbes

blogs.forbes.com/parmyolson/2011/03/08/now-you-can-rent-and-stream-movies-on-facebook/?partner=yahootix

Bloomberg

bloomberg.com/news/2011-03-08/netflix-falls-as-warner-bros-starts-offering-movies-on-facebook.html

A summary of many frequently unnoticed tax deductions

It’s not hard to overlook tax deductions buried deep within the thicket of the United States tax code. Most taxpayers think they pay too much in taxes. However most of them might be making things worse by overlooking tax deductions. But you don’t have to spend hundreds of dollars on a CPA to find a lot of tax deductible expenses.

The incredible value of tax deductions

About 46 million U.S. working class individuals who choose to itemize their tax deductions prevent nearly $1 trillion dollars from falling to the hands of the government. About 85 million working class individuals use standard deductions to protect another $700 billion. Many people who use standard write-offs are probably cheating themselves out of money that’s there for the taking in the U.S. tax code. Tax write-offs like mortgage interest, student loan interest, real estate property taxes and sales tax are used normally and regularly. Still, these individuals may be missing out on other deductions.

Tax write-offs inside your career

Many people do not realize there’s a tax break for any expenses caused when looking for a job. The U.S. job market has been terrible recently meaning several people are missing this tax break. With an itemized deduction greater than 2 percent of total adjusted gross income, this can be put in itemized taxes. Any job hunting expenses could be deducted. This is only allowed if the job search is in the very same industry as the previous job. Job hunting expenses cannot be deducted when it is for a first time job. However, any moving expenditures, including 14.5 cents per mile, could be deducted as long as the person is moving over 50 miles for the job. A $2,500 college tuition tax credit is claimed for any person going back to school so that a career change could be made. While a tax break lowers taxable income, a tax credit lowers the taxes owed. A tuition tax credit is given to any single working class individuals making less than $80,000 or married working class ! individuals making less than $160,000.

Some people don't notice deductions

You will find tax deductions that get unnoticed. This contains write-offs for home and family. Are you taking care of elderly parents? As an American, that can mean a huge tax break to consider. If they provide more than half their parent’s financial support and that assistance costs them more than 7.5 percent of adjusted gross income, they qualify for a dependent parent deduction. There have been a lot of U.S. automaker incentives for buying a new car. In 2010, buying a new automobile means you are able to deduct the sales tax, even in case you are not doing an itemized deduction, as long as you made under $135,000. Taxpayers that made energy efficient improvements in their home can get green energy tax credits up to $1,500. Finally, don’t overlook the Making Work Pay tax credit. The 2010 tax year is the last chance to take advantage of the Making Work Pay tax credit. A Schedule M along with the 1040 form will mean singles can take $400 and married couples! can take $800 off of their taxes with the tax credit, which some employers do on their own.

Citations

MSN Money

articles.moneycentral.msn.com/Taxes/CutYourTaxes/the-19-most-overlooked-tax-deductions.aspx?page=2

U.S. News and World Report

news.yahoo.com/s/usnews/20110217/ts_usnews/10hiddentaxdeductionsexposed

ABC News

abcnews.go.com/Business/irs-taxes-2010-tax-credits-deductions-save-money/story?id=12908788&page=2

Google algorithm modification has profound impact on web publishing

The Google algorithm modification on Feb. 25 had an immediate and significant impact on the internet publishing industry. Every aspect of the online publishing industry was affected. For better or worse, jobs, share prices, income and traffic volume for content companies changed along with the algorithm. About $1 billion in annual revenues in among content providers could possibly be redistributed by Google’s algorithm modification, which was made to give high quality content a far better chance of being found. Article source – Google algorithm change has profound impact on web publishing by MoneyBlogNewz.

Better content required from Google

Google’s search quality has not been that good in the past year with all the content material available on the internet. Lots of people have told Google lately to do something about this. The search quality needs to be better. As soon as Google made this quick algorithm change, the content material farms got published and in-depth reports that have analysis in them were rewarded just as Google planned them to. Traffic and income surged for sites with original quality content. This was bad news for some websites though. Any sites there to get traffic in by luring in individuals ended up losing. Google reports that 11.8 percent of search queries were noticeably changed due to this. The 12 million Google searches in Jan were what comScore used as a web marketing research business to determine how the algorithm modification would impact searches. It said 1.4 billion searches this month would be affected by this.

Not helping content farms at all

There was a 5 to 50 percent increase in traffic to the Internet Publishers Association's site a day after Google's algorithm change. According to web metrics firm Sistrix, content material farms specializing in so-called “click bait” took a huge hit. Yahoo's Association Content, Ezinearticles.com, Wisegeek.com and Mahalo.com are all websites that got hit. There was a drop in traffic of over 75 percent at these websites. Ten percent of Mahalo.com workers were terminated. This is what it did last week because of this modification. Demand Media, widely criticized as a content farm, was apparently saved by a mix of quality and click bait. The Google algorithm modification actually ended up helping Demand Media even though the eHow.com stock that just had a $1.7 billion IPO went down. Other Demand Media online websites such as AnswerBag.com and Trails.com suffered.

Traffic hits on Google

Google’s algorithm modification rocked the internet publishing industry as the top listing on a search engine results page can expect to harvest 20 percent to 30 percent of the traffic. When second and 3rd, that amount is even less. It’s closer to between 5 and 10 percent of traffic. Outcomes on the page other than that get almost nothing. It is at about 1 percent. It’s harmful to a business to get to the second page. It gets hardly any hits. Google algorithms now tend to follow the Personal Blocklist on its Chrome browser. This allows users to block any web sites that seem offensive to them. About 84 percent of Chrome user block list sites were demoted due to the algorithm modification even though Google does not use the Personal Blocklist data.

Information from

CNN

money.cnn.com/2011/03/08/technology/google_algorithm_change/index.htm

CNN Money

money.cnn.com/2011/03/08/technology/google_algorithm_change/index.htm” target=”_blank

Adweek

adweek.com/aw/content_display/news/e3i0fcd39a826b5c1cd3b13fba6c2a9dfba” target=”_blank

International Business Times

ibtimes.com/articles/116434/20110225/demand-media-google-algorithms-content-farms.htm

Sistrix

sistrix.com/blog/985-google-farmer-update-quest-for-quality.html

Google blog

googleblog.blogspot.com/2011/02/finding-more-high-quality-sites-in.html

Rising energy prices causing airline fare increases

Standard costs of airfare tickets have gone up. This is the sixth time airlines have increased their costs since January. This particular increase in fares is unusual because Southwest was included. Southwest is typically the holdout on these fare increases. The rise is being blamed on rising oil prices.

The rising price of an airfare ticket

There was a $60 boost this year in the average airline ticket costs, in accordance with airline industry reports. Now, a ticket that would have cost $200 on Jan 1, 2011 will cost $260. When it comes to increases in price though, not all airlines had these increases. Unless all airlines raise costs, the increases usually go back down. This latest $10 increase, however, was followed by Southwest Airlines, traditionally a holdout.

Fuel costs for low-cost airlines

Southwest Airlines are one of several low-cost airline carriers in the United States. Traditionally, Southwest Airlines has avoided many of the fees and rate hikes that larger airlines have undertaken, in an effort to keep consumers. Other economy service providers will keep prices low too. This consists of JetBlue and AirTran. The lower profit margins aren't good all the time. There is more price volatility due to it. When the price of a barrel of oil goes up by $10 to $20, the airlines often raise their per-ticket price by a similar amount. The CEO of Southwest pointed out that Southwest will likely spend $1.3 billion on fuel in 2011, which is three times the total net income of Southwest last year.

Going everywhere costs a lot

As airlines are raising their fares, travel in the U.S. in general is getting more costly. There are not very many opportunities for individuals traveling long distances. Airlines are the most obvious. Driving is also a choice, though the rising cost of gasoline can often put the price of a long-distance trip relatively close to that of an airfare ticket. The rising oil costs are leaving even bus trips more expensive. Now, a train ticket would cost $150 that cost $50 in 2008 while there are not many opportunities for travel even though it is an option. High-speed rails are still more theory than practice.

Articles cited

WSBTV

wsbtv.com/news/27110644/detail.html

USA Today

travel.usatoday.com/flights/post/2011/03/another-day-another-fare-hike/146578/1

News OK

newsok.com/fuel-costs-force-southwest-to-add-10-to-ticket-cost/article/3546778

Low rates cause mortgage modification applications to surge

applications for mortgage modification have increased dramatically over the past few weeks. Market interest rates for mortgages have been falling, and individuals wisely feel it’s a good time to refinance instead of buy. Housing costs have increased in pockets, but since they’re declining, home sales have not risen very much as individuals are apprehensive in an unsure market. Resource for this article – Applications for mortgage modifications spike with low rates by MoneyBlogNewz.

Home loan activity increases with low rates of interest

Months of low interest rates have caused a spike in home loan activity, according to Bloomberg. During the week ending March 4, mortgage applications went up 15.5 percent which, since June 11, 2010, is the largest increase. This very same week last year was not as profitable. A 6.5 percent decrease was shown. The majority of the activity came from mortgage modifications applications which was 65.5 percent of the home loan applications which is up from the 64.9 percent the week before. The Mortgage Bankers Association does not make a difference between new home and existing home applications. Nevertheless, it reports that the purchase index went up 12.5 percent. The sale of existing homes makes up about 90 percent of all home sales.

Dropping home prices still

Home prices have declined 31 percent since costs peaked in July 2006, and there is rampant speculation that a double dip in real estate is possible. One of the leading proponents of the idea that a double dip is pending is Robert Shiller, co-founder of the Case-Shiller Index, according to CNN. Shiller believes home costs will continue to fall, and the truth that home sales dropped during January 2011 certainly means it is possible. Unfortunately for most middle class prospective home buyers, taking advantage of lower prices is going to become more difficult over the next few years as financing standards are about to change.

Will the 30 year home loan last?

There has been concern shown in the government recently. It wants Freddie Mac and Fannie Mae out. Fannie and Freddie create capital for lenders by purchasing mortgages and selling them to investors, keeping the home loan industry flush with cash for new loans. Should the mortgage houses be done away with, the 30-year fixed mortgage might go with them, according to the NY Times. It is very risky to lend a 30 year loan with fixed interest since the future can hold several things. Staying in a home for 30 years and paying down a loan is something individuals rarely do. Loan providers are likely to be more interested in changing interest with the industry soon. That means adjustable rate mortgages will likely become what is normal in the next 10 or 20 years. Bigger down payments and higher interest rates will probably occur. This is just part of the changing industry.

Articles cited

Bloomberg

bloomberg.com/news/2011-03-09/mortgage-applications-in-u-s-rise-16-biggest-gain-since-june.html

Mortgage Bankers Association

mbaa.org/NewsandMedia/PressCenter/75923.htm

CNN

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

New York Times

nytimes.com/2011/03/04/business/04housing.html?pagewanted=1&_r=1

Walmart of weed, weGrow, preparing multi-state business

The California “Walmart of weed,” weGrow, is planning on opening a second site. Cannabis isn’t sold in the stores. In fact, weGrow tends to shy from any mention of marijuana. The so-called "Walmart of weed" offers hydroponic supplies, growing classes and other gardening assistance.

All about the Walmart of weed

Hydroponic growing is something that WeGrow shops are for after starting in Sacramento as iGrow. "Walmart of Weed" is a phrase the shops do not refer to themselves as. In fact, the shops do not ever refer to weed directly either since it’s a federal crime to grow marijuana. Medical cannabis patients are targeted in the 10,000 square foot facility. There are courses on hydroponic growing offered along with other merchandise for instance fertilizers and equipment.

Areas added for weGrow

The business hopes to become well-known nationwide soon after the first step in California for weGrow stores. Any states with medical weed laws — Oregon, New Jersey, Colorado, Arizona and California — will hopefully be getting shops there soon. The "Walmart of Weed" doesn't actually sell any medical weed which is left to the independent dispensaries to do. The established stores are there and ready for when cannabis becomes legalized. They’ll then sell the stuff themselves. There will be franchised shops instead of company owned shops. Really, this ought to help stop some of the legal troubles that might appear.

The challenging legal position of cannabis

The United States is having difficulty with medical cannabis right now. It’s in a hard spot. Even though the federal government isn't doing much about this, cannabis is still a Schedule 1 illegal drug. This means weed seems on the very same list as heroin, GHB, ecstasy, peyote and other addictive narcotics that the federal government heavily regulates. Despite this, several states have passed laws that allow legal medical weed use. This means that medical marijuana exists in a gray area, where states receive sales taxes and license business activities that federal agents could jail business owners for. This is part of the reason weGrow offers only hydroponic and other growing equipment.

Information from

Seattle Times

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

The brand new mayor in town for Chicago is Rahm Emanuel

The Chicago mayor political election outcomes are in. Voters have spoken, and Rahm Emanuel has been elected mayor of Chicago. Emanuel left his post as the fiery White House Chief of Staff in the Obama White House to run for the post. His candidacy was challenged legally, but he overcame those hurdles. He will take over in May, when he is inaugurated.

The majority of votes go to Emanuel

A second runoff election was expected to be needed in the Chicago mayoral election. This would be because over 50 percent of votes wouldn't be received by candidates. In some areas, for instance Chicago, a two-round voting system is implemented in the case that no candidate receives more than 50 percent of votes. Emanuel did not have to have a runoff to become mayor considering he got 55 percent of Chicago election votes, the Christian Science Monitor reports. Gery Chico, who is the previous Chief of Staff for Mayor Richard Daley who’s leaving, was the closes to Rahm Emanuel in votes. Chico's votes were low too though. Only 24 percent voted for him.

The legality of it all

In becoming the 55th Chicago mayor, Rahm Emanuel had legal challenges that blocked him. Since he was Chief of Staff for the Obama White House and didn't really live in Chicago, the candidacy was challenged in court that said he really was a resident of Washington, D.C., according to the Washington Post. However, a series of appeals that went to the Illinois Supreme Court, which found in favor of Emanuel. There were six candidates running against him. He won, clearly.

Emanuel replaces Chicago tale

The mayor that Emanuel is replacing has been Chicago Mayor since 1989, CBS reports. That is Mayor Richard M. Daley. Emanuel faces a budget deficit of $655 million and rising crime rates. In his first month in office, he promised to cut $75 million while adding 1,000 police officers to the City of Chicago.

Citations

Christian Science Monitor

csmonitor.com/USA/Elections/2011/0223/Chicago-election-results-catapult-Rahm-Emanuel-into-mayor-s-office/%28page%29/2

Washington Post

washingtonpost.com/wp-dyn/content/story/2011/02/22/ST2011022207071.html?sid=ST2011022207071

CBS News

cbsnews.com/8301-503544_162-20035263-503544.html

Bank of America offering more checking account options

B of A has unveiled a pilot program for consumers with checking accounts. The bank is offering more types of checking accounts, giving customers greater control over the structure of the account they hold at the bank. The bank is offering new consumers in select areas choices between checking accounts with various structures of bank fees. Bank fees have been on the rise with large national banks for instance Bank of America.

Customers can pick banking fees with new program

A new pilot program by Bank of America allows customers to select from several different checking account plans; this allows greater choice regarding which account fees they prefer to potentially face, in accordance with ABC. New checking account programs have been started by Bank of America, JP Morgan Chase, Wells Fargo and others because of the huge amount of criticism for fees that large banks have been given. The new Bank of America bank account programs are being offered in Georgia, Arizona and Massachusetts.

Fees depend on account

Bank of America is offering five checking account choices, and fees range from $6 to $25 per month. The account types include:

• Essentials: Get a checking account with a debit care. The monthly account fee is $8.95, however the fee is waived if a consumer receives monthly direct deposits or maintains a minimum account balance of $1,500.
• e-Banking: This is simple checking also. However, consumers can waive most fees altogether by banking entirely online or through an ATM and electing to receive electronic statements instead of paper. You will find nevertheless fees. These include non-sufficient funds, ATM and overdraft fees.

Account choices with greater amenities are geared toward wealthier account holders.

• Enhanced: As long as a customer has either $2,000 in one account or $5,000 with connected accounts, then all account fees are waived. 2 connected checking and 2 savings or money sector accounts are offered with the Enhanced account. Enhanced account holders may also have fees waived with monthly use of connected credit cards.
• Premium: Getting fees waived works with this one also. All you’ve to do is have $20,000 in Merill Lynch investment accounts, a mortgage with Bank of America or in connected accounts. You will find free services that this account offers. This includes free money orders and cashier's checks.
• Platinum Privileges: Consumers must have a minimum account balance of $50,000 to be able to be eligible for these perks: One of these is just personalized consumer service, which several love. Others include money sector accounts, a Privileges charge card and mortgages with special rates.

Rising bank fees

Banks have been required to stop deceptive fees. This has caused fees to skyrocket in all banks. You will find many things being done by the large banks, for instance Bank of America, Wells Fargo and Chase, to make up for what they lost with the Dodd-Frank Act. This Act stopped practices for instance signing consumers up for costly programs without notification.

Citations

ABC News

abcnews.go.com/Business/wireStory?id=12550430&page=1

Charge card delinquencies and debts fall in 2010

Fewer charge card delinquencies are being reported, and the level of charge card debt is declining as well. Credit bureau TransUnion is reporting that not only are people paying their cards off, they’re also applying for more as newly issued cards increased. It is a good sign. Individuals are paying off their cards even after a holiday purchasing spree.

Consumers get out of debt in 2010

During the last three months of 2010, the number of delinquencies for credit cards declined considerably, according to ABC. The rate of delinquency in the last three months of 2010 was at 0.82 percent which compares to the 1.21 percent that the last three months of 2009 showed. This was documented by TransUnion. A delinquency rate of .83 percent was documented for the 3rd quarter of 2010. Generally during the holidays the number of delinquencies goes up drastically; however, it seems that this year more people preferred to stay out of debt than to purchase a lot of presents.

Balances never stay the same

The charge card national average balance has changed also. It went down a bit. There was a drop of 8.6 percent from the third quarter of 2009 to the 3rd quarter of 2010 in the balance for all major charge card businesses. Including Visa, MasterCard, American Express and Discover, the average balance combined was at $4,965 in the last three quarters of 2010. In 33 states, the balance went up actually. There were highest account balances in three places. These were Washington D.C., Iowa and Mississippi.

More and more cards

There have been a lot of complaints from charge card companies the CARD Act makes it extremely hard for them to do business. Still, there have been more new charge cards than ever. There was a 19.1 percent increase in the last quarter of 2010 in the number of new charge cards given out. Since 2007, there has not been a time where the number of charge cards issued went up for two consecutive quarters. It just happened though which is a good sign.

Information from

ABC News

abcnews.go.com/Business/wireStory?id=12968324&page=1

Washington Post

washingtonpost.com/wp-dyn/content/article/2011/02/23/AR2011022306978.html

All Providence educators get pink slips after spending budget ordeal

At the conclusion of the current winter public school quarter, every one of the 1,926 educators in Providence, R.I., schools can be dismissed, states the Providence Journal. This would go a long way toward addressing the $ 40 million deficit for the district, but creates obvious staffing issues. The budget deadline for Providence schools is March 1.

Providence schools fired several before

Last year, Central Falls High School in the Providence area dismissed 88 teachers because students were not meeting standardized test score requirements. The scale of the Providence School Board's move is unknown currently. Superintendent of Providence Schools Tom Brady said the move is "precautionary action" because of the $40 million shortfall the 2011-2012 spending budgets are showing.

"Since the full extent of the potential cuts to the school budget have yet to be determined, issuing a dismissal letter to all teachers was necessary to give the mayor, the School Board and the district maximum flexibility to consider every cost savings option, including reductions in staff," said Brady.

Teachers unions not all happy

The belief that the Providence School Board’s blanket action might not actually dismiss all Providence educators offered little consolation to teachers’ union leadership.

"This is beyond insane," said Providence Teachers Union President Steve Smith. "Let's create the most chaos and the highest level of anxiety in a district where teachers are already under unbelievable stress. Now I know how the United States State Department felt on Dec. 7 , 1941," the day of the Pearl Harbor bombings.

Mayor Angel Taveras of Providence explained that decision was made that Providence educators would be fired based on the city finances and the March 1 deadline. It was a move that provided the school board and Providence city government with "maximum versatility," however minimum public sentiment.

Much worst student-teacher proportion

If the school district is committed to educating students, no matter what the budget problem is, Smith suggests it does not make any sense to fire Providence public school educators.

"You have so many students," he said. "You need so many teachers. You have a student-teacher ratio of 26 to 1. Do the math."

Citations

CNN

articles.cnn.com/2010-02-24/us/rhode.island.teachers_1_teachers-union-troubled-school-reading-specialists?_s=PM:US

Providence Journal

projo.com/news/content/providence_teacher_layoffs_02-23-11_MCML6R3_v17.1a1cc6d.html

‘Exciting times in Rhode Island public education’

youtube.com/watch?v=wOCJ2Jnu4KY