United States continues to be in growth recession

Are you buying the hype that we are out of the economic downturn? Do not get any ideas, suggests Investor’s Business Daily. Slow, inadequate growth is almost indiscernible from backsliding, which is a classic sign that a growth recession is still on.

The numbers about a growth recession

When economic growth is so low that it creates net unemployment, it is called a growth recession. Underachievement in job creation or very low growth is also Growth recession. A country’s gross domestic product is expanding at too slow of a rate with job contraction.

A few signs

Here are just a couple of the signs that a growth recession is here, writes Investor’s Business Daily:

• In May 2011, there were 38,000 private-sector jobs created according to ADP Payroll Services. That’s 100,000 short of the minimum goal economists had marked for economic growth.
• Employment consultant company Challenger, Gray & Christmas noted that 37,135 jobs were cut in May, a two percent increase from the previous month.
• In the first quarter of the year, there was a 4.2 percent decrease in U.S. housing costs.
• The Mortgage Bankers Association’s mortgage application index fell 4 percent in May’s final week.
• The Institute for Supply Management’s factory activity index – an indicator of United States manufacturing health – dropped from 60.4 in April to 53.5 in May, the lowest score on the index since September 2009.

Terrible economy continues

Getting unemployment back to normal is something that may not happen considering the United States gross domestic product growth. It was only at 2.7 percent in May. 2011’s borrowing by the U.S. government has hit $1.5 trillion already. It may never be possible to keep away from the double-dip recession with that debt on our shoulders.

Michael Pento is the Euro Pacific Capital senior economist who believes that economic health won’t return unless the U.S. changes things.

“Genuine government stimulus comes from low taxes, stable prices, reduced regulation and low debt,” said Pento. “Our economic policymakers have scrupulously avoided such remedies.”

Summer 2011 will smell of economic déjà vu , says The Indypendent. Federal spending is going down while spending cuts and tax increases are appearing in cities and states while the Federal Reserve is backpedaling. The U.S. has to change things. If not, the U.S. may be looking at a depression rather than a growth recession in the future.

Growth recession at teatime

http://www.youtube.com/watch?v=lIGJy41ekEU

Articles cited

Wikipedia

en.wikipedia.org/wiki/Growth_recession

The Indypendent

indypendent.org/2011/06/02/the-coming-double-dip-recession/

Investor’s Business Daily

investors.com/NewsAndAnalysis/Article/573972/201106011847/President-Plays-Economy-Lists.htm?src=HPLNews

President renews Patriot Act from Europe by using a robotic autopen

Obama recently signed a controversial bill. The bill renewed certain provisions of the Patriot Act which were expiring. It went to the White House for approval, though Obama is currently visiting Europe. He finalized the bill via an autopen, a mechanical device which is able to replicate signatures. The machine being used at all is causing a controversy.

Still seeing government surveillance taking place

Recently, certain key provisions of the Patriot Act, were set to expire unless a bill was created, passed by Congress and finalized by the president. The controversial surveillance was passed and finalized into law by President Obama at the last minute. This was in spite of all the debate on it, reports the Christian Science Monitor. Even though Senator Rand Paul tried to rally against the bill, the government can still use the internet, business records and wiretaps without a warrant whenever they want. However, according to CNN, brouhaha in Congress has begun since the president used a robotic pen.

The new autopen

The signature was needed quickly on the document in the president was in France. He used an autopen to sign it. A person’s signature is reproduced with an autopen. The difference between an autopen and genuine signature is almost impossible to tell. Some of the machines are extremely complex. Some aren’t complex at all though, reports MSNBC. There are two businesses in the U.S. that make them, and a brief interview with Bob Olding, owner of one of those corporations, is being reproduced on several news online websites. ABC spoke with Damillic Corp., owner Olding who said that the technology hasn’t changed much since the 1930s when it came out. He makes sure the products are being used ethically by Damillic consumers as part of company policy.

Nothing illegal about this

The Constitution claims “he shall sign it” in reference to the president signing the bill. As long as a signature is directed to be attached to a document, it is valid, according to the Department of Justice. The Justice Department at first looked to the use of an autopen for precisely this purpose in 2005 and informed then President Bush that as long as he indicated his consent to the signature, an auto signature was legally valid. Vice President Quayle admits that he used an autopen in 1992 while Donald Rumsfeld used one in 2004. This was for the letters he sent to families of troops killed. Thomas Jefferson built a signature and letter duplication machine, or polygraph, in the 19th century. Autopens aren’t that uncommon. They were used in the past by astronauts, business executives and government officials.

Citations

Christian Science Monitor

csmonitor.com/USA/Politics/2011/0527/Patriot-Act-three-controversial-provisions-that-Congress-voted-to-keep

CNN

whitehouse.blogs.cnn.com/2011/05/27/rise-of-the-machines-autopen-puts-bill-into-law/?hpt=T2

MSNBC

firstread.msnbc.msn.com/_news/2011/05/27/6731197-the-great-presidential-autopen-hullabaloo

ABC

blogs.abcnews.com/politicalpunch/2011/05/robama-is-it-ok-for-a-president-to-autopen-a-bill-into-law.html

Damillic Inc

realsig.com/index.htm

Woman detained with dead and torn apart human body in trash can

A California woman was imprisoned Sunday for allegedly moving a giant trash can with dismembered human limbs along a residential road. She was booked on suspicion of homicide. Police say she is still not cooperating.

Discovered in broad daylight

At about 2:30 p.m., 51 year old Carmen Montenegro was found in San Bernardino, Calif., moving a container. Law enforcement was tipped off by reports from several residents in the area who had either seen or smelled the trash can’s gruesome contents.

Reporters spoke with Ontario Police Detective Jeff Crittendon who said “Officers stopped her leaving the location and in the trash can we found human remains.”

Just one male killed

Police currently thinks that one man was killed and the parts all belonged to him. The reason for death is unknown still. Crittendon said, “I can’t comment on the condition of the body because I am not sure of the exact extent of the injuries. I do know that it was dismembered. It appears to be a homicide.” Crittendon further said that Montenegro “had evidence on her that seemed to be consistent that she was involved with disposal of the body.”

Lawn had a hole in it

The detective also said that they believe Montenegro disinterred the remains from her previous residence. She was only 200 yards away from her house when she was imprisoned. Law enforcement found a hole dug in the yard after checking out the property.

Suspect lived in property on and off

For 15 years, Montenegro lived in the home on and off. Local residents say that either she or her mother owned the home.

More of an investigation

The police are trying to figure out who the victim is. They are working on it. The investigators may have found body fluids in the home Monday while they were checking out the property.

Montenegro was booked in Rancho Cucamonga, Calif., where she remains uncooperative with law enforcement investigators.

Articles cited

MSNBC

msnbc.msn.com/id/43223519/ns/us_news-weird_news/

NY Daily News

nydailynews.com/news/national/2011/05/31/2011-05-31_california_woman_spotted_pushing_trashcan_of_human_body_parts_down_the_street_ar.html

Huffington Post

weirdnews.aol.com/2011/05/31/carmen-montenegro-dismemb_n_869203.html#s284153&title=Dumb_Crime_Masterminds

Sex change insurance coverage something Portland mayor would like for city employees

If you’re a Portland, Ore., city staff and are considering gender change surgery, Mayor Sam Adams is on your side, states Portland Online. According to Adams, it is only right that community health insurance cover the treatment. As early as June, Portland Community Council is anticipated to vote on the mayor’s proposal.

’Fair, common sense,’ Adams believes

Mayor Adams told The Oregonian newspaper that the transgender surgery bill amounts to “fair, common sense.” The previous year, the committee decided that gender change medical operation charges should not be covered in the Portland self-insurance fund, which would be overridden if the legislation makes it. The denial ended up taking place. This was because the city did not choose entirely to change community policy like this.

Adams estimated that transgender operation benefits wouldn’t cost that much to add. It would cost around $32,000 a year for them. There would be about a .08 percent increase in the self-insurance plan spending budget for the area.

Coverage covers ‘medically necessary’ things

In 2008, the American Medical Association has identified transgender health care as “medically important.” The AMA resolution needs gender identity disorder is treated. If a doctor prescribes it as a procedure, then it isn’t allowed to withhold coverage.

“As Mayor, it is important to me that we attract and retain the best and brightest employees to the City of Portland,” writes Adams in a press statement. “Covering basic, medically-necessary care is a matter of fairness, and it’s the right thing to do.”

Kaiser or self-insurance

Currently, the Community of Portland provides two health insurance choices to its employees: insurance through Kaiser or a self-insurance plan called CityCore. If Adams’ suggestion is approved, CityCore would cover the gender change medical operation, bringing the city’s plan in line with that of 22 percent of Fortune 100 Companies and many Oregon businesses that already cover such a medical operation.

Doing what San Francisco started

San Francisco became the first U.S. community that had transgender surgery benefits available in a health plan in 2001. Sex change operations and hormone treatments were accessible to community employees after a bill was passed by the San Francisco Board of Supervisors and then-Mayor Willie Brown.

Male to female medical operation costs $37,000 and female to male cost $77,000 at that time. Fees were capped at $50,000 per person for life in the San Francisco ordinance while 15 percent if the surgeon is on the city health plan had to be paid.

View this video of Sam Adams at a Portland rally for same-sex marriage

http://www.youtube.com/watch?v=2BMPgHIrjKA

Information from

Basic Rights Oregon

basicrights.org/

OregonLive.com

blog.oregonlive.com/portlandcityhall/2011/05/mayor_sam_adams_to_push_sex-ch.html

Portland Online

portlandonline.com/mayor/?a=350579&c=49278

SF Gate

sfgate.com/cgi-bin/article.cgi?f=/c/a/2001/02/16/MN202072.DTL

House prices drop as foreclosure rates rise

House prices are still decreasing in the U.S. And foreclosure rates are increasing. This should make house buyers happy. Sellers, however, would be advised to give it more time.

Huge drop shown on report from FHFA

The Federal Housing Finance Agency reports this week that its home-price index fell in the current quarter faster than at any time since 2008. Prices have fallen 2.5 percent in the last quarter, which is a decline of 5.5 percent from last year. Only homes covered by Fannie Mae or Freddie Macwere in the report. It excludes cash only sales.

Foreclosures are the reason

FHFA acting director Edward DeMarco said, “In many local real estate markets, particularly those hit hard by this cycle, foreclosures and other distressed properties are still a key factor in recorded and anticipated future sales and may be delaying price stability or recovery.” The prices of homes in foreclosure are dropping, according to RealtyTrac. There was a 1.89 percent drop from the last quarter to an average sale price of $168,321. That is a 1.46 percent drop in price from this time last year. Foreclosures end up lowering home values in the whole neighborhood. The rest of the index ends up impacted by the foreclosures.

Foreclosure 3rd parties

”While foreclosure sales continue to account for an unusually high percentage of all residential home sales, sales volume is well off the peak we saw in the first quarter of 2009, when nearly 350,000 foreclosure properties were sold to third parties,” said CEO of RealtyTrac, James Saccacio. There was a 16 percent decline from the last quarter and 36 percent go down from a year ago in the number of homes sold to 3rd parties which was at 158,434 in the first quarter.

States have different foreclosure rates

Foreclosure rates depend on the state. Some have more while others have less. Both Ohio and Illinois had the same. It was 41 percent for both. California and Arizona had foreclosure rates of 45 percent. About 53 percent of the market was foreclosures in Nevada.

Be careful of scams

There have been more foreclosure scams recently. Some companies promise to protect from foreclosure for an upfront fee. The homeowners end up with nothing. The Federal Trade Commission no longer allows upfront fees for negotiations on mortgage reduction plans. This change was made in February.

Information from

Wall Street Journal

blogs.wsj.com/marketbeat/2011/05/25/home-prices-fall-at-fastest-pace-since-late-2008/?mod=google_news_blog

DS News

dsnews.com/articles/home-prices-post-biggest-drop-in-two-years-as-foreclosures-depress-market-2011-05-26

DS News

dsnews.com/articles/home-prices-post-biggest-drop-in-two-years-as-foreclosures-depress-market-2011-05-26

Daily Finance

dailyfinance.com/2011/05/27/foreclosure-prices-fall-again-how-your-state-stacks-up/

Rare cars sold for hundreds of thousands

This last weekend RM Auctions carried out its inaugural sale at the Villa d’Este concourse in Cernobbio, Italy. The event presented a catalog which promised to make classic auto aficionados water at the mouth. There were a cadre of rare and historically important vehicles on sale. Many of the vehicles earned millions of dollars apiece.

The excitement in the air

Several were excited for the auction to come around. Collectors were especially excited. Automobile correspondent Paul Lienert, said before the event, “The first-ever Villa d’Este sale will feature the crème de la crème of classic European hardware.”

Best part of the event

The highlight of the sale was the rare 1965 Ford GT40 Works prototype roadster which collectors were anxious about on May 21. In the 1965 Targa Florio, the automobile was a works entrant. Sir John Whitmore and Bob Bondurant co-piloted the car. Although it was among the top sellers, by the time the dust settled it had not topped the sales at the much-anticipated event.

Top sellers go for multi-millions

There were a few top sellers. They sold for millions. Among them were the 1955 Ferrari 375 MM, which sold for $4.8 million. Selling at $4 million was the 1938 art-deco Talbot-Lago T150-C SS. A four-cylinder Ferrari 500 Testa Rossa went for almost $4 million. About $3.6 million was paid for the 1959 Ferrari 250 California. Just less than $3 million was paid for the 1965 Ford GT40 roadster prototype as well as the 1947 Bugatti Type 57sc Atlante.

The 1953 250 MM Ferrari was built specifically for Mexican collector Efrain Ruiz Echeverria and sold for $3 million. He drove it in the 1953 Carrera Panamericana.

Over a million was paid for these

The 1967 Lamborghini Marzal went for $2.1 million. Another was the $1 million 1970 Lancia Stratos HF Zero.

A few not able to hit the million mark

There were two Zagato-bodied Alfa Romeos that were from the 1960s and sold for $370,000 and $900,000. About $32 million was brought in with the total auction.

Citations

Autoblog

autoblog.com/2011/05/24/rare-classics-sell-for-millions-at-villa-deste-auction/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+weblogsinc%2Fautoblog+%28Autoblog%29

Top Gear

topgear.com/uk/photos/rm-auctions-villa-d-este-2011-05-17

Edmunds Inside Line

insideline.com/ford/gt/ford-gt40-prototype-headlines-villa-d-este-auction.html

Law in Utah means sexy is not allowed

Laws that regulate sex are difficult for many people to swallow. The same is true in Utah. According to the Associated Press, two Utah escort services have filed a federal lawsuit against the state since the broadly worded solicitation ordinances not only prohibit prostitution, but make acting sexy illegal.

Even an implied sex offering in Utah prohibited

To be able to help undercover agents attempting to stop the sex trade from taking place, an anti-prostitution law was put into place in Utah, according to the Salt Lake City Police Chief Chris Burbank. In order to prove they aren’t police, prostitutes ask officers to “expose or touch themselves” sometimes. This will not be a problem anymore if it is against Utah state legislation. While direct verbal solicitation of sex for money is outlawed, recent amendments to Utah’s sex laws too consist of “lewd” or “suggestive” nonverbal acts.

According to Burbank, non-prostitutes will not be targeted with the law. It is simply to stop the sex trade from occurring, particularly when under-aged parties are involved.

“Officers were being put in a position that we’re not going to allow, so we took a different direction,” he told the AP.

Not legal to act sexual

Lawyer Andrew McCullough, who is representing the escort services in the lawsuit, believes that Utah’s anti-prostitution legislation is so broad that all workers in sexually oriented companies are in legal danger. McCullough says that just because an individual “acts sexy” as part of their job, as in someone who works at a strip club, doesn’t mean they’re attempting to sell themselves.

“Most girls who touch their breasts are not telling you they’re open for sex,” the attorney said.

Acting sexy is not good at home, either

A Massachusetts bill is considering making intercourse illegal between many people. If they’re in the divorce process, it would be illegal to do this within home. According to Wrentham, Mass., Selectman (legislator) Robert Leclair, the intent of the proposed legislation is to curb domestic violence and protect children. Critics claim the law would not only rob parents of their rights, but additionally ban any sexual relationship within the home until the divorce is final, yet another example of broad wording.

The amount a spouse would have to pay another would be capped while stopping the lifetime alimony payment practice though if the bill did pass.

Adding to that with bestiality

Do not forget Florida Senate Bill 344. It would have made bestiality illegal. In 2009, Sen. Nan Rich of Sunrise, Fla., introduced the bill. He thinks it is a significant one to have. Some say SB 344 needs to be reworded. It is pretty broad as well. SB 344 could possibly be banning human sexual intercourse since the word “animals” in the phrase “sex with animals” might be referring to humans too, according to Escapist Magazine.

Articles cited

Associated Press

wapo.st/jgXAOq

Escapist Magazine

escapistmagazine.com/forums/read/528.283827-Florida-outlaws-sex

Mother Jones

motherjones.com/mojo/2011/05/annals-big-government-florida-ban-bestiality-baggy-pants

My Fox Boston

bit.ly/m50Qb6

David Archuleta’s dad Jeff could not resist the sexy (allegedly)

youtube.com/watch?v=xm6R-V3tL8g

More people are allowed to go to Cuba

Several Americans have desired to taste the forbidden fruit of Cuba, illegal for most people to travel to due to the embargo that has been in effect since the 1960s. It is becoming less impossible over time, as loopholes in the travel ban make it possible for a small number of individuals to go yearly. The number of individuals traveling to Cuba is increasing annually, but do not mistake Cuba for Busch Gardens or Cancun or the price to pay will indeed be very steep.

Cultural swap makes Cuba travel possible

The relationship between Cuba and the United States in the last half century has not been very good. It has been pretty terrible really. MSNBC states that President Clinton signed a bill in 1999 allowing a small number of people to travel to Cuba although the Cuban embargo the Kennedy administration put into impact is still there. An individual is allowed to go to Cuba as long as they are going for “people to people contacts,” or to engage in Cuban culture and learn about the people in Cuba. It is not enough to hope to see the people and places. Individuals must have itineraries to be able to be allowed to go.

Not as tough to get in

An individual has to book a trip through a group authorized to go to Cuba if an individual wants to get in. The State Department won’t have to approve travel itineraries anymore ahead of time meaning it will be easier to get into a tour of Cuba. It is not a good idea to take children to Cuba though. The State Department site explains that even though “person to person” travel is allowed, more individuals will Cuba for governmental, religious or journalistic purposes. As long as relatives are Cuban nationals, people can go to Cuba to see them. There is no United States Embassy in Cuba, though a U.S. Special Interests Section is located in the Swiss Embassy in Havana, functioning as an embassy of sorts.

Get documents in order first

The State Department claims Cuba is “a totalitarian police state” that utilizes physical and other means to control its citizens. Make sure you have your paperwork in order and are behaved well while visiting Cuba. Most Cubans cannot travel at all. Cuba costs have to be around $150 with the exit visa “white card” that Cubans need to leave Cuba. The Christian Science Monitor reports that Cubans typically are hardly able to eat with the $20 a month they live off of. If the Raul Castro regime is willing to make changes, President Obama would be willing to lift some restrictions on trade and travel, states Reuters. Evidently Obama is attempting to normalize relations with the country. Trade in Cuba is beginning to occur more often. Castro will not bid farewell to communism though.

Citations

MSNBC

msnbc.msn.com/id/43126754/ns/travel-news/

U.S. Department of State on traveling to Cuba

travel.state.gov/travel/cis_pa_tw/cis/cis_1097.html

Christian Science Monitor

csmonitor.com/World/Americas/2011/0513/Cubans-may-no-longer-be-stuck-on-Caribbean-isle

Reuters

reuters.com/article/2011/05/13/us-usa-cuba-obama-idUSTRE74C3P820110513

Model Estella Warren ends up with a DUI, messes with L.A. cops

It is unknown right now whether Canadian model/actress Estella Warren really wants to be at all like Lindsay Lohan. But you wouldn’t know it based on Warren’s fracas with Los Angeles’ police on Monday, reports E! Online. Hit-and-run, DUI, assault and trying to escape a felony led to her $100,000 bond. And here’s the best part – the age she listed on her arrest report was 40, eight years older than anything she has publicly admitted.

Warren’s try to fight the power like in the film

Some might suggest that Warren was simply fighting the power like her slave girl character Daena in Tim Burton’s 2001 remake of “Planet of the Apes,” although neither Warren nor her publicist have said anything about what occurred Monday. According to Los Angeles law enforcement who spoke to TMZ, she was just really drunk. It was certainly too bad.

The chain of events that could effortlessly qualify as Estella Warren’s application for LiLo-esque sainthood unfolded as follows:

1. Warren piloted her Toyota Prius into three parked cars.
2. The inebriated ingénue fled the scene, all the while maintaining fuel efficiency.
3. Warren got pulled over by law enforcement officer.
4. She got a DUI after doing a breathalyzer test.
5. Her actions continued. She took one more stance.
6. Estella Warren was cuffed and taken into custody.
7. The age discrepancy was realized during booking. During this process, she got out of her handcuffs miraculously.
8. She then tried to get away by making a run for it. She was charged with a felony escape charge.
9. The L.A. County Sheriff said bail was at $100,000.
10. The fairly bird became a jail bird.

Better behavior anticipated

Everyone might have an issue when drinking too much alcohol. When a celebrity drinks too much, it tends to be on the front page of the newspaper. U.S. pop culture just loves to know what is going on. Some of the most famous magazines have had Warren in them while she is internationally known and has acted in both television and movie in the past. This just makes the news even bigger.

Information from

E! Online

eonline.com/uberblog/b243600_estella_warren_arrested_dui_hit_run.html

Estella Warren wiki

en.wikipedia.org/wiki/Estella_Warren

Planet of the Apes – The Sacred Scrolls

planetoftheapes.wikia.com/wiki/Daena

TMZ

bit.ly/ivEW1F

Howling over Little Red Estella Warren

youtube.com/watch?v=dnwHS3wc1B8

Does the CFPB have it in for small banks?

The American Bankers Association has a bone to pick along with the CFPB, according to Investor’s Business Daily. The banking conglomerate insists that once the Consumer Financial Protection Bureau begins enforcing new Dodd-Frank Act laws concerning loan disclosure and transparency this summer, the costs of bureaucracy will send 1,000 community banks and credit unions to their doom. It’s the kind of change small banks can’t see a good reason in which to believe.

Customers protected with enforcement

The CFPB’s interim chief is Elizabeth Warren. She said that U.S. financial institutions should watch out since change is about to come and change the regulation. More than half of the Customer Financial Protection Bureau’s budget will be directed at supervision and enforcement, a fact Warren has used on multiple occasions to accentuate talk of the fervor with which the CFPB will defend the financial rights of United States consumers.

Chances a financial institution will go out of business

Several of the ABA representatives explained the Dodd-Frank rules could be devastating to banks. Over 1,000 could go out of business before the end of the decade with the rules. The ABA thinks that small banks will have to take away too many resources to be able to give the Consumer Financial Protection Bureau any information it wants whenever it is requested. The Consumer Financial Protection Bureau will most likely make an effort to determine if discrimination is happening by asking the banks to collect even more information about a borrower’s demographics in order to stop predatory lending with the Home Mortgage Disclosure Act.

ABA Chairman Stephen Wilson told Investors Business Daily that all of this amounts to bad news for community banks and credit unions, as smaller financial institutions tend to make loans that larger banks keep away from. There are fewer sources of capital if small banks start shutting down. With this, customers will have higher rates and fees. This is because it will simply be passed on.

“If we tie up our capital system, it’s going to take money away from the people who need it to create jobs,” warned U.S. Chamber of Commerce President Tom Donohue.

The battle over Elizabeth Warren

The Consumer Financial Protection Bureau does not have a chairman still even though it is anticipated to launch on July 21. Many lawmakers that support the banking industry are against Warren as the director. She will most likely get President Obama’s nomination though. Warren says that her goal is to make the Consumer Financial Protection Bureau “toothless” although Republicans are concerned too much power is being given to the CFPB.

There were sixteen rule changes with the Sarbanes-Oxley Act of 2002. Only two and half years were taken to do this. Over 250 rule changes will be required by the Dodd-Frank Act in a matter of years.

Articles cited

American Bankers Association

aba.com/default.htm

Florida Realtors

floridarealtors.org/NewsAndEvents/article.cfm?id=259538

Investor’s Business Daily

investors.com/NewsAndAnalysis/Article/572889/201105201812/1000-Small-Banks-May-Be-Shut-Down-Due-To-Dodd-Frank.htm

SEC

sec.gov/about/laws/soa2002.pdf

Rep. Sean Duffy (R-Wisc.) fights for community banks and credit unions

youtube.com/watch?v=8yqmp_kIucQ

US must do a tax increase to lower debt, say foreign investors

The Bloomberg Global Poll of investors, traders and financial analysts has returned outcomes in favor of the U.S. upping the tax rate to be able to take a bite out of the federal debt. Almost two-thirds of investors polled believe that substantial debt reduction won’t be possible without additional tax revenue, a position that runs counter to the Republican stance on how to deal with the federal deficit.

Obama needs to agree with the GOP

Before the next fiscal year starts on Oct 1, President Obama and Republicans have to agree upon deficit-reducing measures, which 60 percent of investors do not think will happen. However, an even higher percentage of respondents (70 percent) are “confident” that Congress will raise the $14.29 trillion debt limit to be able to avoid default that would send borrowing costs skyrocketing for everyone, eliminate many jobs and hurl stocks, home values and retirement savings into a financial abyss.

Investor fears are still there

After Osama bin Laden passed away, the popularity of Obama went up drastically. Still, investors are worried about what the GOP plan will do. The GOP approach to affect the national debt “significantly” was supported by most in the Bloomberg poll. Still, 55 percent admit this change will not occur without tax rises more than likely.

As it currently stands, the United States budget deficit will hit $1.1 trillion in fiscal 2012. About $1.5 trillion will be how the fiscal 2011 will end.

Nothing given out for free

Sacred cows like Social Security and Medicare-related programs, which make up over 40 percent of the federal budget, have traditionally been off limits from spending cuts. This is why so many individuals think higher taxes are the only answer.

Cutting these entitlements is a very unpopular idea. Still, it would save a ton of money for the future if they could be cut. About 20 percent of the federal spending budget is Social Security. The Center on Budget and Policy Priorities reports that this is about $707 billion annually. About $732 billion goes to Medicare and related programs, which is about 21 percent.

A different alternative can be to increase tax revenue rather than tax rates by reducing credits, exclusions and tax deductions, suggested Harvard University economics professor Martin Feldstein in a brand new York Times op-ed piece.

More of an interest rate

Bond market yields are at a 10-year low, according to Bloomberg. Several experts are worried that there will be a huge increase in interest rates since there is an inverse relationship between bond values and rates of interest. The number of investors who believe another market crisis will hit the U.S. rose from 18 to 22 percent between the last two quarterly Bloomberg polls.

Articles cited

Bloomberg

bloomberg.com/news/2011-05-13/global-investors-rebuff-republicans-in-poll-showing-2-to-1-say-raise-taxes.html

Center on Budget and Policy

cbpp.org/cms/index.cfm?fa=view&id=1258

New York Times

nytimes.com/2011/05/05/opinion/05feldstein.html

Wikipedia

en.wikipedia.org/wiki/Bond_market

Cenk Uygur on taxes and the deficit

youtube.com/watch?v=mUtVY41kWKk

Most detrimental of floods in Memphis over as Mississippi river crests

The Mississippi river has been engorged for weeks, battering the south with some of the worst flooding on record in many years. Memphis, Tenn., has been inundated with heavy flooding, however the river has crested near the Music City, signifying that the worst is finished. Other areas are still in considerable flood danger, however.

Homeless people

More than 1,000 people have been rendered homeless, however some of the greatest landmarks in the state of Tennessee have gone untouched. The historic Beale Street district, a landmark of Music City, was not touched by floodwaters, according to the BBC. There was no hard done to Graceland by the Mississippi. Graceland was the home of Elvis Presley until 1977 when he perished. Even if individuals had to “charge hell with a water pistol,” they would keep Graceland safe. This is what a Shelby County Emergency Management Agency official explained. Flash floods in the Memphis area are a serious concern, reports CBS. About 1,300 homes were evacuated due to this fear. The water will take a while to recede.

Worry from the Mississippi

The Mississippi river has enlarged because of the spring thaw, after winter storms buried the East Coast of the United States in near-record amounts of snowfall. However, the floodwaters near Memphis recently crested at 48 feet, less than 10 inches shy of the record set in 1937. The states and cities along the Mississippi river path could have lots of danger to worry about, although Memphis is fairly much past the worst danger. There have been difficulties with the flood in the rest of the Mississippi river system and river delta. Still, precautions are still being taken. The Bonnet Carre Spillway was recently opened by the Army Corps of Engineers in order to relieve pressure from floodwaters on New Orleans’ levees, according to MSNBC. Measures are being taken to prepare for the water going in that direction, although floodwaters are going through the delta already.

Flooding is that bad

The Christian Science Monitor reports that even though the flood levels are bad, they are not as bad as the floods in 1927 killing hundreds and costing millions. The United States Army Corps of Engineers constructed over 2,000 miles of levees. This was because of the flooding that happened in 1927. The water always has to go somewhere though. That means that the Mississippi water has to flood someplace else when the spillways are opened. Floods in Arkansas farmland is expected while the water gets closer to the Gulf of Mexico. In fact, 900,000 acres of farmland are anticipated to flood.

Citations

BBC

bbc.co.uk/news/world-us-canada-13337548

MSNBC

msnbc.msn.com/id/42973616/ns/us_news-environment/

CBS

cbsnews.com/stories/2011/05/09/travel/main20061138.shtml

Christian Science Monitor

csmonitor.com/USA/2011/0509/Mississippi-River-nears-crest-in-Memphis-but-concern-shifts-south

Ten minutes and higher prices - easy methods to get more online

Be it real estate or a piece of electronics on Craigslist, every person wants to get as much money as possible for items being sold. In the sea of online ads, getting that best price can feel practically impossible. By taking a few basic steps, though, you can improve the price you get when you sell online. Post resource – Four easy ways to get more money for what you are selling by MoneyBlogNewz.

1. Photography importance

Look at photos to start research as an online buyer. When it comes to going to homes, most people choose which homes to go to by looking online. About 83 percent of buyers make this decision this way. The sales costs increase 5 to 30 percent by simply putting up good pictures, even though it may be easy to just take a cellular phone picture. The lighting in the home should be really well for the picture. Also, keep away from blur with a fast shutter speed. The $100 to $300 in photography that is professional might be worth it for those who have a high-dollar item to sell.

2. Don’t use weird language

Straightforward, concise, clear copy describing the item you have for sale will go a long way. Rather than listing the “seriously amazing camera that will make your photos 1 billion times better,” describe the item in concrete terms: “10 megapixel camera with full manual settings to control the photo.” It sounds like you are professional. More than likely, somebody will buy it. Numbers and statistics are suggested. More than three adjectives in one sentence is a bad idea. A professional copywriter could cost you $50 to $100, but having a grammar-nerd friend check over your listing is worth calling in the favor.

3. The importance of research

It’s OK to be hopeful about the sales price, however asking too much can put off potential buyers. See what the price of your item should be. If you are asking for a higher-than-going rate, be sure to explain why. Explain why you need less than the going rate as well on some goods. Deviations from the norm in either direction will be noticed, and answering the questions right off the bat makes your listing more attractive to buyers.

4. Don’t become spammers

It can be tempting to post your item for sale twice a day, just in case somebody misses the listing. Most online services, however, have search functionality. Posting your item multiple times just gets annoying to viewers and makes you look desperate. Go ahead and re-post sometimes. Only do this if something has changed though. It takes effort and cash to list something more than once in one place. Stay away from this.

Articles cited

MSN Real Estate

realestate.msn.com/article.aspx?cp-documentid=13108474

Small Biz Trends

smallbiztrends.com/2010/04/5-tactics-to-improve-online-sales.html

Stay-at-home partners could possibly be hurt by CARD act needs

The CARD Act, passed in 2009, is intended to help safeguard customers. One provision of the bill is that those that provide credit cannot issue credit unless the applicant can prove that they can repay it. The law may have significant unintentional consequences, however. Some stay-at-home spouses may lose financial freedom. Source for this article – CARD Act could strip stay-at-home partners of financial identity by MoneyBlogNewz.

Needs of the CARD Act

The CARD Act contains several provisions meant to protect consumers from unfair or inappropriate practices of credit card issuers. In the Act, the way income is viewed changes. There are new rules for businesses. Community property and household income can no longer be considered as “income” on an application for credit. Applications can only have individual income. One person’s income is put there. The point is to safeguard customers for taking out too much credit. They’ll not be able to over qualify for the income anymore.

Effects of new CARD Act rules

All of the rules for the CARD Act may hurt some customers. Everyone that stays at home with children may have a problem. There may be one person who works while the other stays at home. In this case, the CARD Act makes it very hard for that stay at home person to get credit. Any stay-at-home spouses can be unable to get an independent credit history although it will stop those without income from getting a charge card. Without credit, there will be less opportunity for jobs. That will make it harder on a person if the relationship ends suddenly.

Troubles with the CARD Act and property that belongs to a community

In 10 of the 50 United States, married couples share what is known as “community property.” Partners have equal share of whatever is in the marriage according to the shared property law which might be changed with a pre- or post-nuptial agreement. Any community property states can still share the property. It just has to be split evenly between the two in the CARD Act. For couples not in community property states, the CARD act simply means that one partner cannot obligate the other partner to bad credit loans or other debt without their explicit agreement.

The CARD Act affects you also

If you are a stay-at-home partner, these new provisions of the CARD Act may have the biggest effect on you. Are you a stay-at-home partner without a job? Just prepare to have to get your partner’s signature on every little thing from personal loans to credit card. It is essential more now than ever to get your own credit card history. Make sure you keep talking to your partner about finances and keep up some kind of employment.

Articles cited

NCLC

nclc.org/

The Library of Congress

thomas.loc.gov/cgi-bin/bdquery/z?d111:HR00627:@@@D&summ2=m&

Banks rolling out EMV chip charge cards for travelers

The nation’s largest banks are starting to compete for customers that want EMV chip-equipped credit cards. EMV chips are really a very small integrated circuit built into a credit card, and the technology was developed by a joint venture between Europay, Mastercard and Visa. Magnetic stripe cards are actually only used by those backwater, un-evolved hill-folk called Americans; much of the world has gotten on the EMV chip bandwagon. Article source – Banks fighting to corner market for EMV chip credit cards by MoneyBlogNewz.

Credit card difficulties

A common complaint among jet set types traveling overseas and using their credit cards is that European merchants often have difficulties processing American credit cards that have antiquated magnetic stripes rather than EMV chip cards more common overseas, according to Bloomberg. Both Wells Fargo and JPMorgan Chase have decided to fix this issue. As a service, the high end charge cards can have EMV chips in them. Wells Fargo is launching a pilot program, where about 15,000 customers can be invited to use the Wells Fargo EMV chip card sometime this summer. Any high net worth clients in the Palladium program will be getting EMV cards from Chase bank who isn’t even piloting it.

How much is lost in sales without it

The need to have an EMV card, also commonly called a smart card, for travelers is not a joking matter. Magnetic strip cards aren’t accepted in several places in Europe. Because of this, in 2008 card providers lost $ 447 million in revenue while European merchants lost $ 4 billion. There’s a “Chip and PIN” used with the Smart Cards making them different than regular magnetic cards, Wikipedia explains. Chip and PIN cards use a small computer chip and built-in circuit board, about 3 by 5 millimeters in total, which stores the information of the user. A smart card reader is carried by merchants to read the card. A Personal Identification Number is given to users. This is how the sale is made. It is easier to keep money safe from thieves with a smart card. It is hard to manipulate.

Card companies already have them

The EMV chips were developed between Eurocard, MasterCard and Visa, calling it “EMV,” which is just one type of smart chip. American Express also has EMV chip equipped cards in its Express Pay line. However, the smartcard reader technology isn’t as widespread in America as in Europe, as the U.S. is slow to adopt technologies from other countries at times. All consumers will eventually have access to EMV chips at JPMorgan. The company is just giving them to high end customers before this.

Citations

Bloomberg

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

Wikipedia

en.wikipedia.org/wiki/EMV

Gas and oil determined to fall as costs pinch customer demand

Oil prices are increasing and gas prices are approaching levels not seen since the summer of 2008. In spite of a large volume of gas and oil reserves in the U.S., speculators have managed to drive up the price of oil 21 percent this year. But reality will intrude on the markets, analysts say, when gas becomes too expensive for U.S. customers to afford.

Oil rally carries on, for now

In early trading Friday light, sweet crude for May delivery rose to $111.90 a barrel on the New York Mercantile Exchange, the highest level since September 2008. The highest level since 2008’s summer was also reached in United States gas costs which averaged $3.70 this week. The oil price surge was due to many factors. A looming government shutdown is weakening the dollar, which makes dollar-based commodities such as crude oil more affordable for traders betting with other currencies. It doesn’t seem like the Libya conflict is about to end. The country has already stopped producing most of its oil. The U.S. is awash in oil considering customers are spending increasingly more buying gas every single day. The United States Energy Information Administration explained that there was an increase in oil inventories in the United States in the week that ended April 1. There was a 2 million barrel increase. There was an increase in over 14 million barrels a day in t! he crud refinery.

Speculators suspend law of supply and demand

The United States used to blame OPEC for its oil shocks, but OPEC’s role in increased oil costs has been reduced. There was an oil conference in Paris where the United Arab Emirates oil minister spoke. He said that costs have hardly any change any longer because of OPEC. Mohammed bin Dhaen al-Hamli said that OPEC is providing the industry with the oil it needs. The only reason for oil costs rising is due to traders. They’re betting on a worst case scenario instead of paying attention to the facts. The Federal Reserve is simply helping oil speculators which help pension funds and hedge funds bet on commodity costs with zero interest rates. Analysts estimate that due to speculators, oil futures are $15 to $20 increased than they should be. Prices might be driven up even further with violence in Nigeria along with the elections this weekend. The country produces 2.2 million barrels a day.

How much longer until an oil tipping point

United States consumers may not be willing to pay much more for the oil and gas coming out. In just the last four weeks, there has been a 3.7 percent drop in gas demand. Some analysts are saying that oil costs will reach a tipping point soon, unless another crisis in the Middle East or a Nigerian meltdown play into the hands of oil speculators. The second Fed quantitative easing plan (QE2) failed. Before, oil was around $90 a barrel to buy. As rising costs continue to constrain customer demand, when quantitative easing ends in June and the free money spigot is turned off, oil and gas speculators could reduce their position by as much as a third, stabilizing crude oil prices at between $85-$95 a barrel.

Information from

Wall Street Journal

online.wsj.com/article/BT-CO-20110408-707562.html

New York Times

nytimes.com/2011/04/09/business/09markets.html?partner=rss&emc=rss

Industrial Fuels and Power

ifandp.com/article/0010617.html

Fortune

finance.fortune.cnn.com/2011/04/08/oil-at-the-tipping-point/

Twitter receives tax holiday windfall from City of San Francisco

In an 8-to-3 vote, the San Francisco Board of Supervisors has determined in favor of an ordinance that will provide local business Twitter and others a tax break from the city’s corporate payroll tax on brand new hires, reports the Los Angeles Times. Twitter will benefit from a 1.5 percent payroll tax shield through the next six years. While Mayor Lee praised the move as a step in the right direction for maintaining the city’s reputation as a place for tech firms, critics believe such corporate tax holidays open the door for cities to be exploited by large companies.

It is ‘rejuvenation’ for Twitter to be there

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

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

While Twitter officials wouldn’t comment on the payroll tax exclusion Wednesday, Lee told the San Francisco Chronicle that he appreciated Twitter’s enthusiasm for helping revitalize those key business districts. The creation of jobs and services in sagging geographic areas would benefit San Francisco across the board.

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

The tax holiday for Businesses

The Twitter payroll tax break should be able to save about $22 million in taxes for the company in just six years, according to the Chronicle. That’s $22 million that San Francisco needs, said city supervisor John Avalos.

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

Citations

Los Angeles Times

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

San Francisco Chronicles

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

San Francisco Mayor's Office

sfmayor.org/index.aspx?page=330

Minnesota Gov. Tim Pawlenty on corporate tax holidays and offshoring

youtube.com/watch?v=MIRncAiu9Vw

Homeowners have simpler time paying home loans in spite of lousy market

Fewer people are having a hard time paying the mortgage, though the housing market is still not doing too well. The joblessness rate is beginning to ease as employers are beginning to hire once again. However, that hasn’t translated to better conditions in the overall housing market.

Less homes underwater

In comparison with last year, fewer people believe homes are underwater. This was shown in a Harris Interactive poll, reports Daily Finance. Last year, there were 24 percent of respondents that believed their home was worth less than they owed on it. This year, that number dropped to 21 percent on 3,000 respondents. Additionally, 22 percent of respondents in the Harris poll were struggling to make mortgage payments, compared to 29 percent last year. However, 3 percent fewer individuals in the poll said they had a mortgage. There are fewer people taking out short term installment loans to cover a mortgage with a lower unemployment rate too.

Market full of homes

Analysts are worried about distressed properties. This is because they keep costs low, reports USA Today. In January, it was noted that there were 1.8 million distressed homes. Any of these homes hadn't made payments for more than 90 days. The price of a distressed home always is at least 20 percent lower, which makes them attractive to bargain hunters and real estate investors. Unfortunately, a large supply keeps home costs lower nationally. Soon the moratorium on foreclosures will end too, states Reuters. This will mean more foreclosures are to take place in the coming months. Because of questionable foreclosure practices, the government investigated the largest mortgage loan companies in the nation including Wells Fargo and Bank of America.

Everyone who can should purchase a cheap home

More than likely, the market will continue as a buyer's market. For the next few months, MSNBC points out, home prices will continue to fall. The record low rates for home loans were just hit and are starting to come back out. More than likely, it would be good for you to get your home now in a low rate. However, loan companies have been fairly skittish in an uncertain climate.

Citations

Daily Finance

dailyfinance.com/story/real-estate/fewer-us-mortgages-in-trouble/19902674/

USA Today

usatoday.com/money/economy/housing/2011-03-30-distressed-homes-shadow-inventory.htm

Reuters

reuters.com/article/2011/03/31/us-financial-regulation-mortgages-idUSTRE72A63J20110331

MSNBC

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

Nasdaq rebalances to reduce impression of Apple rumors on index

To temper the unpredictability of Apple shares, Nasdaq officials will rebalance the Nasdaq-100 index in May. By slashing the weight of Apple shares on the entire index by four eighths, which is two one quarter portions, or to go further, half of a whole, Nasdaq has performed a rebalancing. The action by Nasdaq is calibrated to discourage hedge funds from fiddling with Apple shares and encourage more scrupulous investors to throw down instead.

The Nasdaq to be redone with Apple going down

For the past few years, as Apple stock goes, so does the Nasdaq-100. Since the industry bottomed out in 2009, the Mac, iPhone and iPad have driven Apple shares skyward more than 250 percent. Since then, Apple’s stock has risen about another 150 percent to represent more than 20 percent of the total value of the Nasdaq-100 index. Apple stock is more than twice what it should be in the index, Nasdaq officials explained. On May 2, Nasdaq will rebalance anything. This will make, on the Nasdaq-100, Apple shares only 12 percent. The adjustment to repair for Apple realigns the ratio for the company's stock and outstanding shares with the way the Nasdaq-100 is calculated. This is a big change. It will change 81 other business positions. The change might make Apple rivals go up. They will be more prevalent. Microsoft will rise from 3.4 percent up to 8.3 percent. Other increases are expected in businesses. Intel will get to 4.2 percent, Google to 5.8 percent and Oracle ! to 6.7 percent.

All the Apple rumors change things

Any future manipulation by hedge fund traders that could hurt the Nasdaq-100 or short Apple will be prevented by the lower ratio of Apple shares. Recently, there was an instance where Apple stock swung in price due to Apple rumors, according to Jason Schwartz at Seeking Alpha. Apple was trading at $360 in February. At this time, a rumor that iPad 2 releases would be delayed until June because of "supply chain contacts" came out by Yuanta Securities. The rumors spread very quickly. Soon, Apple shares were shorted by Yuanta Securities to make money. It only took 2 days to lower Apple stock. It had a $20 decrease. The iPad announcement of being sold on March 10 was given by Steve Jobs right after that. Yuanta made lots of money off of it although investors felt really idiotic. This had a huge affect on the Nasdaq-100. It was a big deal.

No more of an Apple rumor influence

The Nasdaq rebalancing doesn’t take impact until next month, however money managers are already rebalancing their holdings. Apple stock went down on Tues from $337 to $341.19 with a $4.19 drop. There has already been less hedge fund able to use Apple to manipulate the industry. The iPhone delay rumors are, more than likely, not true. It will not affect the stock though since it is already going back up and is $15 below its high. Apple is anticipated to do better than expected in first quarter earnings while investors and traders can trade Apple shares.

Articles cited

Fortune

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

Mac Observer

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

MSN Money

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

Seeking Alpha

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

Keep away from credit at your peril

Several consumers looking to establish a credit history are denied credit because they don’t have enough credit to start with. And even a person with a high FICO score can be denied if the overall credit history bears too few records of active credit. Source for this article – Understanding the down side of avoiding credit by MoneyBlogNewz.

Being too responsible can hurt too

Everyone who is super responsible with credit might not do as well off as they think. Eventually, most people will conserve money by living generally debt free including paying off student loans right away and staying away from credit that is more than necessary. Some credit corporations don't like this though. There are some people that use credit, but have many choices to choose from. It can look bad to have credit inquiries too often though.

Experian's public education director Rod Griffin explained that credit can go down when there isn't much of a credit history and if you apply for charge cards often. Showing an ability to handle a reasonable number of open, active credit sources over time is paramount in illustrating credit-worthiness to creditors, including mortgage lenders.

Always have credit, however pay off loans

The argument Griffin has is that it is not bad to pay off loans early. This is despite what credit experts say. Negative marks will stay on a FICO report for about seven years while good things stay for about 10 years. Customers get put in the "no, thank you" zone by many creditors when they pay off loans very easily. You should have accounts open and active for at least 24 months for creditors. Otherwise, loan companies are likely to pass over the application and move on.

Use credit cards, but sparingly

Don't take on lots of credit cards in case you are a college student that is just beginning to build credit. Used responsibly and in moderation, having one credit card or two is a fine path toward building credit.

Griffin reports that this might change though. The Obama administration started the Charge card Act though. Several think that this makes it harder for young people to build credit. Experts say there is less of a possibility that students can build credit since access to college students is taken away.

Credit might be hurt more than you think when using just money

While you won't rack up revolving debt by living a cash-only lifestyle, you also will not build your credit. Maintain active credit accounts where you pay more than the minimum each month, and look to such goods as installment loans and no credit check loans when emergency funding is necessary. You can avoid building up too much debt on a credit card with these goods even though they will not make a difference on a credit history without reporting.

Citations

MSN

money.msn.com/credit-rating/raise-your-credit-score-to-740-weston.aspx

Yahoo

finance.yahoo.com/banking-budgeting/article/112152/dangers-of-avoiding-credit?mod=series-m-article-c

Understanding the Credit card Act

youtube.com/watch?v=UbIDOZz6CPw