Small extra items equal hundreds of millions for flight companies

The air visitor currently may discover they are feeling nickeled and dimed by all the little “extra” charges. But for the airline market, they’re gold. According to a new report, they add up to hundreds of millions.

What the new study equals

The market was able to make $21.46 billion just last year from luggage expenses, frequent-flier programs, co-branded charge cards and similar non-transportation charges, states the Amadeus Review of Ancillary Revenue Results.

Top dollar earners

About $5 billion was brought in in extras with United Continental Airlines, which was the most non-transportation money an airline brought in. Second was Delta, at $3.7 billion. American Airlines, at $2 billion, was the 3rd largest earner. All of these are United States based corporations.

Low-budget means extras are high percentage of revenue

More money is spent on additional fees for income at bargain airline carriers due to lower ticket costs. If the data is analyzed as a percentage of total income, they do the best. Allegiant Airlines (29.2 percent), Spirit Airlines (22.6 percent), and Ireland-based Ryanair (22.1 percent) were the three big earners.

Increase in charges to be expected

Jay Sorenson is president of IdeaWorks and co-author of the study. He believes that every person should watch out for even more non-transportation expenses. “Oil prices spiked in 2008, which was also the year in which the U.S. industry introduced baggage fees. We’re nearing those historical oil prices again, and I believe we’re going to see another round of new à la carte fees.”

Study done previously

Another study was done earlier this year by the Washington D.C.-based lobby group Consumer Travel Alliance. The study was done with a coalition of travel agencies with Open Airlines for Airfare Transparency. Last year, passengers who flew paid an average, for a round trip flight, in charges of about $36.80. The study was very accurate.

Getting the government involves

The two groups have collected, as of last March, more than 60,000 online signatures in an attempt to urge the federal government to force airline carriers to make their expenses more transparent.

Articles cited

MSNBC

overheadbin.msnbc.msn.com/_news/2011/06/01/6764501-nickeled-and-dimed-for-21-billion

Denver Business Journal

bizjournals.com/denver/news/2011/03/10/airlines-cost-coloradans-1486m-in.html?ana=RSS&s=article_search

Business Week

businessweek.com/ap/financialnews/D9IBOU7G6.htm

House prices go down as foreclosure rates go up

Foreclosure rates are increasing in the United States as house prices continue to decline. Really, this ought to make house buyers happy. However, those seeking to sell a home might want to wait just a little longer.

Drop shown in FHFA report

The Federal Housing Finance Agency states this week that its home-price index fell in the current quarter quicker than at any time since 2008. Prices have fallen 2.5 percent in the last quarter, which is a drop of 5.5 percent from last year. Only homes covered by Fannie Mae or Freddie Macwere in the report. Cash only sales are also not in the list.

Issues brought on by foreclosures

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.” There has been a decrease in the price people are willing to pay for foreclosures. It has been going down significantly, RealtyTrac explained. During the first quarter, the average sale price was $168,321 which dropped 1.46 percent from a year ago and 1.89 percent from the quarter before. Foreclosures end up lowering house values in the whole neighborhood. The rest of the index ends up affected by the foreclosures.

Third parties not as involved in foreclosure process

“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,” reported James Saccacio, the CEO of RealtyTrac. There was a 16 percent drop 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.

How the states differ in foreclosure

Every state has a different number of homes being foreclosed on. Both Ohio and Illinois had the same. It was 41 percent for both. A 45 percent rate was shown in California and Arizona. It was really bad in Nevada. About 53 percent of the industry accounted for foreclosures.

Possible foreclosure scams to look at out for

A lot more foreclosure scams have come about. They are sometimes hard to see. Some corporations promise to protect from foreclosure for an upfront fee. The homeowners end up with nothing. Mortgage reduction plan negotiations can’t have upfront fees anymore with a requirement made in February with the Federal Trade Commission.

Citations

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/

Debt relief and consolidation frauds still uncontrolled after the downturn

The variety of debt reduction and debt consolidation companies has increased during the last few years. There surely have been more commercials promoting them on the television. Though several of these corporations are reliable, there are a number that are scams. Not all of these debt relief businesses seem to have gotten the memo.

Not paying attention to Federal Trade Commission rules

More than half a year ago, the Federal Trade Commission created new regulations to help deal with the growing number of complaints about ineffective or fraudulent debt settlement and debt settlement businesses. KNDU is a Washington state NBC affiliate. According to KNDU, debt servicing businesses are not allowed to misrepresent themselves, have to make information available at first and aren’t allowed to ask for advance fees. Businesses have to give customers realistic estimates of how much money they could conserve and disclose exactly what fees are involved in the service. Companies aren’t following the laws right now.

Fine for a business

Laws for debt services weren’t being followed by Freedom Debt Relief. This is what the states of New York and Washington found in a sting, WalletPop explains. Consumers in those states were misled by the California firm. In both cases, the business settled. It settled for $2 million in payments in consumers. The company is dealing with a class action lawsuit right now. It also made comparable settlements with four other states. Two companies were illegally “robocalling” and leaving messages for customers that were automated, report the Wall Street Journal. This won the Federal Trade Commission two large settlements against the businesses. Dynamic Financial Group and Advanced Management Services NW were robocalling customers and said that with an upfront fee, they could reduce a debt. The corporations both would send a card telling customers that they simply need to pay their bills on time. Advanced Management Services did offer a refund if it did no! t work though.

Don’t ever expect it to be that simple

With debt settlement companies, “if it looks too good to be true, it most likely is” works really well. Any company that claims it will take bad things off your credit for “pennies on the dollar” is a scam, according to both the Federal Deposit Insurance Business and Federal Trade Commission. All of the debt settlement companies aren’t allowed to ask for upfront cash. They have to change or reduce your debt before they ask for cash. There are also a lot of nonprofit debts counselors who can help customers come up with a debt reduction plan. The FDIC advises consumers look at a not-for-profit credit counseling service before looking at any for-profit debt reduction service. You can get help from the National Foundation for Credit Counseling. This will be where financial advisors in your area could be found.

Citations

Walletpop

walletpop.com/2011/03/08/freedom-debt-relief-agrees-to-pay-back-consumers-after-accusatio/

KNDUO/p>

kndo.com/story/14696586/how-new-federal-debt-relief-rules-protect-consumers

Wall Street Journal

online.wsj.com/article/BT-CO-20110526-711657.html

FDIC

fdic.gov/consumers/consumer/news/cnfall10/debtoverload.html

FTC

ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt-relief-services.shtml

NFCC

nfcc.org/

Lawsuit accuses rent-to-own company of spying on customers

A Wyoming couple is suing the Atlanta-based rent-to-own business Aaron’s over confidentiality issues. The couple says that they were watched with a computer they were able to rent last year. The lawsuit has brought back some on-going debates about privacy and ethics in the cyber-age.

Taking a photograph from the computer

Everybody realized the problem on December 22 of last year when at the home of Brian Byrd, 26, and wife Chrystal, 24. The Casper, Wyo., store manager went to their home to try and repossess and computer they supposedly were having problems with. The rent-to-own payment hadn’t been made, the manager thought. Brian Byrd produced a receipt, but not before the manager showed them a picture, taken from the computer’s webcam, of Byrd using the computer in his home.

The lawsuit has a comment from the manager. He said he was “not supposed to disclose that Aaron’s had the photograph.”

Computer equipped with spyware

According to the suit, there was spyware loaded onto the computer that took pictures, recorded keystrokes and took screenshots.

”It feels like we were pretty much invaded, like somebody else was in our house,” Byrd said. “Crystal gets online before she gets a shower and checks her grades. Who knows? They could print that stuff off there and take it home.”

More and more ‘Kill switch’ scenarios popping up

Ohio State professor Petere Swire said that using a “kill switch” is a legal and common fraud-prevention practice in the industry, protected under the Computer Fraud and Abuse Act. In an emergency, it would be essential to use a kill switch to turn off the system. “But this action sounds like it’s stretching the self-defense exception pretty far,” Swire said.

Spyware designer also named in suit

The spyware was manufactured by one business based in PA. Designerware LLC is the company. In the lawsuit, Designerware was named. This is another part of the suit. Aaron’s was not a customer according to technical support Chief Tim Kelly.

Aaron’s denies it all

Aaron’s is a nationwide corporation with more than 1,140 company-owned stores and several hundred personally owned franchise stores. The company claims that the Byrds rented their computer from one of the independent franchisees and that none of the business stores use Designerware goods.

Cyber surveillance raises ethics issues

More people have noticed cyber surveillance happening. It is a much more common practice now. Computer tracking and video cameras are common in modern offices. Highways and public places almost always have cameras. Almost every cellphone has a GPS device in it. That way, we can always be monitored. And with this loss of privacy comes several questions of ethics.

“We’re already concerned that Americans are tracked, followed and spied on as never before,” said Jay Stanley of the ACLU.

Where lawmakers stand on it

Just like the do-not-call list, the Do not Track Me Online Act was just introduced. Rep. Jackie Speier, D-Calif., introduced it. The proposed legislation would stop companies from trading stored user information if the user chooses.

Articles cited

Bloomberg

bit.ly/jimOOk

News Tribune

newstribune.com/news/2011/may/04/suit-against-pc-renter-aarons-raises-privacy-quest/

PC Pitstop

techtalk.pcpitstop.com/2011/05/24/i-can-see-you-in-your-home/

Teen spending impacted by the downturn

The tough economy is now being felt even in the most youthful group of consumers. The 2011 Teens & Money Survey was just introduced by Charles Schwab & Co. The study says that teen spending is down quite a bit.

Pinch felt by every person

Traditionally, teens ignore economic trends and spend impulsively no matter the crunch on the purse strings at home. There was a 14 percent decrease in teenager purchasing this year. That is new. The impact is significant. As a group, teens spend an average of $125 billion in the U.S. each year.

No budge on home entertainment

Teen purchasing has dropped in nearly all the markets which they traditionally impact probably the most: apparel, beauty products and entertainment activities like restaurants, concerts and movies. Home entertainment seems to be the only place teens continue to spend lots of money. Music, DVD and video games rose from 7 percent to 8 percent of teen purchasing.

Paying attention to what is going on

About 90 percent of surveyed teenagers said the downturn impacted them in some way, as shown in the Schwab study. Schwab believes that teenagers have become more aware of finances. This is compared to four years back. Most said they were more appreciative of the things they have and are less likely to spend impulsively.

Calling them the ‘Recession Generation’

Senior vice president of Schwab Community Services is Carrie Schwab-Pomerantz. She said, “It seems clear that the great recession has changed the mindset of teens. It has given these ‘Recession Generation’ youth(s) a deeper appreciation for what they have and how hard their parents work. This may be the silver lining to the economic downturn.”

Educate at home

“To help quench their thirst for material goods, teens appear to have opened up to the idea that learning about money management is a potential solution to the problem,” said Bryan Sommer, founder of Kids Money Management.

The majority of the teens surveyed cited their parents as their main educators on money matters. About 82 percent of adolescents in the survey said they knew basic financial management. They said their parents taught them this. Even 77 percent said that their parents were role models when it came to finances.

Unemployment a factor

Joblessness accounts for some of this trend in teenager purchasing. The teen joblessness rate, at 22 percent, is the lowest it has been in 10 years.

Articles cited

Newser

newser.com/story/57269/recession-wary-teens-cut-back-on-spending.html

Commoncensus

commoncensus.blogs.nuwireinvestor.com/2008/04/recession-forces-teens-to-curb-spending.html

Daily Finance

dailyfinance.com/2011/05/31/recession-sobers-americas-once-free-spending-teens/

SWAT team killed Jose Guerena who did not shoot

SWAT officers who are from Arizona entered the house Jose Guerena, shooting and killing the 26 year old former Marine in front of his spouse and kids earlier this month, and found nothing illegal in his house. The law enforcement were not fired upon, but sent a wall of bullets in Guerena, a veteran of 2 tours in Iraq. Police conduct is being questioned by a lot of people.v

Marine veteran shot by SWAT team

Guerena had some unwanted visitors on May 5 from the Pima County Sheriff’s office. The SWAT officers had a search warrant they were using. When the officers entered the house, according to CNN, they found him holding an AR-15 rifle and they opened fire. There has been some debate on how many times he was shot as ABC reported he was shot 60 times. CNN states he was shot 22 times though. Guerena hadn’t fired a shot and the safety on his rifle was on. His wife, Vanessa Guerena, called the paramedics so they could help. The police wanted him to die before paramedics came in still.

Nothing in the home merited arrest

The suspicion that Jose Guerena was part of a drug smuggling and robbery ring got the law enforcement a warrant to go to his house. He was allegedly a part of home invasions. He would wear paramilitary clothing and had assault weapons. The Arizona Daily Star states that a “piece of law enforcement-style clothing,” guns and body armor were all found in the home. Mike Storie, the attorney for the SWAT officers, according to KGUN Tucson, has been quoted as saying that Guerena had nothing in his home that would have been cause to arrest him. The Pima County Sheriff, Clarence Dupnik, has been critical of the press for asking questions about the shooting and whether it was legal. Right away after the shooting occurred, Dupnik said that Guerena had fired at officers, but he later admitted that Guerena hadn’t.

No paramedics allowed in the home

Jose Guerena’s shooting occurred with paramedics arriving fairly easily. They got there within two minutes of shots. However, the officers at the scene prevented emergency medical personnel from entering the house and observing Guerena for more than an hour, long after he was dead. The house also had a portrait of Jesus Malverde, considered a “patron saint” of drug runners. Just like American outlaws such as Billy the Kid and Jesse James, Malverde has become a hero of sorts even though he may have never really existed, states Wikipedia. Whether or not there were drugs in the house is unknown. The first search didn’t find any. Guerena had two kids, who were ages 6 and 4, and worked for the Asarco copper mine.

Information from

CNN

cnn.com/2011/CRIME/05/27/arizona.marine.death/index.html?hpt=T2

Arizona Daily Star

azstarnet.com/news/local/article_47d3b9b2-8345-11e0-a48d-001cc4c03286.html

KGUN Tuscon

kgun9.com/story/14682200/guerena-family-attorney-responds-to-swat-lawyer

ABC

abcnews.go.com/US/tucson-swat-team-defends-shooting-iraq-marine-veteran/story?id=13640112

Toronto parents choose to keep newborn's gender a secret

Father and mother Kathy Witterick and David Stocker of Toronto, Canada, became the proud mother and father of their third child, Storm, on Jan first of 2011. What makes their story unique is the belief that they have made the decision to keep their baby’s sex a secret until such time as Storm he or she decides to reveal it.

Stand for freedom, parents say

“We’ve decided not to share Storm’s sex for now – a tribute to freedom and choice in place of limitation, a stand up to what the world could become in Storm’s lifetime (a more progressive place? …),” wrote Witterick, 38.

Only a few know newborn’s sex

Not even the grandparents know. It is a true secret. Only a few individuals know Storm’s sex. Those who know are two midwives who helped deliver the baby and one close family friend. Storm’s two older brothers, Jazz, 5, and Kio, 2, also know the sex. Nobody has said what it is yet though.

Everyone asks ‘Is it a girl or a boy’

”When the baby comes out, even the individuals who love you probably the most and know you so intimately, the first question they ask is, ‘Is it a girl or a boy?’” Witterick said. Her husband Stocker, 39, an educator at an alternative school, added: “If you really want to get to know someone, you don’t ask what’s between their legs.”

The choice for a kid to make

”What we noticed is that parents make so many choices for their children. It’s obnoxious,” Stocker said.

When really young, children are able to make decisions. Both Stocker and Witterick believe this. Already, Jazz and Kio decide when they get haircuts. They pick out their own clothes too.

Calling their children ‘unschooled’

The kids are “unschooled” by their father and mother. The father and mother use their children’s natural curiosity to home school. It is “not something that happens by rote from 9 a.m. to 3 p.m. weekdays in a building with a group of same-age people, planned, implemented and assessed by someone else.” This is what Witterick claims.

How these mother and father decided

Witterick said that Jazz was having “intense” gender issues which brought on them to keep this child’s sex a secret. Louis Gould’s “X: A Fabulous Child’s Store” from 1978 was read by Stocker. A child was raised gender neutral and had a fantastic life in the book.

“It became so compelling it was almost like, how could we not?” Witterick said.

Some people don’t approve

Witterick said that when asked about resistance from other people on the decision, they say “We always turn the question back. Yeah, when will this end? When will we live in a world where people can make choices to be whoever they are?”

Information from

Washington Post

washingtonpost.com/blogs/on-parenting/post/is-raising-a-gender-neutral-child-a-fantasy/2011/05/25/AGr1mPBH_blog.html

Yahoo News

news.yahoo.com/s/yblog_thelookout/20110524/ts_yblog_thelookout/parents-keep-childs-gender-under-wraps

Daily Mail

dailymail.co.uk/news/article-1389593/Kathy-Witterick-David-Stocker-raising-genderless-baby.html

For-profit colleges' risky place to spend personal loans

Selecting a college is a complex matter, and scholars should be cautious of private, for-profit colleges. There have been many clashes between for-profit schools and the authorities, and profit driven school attendees have the highest loan default rates after graduating. Students should do their homework before going to, though many for-profit schools are perfectly fine.

Indictment for Trump

CNN reports that the New York Attorney General is investigating five companies that were for-profit universities. One of the schools involved is the previous Trump University, the small for-profit university launched by Donald Trump several years back. It became the Trump Entrepreneur Initiative easily though. This was as the Department of Education said that it couldn’t say it was a school at that point. The New York Times states that Corinthian Colleges, Bridgepoint Education, Lincoln Educational Services and the Career Education Corporation are the other schools involved. The corporations and schools are being investigated although there aren’t yet any charges filed.

How schools and states argue

State governments and the federal government are beginning to come down on for-profit universities, and some previous students are not thrilled. Donald Trump is currently being sued in California by students of the now Trump Entrepreneur Initiative because they say they were misled. Corinthian’s colleges are also under investigation in Massachusetts, California, Florida and Georgia, according to Reuters. The Boston Globe states the Massachusetts Attorney General will investigate the Apollo group as well which is known as the Kaplan Career Institute, operated by the Washington Post business, and University of Phoenix. The stability of smaller private colleges is generally not strong either. They are fairly unstable really. For instance, Alpine College in Spokane, Wash., recently closed its doors permanently in the middle of a term, leaving scholars holding the bag for thousands in unsecured loans and no degree to show for it.

Affording it is hard to do

Students have trouble deciding which school to go to. Typically, cost is a significant thing to consider. For-profit, private colleges can be incredibly expensive. In just one year after graduating from school, 15.2 percent of scholars who went to a for-profit university defaulted on student loans in 2009. That is almost twice the 7.3 percent rate that public university scholars had, Reuters explains. Private, not-for-profit schools had a default rate of 4.3 percent. Also, for-profit school students make up half of student loan defaults. That’s a fairly high rate. It has been too hard for scholars to meet loan responsibilities after going to for-profit universities. People have accused for-profit universities of not preparing scholars well enough. The Department of Education is currently attempting to institute a rule that would deny federal loans to students going to a school with a 35 percent default rate or higher.

Citations

CNN

money.cnn.com/2011/05/20/news/companies/trump_university/index.htm

New York Times

nytimes.com/2011/05/20/nyregion/trumps-for-profit-school-said-to-be-under-investigation.html?pagewanted=1&_r=1&ref=education

Reuters

reuters.com/article/2011/05/20/education-forprofit-idUSN2028820820110520

Reuters

reuters.com/article/2011/05/20/us-education-idUSTRE74J55O20110520

MSNBC

msnbc.msn.com/id/43130397″>MSNBC

Boston Globe

http://articles.boston.com/2011-05-17/business/29552871_1_college-access-success-college-students-schools”

Warren charged with many things

It is unknown at this time whether Canadian model/actress Estella Warren aspires to the heights of public debauchery populated by Lindsay Lohan. However, as E! Online reports, Warren is at least a contender in the eyes of LA cops. Hit-and-run, DUI, assault and trying to escape a felony led to her $100,000 bond. As if that laundry list was not enough, she confessed to being 40 years old on her arrest report. That’s 8 years older than her publicly acknowledged age.

She might just be fighting the authority

While neither Estella Warren nor her publicist have commented on Monday’s spectacle, enthusiasts of Tim Burton’s 2001 remake of “Planet of the Apes” might argue that like Warren’s slave girl character Daena in that movie, who battled valiantly against simian oppressors, Warren was simply fighting the power. According to LA law enforcement who spoke to TMZ, she was just really drunk. It was surely too bad.

Estella Warren certainly didn’t stop. These were the events that happened:

1. Warren hit three parked cars with her Toyota Prius.
2. She stayed fuel efficient while hurrying from the scene.
3. Warren got pulled over by law enforcement officer.
4. She lit up the breathalyzer and was nabbed for DUI.
5. Then she stood up against power even more.
6. Warren was taken into custody after being cuffed.
7. During booking – when the age discrepancy was revealed – the previous Canadian synchronized swimming champ shimmed out of her handcuffs.
8. She got a trying to escape a felony charge since she ran to the door and tried to get away.
9. Bail was set at $100,000, according to the L.A. County Sheriff.
10. She was a jail bird, that’s for sure.

Better conduct expected

Drinking too several alcoholic beverages can send any person into a downward spiral. United States pop culture loves to check out celebrities meaning it always hits the front page when a celeb drinks too much. It is even worse since Warren is internationally known for her television, film and modeling career while having appearing in some of the most famous magazines.

Citations

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

Jail time for just acting sexy in Utah now

Laws that regulate consensual human sexuality are quite controversial. The same is true in Utah. Not only does the legislation make prostitution illegal, but the recent amendment to the legislation is so broadly worded that it could conceivably make acting sexy illegal in itself.

No more implied sex offers in Utah with new law

According to Salt Lake City Law enforcement Chief Chris Burbank, Utah adopted its currently worded anti-prostitution laws to be able to help undercover agents working stings within the sex trade. Since asking officers to “expose or touch themselves” is now against Utah law, it would not be allowed for prostitutes to ask law enforcement this to prove they are not law enforcement. While direct verbal solicitation of sex for money is outlawed, recent amendments to Utah’s sex laws also contain “lewd” or “suggestive” nonverbal acts.

According to Burbank, non-prostitutes will not be targeted with the legislation. 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.

Is it a crime to be sexy?

The escort service will be represented by lawyer Andrew McCullough in the lawsuit. He is worried that some of the other companies with sexual components will be in legal trouble. McCullough says that just because a person “acts sexy” as part of their job, as in somebody who works at a strip club, does not mean they are trying to sell themselves.

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

Acting sexy isn’t really good at home, either

In other strange sex news, a Massachusetts bill would make it a crime for parents to have intercourse at home if they are in the process of a divorce. According to Wrentham, Mass., Selectman (legislator) Robert Leclair, the intent of the proposed legislation is to curb domestic violence and protect kids. Several argue parents lose their rights with this law. They too suggest that sexual relationships in the home would be banned entirely until a divorce is finalized, which is broad wording in the bill.

On the bright side, supporters of the bill point out that it would also end the practice of lifetime alimony payments and cap how much one spouse could be ordered to pay the other.

Bestiality too?

Not to be forgotten, proposed Florida Senate Bill 344 would ban bestiality. In 2009, Sen. Nan Rich of Sunrise, Fla., introduced the bill. He thinks it is an essential one to have. Some say SB 344 needs to be reworded. It is fairly broad as well. Escapist Magazine explained the word “animals” in the phrase “sex with animals” might refer to humans also. This means sexual intercourse would be banned in the state amongst humans.

Information from

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

Zombie apocalypse suggestions issued by CDC

The Centers for Disease Control is tasked with giving information to the public about threats to health. The CDC’s official blog on Monday, May 16, considered how to get ready for a zombie apocalypse. The post is intended to be a tongue-in-cheek consideration of zombies. The preparedness advice, however, is entirely legitimate.

Ways to prepare recommended by the Centers for Disease Control

In the case of a zombie apocalypse, the Centers for disease control recommend keeping some basic preparedness supplies around. If nothing else, these supplies will help you survive until you are able to “find a zombie-free refugee camp.” It is important to have water. One gallon per person, per day is the recommended amount to have. Get prepared with basic emergency preparedness items. This includes first aid materials, tools, documents, clothing and non-perishable food items. The suggestions also outline what the CDC would do in case of the zombie apocalypse — mostly, investigate and try to offer assistance.

What got the Centers for Disease Control interested

The director of the CDC first started considering putting out zombie apocalypse recommendations a few months ago. In a web chat about the nuclear power difficulties in Japan, a participant asked whether that nuclear leak would create a zombie apocalypse in Japan. The head of CDC’s Office of Public Health Preparedness and Response, Dr. Ali S. Khan, realized at this point how many individuals were concerned with the idea of a zombie apocalypse. Dr. Khan loves “Resident Evil.” He is always attempting to find creative ways to let the public know what the Centers for Disease Control is all about and get the public prepared.

Getting individuals interested with pop culture

Whether you are thinking about zombies or 2012 devastation, people are very worried. It has become a popular thing to be concerned about. In the case of a zombie attack or a meteor hitting the earth, “official recommendations” have been made by the CDC. These suggestions have been made since Dr. Khan took over the CDC’s OPHPR. The likelihood of these events happening is much lower than a tornado or outbreak of the flu though. Either way, however, the preparedness steps are essentially the same. Now, the CDC has taken advantage of live web chats, social media, public interaction and common beliefs to teach about preparedness. Hopefully this will help individuals to be more prepared for disasters in the future.

Articles cited

CDC

emergency.cdc.gov/socialmedia/zombies_blog.asp

CNN

cnn.com/2011/HEALTH/05/19/zombie.warning/index.html?npt=NP1

Does the Consumer Financial Protection Bureau have it in for small banks?

Investor’s Business Daily reports that the American Bankers Association is less than thrilled with the CFPB in the future. The banking conglomerate insists that when 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 one thousand community banks and credit unions to their death. It’s the kind of change small banks cannot see a good reason in which to believe.

Soon there will be change

Elizabeth Warren, the interim chief of the CFPB, has warned that “change is coming” and that all United States financial institutions will have to play by new rules. Supervision and enforcement will take over half of the Consumer Financial Protection Bureau’s budget, which Warren has made clear in her speeches about the U.S. customers having the bureau to protect them now.

Chances a bank will go out of business

By the end of the decade, over 1,000 banks will most likely go out of business if the Dodd-Frank rules are established, according to ABA representatives. The ABA thinks that small banks will have to take away too several resources to be able to give the CFPB any information it wants whenever it is requested. Furthermore, the Home Mortgage Disclosure Act’s eye against predatory lending will reportedly require banks to collect more borrower demographic information than ever before so that the CFPB can determine whether discrimination is happening.

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. The more small banks that shut down, the fewer capital sources remain accessible. Wilson explains that consumers will end up with higher rates and fees this way.

“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.

Some don’t want Elizabeth Warren

Though the organization is slated to launch July 21, the CFPB still doesn’t have a permanent chairperson in place. Obama will most likely nominate Warren although lawmakers are not so keen on the idea if they support the banking industry. 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 Consumer Financial Protection Bureau.

There were sixteen rule changes with the Sarbanes-Oxley Act of 2002. Only two and half years were taken to do this. The Dodd-Frank Act will require more than 250 rule changes over several years.

Citations

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

CFTC taking action against rare metal investment businesses

For the third time in the last little while, the CFTC has taken action against precious metal investors. The latest company to be closed down is American Precious Metals, LLC. These corporations have been offering Ponzi scheme style investments in precious metals.

American Precious Metals LLC lawsuit

American Precious Metals LLC was a business based in Lake Worth, Florida. Consumers were pressured by telemarketers into buying gold, silver, platinum and palladium investments being sold. The salespeople claimed that the business would store the physical metals for the customer and even finance part of the purchase after a significant down payment was made. The consumer would get a several hundred percent return on the investment from the business though. The company gave individuals short-term loans for investment in very special metals. Still, these metals didn’t really exist. The company also never registered with the FTC or Commodity Futures Trading Commission as an investment business. Regulation on precious metal was not followed by the company. It also violated the Telemarketing and customer Fraud and Abuse Prevention Act. The company’s assets have been frozen now.

Precious metals costing more

Precious metal investment scams have become more prevalent recently. This is because there has been an increase in the precious metals price tags. There has been a huge increase in gold prices in the last year. They have gone to over $1,500 from being at $1,200. Silver and other precious metals have experienced a similar price jump. Some of this increase is from the truth that precious metals are considered a “safe haven.” You can never go wrong investing in it. Some industry watchers have warned that gold and precious metals are getting close to bubble status, with costs that have expanded beyond their “real” value.

The brightest way to invest

Investing isn’t always safe. It can be dangerous in fact. You are able to get your own precious metals and store them. Make sure whoever you invest with is at the Better Business Bureau. Always check there for information. Do not invest in corporations that you can’t verify. Go to the Federal Trade Commission or Commodity Futures Trading Commission to verify the companies.

Articles cited

FTC

ftc.gov/os/caselist/1023212/110517americanpreciousmetalscmpt.pdf

Futures Mag

futuresmag.com/News/2011/5/Pages/CFTC-charges-Fla-firm-with-precious-metals-fraud.aspx

Sale of supercars still going despite increasing gas costs

Most consumers are probably feeling the effects of gas prices, but firms that make supercars have not really noticed. Though luxury brands are beginning to release green automobiles, traditional ultra-performance cars are still readily accessible for people who have the disposable funds. The male who can afford a Lamborghini can afford to keep it full of fuel, and the supercar industry is a little more insular than the typical car industry due to that.

McLaren wants to take on Bugatti

AutoWeek states that the sports car business McLaren is working on a car that will come out in 2014. McLaren plans on releasing the MP4-12C this year. It is known for producing the F1 which is the fastest car in the world. A 5-liter motor with about 800 horsepower will be in the car that McLaren is now working on. The vehicle is expected to cost $500,000 for anyone that is interested. It should go 0 to 200 miles per hour faster than the Bugatti Veyron can with 2.8 seconds have to go from 0 to 60.

More jobs at General Motors

CNN reports that about 250 new jobs will be added to General Motors to be able to invest $131 million into a new Corvette. This is so it can develop a Chevrolet’s sports car that is even better. The new Corvette won’t be ready for release for a few years, but the new positions will open soon at the GM plant in Bowling Green, Ky., where the Corvette has been produced since 1981. Right now there is not a release date or information on the car has been released. Chevrolet is rolling out a new Camaro for 2012, according to Popular Mechanics, called the ZL1 Camaro. The same 6.2L V-8 in the Cadillac CTS-V with over 550 horsepower will be put in the ZL1.

Lean, mean and green

Though supercars are the kind of vehicles that don’t traditionally prioritize environmental considerations that doesn’t mean performance car makers are entirely unconcerned. Hybrid automobile engineers are being interviewed by McLaren. It hopes to create more “green” automobiles. The new 918 Spyder is a vehicle sold by Porsche currently that is a plug-in hybrid that will top out at 199 miles an hour, drives three more miles than the plug-in Prius hybrid can on electric power alone and will go from 0 to 60 in 3.1 seconds, states USA Today. The vehicle also has great mileage. Its mileage is 78 miles per gallon typically. Ferrari unveiled a hybrid version of the 599 in 2010 and intends to have hybrid versions of all of its vehicles by 2015, according to the Daily Mail. The hybrid 599, the 599 HY-KERS, will do 200 miles an hour and get up to 25 miles per hour, though it still has a V-12vehicle can get 200 miles per hour and up to 25 miles per hour. ! Popular Science states that in 2009, Lamborghini declared it wanted to have a hybrid by 2015. Even the beasts with impressive firepower under the hood are going green.

Information from

Auto Week

autoweek.com/article/20110516/CARNEWS/110519876

CNN

money.cnn.com/2011/05/04/autos/gm_invests_for_next_corvette/index.htm

Popular Mechanics

popularmechanics.com/cars/news/preview-concept/12-new-cars-that-are-worth-waiting-for#fbIndex8

USA Today

content.usatoday.com/communities/driveon/post/2011/03/porsche-takes-orders-for-hybrid-918-spyder-gas-miser-supercar-/1

Daily Mail

dailymail.co.uk/news/worldnews/article-1254854/Geneva-Motor-Show-Ferraris-200mph-eco-friendly-electric-hybrid-unveiled.html

Popular Science

popsci.com/cars/article/2009-08/lamborghini-boss-hybrid-lambo-coming-2015

Strauss-Kahn unable to get bail after scandal

Dominique Strauss-Kahn, the head of the International Monetary Fund, has been arrested on sexual attack charges. When arraigned in a New York City court, he was denied bail. Strauss-Kahn was imprisoned on suspicion of sexual assault and false imprisonment. He is supposedly attempted to rape a hotel worker. He is in custody at Riker’s Island.

Sexual charges for financer to face

The IMF head was brought into a NYC courtroom on Monday, May 16 and arraigned on charges of sexual assault and false imprisonment, states the Guardian. This will be among the highest profile sex scandals in years to come out. He was accused of sexually assaulting a main in the Times Square hotel he was staying at, the Sofitel, which is why Dominique Straus-Kahn was detained Saturday for false imprisonment and sexual attack. He went before a judge on Monday after being arrested while boarding a plane for France, Reuters states. The attorneys that were prosecuting said he would be a flight risk. They said that if he had gone to France, the country would not have extradited him. He is at the Riker’s Island Correctional Facility right now after being denied bail.

Jail won’t stop IMF from operating

In spite of the head of the organization’s imprisonment, the International Monetary Fund is still carrying on, according to the LA Times. Kahn was supposed to be in Brussels when he was being arraigned, at a meeting with finance ministers from other European nations concerning a joint bailout package for the Portugal debt crisis between the IMF and the European Union, among other things. Another topic for the meeting was possible aid for Greece as the country’s debt crisis continues. Not several in Athens like Strauss-Kahn because of the forced austerity measures. Even so, the headline in an Athens paper said “the chambermaid blocks Greece!” in reaction. During all of this, Strauss-Kahn is stuck in The Tombs holding cells waiting for his next hearing. He is near the Riker’s Island Courthouse.

Fallout from scandal

Current president Nikolas Sarkozy was supposed to have Dominique Strauss-Kahn as competition in the coming election as he is a significant figure in the Socialist party in France. He will probably be exchanged. Francois Hollande or Martine Aubry could both do the job. Several people have been waiting to replace him in his job at the International Monetary Fund which is now up for grabs, the Telegraph states. Supposedly, former English prime minster Gordon Brown is hoping for the job. He doesn’t have an endorsement from current P.M. David Cameron though. Other possibilities include finance minister of France, Christine Lagarde, and former Germany finance minister Axel Weber.

Information from

The Telegraph

telegraph.co.uk/finance/dominique-strauss-kahn/8517119/Christine-Lagarde-and-Axel-Weber-front-runners-for-Dominique-Strauss-Kahns-IMF-role.html

Los Angeles Times

latimesblogs.latimes.com/washington/2011/05/ron-paul-imf-dominique-strauss-kahn.html

Reuters

reuters.com/article/2011/05/16/us-strausskahn-arrest-idUSTRE74D29F20110516

Los Angeles Times

latimes.com/news/nationworld/world/la-fg-euro-talks-20110517,0,2339845.story

The Guardian

guardian.co.uk/world/2011/may/17/dominique-strauss-kahn-court-appearance

The Guardian

guardian.co.uk/world/2011/may/15/strauss-kahn-arrest-hits-french-elections

Visa Digital Wallet may be your future payment choice

Cash, check or charges are all outdated methods of payment. Yet the move toward a cashless society may be closer than we think, thanks to Visa. Wired explains that the charge card company will debut Visa Digital Wallet via smartphone for retail electronic point-of-sale locations by fall 2011.

Most significant part is the Near Field Communication technology

The announcement from Visa for Digital Wallets will change the mobile payments race. More individuals will try and go faster with it. Using a phone for transactions is something consumers really want. Retail companies and credit card companies have also been waiting for this. With secure Near Field technology short-range communication, that day is almost upon us.

“The widespread adoption of Internet and mobile technology is changing the way people connect and transact across the globe,” said Visa chairman and CEO Joseph Saunders in a statement. “We’re focused on delivering locally tailored payments products and services.”

The way Visa Digital Wallet will change things

Experts predict that not only will NFC technology make phone payments the preferred method of transaction, but other technology that Visa and others are developing will streamline the one-click purchasing experience online and allow consumers to consolidate accounts from multiple financial institutions in one place.

Right now, Visa has become a commerce-focused technology business in many ways.

“When you think about what’s impacting commerce, you have one overarching trend: the continued adoption of electronic forms of payments,” said Visa executive Jennifer Schulz to Wired. “People are migrating away from cash and check and using electronic capabilities. … We’ve seen the use of and ubiquity of mobile devices really driving consumer behavior.”

Google attempting to stay on top still

MocoNews.net states that Google will be launching a cell payment service too. This should take place in a few months from now. Retailers that use cash registers developed by VeriFone Systems in New York and San Francisco will benefit from the NFC-backbone system. Both Android smartphones and the iPhone 5 will support NFC. The future versions of the iPad will also have it.

Connection with Visa Digital Wallet needed by financial institutions

According to Schulz, many big name banks want a piece of Visa’s Digital Wallet project. This involves PNC Bank, U.S. Bank and Royal Bank of Canada. There will probably be more partners in the end. The announcement is anticipated to come before the fall launch occurs.

Articles cited

Moco News

moconews.net/article/419-googles-mobile-payments-venture-heats-up-with-mastercard-citigroup/

Visa Media Center

corporate.visa.com/media-center/press-releases/press1124.jsp

Wired

wired.com/epicenter/2011/05/visa-digital-wallet-nfc/

‘What would the ideal payment experience look like?’

youtube.com/watch?v=Y80tSc1b8UI

How you can get probably the most from that unemployment check

Unemployment requires a fantastic deal of pavement pounding, which has been scientifically proven to crush the soul into tiny pieces. The sometimes fruitless nature of a job search must not blind consumers to the truth that they’ll have to make that joblessness check stretch. To do this, you need a plan. Article source – Stretching the value of your unemployment check by MoneyBlogNewz.

Find fixed costs first

There are many people that nevertheless need to live frugally on unemployment benefits even though the U.S. job market is improving. Simply cutting out the Starbucks and purchasing less at the grocery store will not do it, advises AOL Jobs. To begin with, personal finance expert Jean Chatzky suggests working backward. You need to figure out what your fixed essential expenditures are. From there, you can go forward.

“I think the easiest way to budget is backward,” she says. “This is where my money is going now and then you can make changes.”

More than just fixed costs to review

Austerity measures must be put to action when you have only a joblessness check to rely upon. Chatzky states that more than just saving is essential. Anything that is not a fixed or essential cost in the budget needs to stop. Rent, mortgage and automobile payments are inescapable, and they also do not change from month to month. Do you have public transportation? Consider the saved costs by using it.

Many items are not essential. This includes things such as the Internet and cable TV. Sometimes it is hard to view television with how busy you are. With 600 channels and this schedule, you may want to reconsider. Similarly, the Internet can be a time-waster, although it can also be an invaluable job search tool. Try going to the public library to use the Internet instead.

“The people that I’ve seen throughout this recession that have the biggest problems are the ones who continued to live as if there were two salaries coming into the family when there was really only one,” says Chatzky.

New ideas to consider

The unemployed may have to consider some difficult questions to be able to remain above water financially. Will you rent out that room above the garage, pull the kids out of private school or sell your prized guitar collection?

Most financial experts say never to take money out of a retirement account such as a 401(k) unless the emergency is severe enough. That nest egg was built for a reason, and the tax penalties can amount to 30 or 40 cents on the dollar for early withdrawal. You may end up considering filing for bankruptcy in the worst possible situation, even though that is getting harder to do now. There are individuals out there to help you make a good decision. A credit counselor is one of these.

Citations

AOL Jobs

jobs.aol.com/articles/2011/04/04/tips-to-stretch-your-unemployment-check/

North Carolina Gov. Bev Perdue on unemployment benefits

youtube.com/watch?v=BwkD8Kyb96A

Horde of fraudulent attorneys tie up payment of BP oil leak claims

An oil leak fund of $20 billion was started by BP as directed by the Obama administration. A mere pittance of those mega billions has been distributed to Gulf coast residents who say their livelihoods have been overturned by the environmental and economic carnage. Sleazy legal professionals have created a burden for fund administrators who are being badmouthed by seekers of simple cash that are thwarted by demands for legitimate proof of loss. Resource for this article – Horde of fraudulent lawyers tie up payment of BP oil spill claims by MoneyBlogNewz.

Processing claims for the oil spill by BP

A year after the 2010 oil leak in the Gulf of Mexico, the Gulf Coast Claims Facility has paid $3.8 billion in BP oil spill claims — just 19 percent of the $20 billion in seed money set aside by the oil company. The BP oil spill fund has been dispersed by Kenneth Feinberg who was appointed by the Obama administration. Now, 201,261 claims have been paid, he says. There have been many more claims made though. Over 857,000 were made total. In five states there are 35 offices for the Gulf Coast Claims Facility. The BP oil leak claims can be paid by it until 2013, in August. The claims process has been considered unfair, slow and confusing by several individuals getting Feinberg a lot of criticism.

The proof being requested

Feinberg made a statement on Tues about the BP oil leak fund management saying “Amounts requested by claimants very often bear no reasonable relationship to the damages really proven,” since $20 billion was requested by one applicant. About 72 percent of the claims from the BP oil leak have had payments or offers made. There have been claims denied too. Others are pending until more documentation is produced. Fishermen not used to paperwork in deals and generally working in cash are having difficulty figuring out the BP oil claims process. The Coast Guard has not overturned any of the 574 cases disputing payments.

Attorneys attracted by the smell of money

Tens of thousands of Gulf Coast residents — particularly vulnerable populations with language and culture disadvantages for instance the region’s large contingent of Vietnamese fishermen — have been misled into signing up with lawyers or have been unaware that claims have been filed in their name. Feinberg spoke on the fraudulent activity. He said it was “an obstacle to the efficiency and speed in getting the checks out.” The New York Times reports that several law firms have targeted Vietnamese fishermen to con them onto their client lists. The larger the client list, the larger they payout for the attorneys when BP settles the claim. The New York Times reports of a San Antonio law firm that filed claims for thousands of Vietnamese, all listed as deckhands with identical earnings. There was not an acceptance with the claims. People were surprised when they realized they were on the list for a claim.

Information from

CNN Money

money.cnn.com/2011/04/18/news/companies/BP _spill_claims/?npt=NP1

24/7 Wall Street

247wallst.com/2011/04/19/the-BP -20-billion-gulf-claims-facility-has-paid-nearly-nothing/

Los Angeles Times

latimes.com/news/nationworld/nation/la-na-gulf-spill-claims-20110419,0,2595018.story

New York Times

nytimes.com/2011/04/19/us/19spill.html?_r=1

Americans nevertheless think housing is a good financial investment

A recent survey indicated that most Americans think real estate is a good investment. Since the recession began, the average value of a house has plummeted by more than thirty percent, and more than a quarter of all homeowners owe more to the bank on the mortgage than their houses are worth. Housing prices will recover eventually. It may take awhile, though.

Real estate confidence in Americans

The majority of Americans are confident in housing investments even with the economic downturn, a survey noted. Reuters states that 81 percent of Americans thought that a long term financial investment in housing was a good idea according to the Pew Research Center. More than 2,000 adults were surveyed by phone by the Social and Demographic Trends project, part of the Pew Research Center, and 37 percent “strongly agreed” that a house is the best long term financial investment, and 44 percent “somewhat agreed.” Most people believe that housing values will recovered within three years, but 23 percent said that they wouldn’t have bought their house if given the choice again.

April showers and May flowers

The current 2011 trend will hopefully be reversed in spring and summer when sales are expected to pick up, reports MSNBC. Realtors and real estate industry analysts are concerned that the number of underwater homes and lower demand will keep home sales and home values down for some time. This year, a 7.3 percent increase in home sales is anticipated by the National Association of Realtors though. Most housing industry experts say that the lenders are making recovery difficult since they’re being unwilling to lend.

Downturn fuels skeptics

The real estate industry is in a hard place right now. The American Dream is danger because of this. Robert Shiller, Case-Shiller Index co-founder, was quoted in a USA Today article that said security and lifestyle reasons are the only ones that people have to purchase a home. There was another economist that talked about the return on a home. Generally, the return is around 6 percent. With depressed costs, along with agent fees and other closing costs, it might be far lower than that for several individuals.

Citations

Reuters

reuters.com/article/2011/04/12/us-usa-housing-survey-idUSTRE73B0T220110412

MSNBC

msnbc.msn.com/id/42521765/ns/business-real_estate/

USA Today

usatoday.com/money/economy/housing/2011-03-20-home-ownership.htm

Charge card mail is busting out all over

Credit card mail may seem like spam, however it could be viewed as a sign that the consumer credit industry is beginning to loosen. According to Bankrate, it’s as if the waves of recession are almost rolling back. The Mintel Comperemedia study found that offers for new credit cards skyrocketed from 551 million in the fourth quarter of 2009 to 1.4 billion in the final quarter of 2010.

Just how credit offers stand out

In order to attract consumer business, more charge card offers are trumpeting no balance transfer charges, no foreign transaction charges and extended low introductory rates. Waiving balance transfer fees is particularly popular. Banks will go to extreme lengths just to get above the rest according to what Senior V.P. Andrew Davidson of Mintel told CreidtCards.com. Those banks last year that charged balance transfer charges, did it at a rate of only 3.06 percent, and about 40 banks and credit unions canceled transfer fees altogether.

Standing out above the crowd

The foreign arena or currency conversion charges are a big competitive area for charge card issuers. While not as visible as APR, annual fees and balance transfer fees, foreign transaction charges are significant to everyone who travels, whether for pleasure or business. The typical 3 percent surcharge on foreign transactions can cost quite a bit before the trip is over. Past year a study conducted showed that over 90 percent of bank cards include this type of fee.

HSBC, Chase, and Citibank; are a few the major banks that currently waive their foreign transaction fees.

Extended introductory rates: another bonus

Some charge card issuers push a zero-percent APR initially for some time, to try and get people to purchase into their card, this is often referred to as an extended introductory rate.

Mintel reported the introductory rate was around 13 months for the fourth quarter of 2010. However, that number is trending higher, claims Davidson.

“The squeeze on credit observed during mid-2009 is being reversed, and many issuers are now offering durations of 15, 17 or 18 months or more,” he told Bankrate. “We have even seen offers with 24- and 30-month intro rate durations in recent months.”

Low charge card rates can be attributed to legislation

The Credit Card Accountability, Responsibility and Disclosure Act (CARD) have helped stabilize credit card APRs. Mintel reports that fourth quarters average APR was 14.03 percent. “Many credit card companies have contrasted their APRs against the relatively high prime rate as a consumer draw,” said Davidson.

Articles cited

Bankrate

bankrate.com/financing/credit-cards/4-trends-in-credit-card-mail/

CreditCards.com

creditcards.com/credit-card-news/foreign-exchange-fees-going-up-1267.php

Pew Trusts

pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Credit_Cards/PEW-CreditCard FINAL.PDF

WhiteHouse.gov

whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/

Shop around for a better credit card than this

youtu.be/FunpS4QXcRI

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

The CARD Act, passed in 2009, is meant to help protect 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 bill is causing some severe unintended consequences, however. Stay-at-home spouses are very possibly going to be losing financial freedom, under the provisions of this bill. Article source – CARD Act could strip stay-at-home partners of financial identity by MoneyBlogNewz.

Rules the CARD Act put together

To be able to safeguard customers from credit card abuses, the CARD Act has several provisions. In the Act, the way income is viewed changes. There are new rules for businesses. When applying for credit, “income” is very specific. It does not contain community property or household income. Instead, all income on an application for credit must be individual. This is meant to keep consumers from over-claiming income or qualifying for credit that they do not have the income to pay back.

Consumers get CARD Act feel

Stay at home parents may have a difficult time with the CARD Act rules. The CARD Act makes it extremely hard for someone who stays at home to get credit even though a partner working might bring home plenty of money. While this prevents individuals with no independent income from getting credit they may not be able to pay back, it also prevents stay-at-home spouses from building an independent credit history. Without credit, there can be less opportunity for jobs. That will make it harder on an individual if the relationship ends suddenly.

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

Married couples have “community property” in 10 of the 50 United States Partners have equal share of whatever is in the marriage according to the shared property law which could be changed with a pre- or post-nuptial agreement. For couples in community property states, the CARD act will require them to split their financial lives. The way the CARD Act works, those in other states are out of luck. One partner can’t help the other get any debt.

The CARD Act affects you also

The CARD Act provisions will be really hard on any person who’s a stay-at-home partner. Are you a stay-at-home partner without a job? Just prepare to have to get your partner’s signature on anything from unsecured loans to credit card. This means that establishing your own, independent credit history is very important. Make an effort to keep some kind of employment going. Also, talk about finances with your partner regularly.

Information from

NCLC

nclc.org/

The Library of Congress

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

Citi checks itself from charging multiple overdraft charges

Egregious overdraft fees at Citi definitely won’t be quite as much so when the bank changes the way it clears checks. Banks were forced to offer consumers a choice with overdraft protection on debit cards with financial reform. However, banks were allowed a loophole with checking accounts. {On Monday Citi said it will curtail the practice of milking overdraft charges from checking accounts by processing smaller checks first|By clearing checks written for smaller amounts first, Citi is keeping itself from stealing as much money as it has in the past with bogus fees|The lying, thieving bankers at Citi have chosen to restrain themselves from repeatedly charging overdraft fees by clearing smaller checks first|By clearing smaller checks first, Citi is essential taking away from itself the chance to charge its customers over and over for bounced checks. Source of article – Citi to give customers a break by clearing smallest checks first by MoneyBlogNewz|Citi is checking itself from charging repeat overdraft charges simply by letting smaller checks clear before a larger one sends the account into negative territory. Article resource –

More money taken by banks

About $20 billion was charged by banks in 2009 for overdraft protection on debit cards. Because of overdraft on checking accounts, another $12 billion was charged by banks. bank lobbyists managed to get voluntary overdraft loan programs for checking accounts exempted from financial reform, but the FDIC is considering an opt-in requirement at smaller state chartered banks for overdraft coverage on paper checks and electronic payments. The FDIC is being told to get banks to require consent, by Consumers Union, which is the Consumer Reports non-profit publisher, before checking account coverage can happen. If the FDIC goes along, consumers can expect banks, including Citi and B of A, to create other charges for instance increasing monthly checking account fees. When regulators respond, banks will discover other ways to make money for nothing.

Citations

Associated Press

finance.yahoo.com/news/Citi-to-start-clearing-apf-1510892963.html?x=0&sec=topStories&pos=main&asset=&ccode=

Consumer Reports

pressroom.consumerreports.org/pressroom/2010/11/consumer-reports-poll-only-22-percent-of-bank-customers-have-opted-in-for-debit-card-overdraft-protection.html

New York Times

nytimes.com/2010/03/10/your-money/credit-and-debit-cards/10overdraft.html?_r=1

Threat of autopilot finances highlighted by $16 million cable invoice

Several companies claim that computerized billing systems make life easier and bills more accurate. One cable consumer has been charged $16 million for one month’s worth of television. Watching the March Madness games on pay-per-view was the beginning of this overcharging nightmare. This particular bill has been reversed already. The lesson, however, is that keeping an eye on your finances is incredibly essential. Article source – $16 million cable bill quickly reversed by Time Warner by MoneyBlogNewz.

Cable invoice costs $16 million

Daniel DeVirgilio is an Ohio resident who subscribes to Time Warner cable service. At the end of last month, DeVirgilio received notification that his credit card had been dropped when he tried to pay his cable bill. A charge of $1 million per basketball game during March Madness was put on his account by Time Warner. This added up to $16.4 million total. Upon being informed of the glitch, Time Warner reversed the charges.

The danger of financial autopilot

Daniel DeVirgilio, like many other people, had his cable invoice set to autopay. Monthly invoice pay services where consumers just give over their credit or debit card number take place often. Each month, the invoice gets paid on its own. Invoice payers don't have to worry about this. If the charge hadn't been $16 million and gotten his charge card dropped, Daniel DeVirgilio would never have noticed. This is the only reason why he noticed something wrong.

The bills need to be paid

The $16 million cable invoice teaches at least one thing. It may not be a good idea to use autopay. Remember due dates of bills is never easy. Everyone has trouble with it. You can do several things without forgetting to pay your bills while waiting for them to arrive. The first option is to do the simplest thing — pay each invoice the day you receive it. Financially, that may not always be possible, so tracking the due dates on a calendar you see every single day is another way to make sure you don’t miss anything. Lastly, you can put your bills on auto-payment, however schedule a few hours, once or twice a month, to read over each invoice to ensure that there are no surprises. A $16 million cable bill is unlikely. Still, you may end up losing a lot with a couple extra dollar charges every month.

Information from

Digital Life Today

digitallife.today.com/_news/2011/04/04/6405791-time-warner-charges-man-164-million-for-cable-service?GT1=43001

Yahoo News

news.yahoo.com/s/yblog_thelookout/20110325/ts_yblog_thelookout/ohio-man-gets-a-16-4-million-cable-bill

Microsoft contributes grievance to EU antitrust analysis of Google

Last fall Google found itself being investigated in an antitrust probe by European Union authorities. Corporations that compete with Google in Europe say the search engine giant is greedy and that it must be contained. Microsoft took a stand with its Euro subsidiaries Thursday and filed a complaint of its own accusing Google of anti-competitive methods. Source of article – Microsoft adds complaint to EU antitrust investigation of Google by MoneyBlogNewz.

Google to worry about antitrust criticism Microsoft has

In Europe, Google could have to deal with the antitrust complaint that Microsoft filed saying that Google is limiting access to data needed with YouTube and Google services like this in order to hurt European consumers. Microsoft’s complaint towards Google throws its weight behind an ongoing antitrust investigation by the European Union Competition Commission. Microsoft's search engine Bing has been unable to get much attention in Europe while the Internet search market is about 95 percent under Google's thumb in Europe. Advertisers in Europe are just accustomed to using Google now. There have been complaints about competition and antitrust in Europe by many people already. Microsoft has decided to start fighting Google and complain after being in antitrust investigations for Windows for years and after paying the European commission billions in fines.

Obvious fights between Google and Bing

Background technologies that give one access to Google products for instance "application programming interfaces" are the center of Microsoft's European antitrust complaint. Microsoft alleges that Google fiddles with the application programming interfaces to interfere with access to YouTube by Bing and other competing search engines, thus herding their users toward Google. The Windows Phones cannot work with YouTube very well due to Google's programming, Microsoft suggests; which isn’t an issue on the iPhone or Android. There’s a problem with the Windows phones only because Apple isn’t in the competition. Bing is in the search engine market with Google making Microsoft a target. Another Microsoft claim is that Google is blocking advertisers from optimizing on other platforms that compete. The EU antitrust probe is already looking into this though.

Problem Google faces in Europe

Google can give its side of the story as European Union Commissioner allowed. Google has said the restraint on third-party software is to maintain the consistency of Google's ad service and that advertisers are allowed unfettered access to data. Microsoft is involved. This means the stakes are much higher. Google could face a fine of up to 10 percent of annual global revenues, which exceeded $29 billion in 2010. There might also have to be other changes. This would be done to business in Europe. The EU commission said that Google would be able to defend itself and avoid a fine by changing its business in Europe before Microsoft got involved.

Articles cited

Associated Press

finance.yahoo.com/news/Microsoft-throws-weight-apf-1337664829.html?x=0&sec=topStories&pos=6&asset=&ccode=

Los Angeles Times

latimesblogs.latimes.com/technology/2011/03/microsoft-files-european-antitrust-complaint-against-google.html

New York Times

nytimes.com/2011/04/01/technology/01google.html?src=busln

Episode of Top Gear gets BBC prosecuted by Tesla Motors

The popular TV show “Top Gear” may be causing the BBC some headaches in the courtroom. Tesla Motors is suing the BBC for alleged libel committed by “Top Gear” and the hosts. The electric vehicle manufacturer alleges that the show made detrimental and false claims during an episode which was intended to put the Tesla Roadster through its paces. The British Broadcasting Corporation is vigorously denying the allegations.

Response from Tesla Motors to Jeremy Clarkson’s stunt

The Tesla Roadster was tested depending on its range claims in a “Top Gear” episode on BBC2 in December 2008. The Guardian states that the show made Tesla Motors really angry. Now the company is suing the British Broadcasting Corporation for its false claims.

The Roadsters are supposed to get over 200 miles on an electric charge although the Tesla Roadster only ran for 55 miles according to “Top Gear” host Jeremy Clarkson. The show also claims the Roadster’s brakes ceased to function, and depicts the “Top Gear” crew pushing the car from the private “Top Gear” test track after it allegedly ceases to run. This made Tesla angry. The business lost business.

vehicle marker asserts false claims were made

According to Tesla, the “Top Gear” show was lying. The Roadster never really ran out of charge in it. USA Today reports that Tesla claims to have monitored the 2 vehicles loaned for testing to the show while neither went below 25 percent of the charged power. A fuse in the braking system, not the brakes, failed, in accordance with Tesla. The brakes would have continued to work just fine.

The Tesla Roadster is "an electric vehicle you would actually want to buy," That has "a motor the size of a watermelon, with one moving part," in accordance with host Jeremy Clarkson on the show. He also said it was good that the car was able to, in less than four seconds, get from 0 to 60 miles per hour.

Tesla really just wants the episode to stop airing although it doesn’t want much in monetary damages. Forbes states that Tesla has been angry for a while over the show however didn’t start legal proceedings until the concern of the claims in the show stopped being addressed by BBC.

Comments tend to trigger trouble

”Top Gear” has been in a lot of controversy in the past. The show is known for troubles while the hosts, Richard Hammond, James May and Jeremy Clarkson, have been known for the rude and offensive comments they make. This show is just like every other automotive television program. It wants the vehicles with horsepower that guzzle lots of gas. There are over 300 million individuals in the world that watch "Top Gear." About 6 million of them are from Britain, states Bloomberg.

Articles cited

The Guardian

guardian.co.uk/environment/2011/mar/30/tesla-sue-top-gear

USA Today

content.usatoday.com/communities/driveon/post/2011/03/tesla-top-gear-jeremy-clarkson-elon-musk-lawsuit/1

Forbes

blogs.forbes.com/hannahelliott/2011/03/30/tesla-sues-top-gear-for-libel/

Bloomberg

bloomberg.com/news/2011-03-30/carmaker-tesla-sues-bbc-s-top-gear-over-electric-roadster-test.html

Fed denies Bank of America dividend increase

The Federal Reserve is forbidding Bank of America from increasing shareholder dividends, which are currently once cent per share. After a round of stress tests, the Fed told the biggest banks they were fit enough to increase payouts to shareholders. But Bank of America was the exception. Some financial experts are concerned the Fed’s blessing for banks to release capital to shareholders will put the banks in an untenable position in the event of an economic relapse into recession. Article resource – Why allowing banks to boost shareholder dividends is a bad idea by MoneyBlogNewz.

No Fed approval for Bank of America

The Federal Reserve heard from Bank of America that it wanted to, in the second half of 2011, to boost shareholder dividends in January. The bank was anticipated to raise its quarterly dividend by up to 8 cents, about 20 percent of its envisioned earnings this year. Because of the decision Bank of America made to lose $2.24 billion past year getting Countrywide in 2008 during the housing sector drop, the Fed told the bank not to do it. There has also been pressure from investors to get Bank of America to buy back bad mortgage securities. These were sold before the meltdown started. The Fed gave permission to other banks though. This involved U.S. Bancorp, Wells Fargo and JPMorgan Chase. Now Bank of America has a plan to give a new proposal to the Fed. This will occur before June is over.

Why would banks increase dividends for shareholders?

The economy will not be able to grow without increasing dividends helping banks raise more equity in the future, Wall Street banks argue. banks are able to lose equity but get more investors by paying shareholder dividends. Leverage is all bankers want. banks fund over 95 percent of investments in debt taking other people's money although companies like Google use equity to get funded. Equity is something banks don't need because leverage makes executives and shareholders lots of money. This is assuming there is health in the financial sector. banks also stay away from equity because the more equity they hold, the more liable they’re for the risks they take. They will default at their own expense with their risk. The working class individuals are not needed to help.

Possibility of another bailout

There were several highly leveraged banks noticed during the financial crisis. The Fed was worried about this. Many feel like shareholder dividend increases shouldn't be allowed unless the economy is strong first. The New York Times Simon Johnson compared the leveraged bank to getting a mortgage for 98 percent of the purchase price with a tiny down payment. Sometimes the home price will go up. That means it was worth the risk. Creditors end up missing out while the borrower loses if they drop. There’s a difference between the two though. The banks have learned they’re too large to fail when working for the people. When a highly leveraged bank fails, a government bailout rescues its executives, shareholders and creditors, and U.S. taxpayers get the shaft.

Citations

New York Times

economix.blogs.nytimes.com/2011/03/24/dividends-lost/?emc=eta1

Business Insider

businessinsider.com/how-bank-dividends-help-wall-street–and-hurt-almost-everyone-else-2011-3

CNN Money

money.cnn.com/2011/03/23/news/companies/bank_of_america_dividend/index.htm

No one should be troubled by national vacancy rate

The national vacancy rate has reached 13 percent, or the percentage of houses in the nation that are sitting empty. Since that figure doesn’t reflect how many 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, however not entirely out.

Hot stops for vacations having trouble selling vacation homes

The economic statistics and indicators on real estate are viewed by individuals each day. These make it seem like the housing market is doomed. For instance, CNN recently published an article that said up to 13 percent of homes sit empty in The United States. The statistic is misleading really. CNN also states that vacation places like Maine, Florida and Arizona are where the majority of the vacancies are. 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.

Increase in pending sales

Bloomberg states that there was a rise in February of 2.1 percent in the number of homes officially in the process of selling, or Pending sales. The dip in home sales over the past few months was attributed partially to frigid winter conditions, as not a soul wants to go house hunting in the middle of a blizzard. The housing market isn’t doing as well nevertheless 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 a rise in existing homes sales. The costs of new homes are much higher than the costs of old homes. This is how the market is right now.

Reality of realty

Individuals keep talking about a second crash in the housing market. This is part of the news going around. Banks do not want to lend as often right now while housing aren’t worth very much and sales are slow. While loan companies continue to worry about lending in this economy, there are also fewer individuals willing to purchase houses keeping prices low. In the next few years, a lot of people with a home will see the value rise while people who purchase now can be getting a deal.

Articles cited

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

The enterprise viewpoint of settlement system fees

In the next few months, congressional legislation is set to reduce debit and credit card interchange fees to 12 cents per transaction. A few legislators have submitted new legislation that would remove this new requirement. The legislation cites these fee limits as a reason companies could be “less competitive”. For small business owners, this legislation would not improve competitiveness. Instead, these fee limits are what could keep smaller businesses competitive. Post resource – A small business perspective on payment systems by MoneyBlogNewz.

Charge card fees just to have it

Card interchange fees are, in short, fees paid for the privilege of allowing consumers to use a credit or debit card. These are called “swipe fees,” as well. They cost between 12 and 75 cents every time someone utilizes the card. This “interchange fee” is in addition to a certain percentage of the transaction amount that is charged for use of the card. All of the percentage fees and interchange fees are taken to pay for the process. The card processor, the banks and the card machine all are paid for this way. Last year, the fees added up to $50 billion. There are very high interchange fees in the United States though. They are twice as high as Europe's are. To be able to help U.S. businesses become less competitive, congress members are trying to push some legislation. This would make interchange fees go down.

Less people willing to pay an interchange fee

For a small business, the decision of whether to accept cards is tough. Accepting credit cards means paying a fee and a percentage on every charge card transaction, plus most charge card processors charge a monthly fee, so the costs are high. It is worse than that for smaller businesses that do not have a lot of additional money. Even with accessible alternatives that reduce cost, any small business could have to eventually pass on the cost to consumers through minimum purchases, higher prices or additional charges on card payments. There are benefits; accepting cards means customers are more likely to make bigger purchases, and more customers are willing and able to pay for your product or service.

I have a small business

My husband and I own a small business that offers a variety of products and services. Whether we should accept credit cards were never really a question — it was a necessity. It did not make sense to pay the $20 to $100 monthly credit card terminal fee when we didn't have a physical location and don't make too much money with it. We chose start-up Square to run our credit cards, which charges a flat percentage of every transaction and processes credit cards through smartphones. Our small business only has to pay about $8 in credit card fees since we only make about $300 a month. The profit goes down quite a bit after adding on $30 in small business taxes and $26 in sales tax. The suppliers have to be paid as well. The reduction in charge card interchange fees would allow us to cut back the amount we charge customers or be able to actually hire employees. Companies can go from "surviving" to "competitive" with a decrease in the small percentage points of! interchange fees.

Articles cited

Market Watch

marketwatch.com/story/visa-mastercard-rise-on-swipe-fee-regulation-pact-2010-06-21

Frivolous tax arguments are amusing, but the IRS penalty isn't

Each year the IRS hears new and different frivolous tax arguments. The most popular unsubstantiated claims made by working class individuals each year are compiled into a compendium by the IRS. Most working class individuals would laugh at some of the frivolous tax arguments people come up with, however the IRS is not amused. Source for this article – Frivolous tax arguments are amusing, but the IRS penalty is not by MoneyBlogNewz.

Cheating on taxes a poor choice

The Truth about Frivolous Tax Arguments is an annual report the IRS has just released for 2011. The document was 87 pages long. It described several tax evasion scenarios that have been popular. The individuals would often get penalties depending on the arguments which were integrated in the document. It also had the official legal policies used by the government to argue these cases. Most of the arguments are spread on the Internet by a growing number of scam artists posing as brave crusaders against an unjust government and contain refusal to pay federal income taxes for moral, religious, semantic or philosophical reasons.

Paying for an argument

An argument some have is that they aren't a "person." This is in accordance with the IRS definition. Others have argued that the federal income tax is unconstitutional or that paying taxes is voluntary. Military income is exempt for some taxpayers while foreign income is still taxable. It has been estimated that annually at least 10,000 individuals attempt to evade taxes with a frivolous argument, and the number is growing. There is a $5,000 IRS penalty to everyone that files a frivolous tax return argument. Taxpayers who go to court with their frivolous arguments can receive an IRS penalty up to $25,000. The Department of Justice has had over 455 businesses and individuals that it filed injunctions against since just 2000.

Never seeing courts rule in favor of tax arguers

There have been claims that paying taxes violates the fifth amendment, that it’s against ones religion or that it is against the 13th amendment, the IRS explained. The Supreme Court often rules that saying “paying taxes is against my religion” simply won’t fly. The Fifth Amendment states an individual shall not be "deprived of life, liberty, or property, without due process of law.” However the law gives the government authority to collect taxes from U.S. citizens. Courts don't think the idea that paying taxes is servitude is really a valid argument when using the 13th Amendment.

Articles cited

Main Street

mainstreet.com/article/moneyinvesting/taxes/tax-excuses-irs-won-t-buy?page=2

Portfolio.com

portfolio.com/views/blogs/resources/2011/03/21/irs-warns-taxpayers-about-excuses-for-not-paying-that-won

Christian Science Monitor

csmonitor.com/Business/2010/0415/Tax-Day-101-42-excuses-you-can-t-use-to-avoid-filing-IRS-forms

Internet news paywalls and how to stay away from them

If you do not have much money however want to continue to satisfy your online news addiction, the move toward paywalls is disconcerting. Without information, you can end 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. Article resource – Money-saving ways to avoid online news subscription paywalls by MoneyBlogNewz.

Every person will love Google News

The best part of Google News is access. Lots of news sites are brought to one place. It is easier to get news. It is available each day. there are local news and top news categories. Anybody loves the clear and simple format it has.

Newspapers app: An iOS portal to publications across the US

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

Cheap RSS Reeder for everyone

Reeder will take RSS feeds and make them neat for you. It has a newspaper-style interface, and the iOS app cuts the ads and reformats the page for optimal reading pleasure. 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," says Business Insider. It recommends news you might like, via connections to your Twitter and Google Reader accounts. there are also lots of articles in the app. You are able to pick them and read them instead.

CNN and Associated Press apps are free

For world, national and even local news on an iOS or Android system, it works really well to have Associated Press and CNN apps. The AP app allows users to pick a favored broadcaster. Then, the stories will be followed of that person. Users are able to submit photos of news in an iReport feature in the CNN app.

NYT and the Daily for free

The NYT Twitter feed could be put into a list by Twitter users. 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 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 exact same limit might 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.

Citations

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