Author Archive
How money is created as a debt by private banks
“The Money Myth Exploded” was one of the first articles of Louis Even, and to this date it remains one of the most popular illustrated story to explain in layman’s language how money was and still is created by private banks as a debt.
1. Shipwreck survivors
An explosion had blown their ship apart. Each one grasped the first bit of wreckage that came to hand. And when it was over, there were five left, five huddled on a raft which the waves carried along at their will. As for the other victims of the disaster, there was no sign of them.
Hour after long hour their eyes searched the horizon. Would some passing ship sight them? Would their make-shift raft finds its way to some friendly shore?
Suddenly a cry rang out: “Land! Look! Over there, in the direction the waves are carrying us!”
And as the vague silhouette proved itself to be, in fact, the outline of a shore, the figures on the raft danced with joy.
They were five. There was Frank, the carpenter, big and energetic. It was he who had first cried, “Land!”.
Then Paul, a farmer. You can see him, front and left in the picture, on his knees, one hand against the floor, the other gripping the mast of the raft.
Next is Jim, an animal breeder; he’s the one in the striped pants, kneeling and gazing in the direction of land.
Then there is Harry, an agriculturist, a little on the stout side, seated on a trunk salvaged from the wreck.
And finally Tom, a prospector and a mineralogist; he is the merry fellow standing in the rear of the picture with his hand on the carpenter’s shoulder.
2. A providential island
To our five men, setting foot on land was like returning to life from the grave.
When they had dried and warmed themselves their first impulse was to explore this little island on to which they had been cast, far from civilization.
A quick survey was sufficient to raise their spirit. The island was not a barren rock. True enough, they were the only men on it at the moment. But judging from the herds of semi-domesticated animals they encountered, there must have been men here at some time before them. Jim, the animal breeder, was sure he could completely domesticate them and put them to good service.
Paul found the island’s soil, for the most part, to be quite suitable for cultivation.
Harry discovered some fruit trees which, if properly tended, would give good harvests.
Most important were the large stands of timber embracing many types of wood. Frank, without too much difficulty, would be able to build houses for the little community.
As for Tom, the prospector, well, the rock formations of the island showed signs of rich mineral deposits. Lacking the tools, Tom still felt his ingenuity and initiative could produce metals from the ores.
So each could serve the common good with his special talent. All agreed to call the place Salvation Island. All gave thanks to Providence for the reasonably happy ending to what could have been stark tragedy.
Does Your Credit Score Matter?
One of the most disturbing things I hear often is the statement being made by people:
My Credit Score Went Down, But Who Cares?
This cliche phrase sounds more like saying “Hey, we are all going to die some day” and “I am waiting for Govt.. to bail me out.” Although there is some degree of truth in those sentences but at the end of day it amounts to denial of responsibility.
In this post I wish to discuss the parts of your life that get very much affected by your credit score. It is not a small part. It affects the whole you. It hits your home, the card you can drive, the things you can buy and even the jobs you can get into. All spares of your life get affected by credit score.
Impact of Credit Score on Your Home
If you ever want to move out of your parents home and get a decent accommodation of your own, you need a pretty good credit score. You will not be taken seriously by any landlord, mortgage broker, banker or a realtor(real estate professional) if you don not have a decent credit score. so next time when your citi bank credit card bill arrives.. pay it on time for the sake of good future home.
Impact of Credit Score on Your Car
If you don’t care about your credit score, don’t complain when you have the same car payment as your neighbours while he drives a new Lexus and you own that rusting old Chevy. This might be an extreme example but missing one or two payments can cost you 4 , 5 and some times 8 percent on your next car loan. so be careful and pay on time.
Mother of All Credit Card Lists ( over 1200 Listed )
I have tried to include all credit cards issued in US. If you think if I have missed any, please leave a comment. More than 1200 cards have been included.
1. AAA Credit Card
2. AAA Rewards Visa Credit Card (Northern California, Nevada, Utah)
3. AAdvantage American Express from Citi
4. AAdvantage Bronze MasterCard from Citi
5. AAdvantage Bronze MasterCard from Citi for College Students
6. AAdvantage Gold World MasterCard from Citi
7. AAdvantage CitiBusiness Card
8. AARP Platinum Visa
9. AARP Rewards Platinum Visa Credit Card
10. AARP Travel Plus Visa Signature Card
11. Abercrombie & Fitch Credit Card
12. Academy of General Dentistry Platinum Visa Card
13. AccountNow Prepaid MasterCard
14. Adirondack Trust Company MasterCard or Visa
15. Advanta Platinum BusinessCard with Rewards
16. Advanta Life-Of-Balance Platinum Card
17. Advanta Platinum BusinessCard
18. Aer Lingus Rewards MasterCard
19. Agriculture Federal Credit Union Visa
20. AICPA Platinum Visa Card
21. Air BP Visa
22. Air Canada MasterCard
23. Aircraft Owners and Pilots Association MasterCard
24. Air Force Association Platinum MasterCard
25. Air Force Sergeants Association MasterCard
26. AirTran Airways A+ Business Card
27. AirTran Airways A+ Visa Signature Credit Card from Juniper Bank
28. Alabama Central Credit Union MasterCard or Visa
29. Alaska Airlines Visa
30. Alaska Airlines Visa Business Card
31. Albina Community Bank Loop Card
32. All-Access Visa Prepaid Card
33. Allow Card Prepaid MasterCard
34. Alternatives Federal Credit Union Visa
35. Amalgamated Bank MasterCard
36. Amalgamated Bank Union MasterCard
37. Amalgamated Bank Secured Gold MasterCard
38. Amazon.com Business Credit Card
39. Amazon.com Platinum Visa Credit Card
40. American Association of Neurological Surgeons Credit Card
41. American Bar Association Visa
42. American Boating Association Credit Card
43. American Canine Association Platinum MasterCard
44. American Chemical Society Credit Card
45. American DreamCard MasterCard
46. American Eagle Outfitters Credit Card
47. American Express Business ExtrAA Corporate Card
48. American Express Business Gold Rewards Card
49. American Express Business Green Rewards Card
50. American Express Business Membership Rewards Card
51. American Express Business Platinum Card
52. The American Express Card
53. American Express Card for Students
54. American Express Cash Rebate Card
55. American Express Corporate Card
56. American Express Executive Business Card
57. The American Express Gold Card
58. American Express Golf Card
59. American Express IN:CHICAGO Card
60. American Express IN:LA Card
61. American Express IN:NYC Card
62. American Express Optima Card
63. American Express Optima Platinum Card
64. American Express Platinum Business Credit Card
65. American Express Platinum Business FreedomPass Credit Card
66. American Express Platinum Card
67. American Express Platinum Cash Rebate Card
68. American Express Preferred Rewards Gold Card
69. American Express Preferred Rewards Green Card
70. American Express Rewards Plus Gold Card
71. American Express SimplyCash Business Card
72. American Institute of Architects Credit Card
73. American Kennel Club Rewards Visa
74. American Legion Auxiliary Visa
75. American Legion Visa
76. American Medical Association Business Credit Card
77. American Medical Association Platinum Visa Credit Card
78. American Medical Student Association Credit Card
79. American Paint Horse Association Credit Card
80. American Photo Visa Card
81. American Quarter Horse Association Business Credit Card
82. American Quarter Horse Association Credit Card
83. American Savings Bank Secured Visa
84. American Savings Bank Student Secured Visa
85. American Savings Bank Visa
86. American Savings Bank Visa Gold
87. American Skiing Company Edge MasterCard
88. American Society of Civil Engineers Credit Card
89. American Society of Mechanical Engineers Credit Card
90. American State Bank Credit Card (Iowa)
91. American State Bank & Trust Visa (North Dakota)
92. American State Bank Visa (Texas)
93. American Taekwondo Association Credit Card
94. American University MasterCard
95. America’s Christian Credit Union Credit Cards
96. Amtrak Guest Rewards MasterCard
97. AmTrust Bank Rewards American Express Card
98. AmTrust Bank WorldPoints Credit Card
99. ANB Financial MasterCard or Visa
100. AnimalSafe MasterCard
Rest of the list has located here
Mutual Fund Investment Basics
I spent last few days learning about mutual funds investments. I can sum up here what I have learned from different sources about the basics of these kind of investments. Mutual Funds are far better than investing in individual stocks. You should chose the later kind of investment only if you have time, energy and required level of understanding of stock markets and the underlying fundamentals.
What is a Mutual Fund?
A mutual fund is a pool of investments used to buy a large portfolio of securities that will be managed by a professional adviser. When you buy a share in a mutual fund, you effectively buy a bit of each security held in the fund’s portfolio. Mutual funds are sometimes referred to as “investment companies.” These investment companies should not be confused with investment banking companies, which raise capital for corporations and municipalities. Mutual funds, on the other hand, are “investment companies” whose shares are sold to the public and which invest the proceeds of these sales in other public companies.
Risk
Mutual funds are not risk free investments. Even investing in mutual funds whose portfolios consist only of guaranteed U.S. government bonds contains an element of risk. Before you invest in a mutual fund, be sure you completely understand the risk. When you invest in a fund, the risk of total loss is lessened due to the diversity in the portfolio, but anyone who tells you that there is no risk involved in this investment is lying.
Japan’s central bank cuts key interest rate to 0.1 percent
Is the world heading toward a zero rate policy? This question is being asked by hundreds of economists and businessmen. As evidence of deep recession is unfolding, bankers and economists are predicting that UK interest rates can hit zero any time now. The Bank of Japan’s decision to lower its key policy rate to 0.10 percent from 0.30 percent followed by US Federal Reserve Bank’s dramatic move is more proof to that fact that world is heading toward a global flat zero interest rate.
The Bank of Japan’s policy board voted 7-1 to cut the uncollateralized overnight call rate target from 0.3 percent. It was the second cut in less than two months. Japan’s interest rates have gone lower — they were effectively at zero from 2001 to 2006. TOMOKO A. HOSAKA of AFP reports
“The BOJ is in a similar situation to the Fed — the policy rate is down to a critical point, and policy conduct will inevitably shift to full-blooded quantitative easing,” said Tetsufumi Yamakawa, chief Japan economist for Goldman Sachs.
Fed Cuts Short-Term Rates to Nearly Zero
The United States Federal Reserve says it will use “all available tools” to restart economic growth. The central bank’s main interest rate is now the lowest in its history. This week the Fed cut its target rate of one percent for overnight loans between banks to a target range of zero to one-fourth of one percent. The Fed based its decision on weakening economic conditions.
Federal Reserve in Washington
Americans have decreased their spending every month since July — the longest period in at least sixteen years. Unemployment grew to six and seven-tenths percent in November — the highest in fifteen years.
This week’s cut in the federal funds rate was larger than many economists had expected. The Fed also cut its rate for direct loans to banks. And it began paying interest on balances held in the Federal Reserve System.
In the past, cutting rates has been a powerful tool to lift the economy. But President-elect Barack Obama says it is not enough this time.
BARACK OBAMA: “We’re running out of traditional ammunition that’s used in a recession, which is to lower interest rates. They’re getting to be as low as they can go.”
Bail-out in your favour, Go Directly to Congress
Our economy has been all over the news lately. Whether it be Fannie Mae and Freddie Mac, AIG or the Lehman Brothers, we seem to be in a financial world of hurt. This led us to wonder, how would the economy affect America’s favorite board game, Monopoly?
Foreclosure has hit the economy hard, so hard in fact that it has taken its toll on America’s favorite board game . . .
The Reasons Behind Global Economic Crisis
It is now fairly established that the recent crisis in US sub-prime housing market is the primary reason behind the global economic melt-down. In order to fully understand the dynamics and depth of current global recession, It is very important to know what led us to this crisis. I have found the illustration below very thought-provoking and useful. It helped me explain the reasons effectively.
The visual guide to the financial crisis:
We all know, Alan Greenspan and Bush said they are sorry for the Global economic crisis. But do you know what Greenspan said in 2003?
“The notion of bubble bursting and the whole price level coming down seems to me as far as a national nationwide phenomenon, is really quite unlikely,” By Alan Greenspan, Federal Reserve Chairman, in 2003.
A Brief Guide to Terms Used in Bankruptcy
Most debtors who file a bankruptcy petition, and many of their creditors, know very little about the bankruptcy process. Bankruptcy Basics is designed to provide debtors, creditors, judiciary employees, and the general public with a basic explanation of bankruptcy and how it works. This glossary on bankruptcy terminology explains, in layman’s terms, many of the legal terms that are used in cases filed under the Bankruptcy Code.
A
- adversary proceeding A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. A nonexclusive list of adversary proceedings is set forth in Fed. R. Bankr. P. 7001.
- assume An agreement to continue performing duties under a contract or lease.
- automatic stay An injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.
- bankruptcy A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).
- bankruptcy administrator An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the U.S. trustee, is responsible for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors’ committees; monitoring fee applications; and performing other statutory duties. .
- Bankruptcy Code The informal name for title 11 of the United States Code (11 U.S.C. §§ 101-1330), the federal bankruptcy law.
bankruptcy court The bankruptcy judges in regular active service in each district; a unit of the district court.
bankruptcy estate All legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)
bankruptcy judge A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases.
bankruptcy petition The document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) by which opens the bankruptcy case. (There are official forms for bankruptcy petitions.)
B
Big RSS Icon Experiment: Subscribe Now!
It is good idea to experiment with your blog, so here I go, I made this big RSS icon as a teaser to remind my visitors that the best way to enjoy this blog is via RSS. I know you cannot visit daily, and you can miss out important posts from this blog. Subscribing via email using the form on right is best, you can also add this to feed reader of your choice by clicking on this icon.
Let’s See how many of you are convinced, I will do a post after 2 days about the results of this experiment. (another reason to subscribe to this blog 
)
