For the first time since 1992, federal regulators have closed over 100 banks across the United States, a sign that the financial crisis is not yet over for financial institutions that have suffered heavy losses from the weakness of the real estate market. Seven banks were closed just yesterday, which brings this year’s total to 106.
While the situation is far from reaching 1992’s levels of bank closures, which topped 179 as the result of a savings-and-loan crisis, the fact that 106 banks have been closed spells a lot of trouble for the employees of the banks and the communities which …read more

Financial giant Goldman Sachs has gotten plenty flak from the public outrage over its role in initiating the financial crisis that has made life difficult for so many Americans. For the most part, Goldman Sachs has taken the criticisms of its greed and recklessness in stride.
However, chief executive Lloyd Bankfein has asserted that Goldman Sachs did not get any special treatment by the government to counter several suggestions that it did.
A variety of Goldman Sachs executives have gone on to hold top-tier positions in the United States government, such as Treasury Secretary Hank Paulson, who was once a Goldman CEO. …read more

As most people are already aware, the financial crisis has been largely blamed on excessive risks taken on the part of financial systems that aimed to bring in huge paydays for bank employees. Now, though, the Federal Reserve plans to implement several rules that will change how banks pay their employees in order to avoid dangerous risk-taking.
 
The government has faced enormous pressure from both the outraged public and from other countries, such as France and Germany, to curb these harmful practices. In response to these desires, the Fed has finally rolled out a series of guidelines that will come into …read more

The economy has been anything but hospitable in recent times, with the collapses of major financial institutions, small banks, and plenty of business around the country creating a chaotic economic situation. However, Wall Street does not seem to be going away any time soon, despite an environment that should spell its demise, or at least its weakening.
 
While plenty of Wall Street firms have gone under, plenty more have sprung up in their wake to take advantage of a potentially profitable situation. Analysts are concerned, though, that too many entrants into Wall Street could harm the entire business. One competitive tactic …read more

Reduce the number of credit cards that you have. The more credit cards you have, the lower credit score financing institutions give you and, consequently, you are charged higher interest charges & placed under more stringent conditions.
With multiple credit cards, keeping track of your expenses becomes a more difficult personal accounting task.
Believe it or not, you can live with only one credit card. With only one credit card, the monthly billing statement becomes an accounting record of your expenses. You only have to add your cash expenses (which are probably not a substantial portion of your monthly …read more

Credit cards enable you to spend future cashflow, income that you haven’t earned yet but expect to earn with some certainty (e.g., regular paying job, income from own business, etc).
Credit cards are temptations to live beyond your means. You are living within your means if you are able to pay off the entire balance in your monthly bill. This is the best position for you. You are, in effect, getting a 30-day loan from the credit card company interest-free.
There is a GREAT TRAP in small intallment plans paid through your credit card. The amount appears so …read more

One big reason for households to spend future income through the use of & dependence on credit cards (and pile up credit card interest & penalties) is the huge portion of monthly cashflow that has to go into servicing a mortgage.
During the previous period of easy housing money, financial institutions were tolerating and allowing mortgages that ate up as much as 35% to 40% of the household’s monthly cashflow. This is one road to financial disaster.
Having to carry more than 30% of monthly cashflow to service a mortgage will leave inadequate cash for other necessary expenses and lead to …read more

Your credit card is a source of interest-free loan. But, this will work, if and only if you think of your credit card as a tool for personal cash flow management –rather than additional cash in your wallet.
It often happens that a purchase has to be made before your expected cash has become available. If you know that your cash will come in before the bill from the credit card falls due, make the purchase with your credit card –but pay off the whole purchase when your cash comes in and save yourself the interest cost. …read more

Credit Cards, so that they do not become a heavy burden (you can end up paying as much as 30% on interest & penalties), have to be managed just like any regular bank loan.
It is important to keep a proper mindset. Do not think of your credit cards as additional cash in your wallet. Thinking of your credit cards as available cash, you tend to purchase items that you want –rather than those which you really need. Or, if the purchases were for items you really needed, if you didn’t have the available cash in your …read more

Before the end of the first semester of this year, you will be receiving the windfall from the recently passed “stimulus” bill:
individuals = $600
couples = $1200, $300 additional for each child.

This will be an excellent opportunity to climb out of subprime. Pay down as much of your credit card as the windfall will be able to cover. If you are in the deepest of the subprime category, you can be paying as much as 30% in additional interest and penalties. By using your windfall to pay down this debt, you will in effect be earning that much …read more