Tuesday, September 30, 2008
Herd mentality not smart during dark times
When times are uncertain, people are wired to follow the crowd and jump on the wagon. Bank of America Corp bought Merrill Lynch & Co Inc., the U.S. government has taken over Fannie Mae and Freddie Mac, Lehman Brothers Holdings Inc. has gone bankrupt, Washington Mutual failed,and a $700 billion dollar U.S. government bailout was rejected.
With this comes fear and limited information. We see individuals abandoning their own logic and banding together to form one opinion.
All of this is biological and comes with evolution. Gregory Berns, a neuroeconomist at Emory University in Atlanta performed an experiment requiring participants to complete simple tasks of assessing simple shapes. The participants were hired actors and real volunteers. The real volunteer went into a (MRI) scanner. The hired actors would answer confidently and incorrectly. The real volunteers began to change their answers to match the actors'.
Berns explains, "The group changes how you see the world in some way. Our brains are really wired to accept the group opinion of the world." The scanner suggested that the brain's "fear center" is dominant when people are uncertain. "When people are presented with a situation where they don't have information or the information is ambiguous, we see activation of the amygdala and insula," Berns explains.
Paul Zak, of the Center for Neuroeconomics Studies at Claremont Graduate University in California says, "We are really hyper-social apes. We learn almost exclusively from each other."
Of the financial crisis, Zak says, "In this case, running with the herd may not make good sense." Zak continues and makes a good point, "I am not a financial genius. I do know that when you see millions of people in the market essentially freaking out, that spills over into your brain and you get this impulse to do what everyone else is doing."
In this financial crisis, Zak is fighting against the herd. He is buying stocks.
Click here for the complete article.
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Monday, September 29, 2008
Big profits by selling low-grade products
Food and beverage manufacturers are now starting to sell inferior goods in order to make their products cheaper to the consumers, making huge profits in the process.
Food manufacturers such as Campbell soup, Kraft and the milk industry are planning to start campaigns, encouraging more consumers to purchase items such as cheese singles and cans of soup and milk which are believed to be "easy on the wallet" but have a high profit margin.Thus they are still generating big profits for the companies.The Campbell soup company is planning to launch their new campaign calling their products "the original dollar menu," stressing on the fact that all you have to do is add water.
A number of other major food companies have plans on launching campaigns too that claim to be easy on the customer's pocket. Kool-Aid beverages,which according to Robert Moskow of Credit Suisse is "one of the most profitable food products in history," has launched its new campaign for its products which bring "more smiles per gallon" as compared to other beverages.
$12.3 billion fund closed by Boston-based Putnam
Officials at Putnam say that they would transfer assets to a fund managed by Pittsburgh-based Federated Investors Inc.
An interesting point to note is, the money-market fund is open only to institutional investors with a minimum commitment of top dollars. The current financial turmoil triggered jittery investors to reign in their investments.
As an offshoot of that effort, it caused a large number of redemptions. Putnam thought that it was in the best interest of all the stakeholders to, spread the losses equally, thus forcing them to close the fund.
The cause for concern is that the money-market fund is considered by many to be a safe bet, akin to holding a secure bank account. Putnam may not be the only money-market fund that is surprised by these development.
The article mentions that by mid-September there were many investors who pulled-out about $80 billion from these funds. So there may be many other fund managers who are fretting over their assets. This would indirectly effect the banking sector and other industries, as they depended on the money-market fund to raise easy capital.
Historically, money-market funds have always attracted highest rating from bodies like Standard & Poor and Moody's. So much so that this is only the second time in history that money-market funds have caused losses to investors.
Though the independent investor has little to worry, it might be a cause for concern for the investment community at large.
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Sunday, September 28, 2008
SAVINGS 101: Go back to the basics with money
Freaked out over the current economic meltdown? Find solace in this 1947 video called "What Is Money?" which traces little Tommy and his spankin' new $5 bill.
Friday, September 26, 2008
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Life after the US economic meltdown
However, a truly savvy individual could find some bright spots amid all of the turmoil.
Boston.com spoke with several successful investors and got their perspectives on how to weather the storm.
Mohamed El-Erian, co-chief executive of Pacific Investment Management Company, cited funds that own government-guaranteed mortgages but offer a higher return than the government does.
Peter Lynch, the former manager of Fidelity's flagship Magellan mutual fund, tells the Globe that the average investor should not focus on trying to choose individual stocks without extensive market knowledge and research.
"The term 'play the market' has done so much damage," he says.
The better strategy, he suggests, is to get to know a few companies very well. That more specialized knowledge would allow the investor to understand the movement of the prices of those stocks.
Even though some stocks may seem as though they are on sale right now, it can be very difficult for a person who has not done a lot of research to determine which ones will bounce back and which ones are headed for more long-term decline.
Click here to read more.
Thursday, September 25, 2008
Consumer Woes :: Pizza Hut coupon fraud
Danielle orders Pizza Hut frequently online and receives advertisements and promotions via email. At the beginning of August, she received a Pizza Hut coupon offering her two free medium pizzas and an order of breadsticks. Danielle could claim her free pizzas as long as she signed up for a free trial of Rhapsody (followed by membership).
According to her story, the coupon was advertised on the Pizza Hut Web site. Thinking the advertisement was legitimate, Danielle signed up for her free trial of Rhapsody and clicked on the link where she could redeem her prize.
She followed the instructions and when she went to check out she was charged $10. Why was she charged $10? A fee was only supposed to be applied if the order was a delivery. The order was marked as takeout so this fee didn't make sense.
Here is where the consumer woe sets in.
Danielle calls Pizza Hut asking about the coupon and why there was a fee. She first spoke with a rep who didn't have any idea about the coupon. He transferred her to his supervisor.
The woman claims Danielle was "making the coupon up" and tells Danielle that she is complaining about a charge that was legitimate. The woman could not explain how the charge was legitimate, or how the coupon got onto the Pizza Hut Web site. The woman proceeds to explain that if she had "read the fine print, it says the two companies aren't connected and that we have no responsibility regarding the coupon."
Danielle demands the coupon be honored, because it was Pizza Hut who sent her the coupon. Eventually she got the woman to call her local store to get the $10 charge taken off.
To read Danielle's version of the consumer woe, click here.
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Lock in home heating oil rates now
According to a WBZ-TV report, the average price of a gallon of oil in mid-September was around $3.80, but in the first few days of the month, it had reached as high as $4.62.
Even a few cents can make a big difference because of the large amount of oil many homeowners mustbuy to heat their houses each winter.
"It's certainly the lowest we've seen in a few months time," Michael Ferrante, president of the Massachusetts Oilheat Council said to WBZ-TV about the price of home heating oil.
Late September, however, can be a tricky time to buy because of the potential for large swings in the price of oil due to the potential for severe weather such as hurricanes. Concern over damage to oil processing machinery along the Gulf Coast was considered at least partly responsible for the rapid price increases in early September.
In addition, if the dollar weakens due to deteriorating economic conditions, oil becomes a more attractive investment. This increase indemand for oil can in turn drive the price up. Now that the price is at a relative low, it's an ideal time to lock in a rate for the winter.
Check out the deals Consumer United has on home energy here. Also, click here for the WBZ-TV report.
Wednesday, September 24, 2008
Inside Consumer United :: Andrew Carcerano
How does Carcerano save money? "My favorite personal finance advice is to put 10% of what you make into a 401K." Carcerano recommends to start saving now, or start as young as possible. He also limits his meals to $3 each, but he does splurge once a week. Being a great cook saves him a lot of money, along with enabling him to eat delicious meals.
Carcerano writes and records music in his free time and was previously a touring musician. He adds, "I'm still a rock star... just after 5 p.m."
When asked about his time spent at Consumer United, Carcerano says "It's really interesting learning a new job, along with observing how everyone interacts." He encourages becoming a member of Consumer United, because with it comes the potential to save money and improve the quality of your life.
The services Carcerano are enrolled in? Carcerano will be enrolling in the heating oil program before this winter hits.
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Is Boston the best US city to ditch your car?
The survey, published in a report by the Boston Globe, uses averages to compare the data from a long list of major American cities so it may not be exact, but the survey suggests that Bostonians could save about $13,500 each year by getting rid of their cars.
However, the study only analyzes the monetary savings that stem from reduced spending on gas, insurance and maintenance, but it doesn't factor in the costs of relying on public transportation. Choosing not to drive can often make the commute longer and to some the comfort of driving in their own cars is a factor.
Another piece of information reported by the article is that Massachusetts commuters only drive about 12,000 miles per year but the national average is about 15,000 miles. This suggests that drivers in Massachusetts wouldn't save as much on gas as driversin other states if they got rid of their cars, but parking and car insurance in Boston can both be expensive.
If you're holding on to your car in the city, make sure you have the best possible deal on car insurance. Consumer United has negotiated a 10% group discount on auto insurance rates through Plymouth Rock, so if you haven't already received a quote, click here to set up a time.
Click here to read the complete article.
Tuesday, September 23, 2008
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Monday, September 22, 2008
Warrantless car searches in New Jersey?
The law was brought into consideration following the occurrence of the following two cases: one which involved a situation where the police found a loaded hand gun, drugs and a 28-inch sword in the car. Another in which a car was seached and the police found a number of bags containing marijuana and a gun were recovered.
Although this law has been enforced, the high court also added that there should be a likely reason that could bring a threat to society to justifably allow the police to search the veihicle without a warrant.
The state has opposed to this law, stating that the police should stick to the original federal law which allows them to search a vehicle without the warrant only if they suspect an illegally attained good in there.
Click here for the complete article.
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Friday, September 19, 2008
Airports launch eco-friendly efforts to go green
In an effort to save on energy costs and impress the travelers landing into or passing through the airport, a number of measures have been implemented. Hybrid taxicabs, wind turbines, solar plates and low-flush toilets have been introduced as some of the measures to make the aiport more eco-friendly.
With the recent rise in oil prices these measures to conserve energy has become a more urgent matter.
Although certain techniques to conserve energy that have been introduced are new, most of the others had been implemented at the airport for a long time now, such as more glass windows in order to have more natural light in the airport, low-wattage bulbs used for lighting and the usage of recycled materials during the construction of the airport.
A number of U.S. airports have also taken various other steps to make its facilities more eco-friendly. For example, the Seattle-Tacoma area, which nests the main headquarters for the Starbucks Coffee franchise, has its airports recycle 143 tons of ground coffee recycled after being transported to a local recycling facility and composted.
Elizabeth Leavitt, the airport's director says, "None of us imagined that it'd be of this magnitude."
Click here for the complete article.
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Thursday, September 18, 2008
Acushnet, Mass. heating oil mystery solved
Authorities thought a large amount of heating oil was siphoned out of the Acushnet, MA community center near the summer's end. Seeing how the oil prices have skyrocketed, a heating oil thief seemed very likely.
It turns out, a worker at the community center turned the heat on to 82 degrees at the beginning of the year. The heat was left on the entire summer, along with the air conditioning.
The culprit? This waste of energy used up every last it of oil.
To see more, click here.
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Airline fees stay as oil prices drop
When oil was $140 a barrel, it was understandable that airlines began to add "fuel surcharges" for frequent flier tickets. At $130 a barrel, Airlines such as American, United, and US Airways added on a fee for each checked bag per flight. This was blamed on fuel costs.
The price of oil has dropped to $100 a barrel, yet airline fees seem to be here to stay. Airlines continue to say that these fees are based on current oil prices. The price of oil is by far the largest expense in any airline.
Airlines have long been looking for a way to extract more revenue from customers in areas other than fares. They seem to have found the answer, and customers are willing to pay. Continental airlines will generate $100 million annually from a 15$ checked-bag fee alone. United could make $700 million just in add on fees next year. J.P. Morgan estimates that with all fees included, the new airline business structure will generate an additional $3 billion in revenue. Keep in mind the airline industry has never earned more than $5.3 billion in a year.
Jamie Baker, a J.P. Morgan airline anayst says, "It was only the reality of $140 oil that gave the U.S. inustry the courage to pursue a strategy they wanted to pursue, you hold onto it as long as you can until competitive pressures force you to back off." This strategy includes a new business model that is completely a-la-carte.
What to expect? A whopping $2 for a soda, coffee or a bottled water. $15 for a checked bag. No dinner served in coach. Expensive snack packs. And fees, fees and more fees.
Read the WSJ article here.
Oil prices hover around $100 per barrel
The string of hurricanes in the Gulf drove prices up over concerns of damage to infrastructure, but the shaky days on Wall Street pushed prices downward due to fears of stagnant growth in the future.
The New York Times reports that the full extent of the damage from Hurricane Ike and the other storms has not been fully assessed because most oil and natural gas refineries in the affected states have not reopened.
The article also references statements made by the nation's energy department which indicate that oil inventories and stockpiles are declining. This decrease in supply could drive prices up.
In addition, although concerns over future growth can drive the price of oil down, in a very turbulent economy, oil can be seen as a more stableinvestment. As some investors more their money into commodities such as oil,prices are likely to go up. The price of oil is also tied to the strength of the dollar.
If the dollar gains value, investors are less likely to look to commodities. When the dollar is weak compared toother major currencies, commodities become more attractive investments and the price of oil is likely to go up. After reaching more than $140 per barrel during the summer, oil had fallen to around $90 as Wall Street readjusted to the recentrestructuring.
Concerns over hurricane damage, growth and the stability of the dollar all seem to be keeping oil around $100 perbarrel, at least until new information emerges from the financialsector.
Click here for more.
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Wednesday, September 17, 2008
Benchmark interest rate holds steady at 2 percent
Though lowering the interest rate is often regarded as an effective way to ease the credit market, a lower rate can also affect inflation.
The high consumer prices plaguing the economy since the price of oilspiked earlier in the year have raised concerns over inflation. Undercertain conditions, stagnant growth coupled with very low interestrates can worsen the economic situation.
"The financial markets aren't frozen because the federal funds rateis too high," Michael T. Darda, chief economist at MKM Partners, tells the New York Times. "The markets are frozen because there is a crisis of confidence. It's not a matter of whether the short rate is 2 percent or 1.5 percent."
In addition, rates are relatively low by historic standards. They have been over 2 percent since early 2005, and remained over 5 percentfor much of 2006 and 2007. The Fed began a series of cuts early in theyear to stimulate a flagging economy.
The New York Times reports that since January, over 600,000 jobs have been lost and the unemployment rate is over 6 percent. Due to concerns over the general health of the economy, in particular related to the stability of several major financial institutions, the Fed did not rule out the possibility of a rate cut in the future.
For the time being, however, worries over inflation are superseding concerns related to the economy's stagnant growth.
Click here for the complete article.
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Bigger isn't better with shrinking grocery stores
The article reports that Safeway has already opened a smaller store in California and Whole Foods and Wal-Mart are contemplating doing the same.
The previous mentality within the industry seemed to be that offering the largest selection would attract the largest customer base, but that is being reconsidered. Shoppers often go to the grocery store on the way home from work or to pick up a few last-minute items and in those cases the speed of the visit is very important.
A trend toward more prepared and ready to eat foods is also contributing to the shrinking stores. The article reports that themany of the plans for these smaller stores still include large deli counters and quick-meal options.
Big supermarkets continue to be very successful, so the trend is likely to emerge in new locations. Instead of building increasingly larger stores, more major supermarkets are planning to downsize their new branches.
A relatively new entrant in the US market, the British retailerTesco, has pursued the "shrinking store" strategy in the Southwest.
The article reports the company has opened more than 70 stores in the past year alone. Retailers are hoping that revisiting the concept of the small localgrocery store will keep their customers loyal.
Click here for more information.
Advertisers hit the streets with goofy campaigns
Traditional advertising seems to be fading away. These days, marketers are placing their promotions on the streets, in graveyards, under bridges and on public transportation. These promotions aim to surprise the public and, in a few cases, infuriate them. Regardless, the advertisements have been making a memorable mark.
Dr. Pepper's 2007 treasure hunt at the Granary Burying Ground potentially could have caused destruction. The 347-year-old burying ground is home to Benjamin Franklin, and his family. Boston Parks Commissioner Toni Pollak called the ad "Disrespectful." Dr. Pepper canceled the ad before it caused any trouble.
Alarm raising boxes were placed under bridges throughout Boston by Cartoon Network's cable show, Aqua Teen Hunger Force. Was the city notified before these light-alarm boxes were placed? No. The city of Boston sent out bomb squads and helicopters to find themselves out of $2 million. The network has since apologized and paid compensation to the government.
Legal Seafoods is promoting their restaurants by placing mouthy fish signs on public transportation. "This trolley gets around more than your sister" says one fish. Another fish, who quips, "This conductor has a face like a halibut" caused offense with a few MBTA employees, however Legal Seafoods has not dropped the ads.
Tuesday, September 16, 2008
Keep cash around during dark fiscal times
Traditionally, financial experts suggest keeping 5% to 10% of your total assets in cash. Given this year's stock market plunge, many financial experts recommend increasing your cash assets dramatically.
So how much cash should you invest? This is a personal decision, based on factors such as retirement age, your current life stage and the risk of the investment. Here are some ways you can manage your cash:
Deposit Accounts: This is a simple cash management tool and should be used for basic needs only. Deposit accounts have the lowest yield of any investment. Find a bank with free checks that offers convenience and safety. Keep an eye out for hidden fees and pay attention to the Federal Deposit Insurance Company (this is what will save you if the banks fail).
CDs and Brokered Deposits: These accounts should be used if you don't need your money on hand, but you would like to put your money in a safe place. Banks set their own interest rates for Certificates of Deposits, and there are currently 6 institutions offering one year interest rates of 4.25% or better.
Money Market Funds: Money funds have no government guarantees. However, money fund managers never let their funds go down the drain, because their reputations are placed on the line. Money markets have low yields and are generally safe and liquid.
Click here for the complete article.
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Monday, September 15, 2008
No surprise that Lehman Brothers went belly up
With both Barclay's and Bank of America refusing to play the "good Samaritan" and the Federal government throwing their hands up, the inevitable happened. Lehman Brothers filed for a Chapter 11 bankruptcy petition. One of the most respected firms on Wall Street, just went belly up.
But wasn't bankruptcy supposed to happen to non-descript firms run by inexperienced, non-MBA type managers? Definitely not for Lehman Brothers. They are after all managed by smart Harvard and Wharton educated financial gurus who spent years and years perfecting their trade. So how did such a smart group of people end up making, let's call it an "error of judgment?"
The fabled run on Wall Street had to come to an abrupt end when the debt side of their P&L statement showed $60 billion. I wonder what CEO Richard Fuld was thinking? A 30-year-veteran at Lehman (incidentally he had quipped that it was the only company that he has ever worked for) Fuld has been credited with weathering many a financial storm over the past decade; including Asian Stock Crisis, Dot com bust, September 11 (Lehman rose from the ashes of the attack when its headquarters at Three World Financial Centre had been severely damaged due to falling debris) among others.
But in the end--I guess his luck ran out--he could not bring the rabbit out of the hat this time around.
But, it was not like the signs were never there. The share prices of Lehman Brothers have been steadily spiraling southward since February '08, when its share prices reached a high of $66 (canada.com). Last Friday, it was selling for $3.65 (wsj.com), little more than a cheese burger at your local joint. The sub-prime home loan crisis has just consumed its next victim, this time a company with market capitalization of $250 million as of September 15, 2008 (wikipedia.org).
Just when you were trying to soothe your frazzled nerves, comes the next blow. The other darling on Wall Street, Merrill Lynch just got gobbled up by Bank of America. It was an all-stock deal and cost BOA a whopping $50 Billion. This also means BOA will be burdened with all the losses accrued by Merrill Lynch over the years. An interesting observation is, as of Friday's closing the Merrill shares traded at $17.05, so one wonder's why BOA would pay $29 per share when buying them over.
Hope their CEO Kenneth Lewis has a really good reason for that.
The sub-prime mortgage crises has already taken a big toll on the jittery financial market. The domino effect in a way was spear headed by Bear Stearns, soon the Feds set in to stabilize the market by taking over Freddie Mac & Fannie Mae, now its the turn of Lehman Brothers and Merrill Lynch to take the infamous center stage.
There's no telling what more is in store in the coming weeks. Keep your fingers crossed.
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Friday, September 12, 2008
CU Advocate's Deals of the Day
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Thursday, September 11, 2008
CU Advocate's Deals of the Day
The Limited: 30% off weekend sale
Lenovo.com: Save up to 32% on select notebooks
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Consumer United: Sign up with our new home security service provider, Brinks, and get free installation on Brinks Home Security standard system. This is a $199 savings off their standard offer. Please say you're a Consumer United member and reference the promo code CCP# 28621. Click here to learn more.
Can't afford a home? Buy another
Due to the rapid drop in property values over the course of the past year, many recent borrowers are confronting debts much greater than the current value of their homes. In addition, many homeowners with adjustable rate mortgages have seen their payments skyrocket recently.
Some believe that it could be less costly to allow the first, often more expensive home to go into foreclosure or sell for a large loss. It is important for the homeowner to secure a second home before the foreclosure, however, because foreclosures seriously damage credit scores.
This practice of abandoning a first home after buying a second has been subject to criticism because some in the industry consider it deceptive and it is far from an ideal way of rectifying debt problems.
In addition, the homeowners often must be able to pay a deposit on the second home and secure a loan to finance the purchase price. ABC News suggests that in order to obtain another mortgage, potential buyers sometimes tell the bank that they plan to rent the house out or put the loan in another name.
The mortgage industry as a whole has come under serious scrutiny for the lack of farsightedness of many of its actions, so perhaps it should not be surprising that some borrowers are following suit.
Click here to read the article.
Inside Consumer United :: Noelle Sevoian
Consumer United can help that savings grow, she says, because as more consumers band together, they will help negotiate even better deals. “This is extremely important due to the rising cost of living.”
In addition to the contributions she makes at Consumer United, Sevoian is an up-and-coming entrepreneur. She started a company that sells vegan granola bars called Noelle’s Bars. She is also a student at Suffolk University where she sings a capella.
Though she will be returning to school in the fall, she will continue as a member of the Consumer United team. “I love the workplace dynamic,” she says. “Everyone is so different and each person has something positive to bring. I love the environment. We are growing so fast and working hard to increase that growth. So far it’s going very well.”
Wednesday, September 10, 2008
Lawsuit claims hybrid cabs unsafe
New York's Metropolitan Taxicab Board found the hybrid cabs, which were launched in order to protect the environment, are allegedly hazardous to its passengers.
The hybrid cabs were to hit the streets on October 1. But a source claims that the cars hadn't been tested accurately in order to determine their safety.
"Hybrids were designed to be personal cars for driving 10,000 miles a year, not 100,000 miles a year, like taxis," says Michael Woloz, a spokesman for the Taxi and Limousine Commission.
Also, the partition that was installed in the hybrid cabs reduced the leg room for its passenger, making it more likely for passengers to hurt themselves against the screen, inspite of having their seat belts on.Although there are fifty hybrid cabs already running, many fear that the hybrid car,which was not designed to function as a taxicab, could risk its passengers' lives.
In Boston, in contrast, people seem quite confident in the government's decision to replace the current cabs with hybrid cars.
Suspected fraud fuels sub-prime mortgage hysteria
The company’s practices of representing their losses and underwriting loans are said to be under examination. In addition, the company has also come under scrutiny after sending out letters to customers this week informing them that some personal data may have been compromised.
A former employee is cited as the cause of the leak and Countrywide is providing two years of credit monitoring services for free to customers believed to be impacted. This comes at a difficult time for Countrywide, the country’s biggest home-loan lender.
Though Countrywide is the biggest lending company involved, it's not the only company under investigation. CNN Money reports that the FBI is looking into the lending practices of a total of 16 mortgage companies.
As other major financial institutions continue to experience the negative effects of the subprime mortgage market, the FBI would not release the names of the lenders under investigation.
"The FBI has been investigating potential fraud in the mortgage/sub-prime lending industry, however, we can not confirm or deny which companies are under investigation," FBI spokesman Richard Kolko told CNN.
Click here for more information.
Bigger homes aren't necessarily better
Property owners could pay high energy bills for the large house and owe taxes on space they aren't utilizing anymore. At some point, it may make sense to move to a smaller home. The right time to make such a move, however, could be difficult to determine according to a CNN report by Carla Fried.
Although the market is good for buyers, sellers face more of a challenge especially with larger homes. One consideration that tempts many would-be downsizers is the likelihood that as the property shrinks, so will the expenses associated with it.
Chuck Petitti, a Boston-area real estate agent, tells CNN that his clients want to move after coming to understand that"I could be traveling or doing something else with all the money I am paying for utilities and property tax on this big house."
Due to the large number of families with grown children or teens about to leave the house, the competition for smaller properties could eventually drive prices up.
In addition, CNN cites research from Zillow.com which suggests that smaller properties retain their value with more efficiency. Another major issue facing potential downsizers is that in some areas,s ome as popular metropolitan downtown areas, smaller properties cans still be very expensive.
The savings associated with getting rid of a second car, for example, may quickly be overshadowed by high maintenance fees. If you do plan to relocate, be sure to contact Consumer United to find out about all of the great savings opportunities on services thatcould be available at your new home.
Click here for the lowdown.
CU Advocate's Deals of the Day
Amazon: Up to 60% off TV on DVDs
Drugstore.com: Save $5 to $10 off first order
Staples: GPS navigation system $100 shipped
Consumer United: Sign up and save $500-$1000 off home mortgage closing costs
Tuesday, September 9, 2008
JetBlue auctions flights on eBay
JetBlue, known for being a low-cost airline, is auctioning off flights on eBay. More than 300 flights are being offered and 20 aiports are covered. Aside from these, there are six mystery packages that are receiving much higher bids.
All flights are departing on Thursdays and Fridays and return on Sundays and Mondays. The flights leave from major metro areas such as New York or Boston and connect to vacation destinations like Southern California or Salt Lake City. Specific times and flight numbers show on the screen once bids are placed.
Read the full story here, and then head to eBay to book your flight!
CU Advocate's Deals of the Day
OfficeMax.com: Oscillating pedestal fan $7.99
Bike Nashbar: Save up to 20% with coupon discounts
Buy.com: Logitech speakers $72 shipped after rebate
Consumer United: Sign up and save $500-$1000 off home mortgage closing costs
Monday, September 8, 2008
Back-to-school bargain hunters
“It appears that the current economic situation has dampened back-to-school share-of-wallet,” Robert Passikoff, president of the customer loyalty research firm Brand Keys, says to the Herald. “Which retailer is going to offer the best prices for the things they need most is how consumers are entering the back-to-school marketplace.”
As parents struggle with the increasing cost of living and record setting price of tuition, many students are also sufferring from what was a weak job market this summer. Teenagers, especially high school students, found themselves competing with older, more experienced workers who may have needed a part-time job or may have been out of their regular employment.
Consequently, parents and students alike headed to discount based retailers such as Old Navy, TJ Maxx, Marshall’s, and BJ’s Wholesale Club in order to do their back to school shopping.
The article reports that spending is expected to remain flat in most retail cateories except for electronics. Many families have chosen to put aside some of their stimulus checks for electronic items such as computers or cell phones. Sales of clothing and other school items, however, are expected to experience little growth.
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CU Advocate's Deals of the Day
National Geographic: 20% off every book storewide
Timbuk2.com: Up to 60% off messenger bags and backpacks
illyusa.com: $200 off select illy espresso machines
Consumer United: Sign up and save $500-$1000 off home mortgage closing costs
Friday, September 5, 2008
Clean energy lawsuit alleges patent infringement
The technology allows materials such as wood and coal, which would otherwise be considered waste to be converted into forms of synthetic gas. The process involves chemical reactions dependent upon the use of molten metal and creates a cleaner form of energy than if the coal or wood were merely burned.
“There’s been about $200 million spent developing this technology and Ze-gen is attempting to use it for free,” David Sydow, the chief executive of Texas Syngas, says to the Patriot Ledger.
Bill Davis, the CEO of Ze-gen, disputes the claim. “It’s not the first time we have been sued by this particular collection of characters,” Davis says to the Patriot Ledger. “It’s a frivolous case. It has been brought by ‘patent trolls’ whose motives are to extort money from the company.”
Previously, the companies have attempted to negotiate a licensing agreement but those negotiations fell through. As a result, Quantum Catalytics and Texas Syngas do not believe that Ze-gen can use the technology.
The synthetic gas conversion is currently used primarily for research by the companies involved, but concerns over fair use may have escalated because the companies have plans to open commercial plants.
Thursday, September 4, 2008
Cash-only approach can save you money
According to an ABC News Report, one family saved 24 percent by paying cash and avoiding all plastic.
How did they do this? The family cut up eight of the nine credit cards they own. The ninth card they froze in a cup of water, to use only in extreme emergencies. By spending cash, necessities and groceries are bought but the extras are forgotten.
By looking over all expenditures paid in cash at the end of the month, it is clear how much is spent, and how much one can do without spending. Grabbing the card when all the cash is gone is a quick fix, but is extremely detrimental. Credit cards can encourage impulse purchases, such as that beautiful dress that won't be worn, or that triple latte that really isn't necessary.
ABC News reports that the family saved $1800 by the cash-only approach.
CU Advocate's Deals of the Day
Sketchers: 20% off store wide shoe orders $50 and up
Amazon: 50% off men's & women's watches
Target: Free shipping and 15% off select furniture
Consumer United: Sign up and save $500-$1000 off home mortgage closing costs
Gas price tumult fuels interest in alternatives
Over the summer, $4 gas has changed the way Americans live. The cars we buy, the places we live, the "stay-cations' we take and the crowded trains we are forcing ourselves to jump on all have to do with the summer's high gas prices.
Now that gas prices are down to a near $3.60 in the Boston area, will we change our gas-budgeting ways? "Right now, I hear people exclaiming with glee that they paid $3.39 for gas somewhere," says Art Kinsman, spokesman for AAA Southern New England. "People have to remember, they're still paying almost a dollar more than they were last year. So prices are still extraordinarily high."
According to The Boston Globe, with gas prices down, the critical moment is now. Will Americans go back to their old habits, or will they demand improved public transportation options from the government? Investors may or may not continue to show interest in alternative fuels. American's miles spent in the car may continue to plunge, however, with current gas prices their is potential for miles to begin an increase.
Gas prices will rise and fall, and the time and research spent on alternative fuels may come to a halt if we go back to our gas-guzzling days. Henry Lee, a director of the environment and natural resources program at Harvard's Kennedy School says, "We're going to have to do a lot more if we're going to significantly reduce our use of oil."