Posted: 8/27/2009 1:11:02 AM
Time and again the environment on the planet earth underwent upheavals the scientists called the ‘bottlenecks’ to attain a sustainable and highly evolved ecosystem There were natural disasters that jolted societies and communities from their complacence to eliminate the fragile and the weak for the fittest to survive and multiply.
Recession is the modern day economic bottleneck for eliminating loopholes in the economic system, to replace them with a robust one in a country. Recession can be precipitated by the economic loop holes like the ill managed sub-prime mortgage activities or mismanaged industries in a country. Loan recoveries come to a grinding halt. Jobs are lost. Old age funds are misappropriated. Buying power goes down. Rate of unemployment goes up. This reflects a total financial disaster. The bright side of the story is this trend does not stay forever. Economy will assume its former glory sooner or later.
This all had happened before. Self-correcting market forces intervened with the recession since World War II that lasted for one year. The present recession has now extended to August making it 20 months old apparently because of last fall’s severe financial crisis. The drastic fiscal policies with the trillion-dollar deficit do slow, if not halt the cycle.
The economy in recession corrects and resets itself in a reasonable period depending on its severity as seen during the last two weeks:
- U.S. economy lost 247,000 jobs and now the unemployment rate dropped unexpectedly from 9.5%. to 9.4%
- This unexpected jobs report gave investors hope
- On Friday stocks started showing promise of growth
- AIG recorded its first profit since 2007 with profits of $1.82 billion and shares jump 10% in early trading
- The Royal Bank of Scotland (RBS) after posting a half-year loss of $1.7 billion showing a surge towards real recovery by 2011
- The "Cash for Clunkers" program is getting another $2 billion infusion
- The first $1 billion effort helped improve domestic vehicle sales in July
- Ford Motor posted its first year-over-year sales increase since 2007, thanks in part to the $4,500 incentive provided by the program
- Ford and General Motors will have better sales considering production increases
This is the light we see at the end of the tunnel because of these corrective price changes in markets, as a strategy for coping with recession, banks and lending institutions started reliving the nascent period of conservative banking and lending practices. This atavism or the throw back churn up the fittest policy for better survival.
Some of the highly viable conservative banking and lending practices that make individuals and the state recession proof:
- Down payment: A down payment .levels out the difference in interest rate that is otherwise very high
- Credit standing with long term source of income: Access to loan is limited if you can’t show credit standing with long term source of income
One may wonder that these pre-modern lending practices were well suited to an economic environment with stable jobs four decades back. Amazingly, they can even be practiced now. The magic word is adaptation. If you are planning to apply for a mortgage or a loan with a long term repayment it calls for modifying your own financial environment first. You may or may not borrow; you will get into healthy financial habits in the long run.
- Improve Your Credit Rating: Improve your credit rating quickly so that you can adapt to the quick changes in banking practices with a FICO greater than 650
- The down payment requirement: Save at least 10% of your monthly income so that you do not have to look for funds elsewhere required for down payment. It should also inculcate a good habit o saving for rainy days
- Steady Job vouches for your current financial status: A steady job along with your good credit rating improves your chances with the lending officer from the bank
To evaluate your applications for Loans, Mortgage, credit, insurance, employment, and renting a home, you should be sure the information is accurate and up-to-date in your credit report. Repair your credit report to correct errors and update it to get better FICO ranking.
Posted: 7/6/2009 4:09:47 AM
According to a recent report in The Wall Street Journal, Pop star Michael Jackson may have had debts of up to $500 million (U.S) when he died of a reported heart attack last week, the result of bad business decisions, associated lawsuits and a lavish, often whimsical jet-setting lifestyle with an entourage of security, personal assistants and careers for his three children in the mid-1980s without the vibrant musical career to sustain it.
What made Michael Jackson rich?
- As a pop star Michael Jackson made money easily: As the King of Pop, Jackson was a billion-dollar brand creating the best selling album of all time
- In 1981, the moon-walking Michael Jackson drove the growth of music videos, vaulting cable channel MTV into the popular mainstream.
- In 1982 Michael Jackson’s hit ‘Thriller’ became the second best-selling U.S. album of all time
- Five years later, Michael Jackson’s ‘Bad’ sold 22 million copies
- In 1991, Michael Jackson signed a 65 million-dollar recording deal with Sony
- In 1986, The Walt Disney Co. opened a 3-D movie at its parks called the Captain EO
- In 1985, Michael Jackson's 47.5 million-dollar acquisition of ATV Music was considered to be yet another of his shrewdest deals
- ATV Music owned the copyright to songs written by the Beatles' John Lennon and Paul McCartney
What caused Michael Jackson meltdown?
- Michael Jackson’s meltdown started to show when his parents, Joe and Katherine, filed for bankruptcy, claiming debts of $45 million and assets of around $400,000
- ‘Michael Jackson is a ticking financial time bomb, waiting to explode at any moment,’: According to a lawsuit that sought to freeze Jackson's Neverland assets
- The company behind the lawsuit said it arranged $230 million in loans for Michael Jackson between 1998 and 2000, and he owes them $12 million: Michael Jackson used much of the money to refinance earlier loans
- Michael Jackson has paid for many lawsuits to steer clear of them: In 1993, Michael Jackson was accused of molesting a 13-year-old boy. He settled with the boy's family with an undisclosed .amount
- This case encouraged more lawsuits to follow against him: As an aftermath, Michael Jackson records were not selling the way they were sold
- In 1988 Michael Jackson spent 14.6 million dollars to purchase a 2,500-acre Neverland ranch: He built that ranch into a family zoo with animals like tigers, giraffes, orangutans, reptiles, monkeys and other exotic creatures
- He defaulted on a $24.5 million loan backed by his famous Neverland ranch in Santa Barbara
- Reportedly, Michael Jackson Neverland had a staff of 150,and cost $10 million a year to maintain. Among the $35 million worth of amenities Michael Jackson added were amusement park rides, a zoo, a go kart track and two separate railway lines, big enough to accommodate full-sized antique steam engines
- Michael Jackson was planning to make it into a safari-type ranch with some of its quirky features, and then put the 2,600 acre on the estate on the market for $70 million to $90 million. It was bought in 1987 for $19.5 million
- Michael Jackson also adopted many children and let them stay in his ranch to enjoy a fantasy life.
- Al Khalifa, 33, claimed he gave Michael Jackson millions of dollars to help shore up his 300,000 dollars for a ‘motivational guru’ settled for an undisclosed amount
- In 2003, Michael Jackson was arrested on charges of molesting yet another 13-year-old boy and was forced to leave his Neverland ranch and moved to a mansion rented from Ding in Beverly Hills
- After six months, Michael Jackson stopped paying Ding rent because of the lawsuits that drove him into deep financial crisis: Three months later Jackson was asked to move out of Ding's mansion as he failed to pay the rent
- Although the case of child molestation ended with an acquittal, Michael Jackson hit the rock bottom of financial crisis: He spent millions in defense of the case
- Even before his 2003 lawsuit, Jackson began to borrow large sums of money: A lawsuit filed by Union Finance & Investment Corp. sought 12 million dollars in unpaid fees and expenses
- Michael Jackson was reportedly spending 20 million to 30 million dollars more than he earned per year brewing up a cash crisis for a long time
- Los Angeles-based real estate investment firm Colony Capital LLC bought the loan note for $23 million and put the title into a joint venture it formed with the singer, Michael Jackson
- Michael Jackson moved into a mansion in Beverly Hills in 2004 owned by Chinese painter Ding Shaoguang Hwen with a monthly payment of 75,000 dollars after his 14. 6 million U.S. dollars home at Neverland was sealed after being prosecuted for child molestation
Though the King went Pop with an estimated debt of 500 million dollars, his children would live to lead a lifestyle their father allowed them while he was alive.
Michael Jackson’s children will remain solvent for the following reasons:
- As the world mourns this pop king, Michael Jackson’s songs were sold in a rage all over the world
- According to a recent Wall Street Journal article, Michael Jackson Jackson’s most valuable assets – the music copyrights that include 251 Beatles songs and as his own compositions may well exceed his debt
- Twenty one pieces of Michael Jackson memorabilia - including a crystal beaded shirt worn by him during his 1984 Victory tour - fetched $205,000 in Las Vegas last Friday, one day after his death.
- The Amazon website also reported huge sales of Michael Jackson Jackson’s music after the public announcement of his death
Opportunities stolen away from Michael Jackson by his Death at a prime age of 50:
- The other a venue with which Michael Jackson had hoped to raise significant funds was through 50 concerts at London’s O2 arena over the course of this summer. This could have netted Michael Jackson up to $50 million
- Further successful dates in Europe, north America and Asia may have brought Michael Jackson up to $400 million, concert promoters had predicted
Posted: 2/28/2009 11:39:09 AM
The fair debt collection practices act offers protection from illegal and unethical tactics of the debt collectors. This awareness site provides you the in-depth information about the Federal Fair Debt Collection Law and other state collection laws against the third party collectors. A clear understanding of debt collection laws under the FDCPA will entail you to the power to fight the third party bill collectors. Let them not intimidate and scare you and your family, any longer.
Stopping the debt collector harassment starts with your knowing your rights as ordained by the FDCPA, or the Fair Debt Collection Practices Act. The Fair Debt Collection Practices Act is also known as the Fair Debt Act or FDCPA. The Fair Debt Act or FDCPA is a federal law and it protects consumers from the debt collector abuse. Much depends on how one is going to use it.
The FDCPA defines in very clear terms, the rules that bill collectors and the collection attorneys must follow while recalling a debt. Many states have their own laws on par with those by the FDCPA and they lay the ground rules for debt collection for creditors out to collect their debts.
Next time a debt collector calls, let your rights under FDCPA deal with them.