Prof Steve Keen is a reknowned predictor and forecaster of economy. Steve Keen economic predictions and forecast are based on analysis of increases and falls in debt. He believes the up and down in debt is the driver of the economic cycle.
So, pay attention to debt data and you might see where the economy is heading.
Prof Keen argues that the cycle of growing debt always feeds into rising asset prices as the “euphoria economy” takes over. “The final stage is the emergence of “Ponzi financiers” who invest purely on the basis of rising prices.
“They do not have the cash flow to service their debts. When the cycle turns, they are bankrupt at once and are the first to go.”
You can follow his predictions at steve keen blog.
Prof Keen, of the University of Western Sydney, is author of the best-selling book, ‘Debunking Economics’.
written by Constantine Njeru
\\ tags: Asset Prices, Best Selling Book, Debt Data, Debts, Economic Cycle, Economic Forecast, Economic Prediction, Economic Predictions, Economics, Economy, Euphoria, Financiers, Forecaster, University Of Western Sydney
Even after being sent to Jail, it seems Bernie Madoff will not go away easily. The man has given an interview to New York Magazine. In the telephone interview Bernie Madoff warned that the federal government is a Ponzi scheme.
Bernie is right, Governments are large Ponzi schemes. This is how the government works : Governments borrows new money to retire old debts.So long as there will be people willing enough to lend the government money this scheme will continue rolling. But if creditors pull the plug, governments go bankrupt. It has happened before in Argentina and other South American countries.
In a Ponzi scheme Early investors are paid out of money put in by later investors and when there are no new investors, the Ponzi scheme collapses.
A detailed explanation as to how US Government is a large Ponzi Scheme is at Seeking Alpha website.
I think during his case with the government Bernie Madoff should have declared to the court that his “investment” scheme was modeled directly after Social Security.
Read the whole interview at NY Magazine
written by Constantine Njeru
\\ tags: Argentina, Bernie madoff, Creditors, Debts, Detailed Explanation, Federal Government, Government Money, Governments, Interview Magazine, Investment Scheme, Investors, Magazine Interview, New Money, Ponzi scheme, Ponzi Schemes, Seeking Alpha, Social Security, South American Countries, Telephone Interview
The best way to get credit or loan from the mainstream lenders is to have a good FICO score. FICO credit scale runs from 300 points to 850 points; the higher the score, the better your credit standing.
FICO credit scores of under 620 is considered poor and it means obtaining loans and credit cards with reasonable terms difficult.
While a FICO credit score above 760 means you can get the best and lowest interest rates.
Tips to Improve Your FICO Credit Score
Get a free copy of your credit score from the three major credit bureaus. Read the reports thoroughly and find if they have outdated information. If there is incorrect information, file a dispute with the credit bureaus.
Start paying your debts on time. Credit bureaus report late payments every month. Every time they report your late payment the lower your FICO credit score gets. Start paying your debt on time and you will see gradual rise in your FICO credit score.
Focus on paying off the credit card debt. Call your creditors and try to renegotiate the debt. If you call them and tell them your problems and offer a realistic repayment plan they will be glad to listen to you and make accommodations.
written by Constantine Njeru
\\ tags: Credit Bureaus Report, Credit Card Debt, Credit Cards, Credit Debt, Credit Report, Creditors, Debts, Fico Credit Score, Fico Credit Scores, Focus, Good Fico Score, Interest Rates, Late Payments, Lenders, Loans, Mainstream, Major Credit Bureaus, Repayment Plan, Three Major Credit Bureaus, Time Credit
For career women it is important to understand the importance of planning for life after work. The truth is once you retire you will lose your monthly pay check and you will need it replaced by something else if you are to maintain the standard of living you are accustomed to.
Planning for how you will finance your post work life is what is called retirement planning. Retirement planning for women is unique because studies after studies show women earn less than men and worse still they live longer than men. This means women need to save more than men to survive the extra years.
Retirement Planning Tips for Career Women
Start Saving Early
The three most important words are start saving now. The early you start saving the more money you will be able to save for retirement. Better still you will benefit from the power of compound interest.
Take Personal Responsibility
Don’t be dependant on your company pension scheme. Make your own investments on the side. Buy stocks, bonds, annuities and other investment products.
Invest In Healthy Lifestyle
Never under estimate the cost of health care. You dont want to spend your retirement in a hospice, so start exercising and eating healthy foods. Research has shown those who adapt a healthy lifestyle live longer and suffer less from illness and they spend less money on treatment.
Clear The Debts.
Make sure large debt such as a mortgage is designed to be cleared just before retirement. This will reduce debt expense and boost available cash
Delay Retirement
Working a few years more than your planned retirement can greatly boost how much benefit you get from your saving.
written by Constantine Njeru
\\ tags: Annuities, Buy Stocks, Career Women, Company Pension Scheme, Cost Of Health Care, Debt Expense, Debts, Eating Healthy Foods, Healthy Lifestyle, Hospice, Importance Of Planning, Important Words, Investment Products, Investments, Personal Responsibility, Planning Retirement, Power Of Compound Interest, Retirement Career, Retirement Planning, Stocks Bonds
When you apply for a mortgage, the mortgage lender will evaluate your application based on these four factors, capacity, capital, collateral and credit.When you meet them for face to face interview the questions will revolve around these four factors. Your ability to answer the questions in a satisfactory manner will determine whether your mortgage loan application is approved
What Mortgage Lenders Evaluate
This four factors are well explained by the following article that was originally published at Freddie Mac Website
Capacity
Capacity is your current and future ability to make payments. Lenders will look at your income, employment history, savings, and monthly debt payments.
Capital
Capital, or cash reserves, refers to the reserves of money and savings, investments, properties and other assets that belong to an individual and that can be sold relatively quickly for necessary cash.
Lenders will evaluate your application more favorably if you can verify that you have cash reserves. Cash reserves show the lender that you can manage your money well and that you can count on other funds, in addition to your income, to pay the debt.
Collateral
The lender will take a look at all your possessions and property that you can pledge as security for debt.
Credit
Lenders look at your credit and on-time payment history to see your record of paying bills and debts.
Lenders will ask for financial statements to see if you meet all of their criteria. Sometimes your strength in one area can cancel out your weakness in another.
written by Constantine Njeru
\\ tags: Assets, Cash Reserves, Collateral, Credit Lenders, Debt Credit, Debt Payments, Debts, Employment History, Financial Statements, Freddie Mac, Income Employment, Mac Website, Mortgage Lender, Mortgage Lenders, Mortgage Loan Application, Payment History, Pledge, Possessions, Satisfactory Manner, Time Payment
A good credit score is necessary if you want to get cheap loans. It is important you do your best to put your credit history in order to protect your credit score.
A credit score is determined by assessing a persons payment history, outstanding debt, number of years as a borrow and number of recent new accounts.
The following four credit tips will help you protect your credit score.
Start Borrowing Early
Start borrowing as early as possible. A person who starts borrowing money in college has an opportunity to develop a good credit history. By the time this person is applying for his/her first morgage he will show experience in his / her ability to borrow and pay bakc money. The important thing is to borrow small amounts that you can service comfortably.
Pay All Your debts In Time.
35% of your credit score is determined by how well you service your debt. Always pay your debt on time.
Dont Over Borrow.
30% of your credit score is determined by your level of debt. The more debt you are carrying the lower your credit score. Never borrwo more than you need.
Dont run away from your debts
If you are carry many credit cards this could indicate you are use one credit card to pay off another credit card. A sign you might be in financial trouble. Deal with all your debts at a time. When you borrow money to pay off an old debt you are only increasing the size of your debt. Asking for more trouble!
written by Constantine Njeru
\\ tags: Borrow Money, Borrowing Money, Cheap Loans, Credit Card, Credit Cards, Credit Help, Credit History, Credit Score, Credit Tips, Debts, Financial Trouble, Improve Credit, Morgage, New Accounts, Opportunity, Payment History
Credit protection is essential in any form of financial planning. If you wind up on the wrong side of a damage awards you creditors naturally will want to seize your assets. As a business man, a tax deferred retirement plan may be your most valuable asset or among the most valuable.
Under ERISA, which is Federal law, defined contribution and defined benefit plans are protected from creditors in bankruptcy actions. Almost all US states extend this protection to their own courts in civil actions.
In one case, a California physician who operated his practice as a corporation filed for bankruptcy. The physician had accumulated nearly $2 million in a retirment plan. California like many other states exempts assets in a retirement plan from liquadation.
The physician’s creditors challenged the $ 2 million exemption on the grounds that it was unfair. The court agreed with the creditors that the exemption was unfair but the court found it was powerless to ignore the exemption. As a result the physician eliminated all of his debts and walked away from bankruptcy with $ 2 million. Had he withdrawn that $ 2 million from the corporation and invested it in a personal portfolio outside of a retirement plan, he would have lost the $ 2 million.
A word of note not all retirement plans are protected from creditors. A retirement plan is not protected under ERISA if it covers only owners and spouses. You need other participating employees.
Participants should include you, your secretary, accountant, even your janitor and almost everyone working for you.
written by Constantine Njeru
\\ tags: Accountant, Bankruptcy, Benefit Plans, Business Man, California Physician, Carlifornia, Civil Actions, Creditors, Damage Awards, Debts, Erisa, Financial Planning, Janitor, Participants, Personal Portfolio, Protect Assets, Retirement Assets, Retirement Plan, Retirement Plans, Tax Deferred, Wrong Side
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