Largest bond finance drops all government debt and then some

The largest bond finance on the planet is betting the Congress doesn’t have what it takes to solve the nation’s deficit problem. The Pimco Total Return Fund has gone into negative territory on U.S. Treasuries. This is also known as taking a short position on the debt piling up in the United States government.

Pimco does influence the United States Treasuries

Pimco is placing a bet the debt will make rates of interest soar and possibly hurt the Nation’s triple-A bond rating. To get to a short position on Treasury bonds, Pimco sold borrowed securities on a bet it can buy them back later at a lower price. Bill Gross, head of Pimco, has been warning people of the United States government debt. In February Gross caused a stir by selling all of Pimco’s Treasury holdings. In March he made $7 billion bet against the securities.

The portion of Pimco’s $236 billion Total Return Fund held in U.S. Treasuries and other long-term government debt dropped from zero in February to negative 3 percent in March. The fund’s money equivalents rose to 31 percent of the fund’s assets, a $73 billion bet that the good times are about to end in the markets.

Pimco’s possession was brief

Gross has no faith that Congress will be able to solve the deficit problem. In an April Pimco newsletter, he said the United States government was “out-Greeking the Greeks.” Greece’s massive government debt forced its leaders to ask for a bailout from the European Union to prevent a global chain response of financial failure. In fact, current unfunded government spending on entitlements combines to equal five times United States GDP, a debt burden much heavier than what sent Greece into crisis.

The market and how Pimco will use it

Gross is assuming a sort position on U.S. Treasuries and hoping that the market falls in his favor. John Carney at CNBC warns investors to regard Gross’s machinations with caution. Wall Street has been unreliable for a while now, and something that seems right, might in fact be “dangerously wrong.”

Information from

Associated Press

finance.yahoo.com/news/PIMCO-goes-short-US-rb-3790514655.html?x=0

Fortune

finance.fortune.cnn.com/2011/04/10/pimcos-gross-betting-against-u-s-debt/

Christian Science Monitor

csmonitor.com/Business/Latest-News-Wires/2011/0412/Bond-fund-and-many-others-bearish-on-US-debt

Reuters

reuters.com/article/2011/04/11/us-pimco-bonds-short-idUSTRE73A2IR20110411

Salt Lake City to debut cellular transaction network in 2012

Three major wireless service providers are working with the city of Salt Lake City, Utah, to install a wireless payment network in that city. Payments are wired through the Isis system, a joint venture of three of the nations’ leading cellular service providers, and amounts deducted from the right debit or credit account. Article source – Wireless payment network to debut in Salt Lake City by MoneyBlogNewz.

Cell phone charge card technology takes another step forward

Near field communication, NFC, technology was put on iPhones months ago as a cellular payment system that works. A computer chip is installed in an iPhone that can be picked up by a reader system. The bank account or credit card account linked to the chip’s owner is then charged by merchants. The deduction is made when somebody waves their iPhone. Of course, only phones with Near Field Communication chips will work. This is a large deal. It is advanced technology for the financial industry. There is internet access on most phones already. Smartphones have been used for a while to do bank transfers, to balance checkbooks or to get personal loans on the Internet.

System in Salt Lake to begin with

The NFC system could be started in one place. NPR reports this place to be Salt Lake City. People can start paying for the public transportation system with NFC phone readers. They will be put in the whole system. The city is beginning to make a partnership with AT&T, T-Mobile and Verizon Wireless because of Isis. That is the NFC system the carriers are using right now. The carriers will need phones other than the iPhone that are NFC equipped. Sprint, according to BusinessWeek, is still creating its own Near Field Communication technology.

Technology not good

NFC technology is not spread enough to be put everywhere as Isis would hope. The ad campaign claims the technology will make Salt Lake the “place where you are able to leave your wallet at home.”. Buying a smartphone is going to cost less and less as time goes on. Also, more cellular systems for payments are being accepted each day.

Articles cited

NPR

npr.org/templates/story/story.php?storyId=135149101

Business Week

businessweek.com/news/2011-04-04/at-t-verizon-wireless-to-open-venture-to-all-payment-networks.html

Pay With This

paywithisis.com/

Paying kids for grades like good little capitalists

Many parents have wrestled with whether they should pay their kids for good grades. Some look at just a little cash as an extra incentive to excel, while others believe that it sends the wrong message to children about the value of both money and education. However, studies suggest that there is a golden middle path that is encouraging and educates kids’ lifelong monetary lessons.

‘School is your job’

Paying for grades is supported by many moms and dads. They say that a child is going to school like a job. Children are designed to be working to learn as much as possible. This is to prepare for the future. An employer pays employee compensation. A student should be paid as well.

The opposing side to this argument, however, is that not all jobs in life net monetary rewards and that, children should strive for good grades simply for personal growth. With grade payment, could students be more prepared? Are internships that are unpaid what students are preparing for? Is the truth that unpaid internships are an inappropriate way for corporations to abuse employees?

Pay for good grades programs have been instituted in numerous public school systems to good impact, reports the New York Times. The debate is nevertheless there. Many argue constantly. Because it was just like the reward systems of United States capitalist society, Urban League President Darwin Dais praised the efforts while Sol Stern, Manhattan Institute fellow, said it is “an insult to every hard-working parent.”

Don’t do free labor

Moms and dads can help children quite a bit by teaching that hard work and accomplishment can compensate them. There is a lesson to learn. Don’t work for free if you are able to do it well. Children might not understand unless they know more. Kids have to know what money is worth. The value of money is something all kids ought to know. Money Crashers makes it easy:

1. The importance of money. If you are dealing with teenagers, don’t give them gift cards or prepaid debit card as a reward for grades. It becomes more significant for a teenager to conserve after holding money in their hands. They’ll feel what it is like to exchange the dollars and change for things at the store.
2. The importance of hard work. Some children might need more money after getting paid for grades. If this is the case, the kids should try to get a job part-time. For younger kids who aren’t already receiving an allowance, this could be doing yard work for neighbors. Teenagers can get a part-time job. They might even consider a paper route. Some children will understand money better after working for it. They will know what it takes to get a dollar.
3. Teach children about giving. By donating time or money, children can learn about doing well. This is a good way to teach children to care for others. This can help them value money as well as education.

Articles cited

Money Crashers

moneycrashers.com/should-parents-pay-if-their-kids-get-good-grades/

New York Times

nytimes.com/2007/06/19/nyregion/19schools.html?_r=2

Exxon is paying high school students for grades

youtu.be/tkVcO8M4QVc

Advertisements on the Amazon Kindle has readers worried

The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting pretty with its Kindle platform. Industry studies indicate that the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the company introduces the $114 Amazon Kindle with Special Offers. What is the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, will be ad-supported. Article resource – Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Kindle price cut with advertisements

The first generation Amazon kindle in 2007 cost $399. The price deduction never included advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. May 3 is when the kindle will start with Special Offers. The ad-supported version can be found in Best Buy and Target for the Kindle 3.

Amazon founder and CEO Jeff Bezos sees the $114 Kindle with Special Offers as a “chicken in every pot” move:

“We’re working hard to make sure that anyone who wants a Kindle can afford one,” he said via a statement.

There were many responders to an article by the Christian Science Monitor that many may have about the kindle with advertisements. The price of books was brought up by one reader that states kindles for free with ads would be okay with $0.99 books. Many experts say it is good that Amazon only has ads on the bottom of the home screen and on Kindle’s screensaver, although some complain a $25 discount isn’t enough.

“It’s very important that we didn’t interfere with the reading experience,” Kindle director Jay Marine told the Associated Press.

Price matters

Getting to the $99 Kindle for Christmas 2011 is important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. According to traditional marketing, 99 is magical number.

The Columbia Business School in New York did research on this though. It showed this is probably not the case anymore. The Columbia study showed the “dollar-minus” approach bringing it down to 99 cents was not almost as effective as bring it up a penny for a “dollar-plus” approach. Sales of products that used the dollar-plus method increased by 3 percent, and consumers felt greater trust for dollar-plus brands as the costs were perceived as being less manipulative.

Citations

Christian Science Monitor

csmonitor.com/Books/chapter-and-verse/2011/0413/Will-readers-accept-ads-in-exchange-for-a-cheaper-Kindle

Columbia Business School

gsb.columbia.edu/ideasatwork/researchbriefs/7314376?&top.region=main

Knowing and Making

knowingandmaking.com/2011/04/new-research-99-no-longer-optimal-for.html

TechCrunch

techcrunch.com/2011/04/11/amazon-kindle-99/

Kindle sales tripled after last price drop

youtu.be/PaAFm_fZQ2A

Helpful investing fundamentals you are able to use

Individuals invest because they want to create wealth. Day traders do it in part for the rush; but the fundamentals are somewhat less thrilling and more about comfortable goals. The right approach requires just a couple basic guidelines. Among the things you need to know is how not to invest. Post resource – Investing basics and how NOT to invest by MoneyBlogNewz.

401(k) investments

Experts advise getting started with a 401(k) plan from your place of employment, preferably with matching funds from the business. Your retirement money won’t be taxed if it sits in an account and yet at the same time will earn interest, capital gains and dividends. Retirement will only grow if you leave your money sitting.

A 401(k) isn’t an investment necessarily. There is investing going on however it works differently than a typical investment opportunity.

The storm will come so saving is highly essential

Make certain you do not overlook savings. Recourses like Motley Fool are online goods that will help you set up how much you should be saving.

Roth and Traditional IRA accounts should be maxed out

Taking money out of a Roth IRA is taxed, but putting money in isn’t taxed. By maxing out your IRA, your retirement will be substantially larger than if not. Those who do not qualify for a Roth IRA can still use traditional IRA accounts with more flexibility than several other accounts.

Retirement accounts are only one option

You can buy stocks and open brokerage accounts to expand your portfolio. Before investing, however, you need to have a clear vision of your goal. Know what you want and just how long it will take you to get there based upon the amount of the investment and rate of return.

Pay off your credit cards first

The rates of interest on credit cards make them the most harmful thing an individual can have in their possession. Make sure you pay all your charge card debt off before you even start to try and invest in stocks.

Sitting around is not an investment

Motley Fool points out that, stock market is unpredictable, but t if you venture nothing, you will gain nothing. The miracle of compound interest smiles upon those who buy in. Don’t invest in stocks than forget about them, or you’ll find an empty wallet. Follow your stocks and move on if and when the time is right. Don’t go outside of your comfort zone unless you are prepared to lose large.

In and out can have you down and out

Trading in and out of the market isn’t just risky, it comes with a lot of trading fees also. So be careful when you set things up with your brokerage firm. This works well for day traders however it doesn’t work well for long-term investors. If short-term investment is necessary, consider money market funds or CDs, advises Motley Fool.

Information from

About.com

beginnersinvest.about.com/od/investing101/a/how-to-start-investing.htm

Motley Fool

fool.com/investing/beginning/why-should-i-invest.aspx?source=iibedihpo0000001

From socks to stocks

youtu.be/50PBUcwfe-w

The tough mathematics of idealistic urban gardening

Food costs are increasing, thanks to a variety of worldwide factors. These increasing prices are leading to resurgence in urban gardening. These city gardens are often touted as a way to save money. Some enterprising small business hopefuls try something new. Rather than backyard gardens, some try to create full-fledged backyard farms. Post resource – Doing the math on urban farming by MoneyBlogNewz.

The debate for urban gardens

For a variety of reasons, urban gardening is gaining in popularity. Some homeowners see these gardens as a way of putting their property to work. Others use these gardens as a way to grow their own food the way they want to — organic, no fertilizers or to rock music twice a day. Several think that they will be saving money with a metropolitan garden. It seems sensible when you do the mathematics. Spend $10 on seeds and equipment to get a huge return. At least $50 could be returned in produce to you.

The money the urban garden has

Using a garden to save money is a good idea. It seems sensible that it will work that way. The math of a metropolitan garden is a bit more than seeds and water, however. Setting up an urban garden takes significant amounts of time and at least some monetary investment for the first year or so. You should have garden space. Grass must be pulled out or killed, or raised beds need to be built, which costs $20 to $100. The soil may need testing for mercury or lead. Between $150 and $300 can be the cost. It can cost anywhere between $1 and $100 to get the seeds for the garden. It costs between $5 and $20 per cubicle of compost if you don’t have your own. Dependent upon what you do, getting an urban garden set up will cost between $25 and $500 plus lots of work and time. The garden isn’t almost as costly in the years after. Over time, a metropolitan garden can save you significant grocery money. To be able to break even, dependent upon all the variables, a metropo! litan garden needs to produce 50 to 200 pounds of vegetables with an average cost of 55 to 60 cents per pound. There are other reasons to grow your own food without even considering a garden.

Creating a farm out of an urban garden

Some enterprising entrepreneurs are turning urban gardening into urban farming. Instead of attempting to purchase large portions of land outside a city and driving the food in, some businesspeople are using backyards of friends and neighbors as their farms. A small fee is paid occasionally. There are other times where the produce is used in exchange. This is a form of payment. This isn’t always a recipe for quick profit — one Canadian business, FoodCycles, points out:

Farming is like any other business – you need a marketing plan, a financial strategy, a risk strategy.

Information from

The Star

thestar.com/article/970270–porter-backyard-farming-in-the-gta

AZ Star Net

azstarnet.com/news/local/east/article_df486eea-75d6-56f1-9add-a99f2abe5b8c.html

USDA

ers.usda.gov/Amberwaves/September04/Findings/fruitveg.htm

Keep away from pay day loan default with an Extended Payment Plan

Despite planning and the best of intentions, sometimes individuals discover themselves unable to repay their payday loans when they come due. That’s why personal loan companies that are members of the Community Financial Services Association of America (CFSA) offer an Extended Payment Plan (EPP). At no charge, an EPP plan can be put into action that enables a consumer to repay their loan over their next four paydays. Source of article – Avoid payday loan default with an Extended Payment Plan by MoneyBlogNewz.

Loan providers determine, after the state, EPP rules

Depending upon the state in which payday loans originate and whether the lender is a CFSA member, the stipulations of an Extended Payment Plan will vary. State laws are followed if the law already provides an EPP for consumers on payday loans. In states where there is not already a specific law, members of the CFSA will follow these requirements. CFSA-member extended payment plans generally allow customers to repay their short term installment loans in four equal payments over the next four paydays, claims eHow Money. Sometimes an EPP payment is missed. In this case, additional fees might apply.

CFSA-member lender where you get an EPP

• Lender should be CFSA. Try and get this. The CFSA’s blue oval logo should be on display in the payday lender’s office or on the website. The extended repayment plan could be offered by a lender that isn’t a member of CFSA. Ask for details.
• The lender needs to be contacted. Do this prior to the due date end of business day. If you are going to run into trouble repaying your payday loans, contact your lender just before close of business on the day right before your loan is due. Go to the lending office or contact the lender online. Ask for an Extended Payment Plan. The due dates will be put in an agreement that you will have to sign. Read the extended repayment plan carefully just before signing.

Go ahead and complain if a lender was not willing to give you an EPP in the last 12 months and is a member of CFSA. During the Eastern time business hours, you are able to go call 888-572-9329 (fax 703-684-1219) or email cfsa@multistate.com to contact the CFSA. Alternatively, contact the CFSA by mail at 515 King St., Suite 300, Alexandria, Va., 22314.

Information from

CFSA Consumer Complaint Form

cfsaa.com/cfsa-member-best-practices/how-to-file-a-customer-complaint.aspx

CFSA

cfsaa.com/cfsa-member-best-practices/what-is-an-extended-payment-plan.aspx

eHow

ehow.com/how_5906522_extended-can_t-pay-payday-loan.html