Investing

Should you repay $10,000 borrowed from a friend or family member? What about if you borrowed the same amount from a bank? Most people would answer the first question unqualifiedly, and the second question only slightly differently. What happens if you don’t have enough money to make the loan payments? Strategic defaulters are borrowers who can’t pay their […]

Are you sure your washer is working correctly? Yes? You can. Also, you should repaint and possibly add a swimming pool to your home. You should eat out more and then go to the movies. Why? You see Uncle Sam wants you to spend, and spend, and spend. This charade of a recovering and healthy economy can be continued by the Fed

Wall St. Journal’s front page announced that a $25 billion settlement with banks regarding alleged foreclosure abuses would provide financial relief for approximately one million at-risk borrower, raising new hope for an economy still struggling from the mortgage bust. One positive aspect of the 16-month-old agreement is that banks will pursue foreclosures more aggressively, clearing out the

The United States is seeing more and more people who think critically are realizing the serious economic and financial problems facing the country and the lack of a path to solve them. Although it is easy to see the problems, many people choose to ignore them or listen to politicians who promise everything will be fine.

The recession has caused real estate prices to plummet. There have been only a few pauses. The government at all levels (federal and state) doesn’t know what to do so they resort to expensive and ineffective rescue programs. Several economists and “experts” in real estate have repeatedly called the bottom of this market, only to be proven

The economic news for the last week has been disappointing. The (un)employment front saw job growth slow to a halt last month and no new jobs were created. The employment-population ratio dropped to 58.2% (9/3/11 Wall St. Journal) and the unemployment rate stayed high at 9.1%. Deutsche Bank and Bank of America both announced plans to axe 30,000-40,000

QUICK ECONOMIC SUMMARY FOR THE PAST WEEK Our great nation is moving inexorably towards a major recession, and possibly a depression. It becomes increasingly obvious that the U.S. requires major structural reform. It is not enough to make minor changes to entitlement programs or to adjust tax rates. Most government programs are still running in spite

It is normal for politicians to think in the short-term and attempt to stabilize current economic problems. But I don’t understand why Americans aren’t making more noise about America’s long-term financial woes. It is easy to see that Americans are far more educated about reality TV shows than basic economics. The country’s problems with debt seem distant when

The government and media continue to play games with public employees, debt and the evaluation of programs past. We have been hearing more about the mass reduction in public employees over the last few years. According to the Bureau of Labor Statistics, 221,000 jobs were lost by state and local governments between December 2007-December 2010, and another

This week’s local newspaper featured the absurdity of certain special interest groups, including public education unions. The California State University system has a high-paying profession, great health benefits, a great retirement program, and job security that is far better than most people in the private sector or public sector. It is therefore shocking to learn that the