Fannie Mae and Freddie Mac have agreed with New York Attorney General Andrew Cuomo to let banks and lenders do their own appraisals on mortgaged homes. This move allows for private home appraisals to be done by the lenders themselves which was previously prohibited. The agreement came after the attorney general’s office opened an investigation on the mortgage sector, which has been experiencing internal bleeding due to the subprime crisis brought by an increase in foreclosures.
Well, the agreement might contribute in stopping the hemorrhage in the mortgage industry. Fannie Mae and Freddie Mac’s decision to let independent home appraisals would surely boost the confidence of lenders in issuing mortgages. This new system will then be used to determine the value of a property being mortgaged and repacked for securities investments.
Posted by Jones on January 3rd, 2009 :: Filed under
$$$ CRISIS,
EVERYDAY MONEY STUFF
About 63 labor cases against Wal-Mart were finally settled when the retail giant agreed to pay its employees around $352 million to $640 million. The company might have realized that it is better to settle the long-running case to prevent further damages in the future, financially and morally. These cases have been running for decades and Wal-Mart officials finally realized that it would be better to pay the agreed sum than pay potentially higher damages that could be imposed by the courts. Apart from that, the legal battle might affect the company’s reputation, especially now that Wal-Mart is remodeling itself.
That is a good idea by the Wal-Mart officials. Besides, the $352-$640 million settlement agreement is only a penny compared to what the company is earning out of the labor done its employees. What is $640 million if the company’s reputation will be destroyed? On that note, Wal-Mart deserves to be applauded. However, there are still a number of unsettled labor disputes faced by the retail chain. The company ought to settled those cases as well.
Posted by Jones on January 2nd, 2009 :: Filed under
EVERYDAY MONEY STUFF,
SIMPLY SCANDALOUS
As Wall Street executives tighten their belts due to the financial crisis, the State of New York is also experiencing a financial hemorrhage. The recent decision by Goldman Sachs not to pay bonuses to its executives could prove to be costly to the state government as well.New York Gov. David Paterson said the move by Goldman Sachs and other companies to forego its bonuses could cost $178 million in tax revenues for the state.
Well, that is a little money to spare if the benefit would be for the common good. The businesses’ decision to give up the executives’ bonuses for this year would certainly help their organizations, and alleviate the impact of the financial turmoil. That would be better than these companies would end up in bankruptcy. However, the governor even said that the state is already in fiscal trouble. If this crisis would last a little longer and the state would be bankrupt. That would be the challenge now for the governor; how to look for other sources of income besides tax generation.
Posted by Jones on January 2nd, 2009 :: Filed under
$$$ CRISIS,
EVERYDAY MONEY STUFF,
STOCK MARKET
The Federal Reserve’s latest interest rate cut, which effectively made interest rates to zero, is quite tricky. At the outset, the zero interest rate seems enticing to the borrowers. Getting a loan with very low interests is certainly appealing to the public. But the question is, who would want to loan now? And the more painful question is, can the banks afford to lend out money at this time? With the ongoing financial turmoil, the banks’ priority is to clean out their balance sheets first, that is to say they’ve got to collect the money they previously released to the borrowers. So, definitely, lending out money would be least on their priorities. That is the painful reality. Therefore, the Fed’s interest rate cut appears to be of no substantial effect at this time.
Posted by Jones on December 31st, 2008 :: Filed under
$$$ CRISIS,
EVERYDAY MONEY STUFF,
SIMPLY SCANDALOUS
Perhaps a good way of investment, amid the current financial and credit slump, is to buy as much stock or property and save it until the dusts have settled. Stock market analysts said the bear market that is ongoing has definitely brought losses to the investors. With stock prices heading south in an undeterminable period of time, any investors who bought these stocks at high prices found their investments suffer a loss. Hence whenever there is an opportunity, like when the stocks are up for grabs, don’t lose the opportunity. Buy it and then save it until the crisis is over. By that time, the stock’s value will go up once again and definitely your profit will go up.
But the question is, when will that happen? Let’s just hope it would happen sooner than later. But still the best move today is to buy stocks while you can and save while you also can.
Posted by Jones on December 30th, 2008 :: Filed under
EVERYDAY MONEY STUFF,
Uncategorized
Banks and lenders have reacted strongly against the new rules on credit card practices. The new rules impose stricter regulations in raising interest rates on credit card transactions.the regulations, which was adopted by the Federal Reserve and other federal regulators, also require credit card issuers to give sufficient time and notice to card holders before raising interest rates and making their payments. The issuers warned the new rules would reduce credit for consumers.
As expected, the banks would naturally react against the imposition of the new credit card rules. The banks’ reactions are totally out of place. With the bailout in place, the banks should not oppose the imposition of the regulations on credit card. After all, the financial mess is of their own wrongdoings. The government is just fixing the problems the financial insitutions have brought. So it is only right to protect the consumers, just as the government saved the asses of the banks’ “strategists” who brought the financial turmoil.
Posted by Jones on December 28th, 2008 :: Filed under
EVERYDAY MONEY STUFF
It seems then the OPEC action to cut production boomeranged on its face. The oil production cut is obviously a ploy by the cartel to spur another wave of oil price increases. By reducing production, the supply will drop and hence demand will rise, which could then result to an increase in oil prices. However, with the way things are going, the OPEC move is not effective, which is also good for the consumers. Let’s just hope oil prices will be stable in a long run.
However, the drop in the oil prices took its toll on the utility companies. Shares of the utility companies dropped sharply in the stock market. The recent announcement by OPEC to slash oil production did not have any effect, as crude oil costs fell even lower. But analysts said the weakening electricity demand is the primary reason in the drop in the utilities’ shares.
Posted by Jones on December 27th, 2008 :: Filed under
$$$ CRISIS,
EVERYDAY MONEY STUFF
As Christmas time is in the offing, last-minute holiday shoppers flocked to the stores this week to buy gifts and other discounted items. Shopping malls and retail outlets have been crowded by people who are on the shopping-spree. This last-minute shopping frenzy shows that despite the ongoing fiscal slump, people still want to buy gifts for their loved ones this Christmas. The spirit of gift-giving and the tradition of being with the family for the holiday season is still strong as is evident now.
This activity at the shopping malls may be good to the economy. Consumer spending is really needed to boost the economy, which is now brought to its knee by the financial crisis. Perhaps with the flow of money going out now, the financial sector will be bolstered.
Posted by Jones on December 23rd, 2008 :: Filed under
EVERYDAY MONEY STUFF