Posts Tagged house
Current Financial Crisis Will Lead To An Overhaul Of The Banking System
Posted by Oksana Grebenjuk in Banks on Апрель 28th, 2009
Starting in the 1970’s, the banking system has undergone a long cycle of deregulation. The culmination of all this was the repeal of the Glass-Steagall Act in 1999 which has since muddied the distinctions between banks, securities firms and the insurance industry when they began a period of consolidation.
The arguments for deregulation was to foster a climate of competition, innovation and lower prices by lessening government oversight and allowing market forces to dictate the flow of credit. Since then financial sector has experienced a rapid expansion by offering many new products and services.
After this current financial crisis is over, I think we can expect things turn back the other way. While the collapse of the housing bubble was the main cause of our current economic troubles, no one can deny that the financial sector has it’s fair share of the blame for all this. Lax lending standards and excessive risk taking through the explosive growth of securitization and derivatives has created a highly leveraged financial machine that is at it’s breaking point. Read the rest of this entry »
Are You Saving Too Much for Retirement?
Posted by Oksana Grebenjuk in Investing on Апрель 24th, 2009
A new free online tool performs some extremely complex calculations to make financial planning simpler for small investors.
ESPlannerBasic, set to be officially launched later this week, takes a different approach than many competing online tools. Rather than calculating your odds of meeting your spending goals in retirement, the tool is intended to help you maintain a stable standard of living throughout your life. It’s available at www.esplanner.com/basic.
Many retirement-planning calculators ask people to estimate their own spending needs in retirement, a feat that Laurence Kotlikoff, the Boston University economics professor who developed the tool, says is nearly impossible. “It’s like asking them to make their own penicillin,” he says, “when we have the antibiotics that work.”
Instead of pulling spending goals out of thin air, ESPlannerBasic asks users to enter information about their age, earnings, assets, housing costs, special expenses and other factors. The program then offers advice on how much to spend and save each year, and even how much life insurance to buy, so that the user and his or her spouse can maintain a steady living standard through their retirement years. Read the rest of this entry »
What to Buy While the Economy Is in the Tank
Posted by Oksana Grebenjuk in Investing on Апрель 8th, 2009
We’ve long pointed to the silver lining of a down economy here at the Wallet. Sometimes, we’re downright optimistic.
Yes, nationwide unemployment is at 8.5% and jobs keep being shed. Yes, excessive consumer spending is part of what got us into this mess. But the majority of people are still working. We, like the rest of the world, have no clue how much longer the Great Recession will last, but if you’re a prudent saver and spender, there’s no sense in wasting some historic buying opportunities.
Forbes has a slide show of 10 things to buy when the economy is down. Their list includes:
1. A house
2. A car
3. A vacation
4. Toys
5. High-dividend stocks Read the rest of this entry »
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