Open topic

How about ways this economy is directly effecting you and what you are doing about it?

We have a son who is a senior in high school and my husband is experiencing downsizing at his company. We are just waiting for the other shoe to drop. Our college savings have dwindled before we have even touched them. Our son works, but he is also an athlete and has some tough classes. I am job searching, but after being a stay at home mom for 15 years, I find I am qualified for very little and there is not a lot out there. I am calling and cutting our bills down to bare bones.

Is anyone else in the same boat? Any suggestions?

One thing I have tried to teach my young adult daughter is the risk of leaving a career for a time or creating a life with no current marketable skills, as a woman can never know when life might throw a curve creating a need for her to earn an income that she, and perhaps her children, can live on. She is finishing her MSN at Rush's nursing leadership masters program.

I was able to stay at home with my young children for 12 years and loved every minute of it. When I needed to work, I was able to get into a full-time career from my previous skill sets very quickly. That was a very good thing for my family.

I feel anyone's pain with employment issues in this economy, hopefully things won't take too long to turn around. It doesn't have to be a bad economy that sends a SAHM back into the workforce, sometimes with a very tight timeline and a number of people depending upon her. I want my daughter to have everything her brothers have and everything she wants as a future wife and mother, and hopefully an individual that has her own stuff going on to give her self-satisfaction and security.

It does look like some of the entry-level health professions with a relatively short education time might be a good idea, COD has a brand-new health occupation building opening and a full-time student could get some financial aid, as well as a job with a year or two of further education. Nursing and Dental Hygiene are very hard to get accepted in, but there must me medical assistants, radiology techs, blood collectors, or some of the other degrees that Westwood and those type of schools offer. Without skills? I don't know, retail?

As stay-at-home moms have become more rare over the years, I think the current economic climate will make that even more so with dads struggling with employment themselves. Even moms that rely on a hefty child support payment perhaps should take heed and realize that child support levels are easily dropped if a dad paying child support has employment issues. Many will learn to live on less at some point, as they must.

Curious,

A lot of people are in the same boat, some are snapping in the ERs.

In short, the employment picture is not good and a lot of people and companies are cutting back.

The projection is the need for a lot of health workers and professionals with the aging baby boomers. I don't know what the nursing picture looks like today, if you were looking.

Costco and Sams appear to be doing well, Penny's Macys etc are having a tough time of it and cutting staff. Cars are in the tank, but still selling 10 million vehicles a year.

The country and a lot of our citizens are maxed out on the credit card, the personal savings rate has jumped dramatically which is good for the credit cards but means less retail demand.

Housing had dropped quite a bit and well respected sources believe it will drop another 20% to year 2000 pre-bubble levels.

A lot of businesses are waiting to see what Obama will be able to get done.

He has proposed massive taxing, spending and redistribution programs which will finish bankrupting the country. Consequently, a lot of businesses are laying low and not investing, not hiring, laying off and looking at exiting the USA completely for a business friendly country. A lot of companies we think are American are actually Dutch, English, Belgian or German and located in the US for the previously good business climate.

The above is the reason that the local governments are getting hammered. The FEDs literally printed up 2 Trillion a couple of weeks ago to pay the bills, nice trick if you can get away with it. If you want to see where this leads, look at what has happened to Argentina and worst case Wiemar Germany.

Unfortunately, three areas that are booming are the sale of gold coins, silver coins and guns. You may want to call one of these retailer to see if they are hiring.

I would like to chime in on the state of the economy and how everyone is feeling the pinch somehow. Our middle child would like to attend the University of Missouri next year. We do not qualify for financial aid and we already have another child attending COD (hw is also working full-time.) My husband and I are both civil servants, and my husband has had to re-locate with the federal government; so we haven't really been able to build up a college fund. I am trying to disuade my middle child from taking out loans to pay for college, because he'll just have to pay them back. Maybe 4 years ago I would have felt differently and encouraged him to go to the school of his choice, but now I'm worried that he may not have a job at all after he graduates from college. I don't know if I've ever been so pessimistic about the future and what it holds for our children.
On a side note, I grew up just north of Binghamton, N.Y. and that whole story has upset me; especially since my parents were immmigrants who attended the same type of English-language learning classes as those who died yesterday.

I just looked at my bank statement yesterday for the first time in quite awhile and noticed to my shock that I am only receiving 0.08 percent interest on my savings account. I talked to another friend getting 0.05. When I signed up for the account it was 3 percent. With a rate like that there's no advantage to saving (besides the safety net of course). I would have never guessed rates could even get that low.

Moderator,

There are many banks paying between 2% to 3% on Money Markets. You need to be willing to switch around a little and play one bank against another.

Last month Chase was paying 2.5% for a money market so I moved my money from First National Bank of Naperville since their rates resembled the rates you describe.

I also moved a CD to another bank because they were only paying 2% for one year.

I was about to withdraw the rest of my money from FNBN when they told me they had a 2.85% 13 month CD and tacked on .10% for founding father status and another .05% for something else to make it 3%.

The Park National Bank has a sign posted in their windows for 2.75% for a one year CD and 2% for day to day savings account also better known as a Money Market account. Park National Bank according to some bank presidents I know is in trouble and the FDIC make take it over. So make sure you deposit less than 250k, Moderator, or your money will not be fully insured.

You just have to make some time and move your money once in a while. Or demand your bank match another bank. Banks will screw you as they take their customers for granted after a while. Same as the cell phone companies will screw you if you don't watch your bills.

Same as those outside Chicago legal firms screwed the City of Naperville for not watching those Furstenau legal bills and microscoping them. Just about anyone will screw you these days if you give them the opportunity. OK, I just identified myself...lol..

I don't think keeping under $250,000 will be a problem for me.

Suzie Orman has changed her long standing advice about paying down credit card debt and is now recommending that people in the sane situation as "just curious" make only minimum payments. She says they will drop you completely if you pay off the cards. Of course, you also should not incur any additional credit debt. Pay with cash, reduce spending.

Take advantage of the Cobra reduction if available to you. And if you can't find full time work, take part time or even volunteer. It may help you get your foot in the door and will get you used to working outside the home again. Best of luck.

Taxpayers who've lived in Naperville for a while don't need to be reminded about just how much their property taxes have skyrocketed over the past few years, and recognize we're getting nothing more in return.

Interestingly, it took District 203 approximately 25 years to reach $100M in spending, while student enrollment grew about 87%. These were the days when the school district was managed by fiscally responsible and conservative board members. The union did not control the board. The community was turning out good students.

Astonishingly, it only took another 11-12 years for District 203 to double its spending to $200M, while student enrollment grew by about 8%. This last decade is when the school district was being managed, I mean mismanaged, by fiscally irresponsible, union-endorsed, liberal board members. The community was turning out good students.

"Bad officials get elected by good citizens who don't vote." This is a great quote to heed on Tuesday, April 7. Conservatives must get out to vote. Put an end to union-controlled boards catering to the wishes of the union rather than the limits of the taxpayer. We once had fiscally competent boards turning out good students. Don't let the union's slate of Crotty, Romberg, Dennison, and Drapalik enable the union to control 7 out of 7 board members.

"The time to exercise our right to vote is near. It’s an obligation to take seriously lest we demean the lives of those who came before us.

The good news is that we have many fine candidates in most of the races. Citizens stepping-up to run for these positions is a strength of our community. The bad news is that the recent past has shown some disturbing trends in our burg.

First, I am concerned about the issues (or even the appearance) of conflicts of interest. Over 75% of all school expenses are salary related, and our two School Boards could be negotiating and approving around $2,000,000,000.00 of contracts with their Union-led employees over the next 4 years. Both Board races are teeming with Union-endorsed candidates. In D203’s case, the entire sitting Board has been Union-endorsed and most, if not all, have received financial support at some time in their candidacy. When you add in the use of surrogate groups such as P.U.R.E. (and others!) that serve to extend the influence of the Unions onto our Districts, and the fact that D203 has already been willing to extend bad contracts whenever there is a danger to the status quo, the fear of a conflict is palpable. Independent Board members is an imperative!

Second, vile campaigning methods began appearing in Naperville in 2007, as did substantial outside monies trying to heavily influence our votes. Diane McGuire’s recent and appropriately failed House race was loaded with both. Ms. McGuire is currently using these same like methods to attempt to win a Township position. Her campaign tactics are again negative and she is funded almost entirely by outside influences, including left-wing groups from Washington D.C and Ohio. The question we all need to ask is “Why are these outside groups trying SO hard to gain an influence in our little town?”

It is my hope that we all take the obligation to vote seriously. We must research the issues, the candidates, the town’s zeitgeist, and make an informed decision.

Most of all we need to GET OUT AND VOTE!"

Chris Magee, moderator on April 4, 2009 9:40 PM
I just looked at my bank statement yesterday for the first time in quite awhile and noticed to my shock that I am only receiving 0.08 percent interest on my savings account. I talked to another friend getting 0.05. When I signed up for the account it was 3 percent.
______

Hey Chris, I think that rate offered is stated as an annual rate, (3% compounded in your case) while your statement will reflect that same rate divided by 12 in order to give you the monthly return.

I think credit cards are the same way, i.e. if you are being charged a 24% rate on a card the actual amound will be 2% of the total on a monthly basis as the 24% is an annual amount.

Chris,

HOW BANKS WORK IS GENERALLY NOT UNDERSTOOD

When you hear that a bank has to keep 10% in reserve:

What that really means is that if you deposit $100 in the Bank; they then turn around and lend $1,000. This is known as the "bank multiplier" or in layman's terms "creating money out of thin air".

So, if the Bank is paying .5% on a $100 deposit, they then turn around and lend $1,000 at say 9% on car loans, 18% on credit cards and currently 5% on home loans.

The effective loan interest rate on your $100 deposit, if it were exclusively in car loans, would be 90%. For this, you get paid 0.5%.

Since there is nowhere else to put your money with the collapse of the economy, the stock market and the money markets, the Banks are taking full advantage by charging every fee possible while paying little to nothing on deposits.

The reason the economy, stock market and money markets are in collapse is:

ANATOMY OF A MASSIVE FRAUD: Money + Imbeciles + Corrupt public officials

When combined with the Social Engineering Imbeciles that control both parties in DC (or is it just one party) the international community had a huge amount of money to invest (I forget the exact number) lets say $20 + Trillion, you are bound to get a bad result. How it worked.

*The corrupt-Imbeciles in DC forced banks to make no-down-payment, no-documentation-loans to people who could never repay the loans; in some cases food stamps were listed as a source of income to qualify; frequently on adjustable terms which start out at a small payment and become completely un-payable at a higher interest rate within 3 to 5 years, aka ARMs. The food stamps as income was a Clinton-Rubin-Summers innovation.

*The Imbeciles in DC then agreed to back the mortgages from Banks, and other types of lenders, by allowing Fannie and Freddi (two quasi governmental agencies, now failed and completely nationalized financial companies) to back the fraudulent loans and support re-sale of them to international and US investors. Frank and Dodd made sure this didn't stop when the problem became obvious a few years ago.

*To increase the supply of NINA (no-income no assets), no-documentation (your income is whatever you write on the form and you are whoever you say you are) and ARM fraudulent loans; the NYC Investment Banks, with the approval and support of the corrupt-Imbeciles in DC, paid up to $25,000 to the originating loan companies per loan instead of the usual $250 to $500 dollar commission. The incentive to write bad Fanni and Freddi loans was 100 to 1.

Failed companies like Goldman Sacs, Lehman Brothers, Merill Lynch, Bear Stearns etc..purchased the Fannie and Freddi backed fraudulent mortgages from lenders:

*Then they divided the loans into thousands of tiny pieces like stock certificates for one house.

*They then recombined the stock certificates into thousands of Bonds (I get confused with all of the unregulated fraudulent gambling instrument names, but I think these are the virtual Bonds).

*One Bond may have shares to 10,000 mortgages in it, so its difficult if not impossible to identify a single Bond to a single mortgage. Fogging is a key ingredient to any good fraud.

*The Bonds were then sold by NYC Investment Banks to International and US investors as “guaranteed investments” with lets say 8% to 10% returns (while you got 1% on your savings account). International investors included huge banks in Germany, France, England, and China.

*Because the Bonds were composed of US Government backed Fannie and Freddi loans, the rating agencies like Standard and Poors (I forget the names of the big 3 rating agencies buy I think S&P is one of them) and others rated the fraudulent Bonds as AAA, the highest possible investment rating. AAA=guaranteed investment.

*Because the Bonds were US Govt backed, rated AAA by the big three agencies, and repackaged and resold by Goldman Sacs etc.; an Insurance company called American International Group (AIG) decided to get in on the action and offered the buyers of the fraudulent Bonds insurance on their investments. Easy money.

*AIG, although an insurance company regulated by the State of NY, inc Andrew Cuomo their Attorney General, offered insurance on the fraudulent Bonds with no reserves to pay off losses. A clear violation of insurance laws in every state. Cuomo looked the other way.

*To skirt Insurance Laws, AIG and others gave the insurance funny names like CDOs and CDS. Cuomo, Geitner, Paulson, Obama, Bush, Frank, Greenspan, Dodd and others looked the other way, or in many cases lent a hand to the fraud. Many of them were paid off in the form of campaign contributions, jobs for family and friends and in some cases subsidized loans for Dodd and Obama. Dodd and Obama each received huge campaign contributions from AIG, in fact they were the top two.

*Treasury Secretary Geitner was the police officer for the Federal Reserve Bank (owned exclusively by private banks, one of those trick names to confuse you) in NYC while the fraud was in full gear. He did nothing to stop it. In fact he was cheating on his taxes while this was going on. This was before his promotion to Secretary of the Treasury of the United States. If you cheat on your taxes and allow the collapse the US economy via massive fraud and incompetence, you can be Secretary of the Treasury some day. As long as the right people are making money.

WHO FACILITATED THE FRAUD?

Clinton, Rubin, Bush, Paulson, Greenspan, Geitner, Barney Frank and Chris Dodd, Rahm Emanuel and Barak Obama were all players in making the policy decisions and laws directly responsible for originating millions of fraudulent loans for their ideological, financial and political gain. Goldman Sacs, Lehman, Merrill Lynch, Bear Stearns and AIG could not have done it without them.

All of the money that has been pumped into AIG (lost track $200 Billion?) went out the back door to all of the above players as fast as it goes in. AIG has been used like a money laundering operation by the Treasury to insure that the right people don't lose their money on the fraudulent bonds. The US taxpayers are the ones being stuck with the bill, actually our grandchildren.

The Bailout Plan, which Rep. Judy Biggert voted for along with Sen Durbin, Sen Obama and Sen McCain, was the baby of Larry Summers (Obama's chief financial adviser, former Clinton official who also had a hand in the fraud) and now Treasury Secretary Geitner and signed off by President Bush.

This is the biggest fraud in the history of the world.

This is why you are getting 0.5% on your savings.

I may not agree all the time with things I read from Mike Davitt - but there is one thing he is dead on about - there is only one way to control the rampant spending of hard earned dollars taxpayers are struggling to hang on to - that is at the poll next Tuesday.
Mike, be glad you're not in 204 where we are building a $150M memorial to spending waste in a HS we do not need. In 5-7 years we will need to close a HS - what lunacy to personal agendas. ( Oh and btw we will spend up to $10M to expedite it's delivery) - hey it's only money in the 'blankcheck' district).

We need look no further than ex Governor Blago did to this state in a very short period of time - and now our reward for putting this man in office ( or for those who did not vote- allowing that to happen) - will be a 1.5% income tax increase and likely increased property taxes to boot.

People need to educate themselves on where the candidates stand re: spending our money. Almost every family in the country has cut back on many things in order to make ends meet - do not vote people back into office- or those supported by people who are currently in office if you are unhappy with how they are using your money.

Mike and Anonymous (same person by the way)

Please take your poison elsewhere. You're on the wrong board. Hard time reading???

Summers wrote the TARP plan Bush approved. Does $2.7 million qualify as payola?

http://www.politico.com/news/stories/0409/20889.html

W.H. team discloses TARP firm ties

Lawrence Summers, a top economic adviser to President Barack Obama, pulled in more than $2.7 million in speaking fees paid by firms at the heart of the financial crisis, including Citigroup, Goldman Sachs, JPMorgan, Merrill Lynch, Bank of America Corp. and the now-defunct Lehman Brothers.

Anonymous, I don't think you are correct about the rate being divided by 12. Judging by the interest I earned on my last statement, I am on pace to earn a very small fraction of what I did in previous years. The rate really is that low.

Harris Bank saving rates: .05%

https://www4.harrisbank.com/personal/0,2289,359877_21112741,00.html

You are right Chris Magee, that is the REAL rate. The fed is trying to help banks make some money now.

Get out and vote on Tuesday on April 7th and throw out the bums Romberg and Crotty for the D203 school board. And vote NO for Dianne McGuire for Naperville Township Clerk. She is toxic too.

Hey Chris, you mean that Anonymous at 12:15 didn't clear up all your questions??!! I don't think it's that esoteric, and perhaps someone can clear it up with one quick sentence? I think I'll keep my day job and not try to explain earned interest. I know that there is some method of dividing the annual rate, but you are unfortunately right that the earned rate on savings accounts is below 1%

Times are rough for everyone it seems. I returned to college as an adult student in fall of 2007 and I don't even know anymore if I will even to be able to get a job once I graduate. Just a few hours ago I was in the grocery store agonizing over whether or not I could afford to buy both luncheon meat for sandwiches AND milk. After some quick calculation I ended up just buying the milk and prepared to be hungry at lunchtime this week. This is a situation that I would have never dreamed I could be in just two years ago. It is depressing and demoralizing to be so strapped for cash all the time and it really takes a toll on one's emotional health. It's hard to keep one's head up and think positively when you can barely afford the basics.

fud patrol...you must have missed the news that the 2007 birth rate was the highest in 50 years. 2008 will be less than 2007 but still an increase of the birthrate of the'90s. Those kids will hit high school in a dozen years and we will see the need again after 3 to 5 years of low enrollment. Another stat to keep in mind...after every financial crisis in this country the birth rates rise. Your stats might be right for the mid-term projections but they lack for teh long term projections.

For another topic...

Anyone notice the link on a new Fox Show "More to Love"

http://www.suburbanchicagonews.com/beaconnews/news/1512079,2_1_AU05_MORELOVE_S1.article

I find it quite interesting that these women are going to be matched with "overweight men". Like no one else would want them...RIGHT! And overweight men never date or marry any "ideal weight" (whatever that is...but yes suggested health range) women.

And what happens to many after they are married for some time or just with aging? I found it also very interesting that Microsoft's free photos do not include one overweight person! Not searching for women, men, children, teens in any category, "Couples", "Mother",
"Father" etc. And when such a high percentage of our population is overweight who are they representing? Sad to see such blatant prejudice & discrimination. You better believe I wrote them!

I am deeply concerned about the bout of global warming we are experiencing tonight. Seriously with the global waming nonsense aside, I noticed a couple of dove's have built a nest in a tree outside my front door and the female has been sitting on the nest since Wednesday. This leads me to believe there are eggs in the nest. Tonight I looked up thinking I might like to rig up some sort of screening to protect them however I do not think it possible given the position of the nest in the tree. It just will not work. In fact, it looked like maybe the male AND female are both in the nest trying to protect the eggs. Does anyone think the eggs will survive? I have never had nesting doves on my property before and am interested to watch the dove hatchlings and look for contrasts between robins, cardinals and sparrows, all of which we have enjoyed watching before.

To Anonymous on April 5, 2009 5:30 PM,

Luckily the great maker gave us the ability to move around. You assume those high birth rates will stay or move to D204.

Should We Kill the Fed?
by Patrick J. Buchanan
04/03/2009

http://www.humanevents.com/article.php?id=31335

For the financial crisis that has wiped out trillions in wealth, many have felt the lash of public outrage.

Fannie and Freddie. The idiot-bankers. The AIG bonus babies. The Bush Republicans and Barney Frank Democrats who bullied banks into making mortgages to minorities who could not afford the houses they were moving into.

But the Big Kahuna has escaped.

The Federal Reserve.............

..............Herbert Hoover, contrary to the myth that he was a small-government conservative, renounced laissez-faire, raised taxes, launched public works projects, extended emergency loans to failing businesses and lent money to the states for relief programs.

Hoover did what Obama is doing. ......

Day of Silence Walkout

http://www.illinoisfamily.org/doswalkout/

I,for one, am hoping for real change this election cycle. Let's get rid of those Union-backed goons on the School Board. Why anyone would support them is beyond me. Oh, I am making a BIG flip this year and actually voting for a Democrat for Naper Township Supervisor. He came to my door last week and I liked him. I've met his opponent (Vician) numerous times and was never impressed. He's all talk. I'm tired of my property assessment going up and up (even in this market!) and he does nothing about it. PLUS, he voted to give himself a big fat raise over the last few years, only to cut it recently, so that he can say he is in favor of salary cuts. What a bunch of baloney. I'm voting for that Tom Wronski, and I hope he gets the job.

By Anonymous on April 5, 2009 6:57 AM

Suzie Orman has changed her long standing advice about paying down credit card debt and is now recommending that people in the sane situation as "just curious" make only minimum payments. She says they will drop you completely if you pay off the cards. Of course, you also should not incur any additional credit debt. Pay with cash, reduce spending.
------------------------
I saw the same Orman show where she talked about making minimum payments on credit cards. The bank's logic now is since credit card debt is unsecured debt, they're cutting off lines of available credit out of fear they won't get paid back in an economic crisis.

However, my concern about this advice, and I would have loved to ask her, is that often when you make only the minimum payments over a period of time, the credit card company raises your interest rate. I watched a news show just a few weeks ago that profiled the stories of people this had happened to. So to make minimum payments when your interest rate gets raised to as high as 21-29% is crazy. This would cost you a fortune in the long run.

The main credit card I use now has an interest rate of 6.9% for life. I've always understood "for life" means until I give the credit card company an excuse to rescind it. But credit card companies don't need customers to give them this excuse now; they've always reserved the right to raise interest and other rates when "economic conditions" warrant it and they are now doing this, even to customers with excellent payment histories. What I have been doing for a long time is paying many times the minimum payment but always carrying a balance. I figure as long as I'm making a big payment every month and the credit card company is making some money in interest, they'll leave it alone. So far they have.

Interestingly, I have had three credit cards that I haven't used in over a year and had no balances--Target, Carsons and I can't remember the third--send me notices that they were raising my interest rate on these no balance accounts to upwards of 23%, saying I could either accept the higher interest rate or close the account. So I closed them. I figured this was these companies way of closing off potential lines of unsecured debt. Conversely, I had another credit card I hadn't used in about 9 months and had no balance--Talbots--send me a notice offering me a "platinum account" with more benefits at the old interest rate! So who knows, I've seen it go both ways.

But I would challenge Orman's advice on this. Pay more than the minimum, but always keep a balance. So far it's worked for me.

I remember my dad on the phone recently for over 30 minutes having fun with a credit card sales person. They were trying to get my dad "a good deal" and the salesperson could not understand what my dad meant when he said he has no need for this deal since he always pays off his charges with each bill. They don't even get this idea because hardly anyone does this. My dad was laughing that this guy just could not understand this concept.

You also have a problem when you do pay off your credit cards right away. They keep increasing your credit line. It gets too high & this effects your credit score. Some financial bodies get very worried with that potential of maxing them out. Not to mention you get worried about carrying around those cards & losing them or someone does steal your identity on those.

Simply put...perhaps we have to find a balance again. The world can't survive with Mr. Potter's financial viewpoint but perhaps George Bailey giving credit to anyone & everyone is not so great either! :-)

OWVY, you make a good point. I also pay off my balances every month and I can't imagine paying huge interest rates every month on a balance but I know a lot of people do it. They keep raising your credit limit and it annoys me because if my card is stolen it means I'm liable for a lot more money potentially. I'm never going to charge $7,000 so there's no benefit to me but a lot of risk.

$7,000 is not high...some people have credit lines they can buy a car or house on them. Then of course there are the Trumps...do they have a limit? :-)

So you are screwed (sorry...tried to use another word but fits!) either way! Either you have interest rate problems or you pay them off & have credit line problems. Gotcha! In fact, Boston Legal had a show on this. It was great! It was just on the repeats last week I believe.

OWVY: I LOVE Boston Legal--it's so quirky and weird, but makes some good social statements. I quoted a line from it once on another thread and a fellow blogger went nuts!

Here's another odd story: my husband has had his own credit card for years and has ALWAYS paid the balance off every month. About a year ago (before the economic meltdown), he was late on a payment and was charged a $30 late fee. He called the credit card company and asked that the late fee be removed; he assumed this would be done because he had never been late on a payment before and had an excellent payment history with this card that went back a few years. Big surprise: they refused to remove the late fee. He said he would close the account if it was not removed. They said fine, close it. He did. He couldn't understand why they would rather lose him as a customer than remove one late fee. I figured it made sense from the credit card company's point of view: they had not made any interest income on his account for ages. They were getting a percentage from the retailers he used, but apparently this wasn't enough for them to value his account. He also had a higher interest rate on this account than the 6.9% I have on mine. So I pay a couple bucks a month in interest on my account by carrying a small balance and making substantial monthly payments, but my interest rate has not been raised nor my credit line reduced. He paid off his balance every month and was dumped by his credit card company over a measly $30. Orman was right about this: the responsible behaviors that were once an advantage to getting credit are now considered a liability. How screwy is that?!

What the?

Ya...they say the good guys always win..not anymore I guess. But hey the Cubs won! :-)

CREDIT CARDS

If there was any doubt about who runs the country, it should be removed by now. It's the NYC Investment banks (who own a big chunk of the Federal Reserve Bank) controlling their slaves in DC.

If you can join a Credit Union do so.

Its one of the few areas the Federal Reserve and Treasury have not torpedoed for the benefit of the large Banks. The S&Ls were intentionally killed off by Bush 1 years ago to get rid of the competition. This was done by manipulating the reserve requirement to make them all insolvent literally overnight.

You will find the Credit Unions will give you much better treatment on all of your loans and deposits including credit cards. They are not starting with the intent of "how can I rape the customers".

The "late fees" are a big money maker for the credit card companies and allow them to effectively charge interest rates that would make the Mafia shylocks blush. If you have a $100 balance and you are late by one day, the fee is $30, that is a 30% per month (400% per year) interest rate.

My suggestion is to have one credit card with a reputable credit union which will probably have a 7-11% interest rate and pay it off every month.

I must be credit worthy, they still shove loan and credit card offers at me almost every day. If you keep your name clean, obtaining credit will be no problem, banks have to lend money to make money its their only business.

One Who Values You wrote:

You also have a problem when you do pay off your credit cards right away. They keep increasing your credit line. It gets too high & this effects your credit score.

From what I've read this is not accurate. There are numerous factors that go into a credit score, and some of them are counter-intuitive. For example, from the standpoint of boosting your credit score it's actually a good thing to have high credit limits and low balances, so an increased limit on an existing card will likely raise your score. OTOH, Opening new accounts will temporarily lower your score, even though it raises your overall credit limit. The effect of closing of closing accounts will be neutral to negative---because you are effectively lowering your total credit limit.

BTW, I've also heard that in the credit card industry, they have an ironic term for people who pay off their balances in full every month: deadbeats.

-JQP, Proud credit card deadbeat

Trust me the high limits are a problem...and if you pay them off right away. We have had it happen to our family. Again, what was told to us is that they get worried that one may max out their high credit limits & then not be able to pay them off.

Yes, deadbeats was used on Boston Legal I believe.

Oh & the other thing of course to look at is joint accounts. Of course there are problems if one does not have the best relationship with a spouse, but I'm not even going there. This was in the late 80s but my mom wanted to raise her Marshall Fields limit & the card was in my dad's name but she was a co-signer. They would not let her raise it. Then she said fine I'll open up my own account & the women (of all people!) said to her "Are you sure this is ok with your husband?" OMG! We both nearly screamed. She said, "On second thought we'll just close the account." Amazing then to have such blatant discrimination! But it does bring up some other factors to look at. Whose name are the cards in, who loses the job and yes depending on the couple how the relationship is going. I was in Kohls the other day & some how they allowed a daughter to use a mother's card & she spent a couple hundreds of dollars without permission.

And back to the topic of college we were discussing before, how many college students have huge card debt when they graduate?!

To Anonymous on April 5, 2009 12:15 PM and April 7, 2009 8:44 AM--

Bubo, is that you?

I think a high limit on credit cards can either improve or hurt your credit score; it just depends on your entire credit profile. It really is a balance of # of cards + balance and limits + usage and payment histories. I don't know what our credit score is and I don't care to find out. I figure it's good enough because we've never been denied credit for anything. Every winter, up until this past one, I had gotten stacks of credit card offers in the mail. This year so far I've only received 4 or 5, so that's proof that credit is not as loose as it once was. But I'm surprised that I'm still getting any.

I don't worry about unauthorized charges if my card is lost or stolen because the CC issuer covers this if it happens. In fact, it did once. I still had my card, but someone used my number to charge about $250 worth of goods on ebay. This did not send up any red flags to the CC company because I do buy often on ebay. What DID send up flags was an attempted purchase of $5000 at an electronics store in Canada. That purchase was so different from my usage pattern that Capital One called me at home to verify it, and that's when the fraud was discovered. Cap One removed the unauthorized ebay purchases too and opened a new acct.

This was really cool, it actually does work the way it is advertised. I thought this kind of protection was standard and all credit cards provided it, though.

I always wondered about that. They say you are not responsible for fraudulent charges, but I wondered how easy it is to prove that. A lot of times it's not that easy to make a company eat the costs.

One way to prove it is they call you at home. If you are obviously at home you can't be in the Bahamas charging. I had a friend who just got a call like this. They did close the account & found out who actually made the charges amazingly. Now online I would suppose maybe by computer's address? Would that make sense? I would think they can locate that way & especially those investigating fraudulant activity probably have more means to do so.

I didn't have to prove that the fraudulant charges weren't mine. On the ebay charges, I remembered the approximate week and amount of my last purchase, so two charges after that date weren't mine. They simply said ok and that was it. I don't think they were just taking my word for it, they sounded like they were already on to this fact when they called. They seemed to know the charges weren't mine and were calling to have me confirm it before taking action. Like I said, pretty cool.

As for the $5000 electronics store purchase, I don't know if the charge went through or not. If it did, I doubt Capital One ate it, the electronics store probably had too. Cap One was not very eager to share the details of how they picked up on this, but they obviously have information that those of us outside of the industry aren't privy to.

One interesting thing, tho. I asked them how this could happen as I was still in possession of my credit card, that it hadn't been lost or stolen. They said that people who do this type of thing simply run a bunch of numbers until they hit on one that works; that it's often a totally random event. How's that for chance? I could play the lottery for life and never get half that lucky!

By One Who Values You on April 7, 2009 9:20 PM
One way to prove it is they call you at home. If you are obviously at home you can't be in the Bahamas charging.

___________________________________________________________________

If they call you at home you can be in the Bahamas charging. It is called "call forwarding" and I use it all the time when I am vacationing or traveling.

I have yet to visit the Bahamas. How is the Bahamas these days for a vacation, One Who Values You?

Most of my credit cards only hold me liable for the first 50 bucks of theft if I don't report the card missing or stolen immediately.

I am not sure what they would do if the number was stolen and entered electronically. I am guessing they would cover it all.

I saw this in the news and it seems like something that will really infuriate a lot of people:

The Fox network is making a reality show out of the troubled economy. An upcoming series titled, "Someone's Gotta Go," lets employees of a small business decide which one of their colleagues will be laid off.
Fox says it has no air date yet for the series, which is being developed by the company behind "Big Brother" and "Deal or No Deal." Each week, a different company lays off an employee.
Fox also wouldn't reveal the show's host, which it says is a business consultant who will offer advice to participating companies.

With so many people losing their jobs, and most of us knowing at least a few people who have been laid off, do we really want to be watching a show that makes a game out of it?

Ref Suzie Orman show.

She was talking about if you are laid off, should you use your cash to pay off your credit cards?

Her answer was NO, you should hold your cash and make the minimum payments until you get your feet under you again. And if you did pay off, your card may be canceled which would leave you with no emergency back up.

Someone who watched this episode recounted the above to me.

By Anonymous on April 10, 2009 10:00 AM, re: Suzie Orman show.

If you've lost your job, then I totally agree. That's a completely different situation. Sometimes when folks lose jobs, they take savings and pay off all their outstanding debt so they are not burdened with it while unemployed. Definitely do not do this. You don't know how long you will be unemployed and you may need that money to live on. Make minimum payments on unsecured debt to keep as much money as possible available to you until you're employed again and to keep those credit lines open in case you need to use them.

Thanks for clarifying this!

Highly regarded John Mauldin, referring to credit cards.

http://www.investorsinsight.com/blogs/thoughts_from_the_frontline/archive/2009/04/10/is-that-recovery-we-see.aspx

.................David Rosenberg reports that "The National Federation of Independent Business found in a poll that 28% of small firms said they had a line of credit or credit card limit cut back in the second half of last year; 69% stated they are facing worse terms.

A new FICO study found that 11% of US consumers -- 22 million people -- have had their credit lines cut or accounts closed even though they have been paying their bills on time and retain a solid rating."

This is certainly not good news for those who expect a positive 4th quarter. Cutting credit to small business, the engine of job growth in the US, is hardly a prescription for a growing economy.................

By Anonymous on April 11, 2009 8:52 AM--

Which is why the stimulus money given to banks did not improve the economy. Instead of using the government funds to keep credit lines open and flowing, they hoarded the cash and closed down or severely limited credit lines to individuals and small businesses anyway.

This is why the American response to just about any problem--throwing money into it--isn't always the best solution.

Actually, the FED response was to bail out the Masters of the Universe in the international and domestic banking and finance industries with a Trillion US Dollars. After 75+% of the voters called and wrote their Congressmen and Senators demanding no bailouts.

Goldman Sachs has gotten between $20-40 billion so far, hedge funds got a $40+ billion gift via the AIG money laundering operation, the public unions & unions got $40 billion via the AIG money laundering operation etc etc etc.......

They now have most of their money out of the way of the coming (continuing) collapse of the dollar. After the collapse, (the dollar has devalued 95% since 1973 and 20% since 2000) they can buy up companies, buildings and land for penny's on the Euro, gold or other commodities where the money is now out of harms way.

The follow on Trillion Dollar Stimulus (redistribution) bill pumped more money into the Teacher's Union, Acorn, The UAW, the Construction Unions, failed bloated Progressive States like California, and 300 Billion in tax rebates to people who don't pay any taxes etc.. aka vote for me I'll send you a check.

The (approved in the Stimulus) nationalizing of Medical Records, is the prelude to Nationalization of the Medical Systems and Govt run rationing run out of DC. The Bill is working its way through Congress as I type this. The way rationing works is if you have a terminal condition, you will be told you have a problem, but won't be told there is a solution. I have seen this one first hand. The Medical systems will be run by the same people who brought you the current financial crisis.

Federal Tax receipts have now dropped by 25%, so the FED printing presses are running 7x24 cranking out what will soon become worthless money. $2 Trillion printed this month already, the Federal Deficit for the first six month of 2009 projected at $1 Trillion and rising rapidly.

This is how Wiemar Germany destroyed the German middle class who lost everything to hyper-inflation.

Hard assets like farms, factories and real estate inflate with the funny money, cash savings and investments become completely worthless, so do pensions etc. If you're already living off of Govt vouchers and coupons, they just print a new zero on every couple of weeks.

++++++++++++++++++++++++++++++++++
This is why the American response to just about any problem--throwing money into it--isn't always the best solution.

Congrats to Obama for having the backbone to order pizza from St Louis.

Now I've never had the opportunity to have a pizza from Pi so I have no way of telling if it is really good pizza or not. Certainly there is something about Pi that the President or his family likes or surely they wouldn't have gone to the trouble of ordering it.

On the other hand I have had more than my fair share of pizza in the Chicago area. Trying new pizza joints is a hobby as is the never ending quest to find the best pizza. Sadly, we do have more bad pizza around Chicago than we have truly good pizza and Lou Malnatti is no exception in this regard despite how long it has been around or the claims it makes. Malnati seemed to be really put off by Obama going to St Louis for a pie, but I can't say I blame Obama as Malnati pizza really isn't very good and certainly isn't memorable or a culinary standout.

Chicago is well known for other food and dishes besides pizza and despite all of the self-promoting marketing and hype put out by the pizza peddlers. Fact is "chicago-style" pizza isn't Chicago style at all if the truth be known. Far, far more people eat traditional thin crust pizza than "deep-dish" pizza so the name really is used incorrectly to describe a pizza variation more than it does a regional preference or anything else. Even deep-dish pizza peddlers like Malnati offer thin crust pizza for sale because of the demand. Most people who eat thin crust don't even realize that what most of us eat around the Chicago area is a type of flat pizza unique to the Chicago area and varies greatly from say New York style thin pizza.

If Malnati has aspirations to peddle his pizza to the White House he simply has to up his game. He can start with a road trip to St. Louis to check out the competition and try to figure out why Obama thinks Pi is better pie.

When it comes to pizza, the so called Chicago style - deep dish or thin crust, just doesn't hold a candle to the NY styles. Whether it is a regular NY style or a Sicilian style (thicker crust - baked in a shallow square pan), NY pizza beats all other styles.

I've had both Chicago and NY pizza, and I really couldn't tell the difference. Except that meatball pizza is more common in NY than here.

But have you guys ever had a real pizza? Real as in made in Italy? All versions here are Americanized, as pizza is served there as an appetizer. I found this out first hand. It's served on a crust as thin as, and about the same size as, a 10" tortilla. It had all the toppings we've come to expect, but it is eaten with a fork as the crust is too thin to pick up as finger food. And there's not enough for two to share; it's definitely an appetizer for one!

Now that the elections are over and the DF case nearly settled does anyone want to join a grassroots group to find out exactly what is going on in the NPD. We have many questions including what transpired that allowed a NPD sarge to be tested at twice the limit for DUI, but walked away. Sounds like the most recent CPD killing two ute's by detective on 90/94. He was cited for leaving the scene,to boot. When police know the protocol for beating DUI rap,something needs changing! Contact reformillinoisnow.org. Tell Mr. Pat Collins about the crooked cops you know. Join CONPA to expose crooked NPD officials! Your top cop editoralized for driving certifcates given to illegal aliens and you deny the COMBINE exist in Napertown. oh boy!!!!

Homeland Security weighs in on Tea Parties

FEDS react to Tea Parties via Homeland Security press release warning on Right Wing Extremists recruiting increasing....Really its true.

Just as millions get ready to attend Tea Parties nationwide, Homeland Security releases a vague report about the rise of right-wing-extremist recruiting; extremists can be identified because they oppose:

Big Government

Big Taxes

Amnesty for illegals

Abortion

Or if you want to keep the right to buy a gun, 7 million new applications in recent months, many first time buyers, you may be an extremist dupe.

This is the same Homeland Security that renamed terrorism "Man made Disasters" and sees no violence spilling into the USA from the Mexican Drug Gangs operating in 100+ cities in the US? The Southern border is still wide open and Homeland is kicking illegals lose again, just like Bush.

Next thing you know, Free Speech will be Sedition.

FEDERAL AGENCY WARNS OF RADICALS ON RIGHT

http://www.washingtontimes.com/news/2009/apr/14/federal-agency-warns-of-radicals-on-right/

To what the? on April 14, 2009 2:59 AM:

Yes - I have had pizza in Italy - in Rome and Milan - and it was fabulous - the best was found at a little hole in the wall place in Rome near the Campo de' Fiori on the alley way running up from the piazza north to Via Dei Balestrari. No seats - just a window and a counter to order from. Fresh and hot from the brick oven - we ate sitting on a door step and watched all the people coming by. One of our favorite memories of Italy.

In Chief Dial's recent post on tickets & driving correctly, he mentioned the scenario of a child running into the street after a ball. I'm sorry but even driving slow can have horrible consequences. Perhaps he should also discuss parents role in this scenario.

Children should not be anywhere near the street in the first place. Heck, when I play catch with children I am smart enough to know that I am the one by the curb & the child is the one near the house. We are the ones who are suppose to protect the children when they are not developmentally able to understand themselves. How many times are children straggling behind a parent in a parking lot? Little ones should not even be walking, they should be in your cart or you should be carrying them. How many still do not use car seats, seat belts, leave their children in the car just to run in the store for a quick purchase. You wonder why an adult feels they can go faster when there are not cars around...take a look at their childhood. What were their parents like when they were a child?

So - where in the N-Ville area is the best pizza to be found?

Chris,
I saw a segment on Good Morning America today about teens and 'sexting' using cell phones. What may be viewed as flirtatious or cute or racy by teens can actually be considered breaking the law, and may result in sex offender charges or other charges the teens and their parents would be shocked to know. Apparently, this is more common than parents seem to think. The piece on GMA included a story about a young teen girl who committed suicide because an ex-boyfriend emailed a nude photo of her to a number of people. It also included a young man who is now a registered sex offender for doing the same thing.

I would love to see the Sun address this issue as a PSA, and I think the topic is something that parents, middle schools and high schools should address seriously.

FYI- The latest report out of DOJ states the mexican cartel operates out of ATLEAST 230 u.s. cities. You better check out who the zetas are!!!!U.S. Army trained mexican soldiers who were hired by cartel for muscle to REFORM the drug distribution network and control of I-35 corridor. History channel ran MEXICAN cartel under GANGLAND show banner. Ask your local police leaders about the "zetas". They are effectively TAKING over the KINGS,DUECES,and other latino street gangs. They are the guys who pole the head of any-who stand in the way. As the former FBI analyst stated on last nights program, they are killing mexican police officials now,kidnapping at least 40 known citizens of El Paso,Tx.He mused when will they begin ordering hits on u.s. police. He said right there on the GANGLAND show. You'd better wake up cause a train is coming and not on the CN tracks>

Free Speech on Campus NC

http://www.youtube.com/watch?v=m7naTR5QCxo

By Transplanted Pizza Lover on April 14, 2009 9:24 PM

So - where in the N-Ville area is the best pizza to be found?

====================================
Transplanted,

PLAN A.
I haven't seen too many 900 degree domed pizza ovens burning olive wood in Naperville. In fact, I haven't seen any. I don't think that there are too many that have heard of Buffalo milk either.

You can try Uncle Petes carry out on Wash. and Ogden. Order light cheese and well done if you like S. Italian style. You can sprinkle on a bit of olive oil, which is not added in the US but a main ingredient in Italy.

There may be other places.

PLAN B.

DRY
3.5 Cups bread flour + 2 tsp salt, stir together.

WET
1.25 cps of warm filtered water + 1 tbs yeast + 1-2 tsp honey + .5 cps extra virgin olive oil. Mix and let stand 5-6 min.

KNEED
Blend wet and dry by hand, using a powerful mixer-kneed with hook for 15 min, until really stretchy; cover with plastic wrap and a towel, then put in a warm place like top of fridge for 1 HR.

SAUCE
1 can crushed tomatoes, spices and herbs you like (basil), .25 cps olive oil, 1 tsp salt. cook on low covered and stir occasionally until boiling.

1 Hr. PUNCH
After one hour dough is doubled, punch it down, cover and replace. Find whatever you want to put on the pizza and prep it.

30 Min LATER
Cut dough for two full size or four 12 in. pizzas and roll out with plenty of flour. Place on sheet with lots of holes (500 degree stone if you have one), add minimal amount of sauce as much toppings as you desire and pop in pre-heated oven for 10-13 mins at 500 degrees F. When done place on cooling rack and start over. After a few minutes, cut with cooking scissors as you need it.

This is a good way to use up your garden basil and veggies, fresh Mozzarella; Costco sells it in bulk open fridge cheese area. Michaels and others may have buffalo milk mozzarella if you want to try it.

Dough can be wrapped in plastic and stored in the fridge if you want to make fresh two days in a row, better.

Total cost 2 large pizzas, a few bucks and it heats the house for hours.

Recommend inexpensive Zin and Romain basic salad V+O, its like being there.

COST
Dinner and a movie for four or five at home, less than $15. Kids can make their own mini pizzas, very popular.

Dough prep, 6 minutes plus mixer time.

Sauce prep, 5 minutes, plus simmer time.

Toppings prep, 10 minutes while dough is rising second time, and sauce is simmering.

Wife prefers veggies and mushrooms cooked before they go on, I prefer them raw and baked on the pizza, kids prefer none. All meats have to be cooked before they go on, pepperoni is pre-cooked and completely devoid of life..

Best pepperoni is Boars Head, City Meat Market carries it, they will sell their sausages as bulk if you ask them, the quality is excellent. Wife is veggies only on her side.

TOOLS
Mixer with bowl, 2 cup measuring cup, measuring spoons, baking sheet with holes, cooling rack. All of these can go in the dishwasher.

BASIC INGREDIENTS
Bread flour, salt, water, yeast, olive oil, crushed tomatoes and any kind of cheese.

If you want to eat at 5 PM, start the dough at 3 PM etc....

Enjoy

Misses Mom, sexting has been in the news a lot lately. I think it's a really interesting story. In my opinion, our laws are being used for something they were never intended for (teenagers are being charged as sex offenders for taking pictures of their girlfriends). I don't know how many have come to trial as of yet, but if these start drawing convictions it will make a mockery of our laws and ruin the lives of a lot of young children. This is not what sex offender laws are for.

By naper-watch on April 15, 2009 9:16 AM

FYI- The latest report out of DOJ states the mexican cartel operates out of ATLEAST 230 u.s. cities.

====================================

Don't worry, Obama like Bush wants to give approximately 1 million illegal alien gang members US passports, then they will be American Drug Cartels.

Buy American!

Chris,

If a 13 year old girl gives a nude photo of herself to her boyfriend who is 15 and he sends it to his 18 year old friend who posts it on the internet, what is it?

++++++++++++++++++++++++++++++++++
By Chris Magee, moderatorAuthor Profile Page on April 15, 2009 11:18 AM

Misses Mom, sexting has been in the news a lot lately. I think it's a really interesting story. In my opinion, our laws are being used for something they were never intended for (teenagers are being charged as sex offenders for taking pictures of their girlfriends). I don't know how many have come to trial as of yet, but if these start drawing convictions it will make a mockery of our laws and ruin the lives of a lot of young children. This is not what sex offender laws are for.

Anonymous, in the example you give, there is legitimate grounds for a child porn charge. But many of these cases are just a teen taking a consenting photo of another teen and then someone finds out about it and they get treated just like the dirty old men who are exploiting children for profit. Many times the teens are not even sharing the photos. If a teacher walks up behind someone and they are looking at the photo on their cell phone, the teacher has to report it and the kids can be charged. Obviously it's stupid for these kids to be taking these photos, but kids do stupid things. People get in trouble all the time for posting photos of them drinking underage at parties on facebook too. But there's a difference between getting kicked off the football team and being labeled a sex offender for the rest of your life. Look at all the laws affecting sex offenders, with residency restrictions and whatnot. Is it really fair that a 15 year old should have his photo on a registered sex offender database and not be able to live near a school for the rest of his life because of some stupid teenage fun? I just think the penalty way outweighs the offense.

Anonymous on April 15, 2009 10:40 AM

Thanks for the tip on the pizzeria.

We make our own at home too. My recipe is very similar to yours and we do add the sprinkle of olive oil - very often added in NY pizzerias by the way. The extremely hot oven is critical for proper crust. I lined the bottom of my oven with refractory brick - I used it when I bake bread too.

Chris and Anonymous, I agree that the laws can be overzealous with regard to teenagers, but if the photo falls into the wrong hands and is distributed and the one photograhed is then exploited, then what?

Unfortunately, this is now something parents have to address with their kids. I think it should also be addressed in schools, for the sake of reinforcement. I can guarantee any kids doing this are not thinking about consequences or the photo getting into the wrong hands or what their significant other might do with them once they become an 'ex'. This is all new ground for our kids and for us as parents. I asked my two teens about it after school yesterday and neither one of them even blinked. They have heard about it, they have seen the photos, and my daughter knows someone who took a photo and sent it to her boyfriend at his request. Both of my kids claim they have never done it and I believe them. We don't have internet access on our cell phones as we didn't think it was necessary and felt it was something we would not be able to monitor. But... a lot of parents don't know their phones even have this feature, and a lot of parents don't know they can cancel it.