The “Credit Cardholders’ Bill of Rights” and You May 21, 2009
Posted by Jordan Chin in : Off Beat , add a commentJust yesterday Obama signed into law what has been dubbed as the “Credit Cardholders’ Bill of Rights”. This law in effect claims to “restrict credit card practices and eliminate sudden increases in interest rates and late fees that have entangled millions of consumers.” So what exactly does this mean for financial savvy consumers like you? MSN and CreditCards.com investigates…
* Limited interest rate hikes
* More time to pay monthly bills
* Highest interest balances paid first
* Limits on over-limit fees
* No more double-cycle billing and lower subprime fees
Prepare for Inflation May 20, 2009
Posted by Andy Robinson in : Uncategorized , 2commentsIn attempting to fix our economic problems of debt and over-consumption, the US government is flooding the country with dollars raised by more debt. The Fed maintains that it will turn off the liquidity spigot at the first sign of inflation, but the political reality is that they will keep rates too low too long for fear of us slipping back into a double-dip recession just when we are starting to emerge from the woods. Although we are likely 6 months away from seeing many tangible signs of inflation (although food prices have spiked recently), now is the time to take active steps to protect one’s purchasing power.
Bear Rally versus New Bull May 11, 2009
Posted by Andy Robinson in : Uncategorized , add a commentSince March 9th we have witnessed an explosive 37.5% rally in the S&P 500 index on renewed optimism that economic indicators are declining at a slower pace, and that the US is poised to return to growth before the end of 2009. While this may in fact may pan out to be true, the dramatic rally has increased the inherent risk in owning stocks by making them no longer cheap. Historically, we see price to earnings multiples in the high single digits when a bear market has run its course during a recession. Based on analysts’ current earnings projections of $57.17 for the S&P 500 in 2009, we would currently be paying 16 times earnings for the index (which is about the historical average). Buying stocks at an average multiple for what looks like below-average growth potential for at least several years to come appears foolhardy.