I love a good ball game. Here in town, we have a local baseball team. It’s not a professional team but the games are always sold out. Even season tickets aren’t available. There’s a waiting list that reportedly stretches years in to the future, so I’m told.
Still, I can normally get my hands on a pair of tickets a couple of times per year but there’s one thing I’ve noticed about baseball games and really, all sporting events I have attended: They cost a lot of money. Not only are the tickets expensive, but everything else is too.
Maybe you’re not looking to be rich but I bet you’re looking to either become or remain financially secure. In order to do that, you have to learn to be a cheapskate. I’m not saying that you should lie, cheat, or steal. Far from it, but what I do want you to do is not overspend. With that in mind, here are a few ideas to save money at the ballpark this year.
Millions of people around the world have felt the pinch of the economic downturn. As unemployment rises, more and more people find themselves without a job. Many of those people find also their financial health quickly deteriorating.
This economic cycle has played out many times throughout our history. Unfortunately, the economy often improves faster than the damage that it did to the average family. Maybe you are one of those who has fallen victim to unfortunate economic conditions in the past but now you have began the rebuilding process and with that comes a new job in a new community.
With a new job often comes relocation and with relocation comes a new problem: You need a mortgage but have damaged credit. The good news is that the bad news may not be as bad as you think.
If you’ve ever signed for a mortgage, or any other loan for that matter, you may be familiar with the 3-Day Right of Rescission. It’s a right granted to all borrowers to change their minds after the loan papers have been signed. There are limits of course, but the goal is to give the borrower just a bit of time after the papers have been signed to change his or her mind. It’s an added measure of protection and, as a current or future borrower, it’s your responsibility to understand how the law protects you.
The refinance boom of the early 2000′s saw the rise of a number of non-conventional mortgage options for homeowners. For most borrowers these mortgages are not the best option. However, depending on your situation, you may benefit from one of these non-conventional loans. One of the simplest, but most often misunderstood is the balloon mortgage.
CNBC is airing a special on the business behind the Kentucky Derby, where the best three-year-old thoroughbreds compete at Churchill Downs in a mile-and-a-quarter race with a $2 million purse. Here’s a bit from the CNBC website:
The Kentucky Derby is the longest running sports event in American history. Now, a cherished pastime is a multi-billion dollar industry. From the champions to the big business of on-line betting, the Run for the Roses has become the icon of American horse racing.
CNBC Originals takes you inside the winner’s circle where legends are born and millions are made.
Catch the special tonight, Thursday, April 30th at 9pm eastern time. If you miss it tonight, check your local listings as CNBC always runs these specials several times over the following days.
CNBC takes you aboard a city at sea where passengers are enticed to spend big money…but can this fast growing segment of the travel industry navigate the rough seas of a slumping economy and stay afloat? Correspondent Peter Greenberg takes you cruising for profits.
Tonight CNBC is (re)airing an amazing show called “Marijuana Inc.: Inside America’s Pot Industry.” CNBC has aired the special a couple times now, but if you’ve missed it, or haven’t heard of it yet, you should check it out. It’s an interesting look into what CNBC calls a “thriving industry…raking in what’s estimated to be tens of billions of dollars nationwide.”
According to an article by the Financial Times, Alan Greenspan has converted to the dark side of those promoting nationalization of private assets, specifically banks. The article quotes Greenspan as saying “The US government may have to nationalize some banks on a temporary basis to fix the financial system and restore the flow of credit.” This coming from the former 19-year Chairman of the Federal Reserve and the man viewed by many as the champion of laissez faire capitalism. The ship is definitely sinking.
The sluggish economy is certainly affecting a lot of people these days, and if it’s not affecting you directly, you’re probably cutting back a bit on spending just to be on the safe side…good for you. Nonetheless, we can’t stop shopping completely…we have things we need that just can’t wait. So how do we save money on the things we need to buy? How about asking?
It’s as easy as asking the right questions
It’s so simple, most people don’t even think about it. Next time you’re out shopping for something, try asking if you can get it for less. What you’re shopping for really determines how you ask, so let me give you an example so simple I almost forgot to do it myself. Click to continue →
U.S. retailers are expected to file for bankruptcy protection after a poorly performing holiday buying season according to the Wall Street Journal This Morning Podcast. Some of the retailers expected to file are retailer Loehmann’s, pharmacy Duane Reade, and jeweler Finlay Enterprises.
Business week has an interesting article about FHA loans, which they refer to as “the new subprime.” These Federal Housing Authority-backed loans are designed to encourage homeownership by helping people with modest means qualify for a loan.
Washington, in the midst of the mortgage meltdown, has loosened requirements for such loans and it’s Businessweek’s contention that this is where many of the predatory lenders have moved toward.
Businessweek’s article covers one such lender, a company called Premier which, after filing for bankruptcy protection in the wake of federal indictments in 2007, has issued more than 2,000 taxpayer-insured FHA mortgages – $250 million in total.
Apparently, Premier failed to notify the FHA of its bankruptcy filing, which is required by law, but once again, existing regulations are not being followed up on, leaving the bill in the taxpayers lap.
The Labor Department released its monthly jobs report this morning, and number certainly don’t look promising. The good news, however, is nobody thought they would look promising, so it’s no shocker. In fact, analysts polled by Reuters were predicting heavier job losses.
December Unemployment at 7.2%
December’s jobless rate came in at 7.2%, up 0.4% from November’s 6.8% rate. December’s number marks the highest unemployment rate in nearly 16 years.
November, October Job Losses Revised
November’s job losses were revised to show a 533,000 loss, and October’s numbers were revised to 423,000 from 320,000.
December Job Losses: 524,000
December saw 524,000 jobs lost, bringing the total reduction in U.S. non-farm payrolls in the four months through December to 1.9 million. The services sector got hit the hardest with a staggering 273,000 jobs lost, contributing a great deal to the 524,000 total.
2008 Totals:
Total jobs lost for 2008: 2.6 million. That number represents the largest decline since 1945.
According to an ADP report released today, December saw the loss of 693,000 private, non-agricultural jobs in the United States. November saw 476,000 jobs lost.
Forecasts saw the numbers to be a bit better, ranging from 250,000 to 550,000 jobs lost.
Important to note, however, is that December is the first month the ADP has implemented a new methodology, which is supposed to provide a more accurate picture of the labor market.
According to Sal Guatieri, senior economist at BMO Capital Markets, “The new methodology uses the raw ADP figures, plus data on jobless claims and previous payrolls, to model current payrolls, resulting in a much smaller error compared with the previous method which relied solely on the ADP figures.”
While this is so, spokemsan for the ADP report, Joel Prakken, told CNBC that the economy is struggling at a pace not seen since 1981 or perhaps even World War II.
According to the report, the goods-producing sector saw employment declines hit 220,000, the 23rd consecutive monthly decline. The manufacturing sector saw job losses reaching 120,000, marking the 27th month of decline out of the previous 28 months.
Firms with 500 or more employees saw a drop of 91,000 for the month, medium-sized firms saw 321,000 jobs lost, and small firms (those with less than 50 workers) saw a drop of 281,000.
Construction saw its 21st month of continuous decline at 102,000 jobs lost for the month.
CNBC has a pretty interesting series called American Greed, during which they detail legendary white collar crimes and how they were planned and carried out. Tonight (Wednesday, Jan 7th, 2008) at 9:00 pm American Greed covers the story of Matt Cox, Rebecca Hauck, and Alison Arnold, who engineered a classic mortgage scam that took advantage of the delay between funding and recording of mortgage transactions.
Ringleader Matt Cox made off with around $12 million and, in a telephone interview with CNBC, explains the details of his crime.
Check out CNBCs American Greed site here. Their site lists showtime at 9p | 1a ET, but I’m on the east coast and my guide has it listed at 10:00pm, so you may want to set your DVR so you don’t miss it, or check your guide.
The Federal Reserve released the meeting minutes from its December 15th and 16th meeting when it cut the target Fed Funds rate to between zero and .25%. The minutes can be viewed online here.
FOMC considers not releasing an explicit target
The minutes show that there was some initial resistance by committee members to slash the Fed Funds rate to such a low level. Certain FOMC members were in favor of not releasing an explicit target rate thinking that would “give banks added flexibility” in determining interest rates. Other members, however, expressed the opinion that such a step would only serve to confuse things.
Historically low rate believed to have more positive effects than negative
According to the minutes, “Most participants judged that the benefits in terms of support for the overall economy of federal funds rates close to, but slightly above, zero probably outweighed the adverse effects.”
FOMC members’ outlook good
From the minutes, it’s clear that, while the members believe the Federal debt, which recently passed the $2 trillion mark, would likely remain at a high level for some time, they have an overall positive outlook on the economy as a whole, stating that recent policy actions leading up to the meeting “should help over time to improve credit conditions and promote a return to moderate economic growth.”
Interestingly, most committee members saw increasing inflation as a generally low risk at this point, while some even went so far as to worry about “uncomfortably low” inflation levels. Committee members suggested quantitative targets for an increasing reserve base could be effective in staving off potential deflation, as well as communicating to the public the Fed’s determination to avoid such a problem.
Potential for deflation?
The members suggested the potential for deflation, which is notably inconsistent with most predictions of coming inflationary pressures on the economy. Unfortunately, the minutes don’t explain the disparity.
Due to current economic conditions, mortgage rates have hit an all-time low. If you’re looking to refinance, now may be the best time.
Especially considering the Fed recently cut the Fed Funds rate target to 0%, which signals that we’ll almost certainly be facing some serious inflation in the near future as a result. And, as everyone knows, rising inflation equals rising mortgage rates.
On July 30th, 2008, President Bush signed into law the Homeownership and Economic Recovery Act of 2008, also known as HERA, that put into effect a number of changes to the way the mortgage system operates.
Licenses Required for Mortgage Originators
For the first time, mortgage originators are now required to be registered and licensed on the national level. This is a big change over the past when originators could, quite literally, be pulled off the street, handed a phone, and selling mortgages in the same day. Obviously, this appears to be a step in the right direction in overcoming mortgage fraud, and it’s something the National Association of Mortgage Brokers has been a vocal proponent of for some time.
HERA Won’t Be Active Until October 1st, 2009
Like most laws requiring major changes, states aren’t required to have licensing systems in place until the beginning of October, 2009.
Does this mean no more convicted felons in the mortgage business?
A few weeks into my first mortgage job at the height of the refinance boom in Southern California, the police suddenly showed up asking for one of my co-workers. The guy wasn’t working that day, but needless to say, I asked around and imagine my surprise when I was told this guy had recently been released from prison and, apparently, had violated his parole!?
U.S. Treasury Secretary Henry Paulson has requested that Congress give him the remainder of the $700 billion TARP funds approved in the hopes of steering the U.S. Economy away from recession.
The original plan for the TARP money called for Paulson to use the funds on the purchase of illiquid assets from firms in the financial sector. Paulson’s decision to inject liquidity into the financial system has garnered him a bit of unpopularity and what appears as a bit of a premature request for the second half of the $700 billion certainly doesn’t help.
Paulson’s original plan had been to leave the remaining $250 billion in TARP funds for his successor, Timothy Geithner, but the Bush administration made the decision to hand over $17.4 billion to bailout GM and Chrysler, and the government’s finding it’s pocketbook a bit thin in comparison to it’s recent promises.
