Taxes on Credit Unions?

It's a possibility, as government looks for more tax revenues:

www.donttaxmycreditunion.org/learn-more/

Credit unions promote the economic well being of their members, especially those of modest means, through a system that is member-owned, volunteer-directed and not-for-profit.

The credit union mission has always been to ensure secure financial choices at lower costs for their members. That’s why credit unions offer financial products that provide better returns on savings, reduced rates on loans and lower or no fees on services.

While credit unions are regulated by the federal and state governments, they are also governed by volunteer boards elected by their membership. Credit unions don’t answer to stockholders, but to each of their 96 million members.

Credit unions invest in people by helping those who have been traditionally underserved by banks. Groups like seniors on fixed incomes, single working moms, minority communities needing greater community investment, and small business owners struggling to raise capital all rely on credit unions for important financial services at reasonable costs.

While the big banks have abandoned small businesses in droves because they just can’t make enough money, credit unions promote their small business members in a struggling economy by providing low cost credit alternatives. This credit union investment means millions of jobs across America.

Unfortunately, the big banks and some in Congress want to raise taxes and impose new fees on 96 million credit union members who represent 40% of all Americans, yet represent only 6% of the assets in financial institutions. And, they want to do this despite the fact that credit unions are not-for-profit and meeting their core mission every day.

That’s wrong and will imperil the credit union movement that so many have come to depend on for real financial choice.

Don’t let Congress raise taxes on 96 million credit union members. Don’t let Congress eliminate real financial choice. Don’t let Congress destroy our credit unions.

To learn even more about credit unions in your community, or join a credit union please visit http://www.asmarterchoice.org/.

     

The Benefits of a "non-credit" Education

I've been looking at ways to expand my current work skill-set. I came across this website, which offers many different kinds of courses on-line:

www.ed2go.com

Online Courses:

Comprehensive online course in a convenient six-week format

Expert instructors lead each course

Engaging student discussion areas

New sessions starting monthly

Confirmation of completion awarded with passing score

These courses are non-college-credit courses, so they cost much less. You do get a certificate of completion afterwards, so if you use them to learn business skills, you have something to show that you studied the material and passed the exam. You just can't apply it toward college credit, which is fine if you aren't aiming for a degree.

You can take these courses directly from the website. But it's worth noting that Ed2go also has partnerships with colleges, where the college offers these courses as part of the college's own website. My local community college does this, and cost of taking courses through them is more than 1/3 cheaper than taking courses directly from Ed2go.

The courses I looked at took six weeks to complete, with an additional two week grace period to complete the work and take the completion exam.

If the courses that Ed2go.com offers are not substantial enough for you, they have a link on the lower right side of their front page, to more substantial offerings:

www.gatlineducation.com

Online Career Training Programs:

Learn in-demand skills recognized by employers

Start anytime - work at your own pace and complete in 3 to 6 months

Textbooks and learning materials are included

Support offered via phone, email, or live chat 7 days a week

Expert instructor assistance provided

These are also non-credit courses, but more specifically oriented toward job goals. For instance, their Bookkeeping course is for preparing the student to take a national exam to become a certified bookkeeper. Their Pharmacy Technician course prepares the student to take the Certified Pharmacy Technician's exam. Etc.

The Gatlin website is also run by Ed2go, but these more advanced courses are not offered directly by Gatlin or Ed2go; they must be taken via a participating partner school. They have a page where you can type in your zipcode, and it will show you the nearest partner school to you.

Even so, since these courses are on-line, you can usually register with the partner-school for the courses without ever having to set foot on their physical campus.

These courses are typically 3 to 6 months long, you can do them when it's convenient for you, and if you don't finish by the end of the course, you can get a 6 month extension to compete it, free of cost.

I like this a lot, because you can take the courses at your own pace, you get the benefit of the knowledge and a certificate to prove that you did the work, but you don't have to go into debt borrowing money to earn college credits that you may not want or need.

For anyone who is just looking to increase their job skills, I'd say it's definitely worth checking out.

     

Borrowing from Peter to pay Paul?

American Dollars to prop up the Euro:

Central Banks Act in Concert to Ease Fears on Europe Debt

FRANKFURT — Worried that Europe’s debt impasse posed a growing threat to the global financial system, the world’s major central banks moved Thursday to assure that European banks would not run short of cash as troubled nations like Greece and Italy sought to stabilize their economies.

The central banks, in a coordinated action intended to restore market confidence, agreed to pump United States dollars into the European banking system in the first such show of force in more than a year. Some banks have found it hard to borrow dollars as American lenders grew nervous about their financial condition.

Thursday’s action, coming almost exactly three years after the collapse of the investment bank Lehman Brothers, lifted global stock markets, sharply increasing the value of shares in banks heavily exposed to debt from Greece and the other struggling members of the euro zone. The euro, which had been falling in recent days, rebounded.

The central bank action came as European finance ministers and other policy makers were gathering in Wroclaw, Poland, for meetings on Friday and Saturday. The United States Treasury secretary, Timothy F. Geithner, who was scheduled to attend, was expected to urge European officials to act more aggressively to contain the sovereign debt crisis, which has already begun to undercut growth in Europe.

While the move will relieve some pressure on troubled banks, it does not address the underlying problems that made it difficult for the banks to borrow dollars on their own.

[...]

The European Central Bank said it would allow banks to borrow dollars for up to three months, instead of just for one week as before, giving them breathing room for the rest of the year. The E.C.B. said it was acting in cooperation with the Federal Reserve of the United States, the Bank of England, the Bank of Japan and the Swiss National Bank.

In recent days some European banks have faced difficulties in borrowing dollars, whether from other banks or from money market funds in the United States. There was fear that if they could not borrow dollars, they would be forced to cut off loans to American companies or sell dollar-denominated assets, perhaps forcing prices down in already unsteady markets.

The move was possible under deals between the central banks that were already in existence, and the Fed saw no need to make an announcement on Thursday.

While there now is more certainty that banks will have access to funds, deeper issues remain unresolved, including whether they have enough capital to withstand a possible default by Greece on its government debt.

An official forecast warned Thursday that growth in Europe would come “to a virtual standstill” toward the end of the year. It predicted, though, that Europe would just barely avoid a double-dip recession.

[...]

Analysts said they expected Mr. Geithner to press European ministers in Wroclaw to increase the resources available to their bailout fund for the euro zone countries. But even the expansion of the fund to 440 billion euros ($611 billion), agreed to in July, has yet to be ratified. There is some worry that countries guaranteeing the bailout fund might themselves face doubts about their own credit. [...]

Gee, ya think?

Worried about losing your high credit rating? Just borrow from somebody whose already lost theirs.

     

Why it's important to have savings, and budget

Reason #1 is, so you don't end up like THIS:

Funding cuts leave many without home heating assistance in Macon

Showing her Georgia Power bills in the one warm room of her home, Raymeica Kelly explains how her mother, sister and herself were turned away from the Energy Assistance Program on Wednesday morning after standing in line for four hours. All three complained that the system the Macon-Bibb County Economic Opportunity Council uses to give out the assistance needs improving.

Notice the expensive large screen TV, and the gaming console underneath. I'd like to have those things too, but I don't. I also pay my own power bills, and buy my own heath insurance, etc. It wouldn't occur to me to expect anyone else to.

The article says this lady was employed, but then lost her job. Now she's employed again, but has fallen behind on her bills, and wants the government to pick up the slack. And of course if they do, she will then EXPECT the government to do so, every time she falls behind. That's human nature.

Her actual problem is, she didn't plan her finances well enough. When she was working, she should have been saving money in case a hardship like this came along. A hardship like this should, in fact, teach her that she needs to do so.

When I was young, I ran out of money between paychecks a few times. I went hungry for a day or two. It was awful, a hardship, but it taught me to be more careful with my spending. It taught me to SAVE money, so I wouldn't go through that experience again.

Saving money means spending less, and foregoing luxuries like Huge flat screen TV's and gaming consoles. You can even attain those luxuries too, eventually, by planning for them; but it means you can't get everything you want immediately.

In my youth I also got into credit card debt. It took me two years of frugal living to pay them off. By then I was good at frugal living, so I kept doing it and put the money in my savings account, until I had enough for a downpayment on a house.

To do that I had to make some sacrifices; no fancy vacations or clothes, hardly ever eating at restaurants, seldom going to movies. No new cars or expensive computers. But the sacrifices paid off in the end, helped me to get what I wanted, with planning.

By planning purchases I've been able to attain some luxuries too, over time. And maintain some savings. For most of my adult life now, I've always had some money in the bank, for unexpected expenses. You have to make sacrifices to keep savings, but you get security and independence in return.

Most people nowadays want instant gratification; they buy things on credit, and live from paycheck to paycheck, without saving anything. They spend their money on luxuries, then when something happens and they can't pay for essential goods or services, they want someone else to pay. They seem to think their security is someone else's responsibility.

I say, they need to learn from the hardship, and change their spending habits. I did, and I don't see why other people can't too. I sympathize with the suffering, but it happens for a reason. Shielding people from the consequences of their own poor planning just encourages them to keep planning poorly, instead of learning from their mistakes. And when our whole society perpetuates that, it drags us all down. We are meant to learn from hardship and use the contrast to make changes accordingly to improve our lives, to learn to make wise choices.
     

How to be "poor" in America, and survive

And maybe even thrive. I've been listening to some tenants make excuses as to why they can't pay their full amount of rent. Really it's just excuse making, weasel words, to try to get some extra money for Christmas. I've lived on minimum wage before, because I HAD to, and I don't see why other people can't do the same when they must:

How to Live on Minimum Wage

It is possible to live on minimum wage.[1] For most people, however, it's not likely to be very much fun. Whether you're forced to live in this situation, or you want to know that it's an option, this article will show you how it can be done, assuming you bring home $1000 USD a month after taxes. [...]

It offers heaps of advice, and the advice is very good. The thing is, I've DONE most of this stuff, still do some of it. So why can't other people?

One tenant told me she couldn't pay all her rent, because she needed money for food. Why can't she do this:

[...] # Find the free stuff. In towns of any size, there are resources available for the impoverished, from free dinners at churches to food giveaways to soup kitchens. Look around for the free stuff and use it – it’s there for everyone to utilize. When you must spend money, be as frugal as possible. Ramen is very cheap, filling, and full of carbs, for example.

# Be Humble. Pride often keeps people from walking into a soup kitchen. Don’t let it. That kind of pride is an obstacle ground into you by a life in a consumerist society. People who are there to help you want to help you stand on your own two feet – give them that opportunity. Look for every opportunity to help you with your situation, from consulting to WIC to Medicaid to welfare. If you don’t know where to start, start off by asking a pastor or a clergyman for help. [...]

This town is full of charities offering such help. There is a soup kitchen offering free meals within walking distance. But she would rather try to to make ME feel like a parasite for asking her to pay what she agreed to when she moved it. And eating in a soup kitchen won't leave her with spending money to buy junk at Walmart.

I'm tempted to print the whole article for her, but she would probably say she's too depressed to read it, and then complain that I hurt her feelings by asking her to. Never mind how I feel when people try to use me as their bank by asking for credit.

I'm not in the loan business. Why can't people give more thought to managing their finances, and living within their means? I've done it, and I don't see why other people can't learn to do it too. Our accountant says that our business is one of the few among her clients that is not using credit to keep their heads above water. When you have to live on credit, you aren't living within your means. I can understand it as a temporary measure in an emergency, but it's not meant to be a way of life.
     

Email: Free advice from attorney is mostly right

I got this in my email recently:

Here is a bit of wisdom that may help you some day.

Attorney’s Advice - NO CHARGE - Not a Joke!! If you dislike attorneys... You will love them for these tips.

Read this and make a copy your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company.

1. Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED.'

2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.

3. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.

4. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place.

I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a Name, address, Social Security number, credit cards.

Unfortunately, I, an attorney, have first hand knowledge because my wallet was stolen last month. Within a week, the thieve(s) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.

But here's some critical information to limit the damage in case this happens to you or someone you know:

5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.

6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).

But here's what is perhaps most important of all: (I never even thought to do this.)

7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the internet in my name.

The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.

By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks.

Now, here are the numbers you always need to contact about your wallet, if it has been stolen:

1.) Equifax: 1-800-525-6285

2.) Experian (formerly TRW): 1-888-397-3742

3.) Trans Union : 1-800-680-7289

4.) Social Security Administration (fraud line): 1-800-269-0271

We pass along jokes on the Internet; we pass along just about everything.

If you are willing to pass this information along, it could really help someone that you care about.

Now this all sounds like good advice, but I decided to look it up on Snopes.com anyway. And it turns out, it IS good advice - mostly. There are a few things, and one mistake, worth noting.

The number above for reporting fraud or identity theft to the Social Security Administration is incorrect. According to Snopes, the (toll-free) number should be: 1-877-438-4338.

The sample on Snopes was collected in 2002. But some people have added stuff since then, and there is some quibbling about the added advice. Read the page at Snopes.com for more information:

Snopes.com: Full Faith and Credit Card
     

Harsh Truth About California. And Our Nation?

Accounting for California’s Suicide: A weird sort of utopian mindset.

Victor Davis Hanson at National Review describes the healthy and prosperous California of two decades ago, and compares it to the flailing and swiftly deteriorating basket case it has become today. Then he gets to the crux of the reason why:

[...] If we can agree that Californians have somehow squandered a rich natural and inherited wealth, what were the root causes of this collective suicide?

Critics disagree. Some cite expanding but inefficient state government, out-of-control state pensions and oppressive taxes. Or are the chief problems costly prisons and astronomical rates of incarceration, illegal immigration, unchecked welfare, and excessive regulation and environmental restrictions?

All these explanations may be valid. But less discussed is the underlying culprit: a weird sort of utopian mindset. Perhaps because have-it-all Californians live in such a rich natural landscape and inherited so much from their ancestors, they have convinced themselves that perpetual bounty is now their birthright — not something that can be lost in a generation of complacency.

Californians count on the wealth of farming but would prefer their rivers to remain wild rather than tapped. They like tasteful redwood decks but demand someone else fell their trees for the wood. Californians drive imported SUVs but would rather that you drill for oil off your shores rather than they off theirs. They pride themselves on their liberal welfare programs, but drive out with confiscatory taxes the few left to pay for them.

Californians expect cheap imported labor to tend their lawns and clean their houses, but are incensed at sky-high welfare and entitlement costs that accompany illegal immigration. Lock ’em up, they say — but the state is bankrupted by new prisons, constant inmate lawsuits, and unionized employees.

In short, after Californians sue, restrict, mandate, obstruct, and lecture, they also get angry that there is suddenly not enough food, fuel, water, and money to act like the gods that they think they have become.

This is spot-on in so many ways. When I moved to San Francisco in 1981, California was the strong and prosperous state Hanson describes at the beginning of his article. Over the twenty four years I lived their, I witnessed the deterioration he speaks of in the middle of his article.

One of the reasons I had moved to California was to further my education. I had gone to a very expensive college in Boston for a year, and was extremely disappointed in the quality of the education. California colleges and universities were supposed to be good, and less expensive.

I enrolled in SF city college a couple of times, but always ended giving up on it. The quality of the education was inferior. At best I felt it was a dumb-downed grade factory for functional illiterates; at worst, a politically correct brainwashing camp. I couldn't bear it.

I could earn such fabulous sums of money going to work at jobs most people didn't want to do, that school seemed like a waste of time. Bothering to show up for work and speaking English were job skills that served me well, I didn't need the brainwashing, thank you.

But unfortunately, the brainwashing had an effect on much of the population, and the "good life" that people had to work for in the past, suddenly began to be talked about as a "right" that everyone was entitled to, rather than a goal to work towards. I watched California become a land of spoiled people spoiling a once prosperous and healthy state. Hanson observes:

[...] Biannual state proposition initiatives, often put on the ballot by narrow special interests, allowed voters to vote for additional entitlements and benefits without providing the money to pay for them. Yet Californians are not an informed electorate, as the state’s mediocre public high schools experience 30 percent dropout rates. [...]

California lost the capacity to maintain that prosperous and healthy state, by killing the heart of the engine that drove it. And the "Utopia" mindset is the dagger that was used to do it.

San Francisco is full of people who "live for today"; they are mostly renters, and they spend their money on fancy cloths, cars, electronic gadgets, concerts, movies, vacations, restaurants, etc. They lavish all their money on themselves, or even worse, live on extended credit, so they can "live the good life" to the maximum, while simultaneously complaining about people who have more than they do. People like Pat, Andy and me, who worked hard and saved money, bought a house and built up a business. They would whine that "it's not fair" that we have what they don't.

We sacrificed, we did without all the above luxuries, so we could attain the things we wanted. They could do the same too, if they wanted. But if you were "rude" enough to point that out to them, they would start screaming at you, "What are you, some kind of REPUBLICAN?".

Those are the same people Hanson describes in his article. People who feel they are entitled to that which they did not earn. People who live on credit. People who have voted for entitlements and benefits without providing the money to pay for them.

Is it any wonder that people like us, who worked and saved, sold up and left? And Hanson points out that educated people with job skills are still leaving California in droves. The state is teetering on financial collapse. But unfortunately, I don't think this problem is limited to California. The mindset that Hanson speaks of is taking root elsewhere, and spreading across the country, like so many California trends do.

Today the Democrat Party is being led by San Francisco (Pelosi) style Democrats. I've posted about what they did to San Francisco, and much of the rest of California as well. I've posted about how the radical "Greens" among the Democrats caused California's energy crisis, which plagues the state to this day, and how Obama and the Washington DC Democrats are adopting a similar plan for our nation, which will likely have similar consequences.

Please read the entire article by Hanson, it's not very long but well worth your time. We have a lot to learn from California. Mostly, not to follow their example of the past two decades. Entitlement utopianism and people living beyond their means on credit ruined California, and now that same mindset is threatening to ruin the rest of our country. And it will, if we don't stop the rot now.

I see the same trend happening here in Oregon, and many other states that are accumulating debt by passing entitlement legislation without financing to support it. If that trend continues unabated, the consequences will likely be devastating.


Related Link:    Daily duh! - debt is the problem not the solution