Tag Archives: debt

Still Not Interested!

15 Nov

I was doing some on-line banking this morning and as I was scrolling through my recent transactions I happened to notice that my bank, one of the largest in the world by the way, made an interest deposit in my favor…for 5 cents!

Once upon a time when I was little an interest credit of 5 cents would have meant that I was a five year old whose dad had just opened a savings account for him with 1 dollar.

I’m all grown up now and I have quite a few more dollars in the bank but I’m still getting 5 cents in interest!

I tried to figure out what kind of a percentage that meant I was getting on my money but my calculator melted while trying to do the math.

Honestly I don’t even bother to add the interest into my balance anymore. It’s not worth the time or worth using up one of the spaces in my register to add just pennies to my balance. I just wrote pennies didn’t I? Imagine that! Pennies in interest on a banking account in the 21st century… when I was teaching high school the students would throw pennies at each other rather than keep the annoying coins in their pockets. Now they’re my investment income.

Honestly, I’d rather they kept their 5 cents than insult me with such a transaction.

But sadly, just the other day, while I was making a transaction at the drive up window, a bank assistant manager asked if I would like to transfer my money from my checking account to a fabulous new Platinum Savings account where I’ll earn 3 times as much money in interest! Wouldn’t that be a wonderful idea?! And she was so cheerful and peppy and excited for her offering me this great new prospect for my increased wealth!

Wow! I thought. 3 times as much interest! So, instead of .01 percent or .0001 for those who do math. I can get .03% or .0003 in interest on my hard earned and saved money. Why that’s 3 dollars instead of 1 dollar as thanks for holding onto my 10,000 dollars (that’s if I had 10,000 dollars…I’m only using that figure so my example can have real numbers in it instead of imaginary ones! As it is that’s 25 cents or one quarter per month…in interest on 10 thousand dollars.

Soon I suspect they will be paying my interest in imaginary numbers.

I’d love to be able to take out a loan from the same bank and then hand them 5 cents when the interest on that loan came due… wouldn’t you?

Of course that probably would have meant that I had only borrowed a dime.

I mean really, one of the largest banks in the world can only afford to give me 5 cents in interest these days on the money I put in there for safe keeping and which of course they are also allowed to use to make themselves money?

Has our government heard about this?

The one that’s made up of 47% lawyers and 43% millionaires?

Or is it the other way around?

No matter I guess…Because most of the candidates running for president this election cycle are promising NOT to bail out the big banks should they fail again, like they did in 2008. Do they realize that “in the banks” is where Americans keep their money? (those that have any) And have these lawyers and millionaire candidates ever heard of FDIC insurance, a law that’s been in effect since 1933…whereby the Federal Government (them) promises to insure our bank accounts (us) up to 250,000 dollars. (By the way, that’s 75 dollars of interest per year! Yay!) So if the banks fail…and they don’t get bailed out…we’re all penniless. Literally and figuratively!

Which, by the by, is how the banks ran their scam the first time! They couldn’t lose!

Anyway, I don’t know whether I’m more angry, insulted or depressed by the whole situation…in which the banks seem to know the law all to well and the candidates pretend to know no law at all?!

But it does kinda make you lose interest in more ways than one doesn’t it?

Can You Find the Scandal in This Story?

2 Nov

Here’s another heart warming story from the world of American college athletics.

A salacious sex scandal is beginning to unravel at the University of Louisville, where campus parties provided by the director of basketball operations and a local madam, provided strippers and sex for players, recruits and their guardians along with money provided to the players to pay for the sex…and wouldn’t you know it…the head coach, Mr. Rick Pitino, knew absolutely nothing about it!

How scandalous! Young college men, students and basketball players all, provided with strippers and with money to pay for sexual favors! And now the NCAA is launching an investigation to get to the bottom of the whole sordid story…and even the University of Louisville has hired an investigator to find out what it actually is that the University of Louisville has done! Because apparently no one there knows.

And should the investigations prove that money was provided to students and basketball players and guardians… then the punishment will most likely mean a postseason ban and loss of scholarships for the Louisville basketball team. Or in other words, the students will be punished!

Because the real scandal here is that athletes were given something, when we all know that athletes are supposed to perform for nothing except the privilege of attending their university for free…even though their work precludes their ability to find the time to attend that university.

The University of Louisville is a public university in Louisville, Kentucky. It is a member of the Kentucky state university system, where room and board and tuition for a Kentucky resident comes to around 20 thousand dollars per year. And where the director of athletics is paid 1.4 million dollars per year and the basketball coach has a 51 million dollar contract. That’s the equivalent of 2550 students each year.

But I digress because the real scandalous and salacious part of this story is not that young athletes were provided with sexual favors at a Kentucky university but rather that millions and millions and millions and millions of dollars are made by the university off of the labor of their athletes and is then spread around among university officials and coaches, while their academic students are still required to pay thousands and thousands and thousands of dollars to attend the university.

And what do the athletes get? Illicit sexual favors in exchange for their hard work? That’s it?

The new American University business model: Pimp and prostitute. User and Usurer. And they know not what they do…

Now that’s a scandal.

How to Save Social Security

24 Apr

There is really nothing wrong with the Social Security system in our country. Social Security is funded via a payroll tax on all income up to $110,000. You pay 6.2 percent and your employer pays 6.2 percent. And since those numbers were set in 1983, and for the next 30 years or so those payroll taxes provided more money than was needed to pay out benefits to retirees and left a pretty whopping surplus…something like 3 trillion dollars worth of surplus!

But did the surplus get invested in high yield bonds or stocks or anything else that would guarantee that 4 trillion dollar surplus to grow like it should have, astronomically, like say, if it had belonged to the Koch brothers or Walton family or any other billionaire worth his or her billions?

No. Instead Congress borrowed it to spend on its pork filled spending programs, gigantic wars and tax cuts for the wealthy, rather than raise additional taxes or balance their budgets, and then they put treasury bonds up as collateral for the borrowed surplus with a promise to repay at 4% interest, which of course is chump change, to any real investor, let alone a trillionaire, like we Social Security Trust funding taxpayers are supposed to be.

But today the SS fund no longer brings in as much in pay roll taxes as it pays out in benefits so it’s time for the Federal Government to pay its debts… And now, Just like any degenerate gambler, who knew all along that he was never going to pay up when the time came to cover his losses because his losses were simply going to be too big to repay. So what are we hearing from Congress now? “Oh no! The SS program is broken. It was never meant to work. There are too many people taking and not enough people paying into the system. It was all a Socialist scam!” Which of course are all lies because our Congressmen simply don’t want to pay back today, what they have been borrowing and spending over the last 30 years of yesterdays.

Nice, huh? Especially since “borrowing” the surplus SS funds is a polite term that Congress has been using, rather than the correct term of “stealing”, because in order to repay the “borrowed” money Congress will have to borrow money. Which would be like that degenerate gambler saying to his creditors, “May I please borrow some money from you so I can pay you back?”

So what to do? Well first the SS Trust Fund needs a champion…a billionaire manager or board of managers who represent the fund and the taxpayers, as opposed to the degenerate gamblers who have been fraudulently managing it. Then that SSTF manager can let the federal government refinance their treasury bond loans as Government “Student Loans”. You know, the ones that the government provides for our students at 8% interest and beyond. The ones that the government has made 41.3 billion dollars worth of profit on in 2013 alone…and that’s a higher profit level than all but two companies in the world. And they would be Exxon Mobil and Apple!

And if we refinanced the Social Security debt as student loans then, as per federal law, those loans would have to be repaid and could never be forgiven…not even if the federal government declared bankruptcy!

Right now our students owe over 1.2 trillion dollars to the federal government that they must repay at outrageous interest rates while the federal government owes Social Security about 3 trillion dollars at a modest interest rate that most Congressmen are now saying they can’t repay! Ain’t that America? Well, it shouldn’t be.

And don’t listen to any politician who says that he knows how to solve the Social Security problem by dissolving it, especially those who are bought and paid for by the Koch brothers who have said in the past, “We favor the repeal of the fraudulent, virtually bankrupt, and increasingly oppressive Social Security system. Pending that repeal, participation in Social Security should be made voluntary.” …And they are currently spending over 1 billion dollars on a Presidential candidate who will do just that, if he is elected.

It’s just too bad that the American Congress has borrowed America’s money. Just like everyone else they have to make good on a loan and pay it back, with interest. Otherwise they all need to step aside, resign their positions as elected leaders and let honest American men and women fill their posts and honor America’s debts. If we can promise to repay the Japanese and Chinese governments the trillions of dollars that we owe them and yet refuse to forgive the trillion dollars that our children owe us…then we can certainly honor debts to ourselves without boo-hooing about how expensive it’s going to be…can’t we?

And Anyone who says otherwise is a degenerate opportunist who needs to go straight to jail!

Do Not Try This At Home!

24 Sep

Here is something that you really should never try, although if you have been listening to certain members of the United States Congress, you might think that it is a viable alternative to your personal budget woes.

Here is what they suggest: Get a credit card and then go out to your favorite stores and buy whatever you want for yourself, your family, your neighbors, whoever… and then when the bill comes to your house…don’t pay it! …It’s that easy!

In fact you should vehemently deny to pay all of your bills and explain to your creditors, family, friends, whoever that you are doing it because you are trying to be more financially responsible by imposing limits upon yourself and your reckless spending habits. Your creditors, family and friends may try to point out to you that you have to put limits on your spending before you buy things not after, but just shrug them off as financial no-nothings because your plan and Congresses is sure to work.

I once knew an alcoholic who always swore off drinking after he got drunk, never before…the above mentioned financial philosophy is kind of like that…wouldn’t you say?

Some of you may actually have tried this financial approach to your spending and bill paying. Many Americans have and they usually and eventually end up in bankruptcy. That’s if they can afford a lawyer. If they can’t then they usually end up in jail.

Why? Because, the above mentioned practice is not only irresponsible, immature, thoughtless, ill-considered, harebrained, corrupt, dishonest, shameless, unscrupulous, unethical, immoral, fraudulent and stupid…It’s also illegal…and oh yes, and just plain wrong.

Go ahead and try it and see where it gets you.

It’s strategies like this that have made gambling illegal because most gamblers always figure that they will win so why not bet with money they don’t yet have? Of course when they lose, their first inclination is, “I won’t pay!” problem solved! And that’s what always leads to the leg breaking and hence gambling is illegal…unless of course it is done under close scrutiny and regulation by…you guessed it…a government agency!

Go figure. You’d think Congress would know better. In fact I am quite sure they know better, so what do you figure is their game? They are either all drunks, degenerate gamblers or they don’t think very much of the American people whom they are supposed to be serving.

Perhaps if they continue down this road and welch on their promises and actually go through with not authorizing the payment of bills they have already incurred on our behalf… (and make no mistake about it, we and not they, will bear the financial brunt of their refusal to pay the bills because they’re all quite wealthy and they’ll be just fine)…their creditors will be allowed to enter their exalted chambers with baseball bats in tow, find those who voted against paying their debts, cowering behind their desks no doubt,  and…well you know…teach them a real lesson?

“Some people use one half their ingenuity to get into debt, and the other half to avoid paying it.”
-George Prentice

“If I owe you a pound, I have a problem; but if I owe you a million, the problem is yours.”
-John Maynard Keynes

“The man who never has money enough to pay his debts has too much of something else.”
-James Lendall Basford

The Great American…Loan

18 May

 

People in the United States owe a lot of money on credit cards. In fact we owe about 700 billion dollars in credit card debt. The only thing we’ve borrowed more money for is home mortgages… but home mortgages aside, who owes more than adults when it comes to borrowing money?

It’s school kids! And although technically they are school adults, if you have 1 or 2 or more of them in your home they are still kids to you…but still, the number one debtor in the United States today are young adults who have taken out loans from the federal government to finance their college education.

Student loan debt has gone over 1 trillion dollars…as in 1 followed by 9 zeros, and the federal government has just forecast a record 51 billion dollar profit this year from student loan borrowers. That’s more than the earnings of the nation’s most profitable companies.

Who knew? Did you?

But the good news? In July the 3.4% interest rate that students are paying on borrowed money now will jump to 6.8% …unless of course Congress passes the “Student Loan Affordability Act” which is proposed legislation that would keep existing interest rates… on some student loans… for the neediest households, fixed at 3.4 percent. However, The bill does nothing for existing student debtors….and besides who doesn’t smell a filibuster in the air?

The Department of Education…that much maligned government entity that oversees our crumbling school system and that also gave us the “No Child Left Behind Act”, has generated almost 120 billion dollars in profit over the last five years from student loans which ironically enough, is the only kind of consumer debt that has increased since the onset of the financial crisis.

And get this… Apparently officials in Washington are now worried that perhaps overly indebted student borrowers will be unable to save enough to purchase a home, take out loans for new cars, start a business or save enough for their retirement…and become, you know…productive American citizens.

What is it that we expected would be the rewards of plunging our children into massive debt? Talk about not leaving a child behind?! What about leaving adults behind?!…before they even get started!

And for some reason these adult/children/student borrowers are also finding themselves unable to refinance their loans even if they graduate from college and secure well-paying jobs, even though  most other borrowers are able to refinance debt at quite low rates. And why is that?

Because these loans have become so profitable to lenders thanks to the Bankruptcy Reform bill of 2005 when both federal and private student loans became non-dischargeable during bankruptcy. This has turned student loans into credit risk free loans for the lender. (with a debtor who literally has a lifetime to repay it) The loans are just too good for any respectable financial institution to give up…as any gambler could tell you,  they’re a sure thing!

Getting a higher education is a wonderful achievement but once again with the help of our nation’s love affair with capitalism, we’ve turned a good thing into a profitable thing and that profitable thing into a must thing…and with ever escalating college costs happily jumping on the bandwagon, (because if you can’t afford this much it’s just as easy to not afford that much!)…this thing is spiraling out of control.

Our children are literally taking loans out on the American Dream, which is being dangled in front of them like a candied carrot on a stick, with money they do not have and may not ever have… and in what may be the most sinister twist of fate…all of their government loan filing and debt approval makes them perfect candidates for…

credit card approval once they’ve graduated.

mvschulze

Stream of Thought observations, images, and more

SARAH THE GARDENER

Real Gardening in my Real Garden

My Life As A Wife

Have I Lost My Mind?

Amber Evergreen

Elite Submissive Companion in Scotland

When Life Hands You Lemons...

Figuring life out, one post at a time.

Mono Girl

Life Beyond Tired

Pen of Contention

Giving ink to life's little annoyances...

Budget Abode

home is where the heart is, but it doesn't have to break the budget. Here's to pinching pennies and DIY-ing our way to a happy home (and heavy wallet).

Not All Who Wander Are Lost

Travel the world, one trip at a time

The Floating Thoughts

thoughts of yours & thoughts of ours...would create an unforgettable memoir !!!

One Mom's Journey with CrossFit

Relentlessly Pursuing Excellence in CrossFit & In Life

The Mouse's Soapbox

observations from a certain, unique perspective - especially, these days, about dating

dancingnomads

Travelling the world and dancing

ruminationville

a gated community for the overthinker

Southern Georgia Bunny

Adventures of an Southern Bunny everything from dating, sex, life and shake your head moments.

Three's a Herd

Mothering a preemie, a princess, and a work-in-progress

%d bloggers like this: