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Showing posts with label financial (non-tax). Show all posts
Showing posts with label financial (non-tax). Show all posts
Wednesday, December 22, 2010
Wrong Purchase? Why Shoppers Can't Stop Buying
From Time.
"When you splurge on designer shoes for your spouse this holiday season, you should double-check that they go with the rest of her wardrobe. Because if they don't, says a new study, she likely won't send you back to the store to return them. Instead, she'll just buy new clothes to make it all match, further draining that checking account already hit hard by the holidays.
That costly behavior is explored in a new study to be published in a forthcoming issue of the Journal of Marketing Research, which calls the consumer psychology phenomenon "aesthetic incongruity resolution," an academic way of saying "what do you do when the couch doesn't match the curtains?" Vanessa Patrick, a marketing professor at the C.T. Bauer College of Business at the University of Houston, and Henrik Hagtvedt, a marketing professor at Boston College's Carroll School of Management, find that when consumers buy a product high in "design salience" — in other words, stuff that looks nice — and subsequently find that the product doesn't fit in with an existing wardrobe or home décor, they're more likely buy more products to accommodate their new purchase. "There's a domino effect that can be quite dangerous," says Hagtvedt.
The researchers found that a set of conflicting emotions drives this shopping behavior. When you buy designer items — they could be shoes, jewelry, furniture — and discover an aesthetic mismatch, you're more likely to feel frustration, instead of regret, about your predicament. Consumers become attached to the unique designer item, and want to do everything they can to make it fit with their existing environment. "Frustration is a more activating emotion," says Hagtvedt. By contrast, the researchers found, if the new purchase doesn't possess many design elements, and just doesn't fit in, you're likely to simply feel regret about the decision and take the product back to get a refund."
...
"In another experiment, subjects were given a pendant that did not match their existing wardrobes. Half the participants were given a designer pendant with a striped pattern. The others were given a plain, orange piece with no stripes. They were then offered a choice: buy a matching pair of earrings for $5, return the pendant for a $5 refund, or just keep the pendant and pass on both the earrings and the return option. The results were telling. Nearly 60% of those who received a designer pendant chose to buy matching earrings, while only 14% of those who received the plain one made the same decision. Meanwhile, 85% of the subjects who got the non-designer pendant returned it, while 14% of the designer pendant recipients did so.
For a third experiment, subjects were shown pictures of one of two types of armchairs, and the living room in which that chair that would be placed. Both the trendier, trimmer chair and the lumpier model shown to the subjects were not aesthetic fits in the living room. They were then asked to imagine a situation in which they had purchased that chair for the living room, and to report their feelings of regret and frustration about the purchase, and whether they'd buy more matching items or return the chair. Subjects shown the designer armchair reported higher levels of frustration about the aesthetic mismatch, and said they'd be more likely to buy more stuff to make the living room work. On the other hand, participants shown the non-designer chair were more likely to say they'd regret that purchase, and return it.
So if you're shopping for designer items, keep this new version of buyer beware in mind. "Beware of the never-ending spiral," says Hagtvedt. "You'll start with an innocent purchase, and the next thing you know, you're buying a new living room."
READ MORE - Wrong Purchase? Why Shoppers Can't Stop Buying
"When you splurge on designer shoes for your spouse this holiday season, you should double-check that they go with the rest of her wardrobe. Because if they don't, says a new study, she likely won't send you back to the store to return them. Instead, she'll just buy new clothes to make it all match, further draining that checking account already hit hard by the holidays.
That costly behavior is explored in a new study to be published in a forthcoming issue of the Journal of Marketing Research, which calls the consumer psychology phenomenon "aesthetic incongruity resolution," an academic way of saying "what do you do when the couch doesn't match the curtains?" Vanessa Patrick, a marketing professor at the C.T. Bauer College of Business at the University of Houston, and Henrik Hagtvedt, a marketing professor at Boston College's Carroll School of Management, find that when consumers buy a product high in "design salience" — in other words, stuff that looks nice — and subsequently find that the product doesn't fit in with an existing wardrobe or home décor, they're more likely buy more products to accommodate their new purchase. "There's a domino effect that can be quite dangerous," says Hagtvedt.
The researchers found that a set of conflicting emotions drives this shopping behavior. When you buy designer items — they could be shoes, jewelry, furniture — and discover an aesthetic mismatch, you're more likely to feel frustration, instead of regret, about your predicament. Consumers become attached to the unique designer item, and want to do everything they can to make it fit with their existing environment. "Frustration is a more activating emotion," says Hagtvedt. By contrast, the researchers found, if the new purchase doesn't possess many design elements, and just doesn't fit in, you're likely to simply feel regret about the decision and take the product back to get a refund."
...
"In another experiment, subjects were given a pendant that did not match their existing wardrobes. Half the participants were given a designer pendant with a striped pattern. The others were given a plain, orange piece with no stripes. They were then offered a choice: buy a matching pair of earrings for $5, return the pendant for a $5 refund, or just keep the pendant and pass on both the earrings and the return option. The results were telling. Nearly 60% of those who received a designer pendant chose to buy matching earrings, while only 14% of those who received the plain one made the same decision. Meanwhile, 85% of the subjects who got the non-designer pendant returned it, while 14% of the designer pendant recipients did so.
For a third experiment, subjects were shown pictures of one of two types of armchairs, and the living room in which that chair that would be placed. Both the trendier, trimmer chair and the lumpier model shown to the subjects were not aesthetic fits in the living room. They were then asked to imagine a situation in which they had purchased that chair for the living room, and to report their feelings of regret and frustration about the purchase, and whether they'd buy more matching items or return the chair. Subjects shown the designer armchair reported higher levels of frustration about the aesthetic mismatch, and said they'd be more likely to buy more stuff to make the living room work. On the other hand, participants shown the non-designer chair were more likely to say they'd regret that purchase, and return it.
So if you're shopping for designer items, keep this new version of buyer beware in mind. "Beware of the never-ending spiral," says Hagtvedt. "You'll start with an innocent purchase, and the next thing you know, you're buying a new living room."
20 Frugal Tips From Someone Who Lived Through the Great Depression
From Steadfast Finances. No, it wasn't me--but my parents did.
"During another weekend road trip to visit the family for Mother’s Day, I always make it a habit to drop in on Grandma and soak in a few hours worth of knowledge she’s accumulated over her near 75 years.
Gifts were exchanged, I overindulged in home cookin’, but in the end, I sat with a piece of paper scribbling notes on what it was like for her (and other family members) to live through the Great Depression.
I’m fortunate that I haven’t felt the effects of the recession, so I thought it would be interesting to get her point of view since she lived through one of the harshest periods of American history.
In the end, I wasn’t exactly surprised because I’ve heard many of these frugal living rules over and over again, but it’s finally nice to get them down on paper.
I hope you can learn as much from her wisdom as I have over the years.
1. Save a dollar for every dollar you spend. I’m a big believer in the Pay-As-You-Go rule, but if you allow more cash to go out of your door than goes under your mattress, you’re asking for trouble.
2. New doesn’t automatically mean better. New this and shiny that may get you a lot of attention and give you a feeling of importance, but new stuff usually costs more than old stuff. Slightly used, gently used, or just plain used will often to the job.
3. Be thankful for what you have. All of us have complained about eating leftovers when we didn’t want to or complained about eating the same thing three times a week, but there are quite a few people in this world that might not know where the next meal will come from. Just be thankful you have what you have … if you have it.
4. Learn how to fix/maintain what you have. Nothing can be more frustrating than having a piece of machinery, whether it be your car or your laptop, that you rely upon, paid good money for, and have to pay someone to repair it. Eliminating the need for the repairman will save you countless hours and dollars over the years.
5. Waste not, want not! If you’re discarding a substantial portion of what you bought (or made yourself), you’re essentially throwing money in the garbage can. Either cut back on what you’re making, or find ways to reuse it at a later date.
6. Make cheap food taste like a million bucks. I probably violate this suggestion most of all because I’m a wannabe chef, but during my college years, my food budget rarely exceeded $100 per month. Learning how to make good eats on the cheap will save you thousands per year if you can learn a few cooking basics.
7. Don’t pay for what you can do/make for yourself. It seems like an odd question to ask, but why would you pay someone to do something that you can do for yourself. I understand that we’re all super busy and we may not be an expert in everything that modern society pushes upon us, but thanks to the Internet (praise be Google!), you can find a DIY video for almost anything on your Honey Do List.
8. Preparation can keep you from being blown off course. Many times during your life you’ll face some type of adversity. The more prepared you are to handle it, the better off you’ll be at weathering the storm. As the old adage goes: you can’t control the wind, but you can adjust your sails!
9. Family time is fun time. I’m one of the least social members of my family, but nothing beats a classic game of Monopoly with the folks. This weekend happened to be catching up over baseball games on TV and lots of hanging out in the kitchen. Funny how positive social interactions work aren’t they?
10. Make your big purchases off season. One of my cardinal rules of shopping (which I loathe to do) is buy most of my winter clothing in April. This way, the retailers are desperate just to break even on their investment and clear the excess inventory to make way for Spring/Summer months. This works equally well when buying summer clothing in November.
11. Marry someone who complements your weak points. No this doesn’t mean someone who will say “good job” each time you do a good deed. Not that kind of compliment. In a complementary relationship, your strong suits will make up for your companion’s weaknesses and vice versa. In the end, the marriage is stronger than the two individuals!
12. Exchange time, skills or service as currency. If you know how to play the piano and your neighbors want their kid to learn to play piano, find something they have that you want.
13. Learn to preserve and store food. Even if you’re not into growing your own food, it never hurts to buy in bulk and keep it frozen for a few months.
14. Start a garden and pay yourself for growing your own food. Why pay a grocery store for food that you can grow yourself? Many people these days are under the false impression that gardening is too difficult to try and best left to the hippies and hillbillies. Hardly the case since Michelle Obama and started a victory garden on White House grounds.
15. Credit cards are the devil. If you tell my Grandma that you bought her Christmas present on credit, you better hope you got your fill of pumpkin pie prior to opening gifts. Chances are, she’ll cut you off and give you a 10 minute lecture from Proverbs. Most old school consumers won’t even think about buying something unless they pay in cash.
16. Patience is a virtue. Be patient, save your pennies, and wait until they turn to dollars. Paying cash is the only way to go. I admit, this doesn’t translate well to 2009, but if you can rely upon your debit card more than your credit card, you’re on the right path.
17. Work hard, and work often. My family wasn’t exactly the affluent type back in the day, so I’m glad to have some of that blue collar mentality rubbed off on me. I never really understood what it meant to say “I built that” or “I made that from scratch” when I was a kid, but I certainly learned what those phrases meant once I became a bit older.
18. At the end of the day, think how to make tomorrow a little better. This phrase is fairly common, but it’s been sitting on my grandfather’s antique desk for as long as I can remember. Probably longer than I’ve been alive. But to me, it’s a testament to how both of grandparents lived their lives. Over time, little improvements add up a lot quicker than you think.
19. Envy is still a sin. Even though I’m the blaspheming evolutionist of the family, it doesn’t mean I don’t pay attention to sound advice. Believe it or not, the Bible has really good tips on debt avoidance and the “debt is slavery” principle.
20. Speak convincingly and be a leader. We all know a hierarchy exists in most families, and if that happens to be you, don’t be afraid to voice your opinion. Even if you hurt a few feelings here and there, they’re family and they’ll eventually forgive you."
READ MORE - 20 Frugal Tips From Someone Who Lived Through the Great Depression
"During another weekend road trip to visit the family for Mother’s Day, I always make it a habit to drop in on Grandma and soak in a few hours worth of knowledge she’s accumulated over her near 75 years.
Gifts were exchanged, I overindulged in home cookin’, but in the end, I sat with a piece of paper scribbling notes on what it was like for her (and other family members) to live through the Great Depression.
I’m fortunate that I haven’t felt the effects of the recession, so I thought it would be interesting to get her point of view since she lived through one of the harshest periods of American history.
In the end, I wasn’t exactly surprised because I’ve heard many of these frugal living rules over and over again, but it’s finally nice to get them down on paper.
I hope you can learn as much from her wisdom as I have over the years.
1. Save a dollar for every dollar you spend. I’m a big believer in the Pay-As-You-Go rule, but if you allow more cash to go out of your door than goes under your mattress, you’re asking for trouble.
2. New doesn’t automatically mean better. New this and shiny that may get you a lot of attention and give you a feeling of importance, but new stuff usually costs more than old stuff. Slightly used, gently used, or just plain used will often to the job.
3. Be thankful for what you have. All of us have complained about eating leftovers when we didn’t want to or complained about eating the same thing three times a week, but there are quite a few people in this world that might not know where the next meal will come from. Just be thankful you have what you have … if you have it.
4. Learn how to fix/maintain what you have. Nothing can be more frustrating than having a piece of machinery, whether it be your car or your laptop, that you rely upon, paid good money for, and have to pay someone to repair it. Eliminating the need for the repairman will save you countless hours and dollars over the years.
5. Waste not, want not! If you’re discarding a substantial portion of what you bought (or made yourself), you’re essentially throwing money in the garbage can. Either cut back on what you’re making, or find ways to reuse it at a later date.
6. Make cheap food taste like a million bucks. I probably violate this suggestion most of all because I’m a wannabe chef, but during my college years, my food budget rarely exceeded $100 per month. Learning how to make good eats on the cheap will save you thousands per year if you can learn a few cooking basics.
7. Don’t pay for what you can do/make for yourself. It seems like an odd question to ask, but why would you pay someone to do something that you can do for yourself. I understand that we’re all super busy and we may not be an expert in everything that modern society pushes upon us, but thanks to the Internet (praise be Google!), you can find a DIY video for almost anything on your Honey Do List.
8. Preparation can keep you from being blown off course. Many times during your life you’ll face some type of adversity. The more prepared you are to handle it, the better off you’ll be at weathering the storm. As the old adage goes: you can’t control the wind, but you can adjust your sails!
9. Family time is fun time. I’m one of the least social members of my family, but nothing beats a classic game of Monopoly with the folks. This weekend happened to be catching up over baseball games on TV and lots of hanging out in the kitchen. Funny how positive social interactions work aren’t they?
10. Make your big purchases off season. One of my cardinal rules of shopping (which I loathe to do) is buy most of my winter clothing in April. This way, the retailers are desperate just to break even on their investment and clear the excess inventory to make way for Spring/Summer months. This works equally well when buying summer clothing in November.
11. Marry someone who complements your weak points. No this doesn’t mean someone who will say “good job” each time you do a good deed. Not that kind of compliment. In a complementary relationship, your strong suits will make up for your companion’s weaknesses and vice versa. In the end, the marriage is stronger than the two individuals!
12. Exchange time, skills or service as currency. If you know how to play the piano and your neighbors want their kid to learn to play piano, find something they have that you want.
13. Learn to preserve and store food. Even if you’re not into growing your own food, it never hurts to buy in bulk and keep it frozen for a few months.
14. Start a garden and pay yourself for growing your own food. Why pay a grocery store for food that you can grow yourself? Many people these days are under the false impression that gardening is too difficult to try and best left to the hippies and hillbillies. Hardly the case since Michelle Obama and started a victory garden on White House grounds.
15. Credit cards are the devil. If you tell my Grandma that you bought her Christmas present on credit, you better hope you got your fill of pumpkin pie prior to opening gifts. Chances are, she’ll cut you off and give you a 10 minute lecture from Proverbs. Most old school consumers won’t even think about buying something unless they pay in cash.
16. Patience is a virtue. Be patient, save your pennies, and wait until they turn to dollars. Paying cash is the only way to go. I admit, this doesn’t translate well to 2009, but if you can rely upon your debit card more than your credit card, you’re on the right path.
17. Work hard, and work often. My family wasn’t exactly the affluent type back in the day, so I’m glad to have some of that blue collar mentality rubbed off on me. I never really understood what it meant to say “I built that” or “I made that from scratch” when I was a kid, but I certainly learned what those phrases meant once I became a bit older.
18. At the end of the day, think how to make tomorrow a little better. This phrase is fairly common, but it’s been sitting on my grandfather’s antique desk for as long as I can remember. Probably longer than I’ve been alive. But to me, it’s a testament to how both of grandparents lived their lives. Over time, little improvements add up a lot quicker than you think.
19. Envy is still a sin. Even though I’m the blaspheming evolutionist of the family, it doesn’t mean I don’t pay attention to sound advice. Believe it or not, the Bible has really good tips on debt avoidance and the “debt is slavery” principle.
20. Speak convincingly and be a leader. We all know a hierarchy exists in most families, and if that happens to be you, don’t be afraid to voice your opinion. Even if you hurt a few feelings here and there, they’re family and they’ll eventually forgive you."
Tuesday, December 21, 2010
Update to Previous Article: Not Just State Budget Days of Reckoning--There's More!
Previous article.
"Whitney is warning about a financial meltdown in state and local governments. “It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy,” she told Kroft. Asked why people aren’t paying attention, Whitney said, “‘Cause they don’t pay attention until they have to.”…”The lack of transparency with the state disclosure is the worst I have ever seen,” Whitney said."
That's just the states. Now for Europe (from the Guardian):
"Istanbul
Turkey's ancient metropolis is one of the few European cities with a "junk" credit rating. Its impeccable location, linking Asia and Europe, does not compensate for its serious weaknesses – including "low revenue flexibility and a lack of predictability regarding future reforms", according to a recent report from the Standard & Poor's credit-rating agency. The city also has high investment demands, leading to large deficits, and mounting debt, the agency said. It is trying to develop other sources of income, especially by developing its emerging financial industry, hoping that new glass towers will appear on its famous skyline of mosque domes and minarets. The prime minister, Recep Tayyip Erdogan, said this month that he planned to move the stock exchange across the Bosphorus to the Asian side of the city as part of plans to turn the Atasehir district into a financial centre.
Naples
The credit rating on this historic city in southern Italy is just one notch from junk level. If two thousand years ago the nearby town of Pompeii was a model of public administration, today's Naples has one of the lowest tax-collection rates in Europe – and the worry is that not enough is being done to change it.
In a recent report by Standard and Poor's, analysts expressed concern that 30% of the debts owed to the city in 2008 were of "doubtful collection" as some of the bills are too old to collect. With higher unemployment and a greater dependency on state and EU help than other Italian capitals, Naples faces increasing delays in paying for some of its running costs. The city could also face liabilities from some of its controlled public companies, S&P said. Overall, the town's liquidity position is "less than adequate", the ratings agency said. At least the city – with a population of almost a million – has a higher percentage of children than the national average and a lower percentage of over 65s, limiting the costs of its care for the elderly.
Florence
The Tuscan capital was warned about a possible credit downgrade last week, following its decision to stop payments on some derivatives contracts to banks including UBS and Bank of America. "The review will focus on the assessment of the potential, legal and financial risks facing the municipal administration and their implications for bondholders," Moody's said.
In 2006, the city signed contracts with a group of banks, setting a fixed interest rate on about €200m (£170m) of debt. The move was aimed at protecting the city coffers from any potential interest rate rises. Florence, however, has been caught out by two years of record low interest rates, which make their current agreement substantially more expensive than prevailing market rates. Florence, due to pay the banks €9m this month, now says that it would be illegal, under Italian law, to honour those obligations. Some of the creditor banks have already filed a claim at London's high court. S&P has an A+ rating on the city, one of its highest, based on the strength of its tourism industry.
Madrid
Spain's capital city, with a staggering €7bn of debt, was recently stopped from rolling over some of its obligations by the central government. Fighting the scepticism of international investors over Spain's sovereign debt, the finance minister, Elena Salgado, recently urged Alberto Ruiz-Gallardón, Madrid's mayor, to stop spending and start paying back.
Years of a booming property market pumped up the city coffers, leading officials to start multibillion-euro projects such as covering the city's orbital motorway. In 2007, at the peak of the market, the city hall also moved buildings in a change that cost locals millions. But the tax take has fallen sharply while the doors to international financial markets remain mostly shut. Investors are worried about the city's high debts, projected to reach as much as 155% of its revenues by 2012. Madrid's payments to some of its trade creditors, including cleaning service contractors, are severely delayed.
Barcelona
Catalonia's capital was placed on review for a possible downgrade by Moody's last week, amid plunging revenues and a tougher control on central state transfers. "In Spain, the municipalities' budgets essentially rely on sizeable transfers stemming from the national government, increasing the linkages between both governmental levels," Moody's said. Despite the recent tourism boom, Barcelona and Catalonians are struggling to recover from the effects of the property sector's collapse. The regional government recently had to issue bonds to its own citizens as it faces ostracism by international bond investors, given its high debts. However, with almost 1.6 million inhabitants, Barcelona is still one of Spain's richest cities, with a dynamic services sector that accounts for almost 86% of salaried employment, S&P said in its latest report."
READ MORE - Update to Previous Article: Not Just State Budget Days of Reckoning--There's More!
"Whitney is warning about a financial meltdown in state and local governments. “It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy,” she told Kroft. Asked why people aren’t paying attention, Whitney said, “‘Cause they don’t pay attention until they have to.”…”The lack of transparency with the state disclosure is the worst I have ever seen,” Whitney said."
That's just the states. Now for Europe (from the Guardian):
"Istanbul
Turkey's ancient metropolis is one of the few European cities with a "junk" credit rating. Its impeccable location, linking Asia and Europe, does not compensate for its serious weaknesses – including "low revenue flexibility and a lack of predictability regarding future reforms", according to a recent report from the Standard & Poor's credit-rating agency. The city also has high investment demands, leading to large deficits, and mounting debt, the agency said. It is trying to develop other sources of income, especially by developing its emerging financial industry, hoping that new glass towers will appear on its famous skyline of mosque domes and minarets. The prime minister, Recep Tayyip Erdogan, said this month that he planned to move the stock exchange across the Bosphorus to the Asian side of the city as part of plans to turn the Atasehir district into a financial centre.
Naples
The credit rating on this historic city in southern Italy is just one notch from junk level. If two thousand years ago the nearby town of Pompeii was a model of public administration, today's Naples has one of the lowest tax-collection rates in Europe – and the worry is that not enough is being done to change it.
In a recent report by Standard and Poor's, analysts expressed concern that 30% of the debts owed to the city in 2008 were of "doubtful collection" as some of the bills are too old to collect. With higher unemployment and a greater dependency on state and EU help than other Italian capitals, Naples faces increasing delays in paying for some of its running costs. The city could also face liabilities from some of its controlled public companies, S&P said. Overall, the town's liquidity position is "less than adequate", the ratings agency said. At least the city – with a population of almost a million – has a higher percentage of children than the national average and a lower percentage of over 65s, limiting the costs of its care for the elderly.
Florence
The Tuscan capital was warned about a possible credit downgrade last week, following its decision to stop payments on some derivatives contracts to banks including UBS and Bank of America. "The review will focus on the assessment of the potential, legal and financial risks facing the municipal administration and their implications for bondholders," Moody's said.
In 2006, the city signed contracts with a group of banks, setting a fixed interest rate on about €200m (£170m) of debt. The move was aimed at protecting the city coffers from any potential interest rate rises. Florence, however, has been caught out by two years of record low interest rates, which make their current agreement substantially more expensive than prevailing market rates. Florence, due to pay the banks €9m this month, now says that it would be illegal, under Italian law, to honour those obligations. Some of the creditor banks have already filed a claim at London's high court. S&P has an A+ rating on the city, one of its highest, based on the strength of its tourism industry.
Madrid
Spain's capital city, with a staggering €7bn of debt, was recently stopped from rolling over some of its obligations by the central government. Fighting the scepticism of international investors over Spain's sovereign debt, the finance minister, Elena Salgado, recently urged Alberto Ruiz-Gallardón, Madrid's mayor, to stop spending and start paying back.
Years of a booming property market pumped up the city coffers, leading officials to start multibillion-euro projects such as covering the city's orbital motorway. In 2007, at the peak of the market, the city hall also moved buildings in a change that cost locals millions. But the tax take has fallen sharply while the doors to international financial markets remain mostly shut. Investors are worried about the city's high debts, projected to reach as much as 155% of its revenues by 2012. Madrid's payments to some of its trade creditors, including cleaning service contractors, are severely delayed.
Barcelona
Catalonia's capital was placed on review for a possible downgrade by Moody's last week, amid plunging revenues and a tougher control on central state transfers. "In Spain, the municipalities' budgets essentially rely on sizeable transfers stemming from the national government, increasing the linkages between both governmental levels," Moody's said. Despite the recent tourism boom, Barcelona and Catalonians are struggling to recover from the effects of the property sector's collapse. The regional government recently had to issue bonds to its own citizens as it faces ostracism by international bond investors, given its high debts. However, with almost 1.6 million inhabitants, Barcelona is still one of Spain's richest cities, with a dynamic services sector that accounts for almost 86% of salaried employment, S&P said in its latest report."
Thieves Find New Way to Steal Money From Gift Cards
From KXII.com (Oklahoma)
"What consumers may not know is that thieves don't always need the gift cards to take money off of them. In some cases, all they need is the receipt.
A Durant woman learned that the hard way this weekend, when a suspect made off with the money she planned to use to buy Christmas gifts for one of her kids.
Trina Sheffield needed a little help checking off her Christmas list this year, but a $150 gift card she was given to buy presents for her kids was wiped out, when someone found the receipt that was used to purchase it.
"You set so much back for each kid, and I've even let a couple of bills go to make sure that all of them had enough, and now I'm even more in debt," said Sheffield.
It's all because someone brought the gift card receipt to the Durant Wal-Mart, told the cashier the card had been lost or stolen, and had the money transferred onto another card.
"I hope the people that did it get caught, and I hope they really feel really bad for what they did and realize that they're not just taking from any individual, they're taking from five kids that really needed Christmas," Sheffield said.
Durant police are looking for the suspect, who would face misdemeanor criminal charges.
"It would definitely be a case of obtaining money by false pretenses. That falls in the same category as fraud and larsony," said Deputy Chief David Houser with the Durant Police Department.
It’s a crime punishable by a fine of $1,000 and up to one year in jail.
Houser with the Durant Police Department says that while consumers need to be vigilant year-round, a spike in gift card sales means more chances for gift card fraud."
READ MORE - Thieves Find New Way to Steal Money From Gift Cards
"What consumers may not know is that thieves don't always need the gift cards to take money off of them. In some cases, all they need is the receipt.
A Durant woman learned that the hard way this weekend, when a suspect made off with the money she planned to use to buy Christmas gifts for one of her kids.
Trina Sheffield needed a little help checking off her Christmas list this year, but a $150 gift card she was given to buy presents for her kids was wiped out, when someone found the receipt that was used to purchase it.
"You set so much back for each kid, and I've even let a couple of bills go to make sure that all of them had enough, and now I'm even more in debt," said Sheffield.
It's all because someone brought the gift card receipt to the Durant Wal-Mart, told the cashier the card had been lost or stolen, and had the money transferred onto another card.
"I hope the people that did it get caught, and I hope they really feel really bad for what they did and realize that they're not just taking from any individual, they're taking from five kids that really needed Christmas," Sheffield said.
Durant police are looking for the suspect, who would face misdemeanor criminal charges.
"It would definitely be a case of obtaining money by false pretenses. That falls in the same category as fraud and larsony," said Deputy Chief David Houser with the Durant Police Department.
It’s a crime punishable by a fine of $1,000 and up to one year in jail.
Houser with the Durant Police Department says that while consumers need to be vigilant year-round, a spike in gift card sales means more chances for gift card fraud."
Monday, December 20, 2010
Beware of Medical Discount Cards
From the Des Moines Register.
"Take a high unemployment rate. Add millions of uninsured Americans. Throw in a confusing, new health reform law. What do you get?
An environment ripe for scam artists peddling health coverage - specifically so-called "medical discount cards," which promise to reduce costs of care for customers. Such cards have long been problematic. Now some companies offering them may portray the plans as affiliated with federal health reform when they're not."
...
"These offers for discounts on medical care - dental, vision, prescriptions and doctor visits - are already proliferating and creating a "legion of problems" for Americans, according to a new report from an Iowa researcher. Colin Gordon, senior research consultant for the nonprofit Iowa Policy Project in Iowa City, released a report Thursday revealing problems with such plans.
They may come with cheap monthly rates, but they "make little difference" in reducing out-of-pocket costs. Advertisements lead people to believe the plans are "insurance" when they're not. (True insurance plans are regulated by state or federal authorities.) You may be offered access to "participating providers," but they may not include your doctor. Customers could be left with huge medical bills.
For example, a company may offer a discount on medical care of 10 percent. Treating a case of appendicitis - easily $10,000 - would leave you with a bill of $9,000. This is very little help for consumers. And that's assuming the company even helps cover the care you need.
Discount cards are a "sprawling and lightly regulated industry," according to the report. "At its worst, marginal and unscrupulous firms have prompted thousands of consumer complaints, state investigations and legal actions."
According to Gordon, 30 states have laws on the books that help protect consumers. They may require companies to state the plan is "not insurance" or register with state regulators. Iowa does not have such laws."
...
"The new health reform law will insure more people through newly-created programs, including insurance exchanges. Americans initially will be unclear about the details of how such opportunities work. And they could be unclear about what is being legitimately organized by the government.
Some private-sector entities will exploit this confusion the same way they did with government efforts to rescue people from home foreclosure. They'll put an image of the White House or President Barack Obama in the background and make a pitch about offering you affordable health coverage."
READ MORE - Beware of Medical Discount Cards
"Take a high unemployment rate. Add millions of uninsured Americans. Throw in a confusing, new health reform law. What do you get?
An environment ripe for scam artists peddling health coverage - specifically so-called "medical discount cards," which promise to reduce costs of care for customers. Such cards have long been problematic. Now some companies offering them may portray the plans as affiliated with federal health reform when they're not."
...
"These offers for discounts on medical care - dental, vision, prescriptions and doctor visits - are already proliferating and creating a "legion of problems" for Americans, according to a new report from an Iowa researcher. Colin Gordon, senior research consultant for the nonprofit Iowa Policy Project in Iowa City, released a report Thursday revealing problems with such plans.
They may come with cheap monthly rates, but they "make little difference" in reducing out-of-pocket costs. Advertisements lead people to believe the plans are "insurance" when they're not. (True insurance plans are regulated by state or federal authorities.) You may be offered access to "participating providers," but they may not include your doctor. Customers could be left with huge medical bills.
For example, a company may offer a discount on medical care of 10 percent. Treating a case of appendicitis - easily $10,000 - would leave you with a bill of $9,000. This is very little help for consumers. And that's assuming the company even helps cover the care you need.
Discount cards are a "sprawling and lightly regulated industry," according to the report. "At its worst, marginal and unscrupulous firms have prompted thousands of consumer complaints, state investigations and legal actions."
According to Gordon, 30 states have laws on the books that help protect consumers. They may require companies to state the plan is "not insurance" or register with state regulators. Iowa does not have such laws."
...
"The new health reform law will insure more people through newly-created programs, including insurance exchanges. Americans initially will be unclear about the details of how such opportunities work. And they could be unclear about what is being legitimately organized by the government.
Some private-sector entities will exploit this confusion the same way they did with government efforts to rescue people from home foreclosure. They'll put an image of the White House or President Barack Obama in the background and make a pitch about offering you affordable health coverage."
Online Stores Start to Wean Shoppers Off Sales
From the NY Times.
"...online retailers are now protecting their margins with careful offers, dispensing with the promotions of the last two holiday seasons that were meant to drive sales and get rid of extra inventory. Gone are the coupons that give shoppers 40 percent off all purchases. Instead, offers go to selected customers, and are specialized: a discount on wool jackets, free hoop earrings when people spend $100, a “mystery” discount amount that is revealed only at checkout.
The promotions try to get customers to behave in a certain way. A coupon may seem straightforward, like Drugstore.com offering $5 off a $30 purchase. In fact, it is encouraging one-time customers to browse through several pages of a site and get to know what a retailer offers as they decide what to buy.
“The reason there’s these different promotions and not just the straight dollar-off or percent-off promotions all the time is there are different incentives,” said David Lonczak, chief marketing officer of Drugstore.com. “You may just need a sale, you may have a product you’re long on and you need to get rid of it, or you may be looking to acquire customers with a higher basket,” he said, referring to the transaction price. “You have to be thoughtful."
...
"Discounting has declined; in November, retailers’ e-commerce revenue from sales of full-price items rose 52 percent versus November 2009, according to MyBuys, which works on personalization offers for retailers.
But less discounting has not tamped down online sales. On Thanksgiving weekend, more than one-third of purchases were made online, versus about 28.5 percent last year, according to the National Retail Federation.
That is because even staunch in-store shoppers are now comfortable buying online, said Fiona Dias, executive vice president for strategy and marketing for GSI Commerce, which provides e-commerce technology to retailers like Toys “R” Us. And the high demand means that online retailers do not have to slash prices to get customers.
“If anything, we’re running tight on inventory because everyone has sold a lot more than they expected to,” Ms. Dias said of the sites she works with. “That’s why we’re not seeing 50-percent-off promotions.”
Given their strong position, retailers are trying to get customers out of the price-wars mind-set that they adopted during the recession.
“At some point, we have to stop and try to go back to where we were because if everyone continues to offer 20 percent, 50 percent off, it’s going to change the market on a long-term scale that it would be too hard to get back from,” said Melissa Joy Manning, who runs an online jewelry store bearing her name. She has stopped discounting, but is giving a pair of silver hoop earrings to customers who spend $100 or more. “We don’t have unlimited resources, so we do try to be as creative with them as we can,” she said."
...
"“It’s about margins,” said Andy Dunn, the chief executive and co-founder of Bonobos, a men’s clothing site. While last December, about a third of his revenue came from promotions, this year it’s down to about a quarter, even as he expects his revenue to nearly triple for the month. “There’s less of a need to be highly promotional,” he said. “At the same time, we feel we need to get better at the laser-beam promoting.”
So he is whittling down offers, sending, for instance, a 20 percent offer on suit elements to people who have bought wool pants but not a jacket.
“We don’t have to treat everyone the same,” he said.
Drugstore.com also changes its approach depending on the customer.
That offer for $5 off any purchase over $30 may prompt people to explore the site. “So if a new Drugstore.com customer doesn’t know I sell toys and games, would you think I’d sell a Razor scooter?” he said. “I have to incent you to shop around.”
He would use a percent-off coupon, he said, when he wants to drive overall sales. And he tends to avoid offers like “$10 off your purchase,” because “I would get a whole bunch of people coming in, they would find the product that was 10 dollars and one cent, they would get it and I would never see them again,” he said."
...
"Sometimes, a retailer can be too successful with an online sale, and have to shift tactics on the fly to keep profit up.
At the Gap Inc. sites, which include Banana Republic and Old Navy, the plan was to do heavy discounts on the four days after Thanksgiving. But Friday sales “exceeded our forecast — it was too hot, it was too strong,” said Toby Lenk, the president of Gap Inc. Direct. “So we pulled back on our promotions for Cyber Monday.”
And other retailers have had to devise new tactics after vendors instructed them to stop offering discounts on their brands.
“With the discounting in the last years, the perception from our vendors is that we were discounting their products,” said Pete LaBore, director of customer retention at Backcountry.com.
So the company came up with a new offer — “on our dime,” Mr. LaBore said — that gave $20 off on the site. “It’s totally free money,” the offer said. But customers did not seem to believe it, and Backcountry.com sent another e-mail two days later with the subject line, “Seriously — It’s Free.
The offer went only to people who had bought, in the past, certain brands or categories in which Backcountry.com now had too much stock, or to people who usually spent enough that “we weren’t just going to have somebody coming in buying a three-dollar pair of socks,” Mr. LaBore said.
It seemed a smart approach; so far, the offer has been profitable, with most people spending much more than $20, Mr. LaBore said.
“We’re trying to get away from the ‘sale, sale, sale’ message, and this is a different way to do that,” he said."
So now you know what you're up against when it comes to marketing, and what's in store for next year--higher prices through fewer deals.
READ MORE - Online Stores Start to Wean Shoppers Off Sales
"...online retailers are now protecting their margins with careful offers, dispensing with the promotions of the last two holiday seasons that were meant to drive sales and get rid of extra inventory. Gone are the coupons that give shoppers 40 percent off all purchases. Instead, offers go to selected customers, and are specialized: a discount on wool jackets, free hoop earrings when people spend $100, a “mystery” discount amount that is revealed only at checkout.
The promotions try to get customers to behave in a certain way. A coupon may seem straightforward, like Drugstore.com offering $5 off a $30 purchase. In fact, it is encouraging one-time customers to browse through several pages of a site and get to know what a retailer offers as they decide what to buy.
“The reason there’s these different promotions and not just the straight dollar-off or percent-off promotions all the time is there are different incentives,” said David Lonczak, chief marketing officer of Drugstore.com. “You may just need a sale, you may have a product you’re long on and you need to get rid of it, or you may be looking to acquire customers with a higher basket,” he said, referring to the transaction price. “You have to be thoughtful."
...
"Discounting has declined; in November, retailers’ e-commerce revenue from sales of full-price items rose 52 percent versus November 2009, according to MyBuys, which works on personalization offers for retailers.
But less discounting has not tamped down online sales. On Thanksgiving weekend, more than one-third of purchases were made online, versus about 28.5 percent last year, according to the National Retail Federation.
That is because even staunch in-store shoppers are now comfortable buying online, said Fiona Dias, executive vice president for strategy and marketing for GSI Commerce, which provides e-commerce technology to retailers like Toys “R” Us. And the high demand means that online retailers do not have to slash prices to get customers.
“If anything, we’re running tight on inventory because everyone has sold a lot more than they expected to,” Ms. Dias said of the sites she works with. “That’s why we’re not seeing 50-percent-off promotions.”
Given their strong position, retailers are trying to get customers out of the price-wars mind-set that they adopted during the recession.
“At some point, we have to stop and try to go back to where we were because if everyone continues to offer 20 percent, 50 percent off, it’s going to change the market on a long-term scale that it would be too hard to get back from,” said Melissa Joy Manning, who runs an online jewelry store bearing her name. She has stopped discounting, but is giving a pair of silver hoop earrings to customers who spend $100 or more. “We don’t have unlimited resources, so we do try to be as creative with them as we can,” she said."
...
"“It’s about margins,” said Andy Dunn, the chief executive and co-founder of Bonobos, a men’s clothing site. While last December, about a third of his revenue came from promotions, this year it’s down to about a quarter, even as he expects his revenue to nearly triple for the month. “There’s less of a need to be highly promotional,” he said. “At the same time, we feel we need to get better at the laser-beam promoting.”
So he is whittling down offers, sending, for instance, a 20 percent offer on suit elements to people who have bought wool pants but not a jacket.
“We don’t have to treat everyone the same,” he said.
Drugstore.com also changes its approach depending on the customer.
That offer for $5 off any purchase over $30 may prompt people to explore the site. “So if a new Drugstore.com customer doesn’t know I sell toys and games, would you think I’d sell a Razor scooter?” he said. “I have to incent you to shop around.”
He would use a percent-off coupon, he said, when he wants to drive overall sales. And he tends to avoid offers like “$10 off your purchase,” because “I would get a whole bunch of people coming in, they would find the product that was 10 dollars and one cent, they would get it and I would never see them again,” he said."
...
"Sometimes, a retailer can be too successful with an online sale, and have to shift tactics on the fly to keep profit up.
At the Gap Inc. sites, which include Banana Republic and Old Navy, the plan was to do heavy discounts on the four days after Thanksgiving. But Friday sales “exceeded our forecast — it was too hot, it was too strong,” said Toby Lenk, the president of Gap Inc. Direct. “So we pulled back on our promotions for Cyber Monday.”
And other retailers have had to devise new tactics after vendors instructed them to stop offering discounts on their brands.
“With the discounting in the last years, the perception from our vendors is that we were discounting their products,” said Pete LaBore, director of customer retention at Backcountry.com.
So the company came up with a new offer — “on our dime,” Mr. LaBore said — that gave $20 off on the site. “It’s totally free money,” the offer said. But customers did not seem to believe it, and Backcountry.com sent another e-mail two days later with the subject line, “Seriously — It’s Free.
The offer went only to people who had bought, in the past, certain brands or categories in which Backcountry.com now had too much stock, or to people who usually spent enough that “we weren’t just going to have somebody coming in buying a three-dollar pair of socks,” Mr. LaBore said.
It seemed a smart approach; so far, the offer has been profitable, with most people spending much more than $20, Mr. LaBore said.
“We’re trying to get away from the ‘sale, sale, sale’ message, and this is a different way to do that,” he said."
So now you know what you're up against when it comes to marketing, and what's in store for next year--higher prices through fewer deals.
State Budget Days of Reckoning
From Deal Breaker. Here's a glimpse of what's in store for 2011 and beyond.
"The most alarming thing about the state issue is the level of complacency,” Meredith Whitney told correspondent Steve Kroft on 60 Minutes. Whitney is warning about a financial meltdown in state and local governments. “It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy,” she told Kroft. Asked why people aren’t paying attention, Whitney said, “‘Cause they don’t pay attention until they have to.”…”The lack of transparency with the state disclosure is the worst I have ever seen,” Whitney said.
“Ultimately we have to use what’s publicly available data and a lot of it is as old as June 2008. So that’s before the financial collapse in the fall of 2008.” Whitney believes the states will find a way to honor their debts, but she’s afraid some local governments which depend on their state for a third of their revenues will get squeezed as the states are forced to tighten their belts. She’s convinced that some cities and counties will be unable to meet their obligations to municipal bond holders who financed their debt.
“There’s not a doubt in my mind that you will see a spate of municipal bond defaults,” Whitney predicted. Asked how many is a “spate,” Whitney said, “You could see 50 sizeable defaults. Fifty to 100 sizeable defaults. More. This will amount to hundreds of billions of dollars’ worth of defaults."
Happy New Year. Would the last one out of California please turn out the lights?
Seriously--if you don't know the shape your state is in financially, then you're the one who's going to suffer most: higher taxes, higher fees, higher prices, less supply, less choice, fewer government services, and a social safety net full of gaping holes. If our federal and state governments keep dropping the fiscal ball, here's what you can do for yourself (besides move to a more responsible state).
Remember how I was always yelling about filling the pantry a year or two ago? This is why.
READ MORE - State Budget Days of Reckoning
"The most alarming thing about the state issue is the level of complacency,” Meredith Whitney told correspondent Steve Kroft on 60 Minutes. Whitney is warning about a financial meltdown in state and local governments. “It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy,” she told Kroft. Asked why people aren’t paying attention, Whitney said, “‘Cause they don’t pay attention until they have to.”…”The lack of transparency with the state disclosure is the worst I have ever seen,” Whitney said.
“Ultimately we have to use what’s publicly available data and a lot of it is as old as June 2008. So that’s before the financial collapse in the fall of 2008.” Whitney believes the states will find a way to honor their debts, but she’s afraid some local governments which depend on their state for a third of their revenues will get squeezed as the states are forced to tighten their belts. She’s convinced that some cities and counties will be unable to meet their obligations to municipal bond holders who financed their debt.
“There’s not a doubt in my mind that you will see a spate of municipal bond defaults,” Whitney predicted. Asked how many is a “spate,” Whitney said, “You could see 50 sizeable defaults. Fifty to 100 sizeable defaults. More. This will amount to hundreds of billions of dollars’ worth of defaults."
Happy New Year. Would the last one out of California please turn out the lights?
Seriously--if you don't know the shape your state is in financially, then you're the one who's going to suffer most: higher taxes, higher fees, higher prices, less supply, less choice, fewer government services, and a social safety net full of gaping holes. If our federal and state governments keep dropping the fiscal ball, here's what you can do for yourself (besides move to a more responsible state).
Remember how I was always yelling about filling the pantry a year or two ago? This is why.
The High Price We Pay For Cheap Food (U.K.)
From CNN Opinion.
"Not long ago, I was very kindly invited to Buckingham Palace, as a member of Britain's food industry. Hundreds of very smart foodies turned up, having showered, shaved and left behind their stoves, whisks and knives.
It is a funny thing seeing many of your contemporaries in suits and dresses when you're used to seeing them in their whites and aprons. I spent most of the evening introducing myself or just observing the many groups of people that mingle at occasions like these.
One group caught my eye for most of the evening. It was made up of gentlemen all dressed in military uniform -- rather splendid military uniforms, obviously designed for just such a royal occasion. It was not the uniforms or even the rows of medals on their chests, but the fact that military members were there at all.
What would the military be doing at a food gig at Buckingham Palace? Well, the answer stopped me short, so short that I have been unable to think of much else since that rather uneventful night -- uneventful except for the firm handshake of Her Majesty the Queen.
The answer in its simplest form was that the uniforms were the catering corps, a corps that has catered all over the world for British soldiers on every battlefield ever since men needed to fight and eat at the same time.
The answer in its most shocking form was that these were the men who would be in control of the food in Britain should we face shortages. Shortages? Yes, shortages, of oil, water and their means of distribution. Shortages of flour, milk and eggs. Shortages of meat, fruit and vegetables.
In fact, should this country suffer from any number of potential problems with our oil-dependent food chain, our very lives could be in the hands of the small group of men standing in a corner in Buckingham Palace. All of Britain's superstar chefs had turned out for this event, but none was more important than the gentlemen who stood watching the rest of us, as we rather arrogantly walked around the room as if food would always be available to perform tricks with, to swear at and make jokes with. Well, food security is a serious issue and I better find out as much as I can about it.
In Britain the big supermarkets dominate our food chain. British supermarkets are some of the best in the world at controlling, manipulating and delivering cheap food. Controlling food and its distribution takes a huge amount of money and energy, but because the British food producer could not keep up with the supermarkets' demands for ever-lower prices, the supermarkets have moved to buying globally.
They turned to the products provided by cheap labor in northern and southern Africa, South America and Asia. But in shifting from Britain to the world, our supermarkets managed to destabilize Britain's food infrastructure. The supermarkets have left behind farmers, milk producers and fishermen. They all have knowledge they should be passing down, but there is no new blood wanting to pick up the rake, the fishing net or the gate latch at 4 a.m.
There is no money in food production in Britain: The supermarkets have taken the potential for a decent living away. The cost to produce milk is higher than the supermarkets are willing to pay. The cost of meat is too high, and the cost of fish is too high.
But the supermarkets reply that they are only trying to "give the customers what they want," so they must go abroad. In this statement is the manipulation. We as customers are led to believe that the low costs we pay are borne by the supermarkets. Well, think again.
It is the producers in this country who are paid such low prices by the supermarkets for their produce that they are going out of business by the hundreds every year, and with it goes their knowledge. The supermarkets are not delivering cheap food, it is the farmers and producers of Britain, and now the world -- and at a cost to the environment too. Increased yield means increased use of fertilizers, pesticides and antibiotics in animals.
About 30% of fresh food is thrown away in supermarkets every day, although they will deny it. British households are throwing an estimated 30% of their food away too. Where are we going with this over-producing, over-consuming super-cheap food system? We are going global with a huge reliance on oil.
But when the oil stops flowing, and our systems fail, no safety procedures are in place to help us. No localized food networks, and no agricultural schools developing our next wave of farmers -- this in a country where the average age for a farmer is 64.
It feels to me as if we are becoming so overly reliant on our supermarket system, that when it breaks down, all we can turn to is military intervention.
Surely we should be striving to teach and educate people how to feed themselves. How to grow food and distribute it locally. How to barter for food items that can bring the essential vitamins and minerals for healthy life.
Be mindful of what supermarkets are doing and demand to see their business practices. Stop throwing away food. Compost as much as you can, eat as locally and as seasonally as you can. Share knowledge and information.
We are stronger as a group than an individual. Think in a cooperative and communal way, set up local food hubs and create growing communities. I have tried to create that type of idea in The People's Supermarket, and hope that it grows in popularity."
What do you think is happening here, or headed this way?
READ MORE - The High Price We Pay For Cheap Food (U.K.)
"Not long ago, I was very kindly invited to Buckingham Palace, as a member of Britain's food industry. Hundreds of very smart foodies turned up, having showered, shaved and left behind their stoves, whisks and knives.
It is a funny thing seeing many of your contemporaries in suits and dresses when you're used to seeing them in their whites and aprons. I spent most of the evening introducing myself or just observing the many groups of people that mingle at occasions like these.
One group caught my eye for most of the evening. It was made up of gentlemen all dressed in military uniform -- rather splendid military uniforms, obviously designed for just such a royal occasion. It was not the uniforms or even the rows of medals on their chests, but the fact that military members were there at all.
What would the military be doing at a food gig at Buckingham Palace? Well, the answer stopped me short, so short that I have been unable to think of much else since that rather uneventful night -- uneventful except for the firm handshake of Her Majesty the Queen.
The answer in its simplest form was that the uniforms were the catering corps, a corps that has catered all over the world for British soldiers on every battlefield ever since men needed to fight and eat at the same time.
The answer in its most shocking form was that these were the men who would be in control of the food in Britain should we face shortages. Shortages? Yes, shortages, of oil, water and their means of distribution. Shortages of flour, milk and eggs. Shortages of meat, fruit and vegetables.
In fact, should this country suffer from any number of potential problems with our oil-dependent food chain, our very lives could be in the hands of the small group of men standing in a corner in Buckingham Palace. All of Britain's superstar chefs had turned out for this event, but none was more important than the gentlemen who stood watching the rest of us, as we rather arrogantly walked around the room as if food would always be available to perform tricks with, to swear at and make jokes with. Well, food security is a serious issue and I better find out as much as I can about it.
In Britain the big supermarkets dominate our food chain. British supermarkets are some of the best in the world at controlling, manipulating and delivering cheap food. Controlling food and its distribution takes a huge amount of money and energy, but because the British food producer could not keep up with the supermarkets' demands for ever-lower prices, the supermarkets have moved to buying globally.
They turned to the products provided by cheap labor in northern and southern Africa, South America and Asia. But in shifting from Britain to the world, our supermarkets managed to destabilize Britain's food infrastructure. The supermarkets have left behind farmers, milk producers and fishermen. They all have knowledge they should be passing down, but there is no new blood wanting to pick up the rake, the fishing net or the gate latch at 4 a.m.
There is no money in food production in Britain: The supermarkets have taken the potential for a decent living away. The cost to produce milk is higher than the supermarkets are willing to pay. The cost of meat is too high, and the cost of fish is too high.
But the supermarkets reply that they are only trying to "give the customers what they want," so they must go abroad. In this statement is the manipulation. We as customers are led to believe that the low costs we pay are borne by the supermarkets. Well, think again.
It is the producers in this country who are paid such low prices by the supermarkets for their produce that they are going out of business by the hundreds every year, and with it goes their knowledge. The supermarkets are not delivering cheap food, it is the farmers and producers of Britain, and now the world -- and at a cost to the environment too. Increased yield means increased use of fertilizers, pesticides and antibiotics in animals.
About 30% of fresh food is thrown away in supermarkets every day, although they will deny it. British households are throwing an estimated 30% of their food away too. Where are we going with this over-producing, over-consuming super-cheap food system? We are going global with a huge reliance on oil.
But when the oil stops flowing, and our systems fail, no safety procedures are in place to help us. No localized food networks, and no agricultural schools developing our next wave of farmers -- this in a country where the average age for a farmer is 64.
It feels to me as if we are becoming so overly reliant on our supermarket system, that when it breaks down, all we can turn to is military intervention.
Surely we should be striving to teach and educate people how to feed themselves. How to grow food and distribute it locally. How to barter for food items that can bring the essential vitamins and minerals for healthy life.
Be mindful of what supermarkets are doing and demand to see their business practices. Stop throwing away food. Compost as much as you can, eat as locally and as seasonally as you can. Share knowledge and information.
We are stronger as a group than an individual. Think in a cooperative and communal way, set up local food hubs and create growing communities. I have tried to create that type of idea in The People's Supermarket, and hope that it grows in popularity."
What do you think is happening here, or headed this way?
Sunday, December 19, 2010
Jobless Benefits Extended--But Hold the Applause
From CNN Money.
"The legislation provides for 13 more months to apply for extended jobless benefits, but not everyone who's unemployed will be eligible for these extended benefits.
In fact, residents in at least five states won't have access to the same level of unemployment benefits as their peers nationwide.
That's because the unemployment rate in those states is improving, so, according to federal law, the jobless there can't receive checks for as long as those in harder-hit states."
Surprise! The 99-weekers are done. I mentioned this stuff when the legislation first passed a week ago. CNN is just now getting this picture?
"Here's how the system works: The jobless collect up to 26 weeks of state benefits before shifting to the extended federal program. Federal benefits consist of up to 53 weeks of emergency compensation, which is divided into four tiers, and up to another 20 weeks of extended benefits. The maximum is 99 weeks.
But not everyone can collect benefits for that long. Extended benefits, as well as the last two tiers of emergency compensation, are tied to state unemployment rates. So as their state job picture brightens, the jobless stop qualifying for long-term benefits.
To be eligible for the fourth tier of emergency benefits, which last up to six weeks, the average state's unemployment rate must be above 8.5% for three months. Similarly, states lose their eligibility for the third tier of benefits, which last up to 13 weeks, if their rate falls below 6%. Extended benefits have a more complicated formula tied to different gauges of unemployment."
Either they find work, or they accept the new reality--frugality and a one-income family.
"Those in the midst of a tier can continue to collect benefits until they exhaust that tier, but they cannot advance to the next level. This does not sit well with those who cannot find a job."
...
"Those that had opposed continuing benefits say another extension would be too expensive and would dissuade people from finding jobs.
Advocates argue that the safety net has always existed during periods of high national unemployment. The Obama administration echoes their position, saying that people will naturally fall off the rolls as state unemployment rates improve."
Poverty should be uncomfortable--Ben Franklin. Why should it be uncomfortable? To encourage you to work hard to get out and stay out of it--it should be something you avoid, not embrace! These people have already had a nearly two-year paid vacation--how much more do they want?
READ MORE - Jobless Benefits Extended--But Hold the Applause
"The legislation provides for 13 more months to apply for extended jobless benefits, but not everyone who's unemployed will be eligible for these extended benefits.
In fact, residents in at least five states won't have access to the same level of unemployment benefits as their peers nationwide.
That's because the unemployment rate in those states is improving, so, according to federal law, the jobless there can't receive checks for as long as those in harder-hit states."
Surprise! The 99-weekers are done. I mentioned this stuff when the legislation first passed a week ago. CNN is just now getting this picture?
"Here's how the system works: The jobless collect up to 26 weeks of state benefits before shifting to the extended federal program. Federal benefits consist of up to 53 weeks of emergency compensation, which is divided into four tiers, and up to another 20 weeks of extended benefits. The maximum is 99 weeks.
But not everyone can collect benefits for that long. Extended benefits, as well as the last two tiers of emergency compensation, are tied to state unemployment rates. So as their state job picture brightens, the jobless stop qualifying for long-term benefits.
To be eligible for the fourth tier of emergency benefits, which last up to six weeks, the average state's unemployment rate must be above 8.5% for three months. Similarly, states lose their eligibility for the third tier of benefits, which last up to 13 weeks, if their rate falls below 6%. Extended benefits have a more complicated formula tied to different gauges of unemployment."
Either they find work, or they accept the new reality--frugality and a one-income family.
"Those in the midst of a tier can continue to collect benefits until they exhaust that tier, but they cannot advance to the next level. This does not sit well with those who cannot find a job."
...
"Those that had opposed continuing benefits say another extension would be too expensive and would dissuade people from finding jobs.
Advocates argue that the safety net has always existed during periods of high national unemployment. The Obama administration echoes their position, saying that people will naturally fall off the rolls as state unemployment rates improve."
Poverty should be uncomfortable--Ben Franklin. Why should it be uncomfortable? To encourage you to work hard to get out and stay out of it--it should be something you avoid, not embrace! These people have already had a nearly two-year paid vacation--how much more do they want?
For Frugal Investors: What to Do While the Fed Plays Ostrich
From Martin Weiss Research.
The article rehashes a lot of Bernanke's failed and failing policies of a weak dollar coupled with a weak interest rate, which I imagine will continue through to 2012. Here's a list of the damage that's occurred just this month:
"November Producer Price Index (PPI) for finished goods surged 0.8 percent, almost double most economists estimates. Moreover, the inflation is not stemming just from rising energy prices. Overall, the cost of food rose 1 full percentage point in November, equivalent to 12 percent annual inflation. Egg prices led the way higher, jumping 23 percent in November, while the price of fruit jumped an astounding 14 percent.
Think these are one-time, freak price jumps?
Think again, because since the first of this month… the price of corn is up more than 3 percent … coffee is up more than 8 percent … sugar is up 8.49 percent … oats are up nearly 6 percent … while cotton prices are up more than 16 percent — all of this in just 15 days!
The consumer price index hasn’t started jumping yet. But just like night follows day, it will as companies pass on higher wholesale costs."
The important part I wanted you to see is this: what to do about it as far as future investment placement goes.
"With interest rates rising and the Fed continuing to print money and buy bonds, despite a zero percent success rate so far, how can you protect yourself?
First, avoid long-term bonds of almost any kind. The longer the maturity on a bond, the more sensitive its price is to interest rate fluctuations. The surge in rates we’re seeing is crushing bond investors and the pain will only get worse the higher rates go.
Second, consider foreign debt as an alternative to U.S. bonds. Many foreign countries are in better fiscal shape than we are. The European PIIGS nations are an obvious exception. But in places like South America and Asia, opportunity abounds. Explore some of the exchange traded funds (ETFs) and mutual funds that invest there, focusing on shorter-term securities.
Third, to hedge your interest rate risk, consider inverse ETFs that RISE in value when bond prices FALL. You can even buy exchange traded notes (ETNs) that allow you to profit from a steepening in the yield curve, like we have now.
Fourth, remember that all bond market meltdowns present opportunity. If you sidestep the price declines — then scoop up bonds when their prices are cheap and their yields are high — you can lock in hefty returns for the long-term. That’s what I plan to do at the right time, and I recommend you do too!"
I'd also like to add dividend plays (ETFs, indexes, funds) to this list, because recently, this was broadcast on Bloomberg. Because Nouriel Roubini doesn't see the government making any serious moves to rectify our debt and deficit problems, the 2011 and possibly 2012 stock markets are going to plunge--traders and investors are going to send the markets a signal that they aren't pleased with the inaction.
To me, this is the first sign of a coming double-dip recession (actually it would be the triple-dip, or West Virginia (WV) economy I've mentioned some time ago). Obama's latest spending bill was actually a stimulus in disguise, and it won't work just like the first and second one didn't.
So what can you do about it? Instead of going down with the ship, jump to a rising one. Stocks are going to tank, so shift to bonds (short- and medium-term ones at first, then longer term ones as the plunge hangs on--this is precisely when to buy bonds), or ride the positive aspects of sinking stocks by riding the dividend horse--as stocks sink in value, the dividend rises to pay you to hang on in tough times. Real estate is another way--either through home-buying, rental buying, or REITS. Continue to stay away from gold, as selling it is more hassle than it's worth, and it isn't useful in any application--not even feeding yourself.
A new opportunity for stocking foodstuffs may also be coming, but it would take a big miracle to do away with the dollar devaluation overnight--just that alone is the cause of 30-40% of our inflation, and a year or two isn't going to erase it completely. When Wall St. sees real and measurable positive effects on reducing the deficit, then traders will have confidence in and will buy our dollar. This will help to erase that currency deflation, and consequently, our hidden inflation. As this devaluation subsides, retailers will no longer have an excuse for raising prices or shrinking product sizes just to eke out a profit, and food prices should come down, even if a little bit.
Is this light at the end of the tunnel? No--we're entering a darker, deeper tunnel. You have to provide your own light, because the government hasn't paid its light bill for decades. The game of politics is one of job security, and politicians are only interested in staying employed, not solving problems--that's for the next administration. Capitol Hill is only going to kick the can down the road--that's all it knows how to do.
READ MORE - For Frugal Investors: What to Do While the Fed Plays Ostrich
The article rehashes a lot of Bernanke's failed and failing policies of a weak dollar coupled with a weak interest rate, which I imagine will continue through to 2012. Here's a list of the damage that's occurred just this month:
"November Producer Price Index (PPI) for finished goods surged 0.8 percent, almost double most economists estimates. Moreover, the inflation is not stemming just from rising energy prices. Overall, the cost of food rose 1 full percentage point in November, equivalent to 12 percent annual inflation. Egg prices led the way higher, jumping 23 percent in November, while the price of fruit jumped an astounding 14 percent.
Think these are one-time, freak price jumps?
Think again, because since the first of this month… the price of corn is up more than 3 percent … coffee is up more than 8 percent … sugar is up 8.49 percent … oats are up nearly 6 percent … while cotton prices are up more than 16 percent — all of this in just 15 days!
The consumer price index hasn’t started jumping yet. But just like night follows day, it will as companies pass on higher wholesale costs."
The important part I wanted you to see is this: what to do about it as far as future investment placement goes.
"With interest rates rising and the Fed continuing to print money and buy bonds, despite a zero percent success rate so far, how can you protect yourself?
First, avoid long-term bonds of almost any kind. The longer the maturity on a bond, the more sensitive its price is to interest rate fluctuations. The surge in rates we’re seeing is crushing bond investors and the pain will only get worse the higher rates go.
Second, consider foreign debt as an alternative to U.S. bonds. Many foreign countries are in better fiscal shape than we are. The European PIIGS nations are an obvious exception. But in places like South America and Asia, opportunity abounds. Explore some of the exchange traded funds (ETFs) and mutual funds that invest there, focusing on shorter-term securities.
Third, to hedge your interest rate risk, consider inverse ETFs that RISE in value when bond prices FALL. You can even buy exchange traded notes (ETNs) that allow you to profit from a steepening in the yield curve, like we have now.
Fourth, remember that all bond market meltdowns present opportunity. If you sidestep the price declines — then scoop up bonds when their prices are cheap and their yields are high — you can lock in hefty returns for the long-term. That’s what I plan to do at the right time, and I recommend you do too!"
I'd also like to add dividend plays (ETFs, indexes, funds) to this list, because recently, this was broadcast on Bloomberg. Because Nouriel Roubini doesn't see the government making any serious moves to rectify our debt and deficit problems, the 2011 and possibly 2012 stock markets are going to plunge--traders and investors are going to send the markets a signal that they aren't pleased with the inaction.
To me, this is the first sign of a coming double-dip recession (actually it would be the triple-dip, or West Virginia (WV) economy I've mentioned some time ago). Obama's latest spending bill was actually a stimulus in disguise, and it won't work just like the first and second one didn't.
So what can you do about it? Instead of going down with the ship, jump to a rising one. Stocks are going to tank, so shift to bonds (short- and medium-term ones at first, then longer term ones as the plunge hangs on--this is precisely when to buy bonds), or ride the positive aspects of sinking stocks by riding the dividend horse--as stocks sink in value, the dividend rises to pay you to hang on in tough times. Real estate is another way--either through home-buying, rental buying, or REITS. Continue to stay away from gold, as selling it is more hassle than it's worth, and it isn't useful in any application--not even feeding yourself.
A new opportunity for stocking foodstuffs may also be coming, but it would take a big miracle to do away with the dollar devaluation overnight--just that alone is the cause of 30-40% of our inflation, and a year or two isn't going to erase it completely. When Wall St. sees real and measurable positive effects on reducing the deficit, then traders will have confidence in and will buy our dollar. This will help to erase that currency deflation, and consequently, our hidden inflation. As this devaluation subsides, retailers will no longer have an excuse for raising prices or shrinking product sizes just to eke out a profit, and food prices should come down, even if a little bit.
Is this light at the end of the tunnel? No--we're entering a darker, deeper tunnel. You have to provide your own light, because the government hasn't paid its light bill for decades. The game of politics is one of job security, and politicians are only interested in staying employed, not solving problems--that's for the next administration. Capitol Hill is only going to kick the can down the road--that's all it knows how to do.
Saturday, December 18, 2010
Frugal Parents Skip Stores and Swap Toys Online
From USA Today.
"Stephanie Edwards-Musa finished her Christmas shopping early this year. Her 13-year-old daughter is getting a PlayStation 2 and clothing from Hollister and Aeropostale. For her 5-year-old son, it's a bundle of toys, mostly "Star Wars"-themed.
The bill? $45.
Edwards-Musa, a Houston Realtor, found these items used on ThredUp.com, an online toy exchange that launched last week. Parent-to-parent swapping sites like this one, growing in popularity, offer families a way to clear their closets of toys and clothes their children have outgrown in exchange for items cast off by older kids."
...
"Thrifty parents are finding plenty of places to barter on the Web. At the online community SwapMamas.com, hip moms trade goods from baby slings to clarinets without any money changing hands. Swap-seekers place hundreds of listings a day on classifieds service Craigslist.org, while parents just looking for freebies gravitate to the local forums on Freecycle.org.
ThredUp CEO James Reinhart says the site has benefited from middle-income Americans' heightened frugality; its membership, now at 50,000, has grown steadily since it debuted with clothing only back in April."
...
"Even in hard times, "parents still want to do whatever it takes to create magic for their kids on Christmas and give them that pleasure," said toy analyst Chris Byrne — one reason toy sales have held steady over the past few years while other categories fell.
Americans spend more than $21 billion a year on toys and games, according to market research firm NPD Group, and many of these items end up getting thrown away or stuffed in basements and attics. ThredUp Marketing Manager Karen Fein says the company expects to save parents $500,000 this holiday season.
Of course, many parents unload their kids' outgrown goods the old-fashioned — and most eco-friendly — way: by handing them down to friends and family.
Used playthings are not always greener, however. Some product-safety groups caution against buying toys secondhand because it's tough to guarantee the products meet safety standards regarding lead and other chemicals. Also, when a resold toy lacks its original packaging, parents may not recognize whether it's age-appropriate or contains pieces that are choking hazards, said Scott Wolfson, spokesman for the U.S. Consumer Product Safety Commission.
Still, the secondhand market for children's clothes and toys generates $3 billion in sales annually. ThredUp's investors, led by Silicon Valley's Trinity Ventures, hope the start-up can carve out a sizeable chunk.
To facilitate a swap, ThredUp provides a flat-rate shipping box a parent can fill with giveaways. The donor lists the contents of the box on the site, where the bundles are organized by age and gender. To claim a box, a user pays $5 to ThredUp plus $10.70 for shipping, and ThredUp e-mails the sender a prepaid shipping label. Members rate each other based on the quality of the stuff they receive.
The emphasis on convenience is a response to what Reinhart sees as "massive inefficiencies" in the used-clothing market. Parents are too busy to spend time "digging through the racks for those diamonds in the rough at Goodwill," he said."
...
"ThredUp users are quick to point out it's not an anonymous marketplace but a community. On the site's Facebook page, members share pictures and make special requests like "any toys with a ladybug theme." For Snowden, a first-time mother, the camaraderie is as enticing as the dirt-cheap stuff.
"I can ask, 'What toys is my baby going to want when she's 2,' and I get a lot of really helpful responses," she said. "These are like-minded people with their own kids, and I trust them."
UPDATE: Now that I've had time to think about this whole thing, it occurs to me that these parents are merely shifting their consumerism to different sources--they aren't actually learning to do without, or teaching their children about what's important in life. Yeah, sure, kids need clothes, and swapping is what should've been going in since birth, but how many of us need a Play Station 2 just to exist? That gift alone is going to generate hundreds of headaches and heartaches when obtaining desired games for it, or even accessories, becomes difficult at best on the used market.
My father once told me a tale of sisters and a dress: it all starts with a dress (Depression days). Then the dress requires a slip, shoes, a hat, a purse, some gloves, nylons, and pretty soon that dress costs three times what the price tag reads. How many other items can you attribute that train of though to...besides game stations? Gardens come to mind, but at least they pay you back in food.
Yeah, okay, so the Play Station didn't end up in a landfill--but it will some day, along with all the rest of the unwanted, obsolete electronics that choke our world as it is.
Another consideration: how much exercise is that kid going to miss out on (and how much future obesity is he/she going to endure) because of being planted in front of the TV on nice days?
Clothes and toys--swap. Occasional dinners--swap. Ideas, tools, and one-use machines/clothing--swap or borrow. Electronics, especially ones that enslave you to the TV and/or marketing--avoid, or swap to get rid of.
As for the question "What toys is my baby going to want when she's 2?" She will want whatever you give her as long as she isn't exposed to marketing and want creation. Our brains don't fully mature until we reach 25, so we don't really know what we want until then. It's the parents job to teach then what they want, and parenting by consensus isn't really parenting--it's guided consumerism.
READ MORE - Frugal Parents Skip Stores and Swap Toys Online
"Stephanie Edwards-Musa finished her Christmas shopping early this year. Her 13-year-old daughter is getting a PlayStation 2 and clothing from Hollister and Aeropostale. For her 5-year-old son, it's a bundle of toys, mostly "Star Wars"-themed.
The bill? $45.
Edwards-Musa, a Houston Realtor, found these items used on ThredUp.com, an online toy exchange that launched last week. Parent-to-parent swapping sites like this one, growing in popularity, offer families a way to clear their closets of toys and clothes their children have outgrown in exchange for items cast off by older kids."
...
"Thrifty parents are finding plenty of places to barter on the Web. At the online community SwapMamas.com, hip moms trade goods from baby slings to clarinets without any money changing hands. Swap-seekers place hundreds of listings a day on classifieds service Craigslist.org, while parents just looking for freebies gravitate to the local forums on Freecycle.org.
ThredUp CEO James Reinhart says the site has benefited from middle-income Americans' heightened frugality; its membership, now at 50,000, has grown steadily since it debuted with clothing only back in April."
...
"Even in hard times, "parents still want to do whatever it takes to create magic for their kids on Christmas and give them that pleasure," said toy analyst Chris Byrne — one reason toy sales have held steady over the past few years while other categories fell.
Americans spend more than $21 billion a year on toys and games, according to market research firm NPD Group, and many of these items end up getting thrown away or stuffed in basements and attics. ThredUp Marketing Manager Karen Fein says the company expects to save parents $500,000 this holiday season.
Of course, many parents unload their kids' outgrown goods the old-fashioned — and most eco-friendly — way: by handing them down to friends and family.
Used playthings are not always greener, however. Some product-safety groups caution against buying toys secondhand because it's tough to guarantee the products meet safety standards regarding lead and other chemicals. Also, when a resold toy lacks its original packaging, parents may not recognize whether it's age-appropriate or contains pieces that are choking hazards, said Scott Wolfson, spokesman for the U.S. Consumer Product Safety Commission.
Still, the secondhand market for children's clothes and toys generates $3 billion in sales annually. ThredUp's investors, led by Silicon Valley's Trinity Ventures, hope the start-up can carve out a sizeable chunk.
To facilitate a swap, ThredUp provides a flat-rate shipping box a parent can fill with giveaways. The donor lists the contents of the box on the site, where the bundles are organized by age and gender. To claim a box, a user pays $5 to ThredUp plus $10.70 for shipping, and ThredUp e-mails the sender a prepaid shipping label. Members rate each other based on the quality of the stuff they receive.
The emphasis on convenience is a response to what Reinhart sees as "massive inefficiencies" in the used-clothing market. Parents are too busy to spend time "digging through the racks for those diamonds in the rough at Goodwill," he said."
...
"ThredUp users are quick to point out it's not an anonymous marketplace but a community. On the site's Facebook page, members share pictures and make special requests like "any toys with a ladybug theme." For Snowden, a first-time mother, the camaraderie is as enticing as the dirt-cheap stuff.
"I can ask, 'What toys is my baby going to want when she's 2,' and I get a lot of really helpful responses," she said. "These are like-minded people with their own kids, and I trust them."
UPDATE: Now that I've had time to think about this whole thing, it occurs to me that these parents are merely shifting their consumerism to different sources--they aren't actually learning to do without, or teaching their children about what's important in life. Yeah, sure, kids need clothes, and swapping is what should've been going in since birth, but how many of us need a Play Station 2 just to exist? That gift alone is going to generate hundreds of headaches and heartaches when obtaining desired games for it, or even accessories, becomes difficult at best on the used market.
My father once told me a tale of sisters and a dress: it all starts with a dress (Depression days). Then the dress requires a slip, shoes, a hat, a purse, some gloves, nylons, and pretty soon that dress costs three times what the price tag reads. How many other items can you attribute that train of though to...besides game stations? Gardens come to mind, but at least they pay you back in food.
Yeah, okay, so the Play Station didn't end up in a landfill--but it will some day, along with all the rest of the unwanted, obsolete electronics that choke our world as it is.
Another consideration: how much exercise is that kid going to miss out on (and how much future obesity is he/she going to endure) because of being planted in front of the TV on nice days?
Clothes and toys--swap. Occasional dinners--swap. Ideas, tools, and one-use machines/clothing--swap or borrow. Electronics, especially ones that enslave you to the TV and/or marketing--avoid, or swap to get rid of.
As for the question "What toys is my baby going to want when she's 2?" She will want whatever you give her as long as she isn't exposed to marketing and want creation. Our brains don't fully mature until we reach 25, so we don't really know what we want until then. It's the parents job to teach then what they want, and parenting by consensus isn't really parenting--it's guided consumerism.
Should You Spend More For Your House to Get Better Schools?
From Fox Business News.
"If you ask Deanne Anderson what a top school is worth, she's got a specific answer: 25 percent of your home's value."
...
"This seemingly subtle difference in school districts has a dramatic impact on home prices, says Anderson, who works for Coldwell Banker in La Cañada. Homes in the Sagebrush area sell for about $100 less a square foot than those in the La Cañada school district."
...
"housing prices in the A-rated districts immediately jumped 10 percent over those in areas where the schools were good, but not great--in other words, where the schools received B or even B+ grades. When schools proved consistently better over time, the price difference got wider.
In fact, Figlio's research confirms Anderson's evaluation almost to the percentage point. He says a consistently top district commands a 23 percent premium in housing prices over homes in even B+ school districts. While housing prices may rise and fall, this cost differential remains, and Realtors say houses in top school districts sell faster, too. But watch out if there's any chance that the schools will deteriorate or re-zone, says Figlio.
"Schools are an asset," he says. "Even people who don't have kids are willing to pay more for houses in a good school district because they know that when they sell, they are going to be able to sell for more."
...
"At today's mortgage rates, you'd be better off spending an extra $75,000 per child on a house with access to good public schools than on even a relatively inexpensive private parochial school.
If you'd send your kids to the pricier non-sectarian schools, boost that figure by $100,000, he says. In reality, private schools would cost you more than $225,000. But Wilson figured you'd pay more for property taxes and insurance with the more expensive home too, so he factored that in for his apples-to-apples comparison."
Okay, I have questions:
1. Is "school score" another intangible that supposedly adds to the perceived value of the house, like neighborhood and ambience?
2. Should people who have no kids (or no kids left at home) even take this into consideration?
3. At the rate in which people move around (more frequently as the housing market sinks), is it even worth the effort to seek out the best school districts and pay more for what amounts to a short-term rental from the bank?
4. Does any of this even take into consideration that school districts can be improved by the people already living in it?
5. What's the point of spending more money when your job outlook is shaky, and the prospect of selling is even shakier?
Instead of spending more money for so-called "better schools", why not work to better the schools you live near RIGHT NOW? This amounts to throwing money at a school problem, and is equivalent to throwing money at a perceived "global warming" problem by buying a hybrid car. It's still a car that takes oil to produce, rare earths to produce, and takes oil to run...not to mention coal in the form of electricity.
What's the point of seeking out better school districts when you know you aren't going to live there for very long? Your money is going to real estate commissions when you sell anyway--the real estate agent will pass on this intangible benefit to the next buyer, getting a higher price (and higher commission) along the way. The house itself hasn't changed, and neither has the school district. Only the perception of value (aided by the agent and his/her "intangibles") has changed.
Can you say M-A-R-K-E-T-I-N-G?
I'm buying a HOUSE, not a school district! That extra money for better districts only ends up in the seller's, agent's, and eventually, the tax collector's pocket, instead of going to improving my own property and its TRUE worth.
Unless you're buying the house when the kids are young (or not even born yet), and plan to stay there until they graduate and go to college, NO IT ISN'T WORTH THE EXTRA MONEY. Living in a "good" school district for a few years out of a kid's life isn't going to help the kid or your wallet...which leads me to another question: how long should you stay in and continue to pay for that "better district" when your own kids are grown and gone, and you have no further use of the "good" school district? Who can afford to buy your house THEN?
READ MORE - Should You Spend More For Your House to Get Better Schools?
"If you ask Deanne Anderson what a top school is worth, she's got a specific answer: 25 percent of your home's value."
...
"This seemingly subtle difference in school districts has a dramatic impact on home prices, says Anderson, who works for Coldwell Banker in La Cañada. Homes in the Sagebrush area sell for about $100 less a square foot than those in the La Cañada school district."
...
"housing prices in the A-rated districts immediately jumped 10 percent over those in areas where the schools were good, but not great--in other words, where the schools received B or even B+ grades. When schools proved consistently better over time, the price difference got wider.
In fact, Figlio's research confirms Anderson's evaluation almost to the percentage point. He says a consistently top district commands a 23 percent premium in housing prices over homes in even B+ school districts. While housing prices may rise and fall, this cost differential remains, and Realtors say houses in top school districts sell faster, too. But watch out if there's any chance that the schools will deteriorate or re-zone, says Figlio.
"Schools are an asset," he says. "Even people who don't have kids are willing to pay more for houses in a good school district because they know that when they sell, they are going to be able to sell for more."
...
"At today's mortgage rates, you'd be better off spending an extra $75,000 per child on a house with access to good public schools than on even a relatively inexpensive private parochial school.
If you'd send your kids to the pricier non-sectarian schools, boost that figure by $100,000, he says. In reality, private schools would cost you more than $225,000. But Wilson figured you'd pay more for property taxes and insurance with the more expensive home too, so he factored that in for his apples-to-apples comparison."
Okay, I have questions:
1. Is "school score" another intangible that supposedly adds to the perceived value of the house, like neighborhood and ambience?
2. Should people who have no kids (or no kids left at home) even take this into consideration?
3. At the rate in which people move around (more frequently as the housing market sinks), is it even worth the effort to seek out the best school districts and pay more for what amounts to a short-term rental from the bank?
4. Does any of this even take into consideration that school districts can be improved by the people already living in it?
5. What's the point of spending more money when your job outlook is shaky, and the prospect of selling is even shakier?
Instead of spending more money for so-called "better schools", why not work to better the schools you live near RIGHT NOW? This amounts to throwing money at a school problem, and is equivalent to throwing money at a perceived "global warming" problem by buying a hybrid car. It's still a car that takes oil to produce, rare earths to produce, and takes oil to run...not to mention coal in the form of electricity.
What's the point of seeking out better school districts when you know you aren't going to live there for very long? Your money is going to real estate commissions when you sell anyway--the real estate agent will pass on this intangible benefit to the next buyer, getting a higher price (and higher commission) along the way. The house itself hasn't changed, and neither has the school district. Only the perception of value (aided by the agent and his/her "intangibles") has changed.
Can you say M-A-R-K-E-T-I-N-G?
I'm buying a HOUSE, not a school district! That extra money for better districts only ends up in the seller's, agent's, and eventually, the tax collector's pocket, instead of going to improving my own property and its TRUE worth.
Unless you're buying the house when the kids are young (or not even born yet), and plan to stay there until they graduate and go to college, NO IT ISN'T WORTH THE EXTRA MONEY. Living in a "good" school district for a few years out of a kid's life isn't going to help the kid or your wallet...which leads me to another question: how long should you stay in and continue to pay for that "better district" when your own kids are grown and gone, and you have no further use of the "good" school district? Who can afford to buy your house THEN?
Dreaming of a Trashy Christmas
From CNN Money.
"In the period between Thanksgiving and New Year's, American households generate 25% more waste. That's about 1 million extra tons of trash each year, according to the Environmental Protection Agency.
That includes everything from food to wrapping paper, holiday decorations, packaging, and old cellphones and laptops that are unceremoniously dumped as soon as the latest models emerge from under the Christmas tree."
...
"Linda Gabor, vice president of marketing for Call2Recycle, which operates a free rechargeable battery and cell phone collection program in North America says that during this season of giving, people should also give some thought to the waste they create.
"After all the gifts are opened on Christmas, this is one last gift that people can give each other that doesn't require any ribbons or bows," said Gabor. "Cut down on trash, recycle and and properly dispose your garbage."
Despite the annual surge in waste during the holidays, Gabor and Berry are encouraged by the recent trends.
In 2008, Americans generated about 250 million tons of trash and recycled and composted 83 million tons of this material, at about a 33.2% percent recycling rate, according to the latest available data from the EPA."
...
"Here are a few simple ways to reduce your holiday waste:
* Christmas trees: Many people think they are helping the environment by not buying a real Christmas tree. Not true, said Berry. "There are 500,000 acres of farmland in North America dedicated to Christmas trees," she said. "When you buy a real tree, you are buying it from one of these farms and not from a national forest." Also, for every tree that's cut down, the farmer will plant three to four new trees. "So you are not contributing to deforestation," she said.
After Christmas, it's important to properly dispose of your tree. Tree recycling programs vary from state to state. The mulch from the recycled tree has many uses, Berry said. You can take it back to your house and use it in your backyard. It's also used in community pathways in parks and in playgrounds. Additionally, Christmas trees are being used on beachfronts as part of erosion protection measures.
* At parties: Lots of leftover food winds up in the trash. Instead, stock up on doggy bags and send leftovers home with the guests. Also, Berry suggests holiday party hosts set up a recycling bin right next to the trash bin to make it convenient for people to separate the garbage from the recycling.
* When gift wrapping: Most of us probably don't realize that the cute shiny wrapping paper is generally not recyclable. It contains dyes and other difficult-to-process additives. Eco-friendly wrapping paper is a better option although it is more expensive that regular wrapping paper, said Berry. Other common-sense tips -- bunch gifts together and use one sheet of wrapping paper. "Old maps or book pages are other creative solutions that don't look tacky," she said.
* When traveling: Many environmentally-conscious holiday travelers already participate in programs that let them use their air miles to offset their carbon footprint. But for those who don't participate, Berry has other tips. "We consume a lot of products en route, such as bottled water, soda, chips and we simply throw these away in the trash at the airport," she said. Some carriers have in-flight recycling programs. But if they don't, simply carry your trash with you and put it in a recycling bin at the airport, if there is one, or once you get home.
* Holiday lights: Always recycle your old Christmas lights. Berry said consumers can find several resources on how to do that through her company or by simply doing a little research."
Speaking of holiday trash, here's what I had to deal with back when I lived in an apartment: Post-Holiday Commentary 2005-2006-2007, Post-Holiday Commentary 2008, Post-Holiday Commentary 2009. Since I now live in a house, the post-holiday commentary will be restricted to my neighbor--other than that, I'm surrounded by retirees whose kids left the nest long ago. As it is, this neighbor regularly overflows her weekly trash (with only one kid), so I'm anxious to see what damage they can do over Christmas.
Back when we lived with the in-laws (eons ago), whatever didn't get saved for next year got burned in the fireplace--the wrapping paper made for some colorful flames.
Needless to say, the people I feel most sorry for over the holidays aren't the poor people, but the trash haulers and dump workers.
READ MORE - Dreaming of a Trashy Christmas
"In the period between Thanksgiving and New Year's, American households generate 25% more waste. That's about 1 million extra tons of trash each year, according to the Environmental Protection Agency.
That includes everything from food to wrapping paper, holiday decorations, packaging, and old cellphones and laptops that are unceremoniously dumped as soon as the latest models emerge from under the Christmas tree."
...
"Linda Gabor, vice president of marketing for Call2Recycle, which operates a free rechargeable battery and cell phone collection program in North America says that during this season of giving, people should also give some thought to the waste they create.
"After all the gifts are opened on Christmas, this is one last gift that people can give each other that doesn't require any ribbons or bows," said Gabor. "Cut down on trash, recycle and and properly dispose your garbage."
Despite the annual surge in waste during the holidays, Gabor and Berry are encouraged by the recent trends.
In 2008, Americans generated about 250 million tons of trash and recycled and composted 83 million tons of this material, at about a 33.2% percent recycling rate, according to the latest available data from the EPA."
...
"Here are a few simple ways to reduce your holiday waste:
* Christmas trees: Many people think they are helping the environment by not buying a real Christmas tree. Not true, said Berry. "There are 500,000 acres of farmland in North America dedicated to Christmas trees," she said. "When you buy a real tree, you are buying it from one of these farms and not from a national forest." Also, for every tree that's cut down, the farmer will plant three to four new trees. "So you are not contributing to deforestation," she said.
After Christmas, it's important to properly dispose of your tree. Tree recycling programs vary from state to state. The mulch from the recycled tree has many uses, Berry said. You can take it back to your house and use it in your backyard. It's also used in community pathways in parks and in playgrounds. Additionally, Christmas trees are being used on beachfronts as part of erosion protection measures.
* At parties: Lots of leftover food winds up in the trash. Instead, stock up on doggy bags and send leftovers home with the guests. Also, Berry suggests holiday party hosts set up a recycling bin right next to the trash bin to make it convenient for people to separate the garbage from the recycling.
* When gift wrapping: Most of us probably don't realize that the cute shiny wrapping paper is generally not recyclable. It contains dyes and other difficult-to-process additives. Eco-friendly wrapping paper is a better option although it is more expensive that regular wrapping paper, said Berry. Other common-sense tips -- bunch gifts together and use one sheet of wrapping paper. "Old maps or book pages are other creative solutions that don't look tacky," she said.
* When traveling: Many environmentally-conscious holiday travelers already participate in programs that let them use their air miles to offset their carbon footprint. But for those who don't participate, Berry has other tips. "We consume a lot of products en route, such as bottled water, soda, chips and we simply throw these away in the trash at the airport," she said. Some carriers have in-flight recycling programs. But if they don't, simply carry your trash with you and put it in a recycling bin at the airport, if there is one, or once you get home.
* Holiday lights: Always recycle your old Christmas lights. Berry said consumers can find several resources on how to do that through her company or by simply doing a little research."
Speaking of holiday trash, here's what I had to deal with back when I lived in an apartment: Post-Holiday Commentary 2005-2006-2007, Post-Holiday Commentary 2008, Post-Holiday Commentary 2009. Since I now live in a house, the post-holiday commentary will be restricted to my neighbor--other than that, I'm surrounded by retirees whose kids left the nest long ago. As it is, this neighbor regularly overflows her weekly trash (with only one kid), so I'm anxious to see what damage they can do over Christmas.
Back when we lived with the in-laws (eons ago), whatever didn't get saved for next year got burned in the fireplace--the wrapping paper made for some colorful flames.
Needless to say, the people I feel most sorry for over the holidays aren't the poor people, but the trash haulers and dump workers.
Friday, December 17, 2010
What Mechanics Hope You Don't Know
From MSN Money.
"Here's a secret that mechanics don't want you to know: You really don't need to have your oil changed every 3,000 miles.
It's a waste of a precious resource -- not to mention money -- to take your car in every 3,000 miles or three months, experts say. Most cars don't need an oil change for 7,500 miles.
* Find the best insurance rates on hundreds of makes and models
"The oil change itself is a loss leader," said Austin Davis, whose family has been in the car-maintenance business in Houston since 1937."
The guy's website: My Honest Mechanic.
""Most repair shops will lose money or at best break even on a $25 to $28 oil change," he said. "The whole idea is to get you to also buy an air filter, rotate your tires or buy something else while you're there."
What they don't want you to know about that is the parts are cheaper at Pep Boys or Napa (or whatever local store you have) than at the mechanic. It's not hard at all to replace an air filter, or even to check your oil color to see if it needs changing.
"Because car manufacturing has become so sophisticated and less reliant on human intervention -- more computers and technology are producing and installing parts, for example -- the car-repair business isn't as robust as it was 10 or even five years ago.
"The easiest way to make up for money that you're losing or to increase profits is to turn up the upsell button on all your services," said Philip Reed, the senior consumer-advice editor for Edmunds.com. "Mechanics want you to get brake jobs earlier than you need them or change oil filters more frequently."
Sometimes, however, we are our worst enemies when it comes to explaining what is wrong with the car and giving away too much information. "Never reveal your budget," said Davis. "If there's steam pouring out of the hood of your Mercedes, don't tell the guy 'I hope this isn't going to cost me $2,000.'
"He'll be thinking, 'How about $1,995,'" he said."
...
"You should use your car manual as your guide. It will tell you at what mileage mark the oil should be changed or the transmission fluids flushed and what intervals that maintenance should follow as well as a host of other upkeep tips.
"If there's a conflict between what the owner's manual recommends and what the dealer recommends, follow the owner's manual," said Reed. "The manufacturer made the car; they should know what it takes to maintain it and keep it running."
Pay attention to the warranty packages. Cars known for dependability will guarantee parts for as many as 70,000 miles. That's almost the equivalent of driving around the earth three times.
"Cars today are just so well made that the failure rates of parts is close to nil," Davis said.
But long before you need to turn the keys over to a mechanic, find one who is trustworthy and with whom you can build a long-lasting relationship.
"If you develop a relationship with your mechanic, you're much less likely to be ripped off," said Brandy Schaffels, the content manager for the TrueCar website. "They'll go out of their way to help you." She had a mechanic who built an air-conditioner compressor by hand at a substantial savings over buying a new one.
"If your instinct tells you that what they're telling you doesn't sound right, double-check it with another mechanic," she said.
Go in prepared. Edmunds.com has a plethora of educational and how-to categories on its site. Davis compiled a maintenance schedule for a variety of cars. See the list here.
Schaffels also recommended purchasing a device that can plug into the car's port and diagnose why the check-engine or brake light is on; that part is available at do-it-yourself car-parts stores."
....
"Here's a primer that will help you from getting scammed by mechanics.
"Be wary of inspections," Davis said. A 40,000-mile inspection package at $400, for example, will call for a check on everything from the oil and brake pads to the door hinges.
"You pay them $400 to tear your car apart and look for additional repairs to sell you," Davis said. "That's a great business model right there."
You don't need to replace or flush transmission fluids until 25,000 to 30,000 miles. Some cars won't need the transmission fluids touched for 50,000 to 60,000 miles and some manufacturers are moving toward using fluid that never needs to be replaced.
Look at the brake pads yourself before committing to new pads and think about changing them yourself. "It's a really well-kept secret that changing a brake pad is pretty easy," Reed said. "People get freaked out with brakes thinking that if they don't do it correctly, the car won't stop. If there's a problem with your brakes, you'll know right away."
Don't fret either if the mechanic says the brakes are about 50% worn down. They don't need to be replaced until they're 85% to 90% worn."
...
"Ask for the replaced parts. Some states may require that the old parts are given to car owners with the itemized bill. But know what you're getting. Davis said he once gave an established customer an old air-conditioning compressor rather than the water pump he replaced to make the point. "We had a nice discussion about what a water pump is, what it does and what it looks like," he said.
Put chalk marks on car tires before having them rotated. Tire rotation is important because it keeps the wear and tear on the tires even and it extends the life of the tires. With all the turning, stopping and parallel parking, the front tires wear out substantially quicker than the back.
When you have them rotated, you are swapping the front tires for the back, not side-to-side or crisscrossing. But it's tough to tell if the tires have been actually changed unless you put chalks marks on them -- say, FL for front left, RR for rear right, etc.
Tire rotations are directly tied to certain mileage marks. There's a 5,000-mile minimum by some manufacturers, but 7,500 miles is the average. Some tires don't have to be rotated for as many as 20,000 miles.
Beware of the check-engine light. It's another profit center for a lot of dealerships and garages. The check-engine light is a sensor that is telling you that something is amiss in the car. It doesn't mean the car will self-destruct or die suddenly on a highway.
"Probably the most common cause of the check-engine light is that the gas cap is not on tight enough," Reed said. The sensor has responded to the extra oxygen going through the gas line and it will go off once the cap has been tightened or the entire tank has been used.
Many mechanics will offer free diagnostic tests to tell you why the check-engine light is on. Consider that another red flag.
"Mechanics can tell you anything once the check-engine light comes on," Reed said.
Ask the mechanic to show you the problems. If the transmission fluid is not pink, but a dark brown, it's time to change it. If it's gritty because of accumulated pieces of metal and plastic, changing it could cause the transmission to slip further. If the dip stick for the transmission smells like barbeque sauce, then there are problems.
"Don't be afraid to ask them to explain these things to you," Davis said.
Keep a precise record of repairs and check them before you bring the car in. Schaffels said she used to keep a log of every tank of gas she purchased, where the mileage stood, what she paid for the gas and how the fuel economy tracked.
"If your vehicle's fuel economy has changed, it tells you that something needs to be adjusted," she said. It could be as simple as putting air in the tires to replacing rotors or plugs.
Know your car. Listen to how it starts and stops, how the wheels and brakes sound when you turn corners or come to quick stops. How does the motor hum? Does it rattle anywhere? Know how your car sounds when it's running well so that you know what sounds bad when it's not
"If you know what it sounds like when it's not running well, that makes it easier for the mechanic to fix the problem," Schaffels said.
Communicate well. The worst thing you could do is throw the keys on the counter and tell the mechanic to figure out what is wrong with the car. Let him know what your problem was, what the sound was you were hearing and from where.
"Give the mechanic enough information about the problem so that he's not spending hours and your money to figure the thing out," Davis said. "You don't walk into your dentist and say, 'I'm pretty sure it's that tooth. Just go ahead and pull it.'"
Be nice. Your car breaks down on your way to work the day of the huge presentation. You're angry and desperate. It's not the mechanic's fault, so don't direct your frustration at him. It could end up costing you. Davis' father charged a 10% penalty premium for customers who were rude to him or his employees because of car breakdowns."
This is why you should date mechanics...or marry them if you can. Sadly, I let one get away, or rather, I traded one for a machinist.
READ MORE - What Mechanics Hope You Don't Know
"Here's a secret that mechanics don't want you to know: You really don't need to have your oil changed every 3,000 miles.
It's a waste of a precious resource -- not to mention money -- to take your car in every 3,000 miles or three months, experts say. Most cars don't need an oil change for 7,500 miles.
* Find the best insurance rates on hundreds of makes and models
"The oil change itself is a loss leader," said Austin Davis, whose family has been in the car-maintenance business in Houston since 1937."
The guy's website: My Honest Mechanic.
""Most repair shops will lose money or at best break even on a $25 to $28 oil change," he said. "The whole idea is to get you to also buy an air filter, rotate your tires or buy something else while you're there."
What they don't want you to know about that is the parts are cheaper at Pep Boys or Napa (or whatever local store you have) than at the mechanic. It's not hard at all to replace an air filter, or even to check your oil color to see if it needs changing.
"Because car manufacturing has become so sophisticated and less reliant on human intervention -- more computers and technology are producing and installing parts, for example -- the car-repair business isn't as robust as it was 10 or even five years ago.
"The easiest way to make up for money that you're losing or to increase profits is to turn up the upsell button on all your services," said Philip Reed, the senior consumer-advice editor for Edmunds.com. "Mechanics want you to get brake jobs earlier than you need them or change oil filters more frequently."
Sometimes, however, we are our worst enemies when it comes to explaining what is wrong with the car and giving away too much information. "Never reveal your budget," said Davis. "If there's steam pouring out of the hood of your Mercedes, don't tell the guy 'I hope this isn't going to cost me $2,000.'
"He'll be thinking, 'How about $1,995,'" he said."
...
"You should use your car manual as your guide. It will tell you at what mileage mark the oil should be changed or the transmission fluids flushed and what intervals that maintenance should follow as well as a host of other upkeep tips.
"If there's a conflict between what the owner's manual recommends and what the dealer recommends, follow the owner's manual," said Reed. "The manufacturer made the car; they should know what it takes to maintain it and keep it running."
Pay attention to the warranty packages. Cars known for dependability will guarantee parts for as many as 70,000 miles. That's almost the equivalent of driving around the earth three times.
"Cars today are just so well made that the failure rates of parts is close to nil," Davis said.
But long before you need to turn the keys over to a mechanic, find one who is trustworthy and with whom you can build a long-lasting relationship.
"If you develop a relationship with your mechanic, you're much less likely to be ripped off," said Brandy Schaffels, the content manager for the TrueCar website. "They'll go out of their way to help you." She had a mechanic who built an air-conditioner compressor by hand at a substantial savings over buying a new one.
"If your instinct tells you that what they're telling you doesn't sound right, double-check it with another mechanic," she said.
Go in prepared. Edmunds.com has a plethora of educational and how-to categories on its site. Davis compiled a maintenance schedule for a variety of cars. See the list here.
Schaffels also recommended purchasing a device that can plug into the car's port and diagnose why the check-engine or brake light is on; that part is available at do-it-yourself car-parts stores."
....
"Here's a primer that will help you from getting scammed by mechanics.
"Be wary of inspections," Davis said. A 40,000-mile inspection package at $400, for example, will call for a check on everything from the oil and brake pads to the door hinges.
"You pay them $400 to tear your car apart and look for additional repairs to sell you," Davis said. "That's a great business model right there."
You don't need to replace or flush transmission fluids until 25,000 to 30,000 miles. Some cars won't need the transmission fluids touched for 50,000 to 60,000 miles and some manufacturers are moving toward using fluid that never needs to be replaced.
Look at the brake pads yourself before committing to new pads and think about changing them yourself. "It's a really well-kept secret that changing a brake pad is pretty easy," Reed said. "People get freaked out with brakes thinking that if they don't do it correctly, the car won't stop. If there's a problem with your brakes, you'll know right away."
Don't fret either if the mechanic says the brakes are about 50% worn down. They don't need to be replaced until they're 85% to 90% worn."
...
"Ask for the replaced parts. Some states may require that the old parts are given to car owners with the itemized bill. But know what you're getting. Davis said he once gave an established customer an old air-conditioning compressor rather than the water pump he replaced to make the point. "We had a nice discussion about what a water pump is, what it does and what it looks like," he said.
Put chalk marks on car tires before having them rotated. Tire rotation is important because it keeps the wear and tear on the tires even and it extends the life of the tires. With all the turning, stopping and parallel parking, the front tires wear out substantially quicker than the back.
When you have them rotated, you are swapping the front tires for the back, not side-to-side or crisscrossing. But it's tough to tell if the tires have been actually changed unless you put chalks marks on them -- say, FL for front left, RR for rear right, etc.
Tire rotations are directly tied to certain mileage marks. There's a 5,000-mile minimum by some manufacturers, but 7,500 miles is the average. Some tires don't have to be rotated for as many as 20,000 miles.
Beware of the check-engine light. It's another profit center for a lot of dealerships and garages. The check-engine light is a sensor that is telling you that something is amiss in the car. It doesn't mean the car will self-destruct or die suddenly on a highway.
"Probably the most common cause of the check-engine light is that the gas cap is not on tight enough," Reed said. The sensor has responded to the extra oxygen going through the gas line and it will go off once the cap has been tightened or the entire tank has been used.
Many mechanics will offer free diagnostic tests to tell you why the check-engine light is on. Consider that another red flag.
"Mechanics can tell you anything once the check-engine light comes on," Reed said.
Ask the mechanic to show you the problems. If the transmission fluid is not pink, but a dark brown, it's time to change it. If it's gritty because of accumulated pieces of metal and plastic, changing it could cause the transmission to slip further. If the dip stick for the transmission smells like barbeque sauce, then there are problems.
"Don't be afraid to ask them to explain these things to you," Davis said.
Keep a precise record of repairs and check them before you bring the car in. Schaffels said she used to keep a log of every tank of gas she purchased, where the mileage stood, what she paid for the gas and how the fuel economy tracked.
"If your vehicle's fuel economy has changed, it tells you that something needs to be adjusted," she said. It could be as simple as putting air in the tires to replacing rotors or plugs.
Know your car. Listen to how it starts and stops, how the wheels and brakes sound when you turn corners or come to quick stops. How does the motor hum? Does it rattle anywhere? Know how your car sounds when it's running well so that you know what sounds bad when it's not
"If you know what it sounds like when it's not running well, that makes it easier for the mechanic to fix the problem," Schaffels said.
Communicate well. The worst thing you could do is throw the keys on the counter and tell the mechanic to figure out what is wrong with the car. Let him know what your problem was, what the sound was you were hearing and from where.
"Give the mechanic enough information about the problem so that he's not spending hours and your money to figure the thing out," Davis said. "You don't walk into your dentist and say, 'I'm pretty sure it's that tooth. Just go ahead and pull it.'"
Be nice. Your car breaks down on your way to work the day of the huge presentation. You're angry and desperate. It's not the mechanic's fault, so don't direct your frustration at him. It could end up costing you. Davis' father charged a 10% penalty premium for customers who were rude to him or his employees because of car breakdowns."
This is why you should date mechanics...or marry them if you can. Sadly, I let one get away, or rather, I traded one for a machinist.
Thursday, December 16, 2010
How to Win the Rebate Game
From PC World.
"For the most part, rebates are a win for the manufacturer or store that offers them. First, rebate offers help bring in business. Second, there is always a percentage of buyers who just don't get around to mailing in the documentation. (See yourself here?) Those people are money in the bank for the seller."
...
"f possible, skip the entire paper mail-in rebate hassle. Instead, focus on instant rebates, where the amount is simply deducted from the price you pay. Many online shopping sites make this an extremely easy proposition.
For instance, tech shopping site Newegg.com maintains an elaborate online Rebate Center, where you can search for products with instant rebates by brand, category, item numbers, and even the amount you want to spend. The day I searched, it had six pages of instant rebates for GPS devices, ranging from $10 to $95 deducted on products priced from $85 to $500.
Other shopping sites offer instant savings that can't be determined and deducted until you put the item in the shopping cart."
...
"While not instant, Amazon.com's rebate center lets you apply for paperless rebates and then view their status online 24 hours later--no stamps necessary. If you're not an Amazon shopper, check to see if your favorite site has something similar.
Some manufacturers, such as Canon and Nikon, hold periodic sales with good instant rebates for high-end products like DSLR cameras and lenses. Usually you have to be proactive to find such events (poking around on sites such as Nikonrumors.com is a great way to keep informed). If you can anticipate such an offer, you can give yourself time to save up to buy a product you really want."
...
"A lot of decent bargains still require paperwork and stamps. Once you dump the completed forms into the mail, however, you often can track the progress of the rebate online. This was the case with my recent purchase of an HTC Droid Incredible smartphone from Verizon Wireless. The salesperson did all the paperwork for me, right down to the addressed envelope, but it was up to me to stamp it and get it into a mailbox.
Once it arrived at the Texas outfit that processes Verizon's rebates, I was able to see the status whenever I chose to log in. I also could see when my $100 rebate debit card was in the mail and on its way to me (although I would have preferred a check). And I could consult the site to see how much money I had left on the card as I spent the rebate. (Verizon made money on me, however: I found $99.22 worth of items to buy with the card, but didn't bother to spend that last 78 cents.)
TigerDirect.com Rebate CenterThe bigger shopping sites also try to smooth the process for you in order to win your business. For instance, at the Newegg center you can search for mail-in rebate offers before you buy, as well as for rebates offered on products you've already purchased.
At the Rebate/Discount Coupon Center for TigerDirect.com, you can search for rebate coupons by manufacturer, your TigerDirect order number, the item number, or the category.
Old-School Mail-In Rules
After you find a good mail-in rebate offer, it's up to you to follow through. Here is some advice--the tricks for ensuring that you get actually get paid don't change much over time.
* Make sure the rebate period has not expired before you buy the product.
* Fill out all the forms correctly. Photocopy everything, including the receipts, before you mail. Learn whether you need to send the original receipt or if a photocopy will do.
* Mail the items as soon as you can. Those who put it off frequently wind up not mailing anything at all.
* Meet the deadlines. They are enforced.
* Note any toll-free numbers that may be useful in the future; if an online rebate-progress site is available, note the URL.
* Check back often to see how your rebate is doing. That way, if a problem crops up, you can fix it in time.
* Mark in your calendar the approximate date the rebate is due to you, so you can spring into action if it doesn't arrive within the promised timeframe.
* Watch your mail carefully. Rebate checks can easily be overlooked as junk mail. Many manufacturers and stores seem to be turning to the rebate debit card instead of checks--but you still need to find the card to use it."
And as always, remember that the amount of the rebate is the amount you overpaid for the item in the first place--that rebate is them giving you your own money back.
READ MORE - How to Win the Rebate Game
"For the most part, rebates are a win for the manufacturer or store that offers them. First, rebate offers help bring in business. Second, there is always a percentage of buyers who just don't get around to mailing in the documentation. (See yourself here?) Those people are money in the bank for the seller."
...
"f possible, skip the entire paper mail-in rebate hassle. Instead, focus on instant rebates, where the amount is simply deducted from the price you pay. Many online shopping sites make this an extremely easy proposition.
For instance, tech shopping site Newegg.com maintains an elaborate online Rebate Center, where you can search for products with instant rebates by brand, category, item numbers, and even the amount you want to spend. The day I searched, it had six pages of instant rebates for GPS devices, ranging from $10 to $95 deducted on products priced from $85 to $500.
Other shopping sites offer instant savings that can't be determined and deducted until you put the item in the shopping cart."
...
"While not instant, Amazon.com's rebate center lets you apply for paperless rebates and then view their status online 24 hours later--no stamps necessary. If you're not an Amazon shopper, check to see if your favorite site has something similar.
Some manufacturers, such as Canon and Nikon, hold periodic sales with good instant rebates for high-end products like DSLR cameras and lenses. Usually you have to be proactive to find such events (poking around on sites such as Nikonrumors.com is a great way to keep informed). If you can anticipate such an offer, you can give yourself time to save up to buy a product you really want."
...
"A lot of decent bargains still require paperwork and stamps. Once you dump the completed forms into the mail, however, you often can track the progress of the rebate online. This was the case with my recent purchase of an HTC Droid Incredible smartphone from Verizon Wireless. The salesperson did all the paperwork for me, right down to the addressed envelope, but it was up to me to stamp it and get it into a mailbox.
Once it arrived at the Texas outfit that processes Verizon's rebates, I was able to see the status whenever I chose to log in. I also could see when my $100 rebate debit card was in the mail and on its way to me (although I would have preferred a check). And I could consult the site to see how much money I had left on the card as I spent the rebate. (Verizon made money on me, however: I found $99.22 worth of items to buy with the card, but didn't bother to spend that last 78 cents.)
TigerDirect.com Rebate CenterThe bigger shopping sites also try to smooth the process for you in order to win your business. For instance, at the Newegg center you can search for mail-in rebate offers before you buy, as well as for rebates offered on products you've already purchased.
At the Rebate/Discount Coupon Center for TigerDirect.com, you can search for rebate coupons by manufacturer, your TigerDirect order number, the item number, or the category.
Old-School Mail-In Rules
After you find a good mail-in rebate offer, it's up to you to follow through. Here is some advice--the tricks for ensuring that you get actually get paid don't change much over time.
* Make sure the rebate period has not expired before you buy the product.
* Fill out all the forms correctly. Photocopy everything, including the receipts, before you mail. Learn whether you need to send the original receipt or if a photocopy will do.
* Mail the items as soon as you can. Those who put it off frequently wind up not mailing anything at all.
* Meet the deadlines. They are enforced.
* Note any toll-free numbers that may be useful in the future; if an online rebate-progress site is available, note the URL.
* Check back often to see how your rebate is doing. That way, if a problem crops up, you can fix it in time.
* Mark in your calendar the approximate date the rebate is due to you, so you can spring into action if it doesn't arrive within the promised timeframe.
* Watch your mail carefully. Rebate checks can easily be overlooked as junk mail. Many manufacturers and stores seem to be turning to the rebate debit card instead of checks--but you still need to find the card to use it."
And as always, remember that the amount of the rebate is the amount you overpaid for the item in the first place--that rebate is them giving you your own money back.
Phone-Wielding Shoppers Strike Fear in Hearts of Retailers
From the Wall St. Journal. Of course--they counted on (and profited from) our lack of ability to comparison shop on the spot, but technology changed all that. Now all we need is a local grocery store price comparison app, and BAM! Coupon queens everywhere will suddenly be unemployed, as will marketers.
"Tri Tang, a 25-year-old marketer, walked into a Best Buy Co. store in Sunnyvale, Calif., this past weekend and spotted the perfect gift for his girlfriend.
Last year, he might have just dropped the $184.85 Garmin global positioning system into his cart. This time, he took out his Android phone and typed the model number into an app that instantly compared the Best Buy price to those of other retailers. He found that he could get the same item on Amazon.com Inc.'s website for only $106.75, no shipping, no tax.
Tri Tang uses his mobile phone app, TheFind, to scan product bar codes and immediately troll online for the best price at various retailers.
Mr. Tang bought the Garmin from Amazon right on the spot. It's so useful," Mr. Tang says of his new shopping companion, a price comparison app called TheFind. He says he relies on it "to make sure I am getting the best price."
...
"Until recently, retailers could reasonably assume that if they just lured shoppers to stores with enticing specials, the customers could be coaxed into buying more profitable stuff, too.
Now, marketers must contend with shoppers who can use their smartphones inside stores to check whether the specials are really so special, and if the rest of the merchandise is reasonably priced.
"The retailer's advantage has been eroded," says Greg Girard of consultancy IDC Retail Insights, which recently found that roughly 45% of customers with smartphones had used them to perform due diligence on a store's prices. "The four walls of the store have become porous."
Some of the most vulnerable merchants: sellers of branded, big-ticket items like electronics and appliances, which often prompt buyers to comparison shop. Best Buy, the nation's largest electronics chain, said Tuesday that it may lose market share this year, a downward trend that some analysts are attributing in part to pressure from price comparison apps."
Unfortunately, the entry fee for that arena is running at about $80/month for the Smartphone voice/data plan. If shopping this way leads to $960 or more per year, it might be worth it. But then again, how often are you going to be in the market for a TV, computer, or other electronic stuff? This is why I 'd like to see an app made for local grocery stores--this way, EVERYBODY can make use of this no matter where they live (since grocery store chains tend to be regional), and EVERYBODY would be sure to save at least the $80/month it would cost just to pay for the phone plan. Since some Smartphones can be found for free (but you have to sign up for certain plans), the cost of these plans could very well be paid for just in grocery savings.
I'm going to look into these now, and in the future, as plan prices will surely drop as time goes by.
"Although store executives publicly welcome a price-transparent world, retail experts don't expect all chains to measure up to the harsh judgment of mobile price comparisons. Some will need to find new ways to survive.
"Only a couple of retailers can play the lowest-price game," says Noam Paransky, senior manager at consultancy Kurt Salmon Associates. "This is going to accelerate the demise of retailers who do not have either competitive pricing" or a standout store experience.
I wrote previously about dwindling competition, dwindling choice, and dwindling sales here (last 2 paragraphs).
Because consumers made more frugal by the economic downturn are flocking to the cheapest offers they can find, comparison shopping via smartphones is making it harder for many retailers to charge higher prices in stores than on their websites."
...
"The shift in consumer behavior also imperils some of the most lucrative aspects of selling in stores, such as the ability to use salespeople to lure customers into making impulse buys, or entice them to buy one thing after they came in for another. A 10-country study by management consultant Accenture this year found that 73% of mobile-powered shoppers preferred peering into their phones for basic assistance over talking to a retail clerk.
For diehard deal-hunters such as Mary Saunders, a Virginia mother of two, the phone is fast becoming the weapon of choice in the battle for the best bargain. Hunting for Christmas gifts on a recent afternoon, Ms. Saunders used her iPhone at several stores to scan bar codes on every item on her children's Christmas wish lists, saving $2 here and $3 there.
Ms. Saunders still gathers newspaper circulars and visits all the big stores near her home in Stephens City, Va., to scrutinize specials. But her phone gives her a new sense of empowerment.
"I am slightly obsessed with getting the best deal," says Ms. Saunders, a substitute teacher. "So to me, the bar code scanner is the coolest thing in the world."
While e-commerce experts say many U.S. retailers have been slow to react to the mobile trend, some are starting to see that there is upside as well as disruption: Now retailers can virtually target customers inside competitors' stores."
...
"The hard sell doesn't stop there. If a customer inside a Best Buy compares prices through TheFind and discovers a better deal elsewhere, the retailer also makes one last pitch for the sale with ads showing them deals on other products at the store, such as a similar Blu-ray player that comes with a free movie disc.
"Instead of letting that person walk out, you are telling the customer, 'Look, we know you're already here, let's make a deal,'" says TheFind's Chief Executive, Siva Kumar. "It is not a consumer-only game. Retailers can use it to their advantage."
READ MORE - Phone-Wielding Shoppers Strike Fear in Hearts of Retailers
"Tri Tang, a 25-year-old marketer, walked into a Best Buy Co. store in Sunnyvale, Calif., this past weekend and spotted the perfect gift for his girlfriend.
Last year, he might have just dropped the $184.85 Garmin global positioning system into his cart. This time, he took out his Android phone and typed the model number into an app that instantly compared the Best Buy price to those of other retailers. He found that he could get the same item on Amazon.com Inc.'s website for only $106.75, no shipping, no tax.
Tri Tang uses his mobile phone app, TheFind, to scan product bar codes and immediately troll online for the best price at various retailers.
Mr. Tang bought the Garmin from Amazon right on the spot. It's so useful," Mr. Tang says of his new shopping companion, a price comparison app called TheFind. He says he relies on it "to make sure I am getting the best price."
...
"Until recently, retailers could reasonably assume that if they just lured shoppers to stores with enticing specials, the customers could be coaxed into buying more profitable stuff, too.
Now, marketers must contend with shoppers who can use their smartphones inside stores to check whether the specials are really so special, and if the rest of the merchandise is reasonably priced.
"The retailer's advantage has been eroded," says Greg Girard of consultancy IDC Retail Insights, which recently found that roughly 45% of customers with smartphones had used them to perform due diligence on a store's prices. "The four walls of the store have become porous."
Some of the most vulnerable merchants: sellers of branded, big-ticket items like electronics and appliances, which often prompt buyers to comparison shop. Best Buy, the nation's largest electronics chain, said Tuesday that it may lose market share this year, a downward trend that some analysts are attributing in part to pressure from price comparison apps."
Unfortunately, the entry fee for that arena is running at about $80/month for the Smartphone voice/data plan. If shopping this way leads to $960 or more per year, it might be worth it. But then again, how often are you going to be in the market for a TV, computer, or other electronic stuff? This is why I 'd like to see an app made for local grocery stores--this way, EVERYBODY can make use of this no matter where they live (since grocery store chains tend to be regional), and EVERYBODY would be sure to save at least the $80/month it would cost just to pay for the phone plan. Since some Smartphones can be found for free (but you have to sign up for certain plans), the cost of these plans could very well be paid for just in grocery savings.
I'm going to look into these now, and in the future, as plan prices will surely drop as time goes by.
"Although store executives publicly welcome a price-transparent world, retail experts don't expect all chains to measure up to the harsh judgment of mobile price comparisons. Some will need to find new ways to survive.
"Only a couple of retailers can play the lowest-price game," says Noam Paransky, senior manager at consultancy Kurt Salmon Associates. "This is going to accelerate the demise of retailers who do not have either competitive pricing" or a standout store experience.
I wrote previously about dwindling competition, dwindling choice, and dwindling sales here (last 2 paragraphs).
Because consumers made more frugal by the economic downturn are flocking to the cheapest offers they can find, comparison shopping via smartphones is making it harder for many retailers to charge higher prices in stores than on their websites."
...
"The shift in consumer behavior also imperils some of the most lucrative aspects of selling in stores, such as the ability to use salespeople to lure customers into making impulse buys, or entice them to buy one thing after they came in for another. A 10-country study by management consultant Accenture this year found that 73% of mobile-powered shoppers preferred peering into their phones for basic assistance over talking to a retail clerk.
For diehard deal-hunters such as Mary Saunders, a Virginia mother of two, the phone is fast becoming the weapon of choice in the battle for the best bargain. Hunting for Christmas gifts on a recent afternoon, Ms. Saunders used her iPhone at several stores to scan bar codes on every item on her children's Christmas wish lists, saving $2 here and $3 there.
Ms. Saunders still gathers newspaper circulars and visits all the big stores near her home in Stephens City, Va., to scrutinize specials. But her phone gives her a new sense of empowerment.
"I am slightly obsessed with getting the best deal," says Ms. Saunders, a substitute teacher. "So to me, the bar code scanner is the coolest thing in the world."
While e-commerce experts say many U.S. retailers have been slow to react to the mobile trend, some are starting to see that there is upside as well as disruption: Now retailers can virtually target customers inside competitors' stores."
...
"The hard sell doesn't stop there. If a customer inside a Best Buy compares prices through TheFind and discovers a better deal elsewhere, the retailer also makes one last pitch for the sale with ads showing them deals on other products at the store, such as a similar Blu-ray player that comes with a free movie disc.
"Instead of letting that person walk out, you are telling the customer, 'Look, we know you're already here, let's make a deal,'" says TheFind's Chief Executive, Siva Kumar. "It is not a consumer-only game. Retailers can use it to their advantage."
5 People Who Peek at Your Credit
From MSN Money.
"Your scores can play a role in your ability to rent an apartment, qualify for a loan or even get a job. They can also affect how much you'll pay on interest charges, insurance and even cell phone contracts.
Make building stellar scores a priority while you're young and you could actually save hundreds or thousands of dollars over your lifetime. However, if you don't take your credit seriously, bad scores -- or even nonexistent scores -- will cost you."
So who's keeping score? Lenders, insurers, landlords, employers, and cell phone carriers. That about covers all your life bases.
"Even if you don't plan on applying for a loan or getting a new apartment or a new insurance policy anytime soon, it's a good idea to start building your credit scores now so they're there when you need them."
...
"Knowing what goes into your credit scores can help you manage your debts well. Here's how to make the best impression on your credit history:
* Pay on time. 35% of your scores depend on your payment history.
* Don't max out your cards. 30% of your scores are based on how much you owe. You want to keep your credit utilization ratio -- the percentage of your credit limit that you've actually used -- no higher than 30% of your available credit limit. And pay off the balance in full every month.
* Start while you're young. 15% depends on the average age of your accounts.
* Avoid opening several accounts at once. Not only will this lower the average age of your accounts, but lenders will worry that you might go on a borrowing binge. 10% of your scores depend on new credit.
* Get the right kind of credit. This accounts for the final 10% of your scores. Your experience with revolving credit, such as credit cards, on which you control how much you charge and pay off each month, carries more weight than installment debt, such as car loans and mortgages, with fixed payments. But don't simply stock up on a pocketful of Visas -- lenders like to see that your money skills are well rounded."
READ MORE - 5 People Who Peek at Your Credit
"Your scores can play a role in your ability to rent an apartment, qualify for a loan or even get a job. They can also affect how much you'll pay on interest charges, insurance and even cell phone contracts.
Make building stellar scores a priority while you're young and you could actually save hundreds or thousands of dollars over your lifetime. However, if you don't take your credit seriously, bad scores -- or even nonexistent scores -- will cost you."
So who's keeping score? Lenders, insurers, landlords, employers, and cell phone carriers. That about covers all your life bases.
"Even if you don't plan on applying for a loan or getting a new apartment or a new insurance policy anytime soon, it's a good idea to start building your credit scores now so they're there when you need them."
...
"Knowing what goes into your credit scores can help you manage your debts well. Here's how to make the best impression on your credit history:
* Pay on time. 35% of your scores depend on your payment history.
* Don't max out your cards. 30% of your scores are based on how much you owe. You want to keep your credit utilization ratio -- the percentage of your credit limit that you've actually used -- no higher than 30% of your available credit limit. And pay off the balance in full every month.
* Start while you're young. 15% depends on the average age of your accounts.
* Avoid opening several accounts at once. Not only will this lower the average age of your accounts, but lenders will worry that you might go on a borrowing binge. 10% of your scores depend on new credit.
* Get the right kind of credit. This accounts for the final 10% of your scores. Your experience with revolving credit, such as credit cards, on which you control how much you charge and pay off each month, carries more weight than installment debt, such as car loans and mortgages, with fixed payments. But don't simply stock up on a pocketful of Visas -- lenders like to see that your money skills are well rounded."
From the Tax God: Last-Minute Moves to Reduce Your Taxes
From MSN Money.
"Your tax planning for your 2010 return should have started last December. It's more complicated this year because tax laws have changed again. They always do.
Still, there are moves you can and should make before Dec. 31 to trim your 2010 tax bill.
Let's start with the simple things:
FSA spending
mortgage interest
real estate taxes
homebuyer credits
pension or IRA contributions
medical or miscellaneous deductions
capital gains/losses"
Now, the not-so-simple things:
AMT
buy stuff (such as energy-efficient appliances)
Please refer to the original article link above for details on each. For year-round advice, check out Jeff Schnepper's "Pay Zero Taxes" books, and find out why I call him my tax god.
READ MORE - From the Tax God: Last-Minute Moves to Reduce Your Taxes
"Your tax planning for your 2010 return should have started last December. It's more complicated this year because tax laws have changed again. They always do.
Still, there are moves you can and should make before Dec. 31 to trim your 2010 tax bill.
Let's start with the simple things:
FSA spending
mortgage interest
real estate taxes
homebuyer credits
pension or IRA contributions
medical or miscellaneous deductions
capital gains/losses"
Now, the not-so-simple things:
AMT
buy stuff (such as energy-efficient appliances)
Please refer to the original article link above for details on each. For year-round advice, check out Jeff Schnepper's "Pay Zero Taxes" books, and find out why I call him my tax god.
Wednesday, December 15, 2010
4 Ways We Waste Our Money + Bonus
From MSN Money.
1. Credit card interest rates and fees
2. Overdraft fees
3. Unused memberships, rebates and gift cards (same for premium TV channels that go unused most of the time)
4. Airline fees
See original article link above for details on each.
BONUS:
5. Emulating coupon queens, tightwad kings, gift card queens, and other clever and inventive ways of getting around the real work of belt-tightening, doing all manner of things to avoid feeling the real pain of cutting back, and failing to realize the gains made from doing so. Otherwise known as ENGAGING IN FALSE ECONOMIES. Plenty of people are getting paid handsomely to pull the wool over your eyes: Jill Cataldo and her Super Coupon Queen lectures/DVDs, Mr. Tightwad and his newspaper column/blog, the inventor of the Grocery and Drugstore Games, and others getting paid for their stories that in the end turn out to be bogus. Everybody's making money (except me) telling you how to save it--some racket!
READ MORE - 4 Ways We Waste Our Money + Bonus
1. Credit card interest rates and fees
2. Overdraft fees
3. Unused memberships, rebates and gift cards (same for premium TV channels that go unused most of the time)
4. Airline fees
See original article link above for details on each.
BONUS:
5. Emulating coupon queens, tightwad kings, gift card queens, and other clever and inventive ways of getting around the real work of belt-tightening, doing all manner of things to avoid feeling the real pain of cutting back, and failing to realize the gains made from doing so. Otherwise known as ENGAGING IN FALSE ECONOMIES. Plenty of people are getting paid handsomely to pull the wool over your eyes: Jill Cataldo and her Super Coupon Queen lectures/DVDs, Mr. Tightwad and his newspaper column/blog, the inventor of the Grocery and Drugstore Games, and others getting paid for their stories that in the end turn out to be bogus. Everybody's making money (except me) telling you how to save it--some racket!
The Internet Knows What You Keep Private
From CNN Money.
"Two simple pieces of data -- your name and e-mail address -- can unlock a shocking number of details about you, even if you consider yourself to be a very private person who carefully guards your online identity.
Just ask CNNMoney anchor Poppy Harlow. She doesn't have a personal Facebook profile. She doesn't have a LinkedIn account. She is on Twitter, but she typically limits her tweets to links for CNNMoney stories and videos."
...
"Yet starting with only those two bits of information, Poppy's e-mail and name, a privacy researcher's searches across multiple online databases turned up information she found startlingly personal: Her father died of cancer at a young age. She has a half-brother. She's Episcopalian. She's not married. She and her father both went to Columbia University. She rents her apartment. Poppy is a nickname.
Then, there was the more private stuff. Her birthday. Years-old photos with friends. Her shopping habits. And some guesstimates about her salary and her family's financial background -- inaccurate ones, it turned out."
Your Facebook login is worth gold to marketers--hell, ANY login is worth gold!
...
"ReputationDefender, an online privacy company, compiled the dossier on Poppy at CNNMoney's request to illustrate just how much information is lurking around online -- hidden, but accessible to those motivated to go hunt it down. ReputationDefender does not create or sell these dossiers on people; instead, its business is selling consumers tools to control their online personal data."
...
"But other companies are gathering up those personal details and creating similar dossiers for commercial gain. Called "data miners" or "aggregators," they crawl the Web scooping up tidbits.
Much of what they collect is public information from things like voter registration records and telephone books, but the real treasure trove comes from social networks, which provide photos, interests, activities and a list of your friends. The most advanced aggregators can even tie your Web browsing behavior to your online profile.
One individual source of information may not be all that revealing -- but when you tie multiple sources together, you can paint a pretty detailed picture. Your Amazon.com wish list, public Facebook profile, Pandora playlists and Picasa albums individually may not say much about you, but your name, shopping habits, list of friends, musical tastes and photographs combined say a lot about who you are."
...
"Dossiers will be built on each of us in the future in a much more intimate way," said Michael Fertik, ReputationDefender' CEO. "This will be used for much more far-reaching and invasive things than advertising."
So if hiring, firing, insurance or even dating decisions are going to be made about us based on our online profiles, what's especially scary is that a lot of the information collected about us is incorrect.
The address ReputationDefender found for Poppy was five years old, her phone number was completely wrong, and her salary information was way off (though Poppy says she'd love to make as much as the search results thought she did).
But even more disturbing are some of the conclusions an automated algorithm could make about Poppy based on online associations with her name. Bankruptcy, prescription drug abuse, Wall Street and Detroit were some of the most frequent words associated with her name -- all because she reports on those subjects daily.
"No one looks underneath your credit score to find out why it is what it is," Fertik said. "Accurate or inaccurate, life decisions are being based on your online personal information. It's going to define you forever."
...and you wonder why you can't find a job. The robots are winning this battle simply because they don't go on the web! Many people can't get a job now because of what they've done to themselves--mismanaged money, and mismanaged their own web presence. They may not have jobs, but by golly they have Facebook accounts that continue to get them in trouble every day (with marketers and employers).
This is one reason why I go by the "wench" name (even in my e-mail accounts), and have no photo in my profile. I'm sure there's a lot of crap available on me from years ago (when the public web was an infant, and users weren't so savvy), but a lot is old and inaccurate just like Poppy's (because I make it that way).
READ MORE - The Internet Knows What You Keep Private
"Two simple pieces of data -- your name and e-mail address -- can unlock a shocking number of details about you, even if you consider yourself to be a very private person who carefully guards your online identity.
Just ask CNNMoney anchor Poppy Harlow. She doesn't have a personal Facebook profile. She doesn't have a LinkedIn account. She is on Twitter, but she typically limits her tweets to links for CNNMoney stories and videos."
...
"Yet starting with only those two bits of information, Poppy's e-mail and name, a privacy researcher's searches across multiple online databases turned up information she found startlingly personal: Her father died of cancer at a young age. She has a half-brother. She's Episcopalian. She's not married. She and her father both went to Columbia University. She rents her apartment. Poppy is a nickname.
Then, there was the more private stuff. Her birthday. Years-old photos with friends. Her shopping habits. And some guesstimates about her salary and her family's financial background -- inaccurate ones, it turned out."
Your Facebook login is worth gold to marketers--hell, ANY login is worth gold!
...
"ReputationDefender, an online privacy company, compiled the dossier on Poppy at CNNMoney's request to illustrate just how much information is lurking around online -- hidden, but accessible to those motivated to go hunt it down. ReputationDefender does not create or sell these dossiers on people; instead, its business is selling consumers tools to control their online personal data."
...
"But other companies are gathering up those personal details and creating similar dossiers for commercial gain. Called "data miners" or "aggregators," they crawl the Web scooping up tidbits.
Much of what they collect is public information from things like voter registration records and telephone books, but the real treasure trove comes from social networks, which provide photos, interests, activities and a list of your friends. The most advanced aggregators can even tie your Web browsing behavior to your online profile.
One individual source of information may not be all that revealing -- but when you tie multiple sources together, you can paint a pretty detailed picture. Your Amazon.com wish list, public Facebook profile, Pandora playlists and Picasa albums individually may not say much about you, but your name, shopping habits, list of friends, musical tastes and photographs combined say a lot about who you are."
...
"Dossiers will be built on each of us in the future in a much more intimate way," said Michael Fertik, ReputationDefender' CEO. "This will be used for much more far-reaching and invasive things than advertising."
So if hiring, firing, insurance or even dating decisions are going to be made about us based on our online profiles, what's especially scary is that a lot of the information collected about us is incorrect.
The address ReputationDefender found for Poppy was five years old, her phone number was completely wrong, and her salary information was way off (though Poppy says she'd love to make as much as the search results thought she did).
But even more disturbing are some of the conclusions an automated algorithm could make about Poppy based on online associations with her name. Bankruptcy, prescription drug abuse, Wall Street and Detroit were some of the most frequent words associated with her name -- all because she reports on those subjects daily.
"No one looks underneath your credit score to find out why it is what it is," Fertik said. "Accurate or inaccurate, life decisions are being based on your online personal information. It's going to define you forever."
...and you wonder why you can't find a job. The robots are winning this battle simply because they don't go on the web! Many people can't get a job now because of what they've done to themselves--mismanaged money, and mismanaged their own web presence. They may not have jobs, but by golly they have Facebook accounts that continue to get them in trouble every day (with marketers and employers).
This is one reason why I go by the "wench" name (even in my e-mail accounts), and have no photo in my profile. I'm sure there's a lot of crap available on me from years ago (when the public web was an infant, and users weren't so savvy), but a lot is old and inaccurate just like Poppy's (because I make it that way).
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