Beware store credit cards
December 11, 2009 | personal finance | Comments (0)Check ‘n Go blog has some good consumer information.
Stunning
December 9, 2009 | industry, personal finance | Comments (0)Former Federal Reserve Chairman Paul Volcker questions the value of financial innovation. From the story:
Former Federal Reserve Chairman Paul Volcker in a speech today took an axe to one of the banking industry’s most hallowed beliefs — that financial innovation leads to economic vitality.
“I wish that somebody would give me one shred of information about how innovation helped economic growth,” he told attendees at the WSJ’s Future of Finance conference in England.
All financial products were a innovation at one time or another, including bonds, stocks and money itself.
There’s dancing in the streets
December 3, 2009 | alternatives, federal legislation, industry, personal finance | Comments (0)The Washington Post’s “The Color of Money” columnist likes the new overdraft protection rules:
It only took a deep recession but finally the need to protect consumers is outweighing the almighty concern for business to make a buck.
By next summer, financial institutions will be prohibited from charging customers overdraft fees on transactions at automated teller machines and with debit cards unless the customer consents to such overdraft protection.
What the Fed is doing deserves kudos.
“The final overdraft rules represent an important step forward in consumer protection,” Fed Chairman Ben S. Bernanke said.
This issue has legs
December 3, 2009 | alternatives, industry, personal finance | Comments (0)The Washington Post and several other papers are picking up on the FDIC report that says that 25 percent of Americans are unbanked or underbanked:
The Federal Deposit Insurance Corp. survey of so-called unbanked and underbanked consumers marks the government’s most comprehensive effort to quantify a population that has existed largely below the radar of federal regulations and financial institutions. The report found that nearly 22 percent of black households and 71 percent of families earning less than $30,000 do not use banks. In addition, 41 percent of unbanked households felt they were unlikely to open an account in the future.
Cyber bargains
November 30, 2009 | industry, personal finance | Comments (0)Slow news day so we’re posting another item–this about great bargains on the Internet–from YahooFinance:
Where: Apple
When: Ongoing
Exclusively through its online store, Apple is giving customers free engravings on their iPods. It could be a name or a personal message. The deal includes gift packaging and a free message on the packing slip.
Good tips
November 30, 2009 | personal finance | Comments (0)Check ‘n Go blog tells you how to save money on the holidays.
All for it
November 5, 2009 | alternatives, industry, personal finance | Comments (0)USA Today reports on cities helping the unbanked. Of course, they throw payday lending in with the services the supposedly unbanked people use. They’ll never get it.
People who don’t use banks spend an estimated $1,042 a year on check-cashing services, which charge a percentage of the value of the check, according to a study by the Pew Charitable Trust.
Fear of fees and lack of trust in banks are two main reasons why people do not have bank accounts, the Pew study found. Public scrutiny of overdraft fees on checking accounts, which in 2009 are expected to reach $38.5 billion, has led to congressional legislation that would regulate such fees.
“Clearly lots of lower-income folks are concerned about or have been burned by the tricks and traps of a traditional bank account,” says Paul Leonard of the Center for Responsible Lending. “The big question is whether or not (Bank On programs) are creating sufficient safeguards to prevent the new enrollees from accruing fees.”
Some Bank On programs require banks to waive one set of overdraft fees annually.
“It is a big issue that we need to pay attention to,” says Jerry DeGrieck, who heads Bank On Seattle-King County.
City officials say it is too soon to know whether Bank On participants will really save money but that a bank account is a necessary step toward financial progress for low-income families.
Consumer spending splurges
October 30, 2009 | industry, personal finance | Comments (0)I think tight credit has a lot to do with this. From the story:
Spending adjusted for inflation fell 0.6 percent in September, also the largest decline since December, after rising 1 percent the prior month, the Commerce Department said.
Personal income was flat last month after rising 0.1 percent in August. That was also in line with market expectations.
Real disposable income fell 0.1 percent in September. Despite the fall in income, Americans saved more money last month. Savings increased to an annual rate of $355.6 billion, lifting the saving rate to 3.3 percent from 2.8 percent in August.
The main street credit crunch
October 29, 2009 | industry, personal finance | Comments (0)From the story:
Are we clear? The Obama administration has run the federal deficit up to 12% of GDP, handing out money to favored projects. The banks shift their balance sheet away from risky small business to riskless Treasuries. And the grassroots economy gets crushed.
It’s all going to get worse. The personal savings rate is back up from 0% to around 3%, but it needs to go back to 10% and stay there indefinitely, which means that consumer spending has to drop by 7% or more, more or less permanently.
Well, that’s a downer.
Bad money moves
September 17, 2009 | alternatives, industry, personal finance | Comments (0)From YahooFinance.com:
- Not having emergency reserves.
- Panicking over the market collapse.
- Investing in the “sure” thing.
- Ignoring the fine print.
4 recession regrets
