This deduction is only applicable to new foreign or domestic cars less than $49,500 and weigh less no more than 8,500 pounds (some SUV and trucks also qualify for this). The deduction is only available to families making less than $260,000 (or $135,000 for single filers).
Sunday, February 22, 2009
Friday, February 13, 2009
Stimulus: How it may affect your wallet
By Jeanne Sahadi, CNNMoney.com senior writer
Last Updated: February 13, 2009: 12:50 PM ET
NEW YORK (CNNMoney.com) -- Key lawmakers in the Senate and House have reached a compromise on a final economic recovery package.
The new stated topline price tag: $787 billion. That's below both the $820 billion House-passed version and the $838 billion Senate-passed version.
The compromises that the House, Senate and White House made have changed the scope of a number of provisions, including those affecting individuals directly. In some cases, they either reduced or expanded a benefit relative to what appeared in the Senate or House versions of the bill.
Here's a look at some of the provisions that will have a direct effect on individuals in their paychecks, on their tax returns, and with regard to their unemployment benefits and health insurance if they've lost a job.
The information below is based on materials put out by the key committees in the House and Senate as well as House Speaker Nancy Pelosi, D-Calif.
Making Work Pay Credit: The bill provides a $400 credit per worker and a $800 credit per dual-earner couple. The full credit would be paid to people making $75,000 or less ($150,000 per dual-earner couple). A partial credit would be paid to those making above those amounts but no more than $100,000 ($200,000 for couples).
The credit would also be refundable, which means that even very low-income families who don't make enough to owe income tax would be able to claim it.
For most working individuals, the credit will be paid over time at roughly $15 per period, assuming 26 pay periods in a year. Estimated cost: $116 billion.
One-time payments to those who don't work: For retirees, disabled individuals and others who don't work, the bill provides a one-time $250 payment. Estimated cost: $14.2 billion.
Break for higher income families: The bill includes a one-year provision to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax. The AMT was intended primarily for high-income taxpayers but has in recent years threatened to engulf those lower down the income scale. Estimated cost: $70 billion.
Temporary deduction for car buyers: The bill would let those who buy a new car, light vehicle, recreational vehicle or motorcycle in 2009 deduct state and local sales taxes as well as any excise tax charged in the purchase. The deduction would be available to those earning less than $125,000 ($250,000 for joint filers). It will be an above-the-line deduction, meaning even taxpayers who don't itemize may take it in addition to the standard deduction. Estimated cost:$1.7 billion.
Temporary credit for home buyers: The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit's expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.
The full credit is available to those making $75,000 or less ($150,000 for joint filers). Estimated cost: $6.6 billion.
New temporary college credit: The bill introduces the American Opportunity Tax Credit, which would be in effect for 2009 and 2010. It expands the existing Hope Scholarship tax credit and would be worth as much as $2,500 for higher education expenses, up from $1,800 currently.
The full credit would be available to those making less than $80,000 ($160,000 for joint filers). Those making between those amounts and $90,000 ($180,000 for joint filers) would get a partial credit. And the break would also be partially refundable, meaning lower income families with little or no tax liability could now claim some of the credit. Estimated cost: $13.9 billion.
Temporary Pell Grant increase: The bill increases the maximum Pell Grant by $500 to $5,350 in 2009 and $5,550 in 2010. Estimated cost: $15.6 billion.
Temporary expansion of child tax credit: The bill increases eligibility for the child tax credit by lowering the income threshold that must be met for the credit to be refundable. The threshold would be lowered to$3,000 for this year and next. That will allow lower income families to claim more of the credit than under current law. Estimated cost: $14.8 billion.
Temporary increase in earned income tax credit: The credit will be temporarily increased to 45% from 40% of qualifying earnings for low-income families with three or more children. It also includes a marriage penalty relief provision for couples who qualify for at least a portion of the credit. Estimated cost: $4.6 billion.
Direct lifeline benefits
Health insurance help for the jobless: The bill includes provisions to help eligible jobless workers pay for health insurance under Cobra. Cobra coverage allows newly unemployed workers to keep health insurance provided by their former employers for a period of time.
For workers who have been laid off between Sept. 1, 2008, and Dec. 31, 2009, the government will subsidize 65% of their premiums under Cobra for up to 9 months.
Those people laid off between Sept. 1, 2008, and the day the stimulus law goes into effect, and who did not sign up for Cobra, will get an additional 60 days to do so and receive the subsidy.
The subsidy will be limited to those whose income for the year is $125,000 or less ($250,000 for couples filing jointly). Estimated cost: $24.7 billion.
Another provision provides states funding to help pay for expanded Medicaid rolls for workers who've lost their jobs and can't afford health care on their own or can't get Cobra coverage because their former employer doesn't offer a health care plan. Estimated cost: $87 billion.
Unemployment benefits: The bill provides jobless workers with an additional 20 weeks in unemployment benefits, and 13 weeks on top of that if they live in what's deemed a high unemployment state, of which there are now about 30. Estimated cost: $27 billion.
In addition, the weekly unemployment benefit will temporarily increase by $25 on top of the roughly $300 jobless workers currently receive. Estimated cost: $8.8 billion.
Plus, the first $2,400 of benefits in 2009 would be exempt from federal income taxes. Estimated cost: $4.7 billion.
Food stamp payments: The bill includes a provision would increase food stamp payments by 13.6%, so a family of four would see an additional $80 on top of the $588 per month they receive currently. Estimated cost: $19.9 billion.
The bill also provides assistance to help local groups providing food and shelter, elderly nutrition services such as Meals on Wheels, and a program to help food banks re-stock their shelves. Estimated cost: $350 million.
Other help for needy families: The bill provides funding to states to create a contingency fund through 2010 for the welfare program called Temporary Assistance for Needy Families, which provides cash assistance to the needy. Estimated cost: $2.4 billion. To top of page
Last Updated: February 13, 2009: 12:50 PM ET
NEW YORK (CNNMoney.com) -- Key lawmakers in the Senate and House have reached a compromise on a final economic recovery package.
The new stated topline price tag: $787 billion. That's below both the $820 billion House-passed version and the $838 billion Senate-passed version.
The compromises that the House, Senate and White House made have changed the scope of a number of provisions, including those affecting individuals directly. In some cases, they either reduced or expanded a benefit relative to what appeared in the Senate or House versions of the bill.
Here's a look at some of the provisions that will have a direct effect on individuals in their paychecks, on their tax returns, and with regard to their unemployment benefits and health insurance if they've lost a job.
The information below is based on materials put out by the key committees in the House and Senate as well as House Speaker Nancy Pelosi, D-Calif.
Making Work Pay Credit: The bill provides a $400 credit per worker and a $800 credit per dual-earner couple. The full credit would be paid to people making $75,000 or less ($150,000 per dual-earner couple). A partial credit would be paid to those making above those amounts but no more than $100,000 ($200,000 for couples).
The credit would also be refundable, which means that even very low-income families who don't make enough to owe income tax would be able to claim it.
For most working individuals, the credit will be paid over time at roughly $15 per period, assuming 26 pay periods in a year. Estimated cost: $116 billion.
One-time payments to those who don't work: For retirees, disabled individuals and others who don't work, the bill provides a one-time $250 payment. Estimated cost: $14.2 billion.
Break for higher income families: The bill includes a one-year provision to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax. The AMT was intended primarily for high-income taxpayers but has in recent years threatened to engulf those lower down the income scale. Estimated cost: $70 billion.
Temporary deduction for car buyers: The bill would let those who buy a new car, light vehicle, recreational vehicle or motorcycle in 2009 deduct state and local sales taxes as well as any excise tax charged in the purchase. The deduction would be available to those earning less than $125,000 ($250,000 for joint filers). It will be an above-the-line deduction, meaning even taxpayers who don't itemize may take it in addition to the standard deduction. Estimated cost:$1.7 billion.
Temporary credit for home buyers: The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit's expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.
The full credit is available to those making $75,000 or less ($150,000 for joint filers). Estimated cost: $6.6 billion.
New temporary college credit: The bill introduces the American Opportunity Tax Credit, which would be in effect for 2009 and 2010. It expands the existing Hope Scholarship tax credit and would be worth as much as $2,500 for higher education expenses, up from $1,800 currently.
The full credit would be available to those making less than $80,000 ($160,000 for joint filers). Those making between those amounts and $90,000 ($180,000 for joint filers) would get a partial credit. And the break would also be partially refundable, meaning lower income families with little or no tax liability could now claim some of the credit. Estimated cost: $13.9 billion.
Temporary Pell Grant increase: The bill increases the maximum Pell Grant by $500 to $5,350 in 2009 and $5,550 in 2010. Estimated cost: $15.6 billion.
Temporary expansion of child tax credit: The bill increases eligibility for the child tax credit by lowering the income threshold that must be met for the credit to be refundable. The threshold would be lowered to$3,000 for this year and next. That will allow lower income families to claim more of the credit than under current law. Estimated cost: $14.8 billion.
Temporary increase in earned income tax credit: The credit will be temporarily increased to 45% from 40% of qualifying earnings for low-income families with three or more children. It also includes a marriage penalty relief provision for couples who qualify for at least a portion of the credit. Estimated cost: $4.6 billion.
Direct lifeline benefits
Health insurance help for the jobless: The bill includes provisions to help eligible jobless workers pay for health insurance under Cobra. Cobra coverage allows newly unemployed workers to keep health insurance provided by their former employers for a period of time.
For workers who have been laid off between Sept. 1, 2008, and Dec. 31, 2009, the government will subsidize 65% of their premiums under Cobra for up to 9 months.
Those people laid off between Sept. 1, 2008, and the day the stimulus law goes into effect, and who did not sign up for Cobra, will get an additional 60 days to do so and receive the subsidy.
The subsidy will be limited to those whose income for the year is $125,000 or less ($250,000 for couples filing jointly). Estimated cost: $24.7 billion.
Another provision provides states funding to help pay for expanded Medicaid rolls for workers who've lost their jobs and can't afford health care on their own or can't get Cobra coverage because their former employer doesn't offer a health care plan. Estimated cost: $87 billion.
Unemployment benefits: The bill provides jobless workers with an additional 20 weeks in unemployment benefits, and 13 weeks on top of that if they live in what's deemed a high unemployment state, of which there are now about 30. Estimated cost: $27 billion.
In addition, the weekly unemployment benefit will temporarily increase by $25 on top of the roughly $300 jobless workers currently receive. Estimated cost: $8.8 billion.
Plus, the first $2,400 of benefits in 2009 would be exempt from federal income taxes. Estimated cost: $4.7 billion.
Food stamp payments: The bill includes a provision would increase food stamp payments by 13.6%, so a family of four would see an additional $80 on top of the $588 per month they receive currently. Estimated cost: $19.9 billion.
The bill also provides assistance to help local groups providing food and shelter, elderly nutrition services such as Meals on Wheels, and a program to help food banks re-stock their shelves. Estimated cost: $350 million.
Other help for needy families: The bill provides funding to states to create a contingency fund through 2010 for the welfare program called Temporary Assistance for Needy Families, which provides cash assistance to the needy. Estimated cost: $2.4 billion. To top of page
Monday, February 9, 2009
Prevent identity theft
Experts say consumers can reduce the risk of fraud by: (1) not sharing personal data with unknown emailers and callers, or on social networking sites and chat rooms; (2) keeping sensitive documents secure; (3) destroying unnecessary data; (4) choosing hard-to-guess passwords and PINs and (5) notifying financial services providers and the Equifax, Experian and TransUnion credit bureaus if fraud is suspected.
Friday, February 6, 2009
2/2009 car deals
Feb 2009 new car deals:
| BMW | 2.9% APR financing (up to 60 months) on most 2009 models | 3/2/09 |
| Buick, GMC, Cadillac,Chevrolet, HUMMER, Pontiac, Saturn, Saab | President's Day Sale - 0% APR financing for up to 60 months, plus up to $2,000 cash back on most models | 3/2/09 |
| Chrysler, Dodge, Jeep | Employee Pricing Plus Plus sale - 0 % APR financing for 36 months, plus employee pricing discounts, plus cash back offers varying by model | 3/2/09 |
| Ford | 0% APR financing for up to 60 months, up to $3,500 cash back many 2009s | 3/31/09 |
| Toyota | Cash back rebates varying by model | 3/2/09 |
| Mazda | 0 - 0.9% APR financing for up to 60 months, up to $3,000 cash back, no payments for 90 days on many models | 3/2/09 |
| Mercedes-Benz | 3.9% APR financing (36 months) on some models | 3/2/09 |
| Volkswagen | 0% APR financing (60 months) on 2009 Passat and Routan, 3.9% APR financing on most models | 3/2/09 |
| Volvo | 0.9% APR financing on 2008 models, up to $1,000 cash back on 2008 and 2009 models | 3/31/09 |
Monday, January 12, 2009
Wal-Mart CEO sees no quick rebound for U.S. economy
The chief executive of Wal-Mart Stores said on Monday that he expects the U.S. economy to remain extraordinarily challenging in the first half of the year and he was not expecting a quick turnaround.
Lee Scott said the U.S. government's efforts to stimulate the economy should have "some impact," but he added: "I don't see anything that tells me it's going to turn around quickly."
"The second half of the year, you would hope, would be better," he said. "We all hope by next Christmas it certainly isn't any worse."
Wal-Mart, the discount giant, has been gaining market share in the past year as consumers seek out its low prices on items such as food and medicine to stretch limited budgets.
But a year-long recession, mounting job losses and tighter access to credit combined to produce the worst holiday sales season in nearly four decades, according to the International Council of Shopping Centers.
Wal-Mart was not immune to the harsh climate and last week posted lower-than-expected December sales and cut its fourth-quarter profit forecast.
Scott said this downturn may fundamentally change people's spending habits.
"I'm not necessarily convinced that just when all this liquidity and things hit, if you're going to have the same immediate desire to go back to consumption and debt," he said, referring to a potential U.S. government stimulus plan.
=========================================
Update 2/13/2009:
Wal-Mart Stores announced Tuesday that it is eliminating as many as 800 positions at its headquarters in an effort to reduce costs.
Saturday, January 10, 2009
Most of nonfarm jobs lost in CA are housing related
In the year ending in November, 71 percent of the nonfarm jobs lost in California were housing-related.
Many of the nation's leading mortgage lenders -- Countrywide Financial, New Century Financial, IndyMac Bancorp, and Fremont General Corp. -- were based in California and have since been bought by larger banks or gone bankrupt.
Friday, January 9, 2009
Unemployment rate rose to 7.2% in December
NEW YORK (CNNMoney.com) -- The unemployment rate rose to 7.2% in December, the highest it has been since 1993.
The government also does report a so-called underemployment rate, which includes some part-time workers as well as people who have given up looking for work during the past year. That figure is now 13.5%.
Prior to 1994, all people who were "discouraged workers" were counted in the unemployment survey. But that's no longer the case. So he believes his number is more of an apples-to-apples comparison to some of the numbers cited about the peak level of unemployment during the Great Depression, which was around 25%.
==============================
2/6/2009 update:
Nationwide: 7.6%
==============================
3/6/2009:
Nationwide: 8.1%
==============================
5/8/2009
Nationwide: 8.9%
The government also does report a so-called underemployment rate, which includes some part-time workers as well as people who have given up looking for work during the past year. That figure is now 13.5%.
Prior to 1994, all people who were "discouraged workers" were counted in the unemployment survey. But that's no longer the case. So he believes his number is more of an apples-to-apples comparison to some of the numbers cited about the peak level of unemployment during the Great Depression, which was around 25%.
==============================
2/6/2009 update:
Nationwide: 7.6%
==============================
3/6/2009:
Nationwide: 8.1%
==============================
5/8/2009
Nationwide: 8.9%
Tuesday, January 6, 2009
U.S. consumer bankruptcy rose to 1.06M in 2008
The American Bankruptcy Institute said overall consumer filings rose to 1.06 million in 2008, compared with 801,840 during 2007. The ABI based its study on data from the National Bankruptcy Research Center.
Monday, January 5, 2009
2008 car sales
For the full year, GM's sales fell 23% to 2.95 million vehicles, Ford's declined 21% to 1.98 million and Toyota's U.S. sales declined 15% to 2.22 million vehicles. Chrysler was the No. 4 manufacturer in 2008, with sales of 1.45 million vehicles, down 30%.
12/2008 car sales down near 30%
The nation's six largest automakers all reported December sales declines of more than 30% Monday, capping the industry's worst year since 1992.
Chrysler -53% (from a year ago)
GM -31%
Toyota -37%
Ford -32%
Honda -35%
Nissan -31%
Mazda -27%
=====================================
Update: 2/13/2009
Last week, Toyota lowered its sales forecast for the current fiscal year to 7.08 million vehicles from an earlier projection of 8.87 million. It also said it expects to suffer a net loss this year for the first time since 1950.
In January, Toyota's U.S. sales fell 32%, compared with a 49% sales plunge for General Motors (GM, Fortune 500) and Ford's (F, Fortune 500) 40% decline. To top of page
Chrysler -53% (from a year ago)
GM -31%
Toyota -37%
Ford -32%
Honda -35%
Nissan -31%
Mazda -27%
=====================================
Update: 2/13/2009
Last week, Toyota lowered its sales forecast for the current fiscal year to 7.08 million vehicles from an earlier projection of 8.87 million. It also said it expects to suffer a net loss this year for the first time since 1950.
In January, Toyota's U.S. sales fell 32%, compared with a 49% sales plunge for General Motors (GM, Fortune 500) and Ford's (F, Fortune 500) 40% decline. To top of page
Thursday, January 1, 2009
SEC completes distribution of $42M fair fund for improper mutual fund practice
The SEC continued its recent string of Fair Funds distributions on Thursday, announcing the completion of a nearly $32 million Fair Fund distribution to current and former customers of Ameriprise Financial Services, Inc. (formerly known as American Express Financial Advisors Inc.) The SEC stated that approximately 575,000 investors were affected by what it alleged were improper mutual fund practices. On April 9, 2008, the SEC approved a distribution plan, and appointed Nelson S. Kibler as the fund administrator responsible for distributing the Fair Fund.
Since June 2008, the SEC has announced Fair Funds distributions in seven other settlements: Franklin-Templeton Investments ($49 million); Banc of America Capital Management ($103 million); Banc of America Securities ($26 million); Spear & Jackson ($5.6 million); Vivendi Universal ($48 million); Janus Capital Management ($18 million); and Putnam Investment Management ($40 million).
Since June 2008, the SEC has announced Fair Funds distributions in seven other settlements: Franklin-Templeton Investments ($49 million); Banc of America Capital Management ($103 million); Banc of America Securities ($26 million); Spear & Jackson ($5.6 million); Vivendi Universal ($48 million); Janus Capital Management ($18 million); and Putnam Investment Management ($40 million).
Sunday, December 28, 2008
Old car trade-in value
When bring a car to a Dealer to trade-in, the Dealer is going to get online to check the prices actually paid for that particular vehicle during the last few days at the Dealer auctions. He won't pay more than he could buy one for at the auction. Dealer lingo for this number is "MMR".
Get values from Kelley Blue Book, NADAGuides and Edmunds.com. Discuss these valuations with the Dealer if his offer looks out of whack. How can he explain his low offer? These pricing guides can be off by thousands of dollars depending on the condition of your car, the location, and time of year.Saturday, December 27, 2008
No change of status on Currency Conversion Fee Antitrust Litigation (MDL 1409)
Last update was in 2/2009, and no new status.
========================================================
12/2009:
There has been no change of status to the case.
========================================================
12/2009:
There has been no change of status to the case.
Thursday, December 25, 2008
Honda Toyota new and used car price
With current global economy situation where there are high unemployment rate, falling real estate value, and negative stock market performance, etc., Toyota announced will lose money this year; and Honda has lowered its profit estimates.
Would anyone who is familiar with the U.S. car retail business comment on how this will be reflected on Honda and Toyota new and used car price?
I would imagine for new car, there will be higher incentive or rebate to customers. For used car, the price would probably go lower.
================
2009 Honda CRV:
1/6/2009 - 2/2/2009 - $500 cash to dealer (marketing support)
2009 Toyota Matrix:
1/8/2009 - 2/2/2009 - $1000 cash to customer
2009 Toyota RAV4:
1/8/2009 - 2/2/2009 - $1500 cash to dealer (marketing support)
=================
1/24/2009 update:
All 2008 and 2009 Chrysler, Dodge and Jeep vehicles will be available at prices similar to those Chrysler employees pay -- typically thousands of dollars below the sticker price.
Would anyone who is familiar with the U.S. car retail business comment on how this will be reflected on Honda and Toyota new and used car price?
I would imagine for new car, there will be higher incentive or rebate to customers. For used car, the price would probably go lower.
================
2009 Honda CRV:
1/6/2009 - 2/2/2009 - $500 cash to dealer (marketing support)
2009 Toyota Matrix:
1/8/2009 - 2/2/2009 - $1000 cash to customer
2009 Toyota RAV4:
1/8/2009 - 2/2/2009 - $1500 cash to dealer (marketing support)
=================
1/24/2009 update:
All 2008 and 2009 Chrysler, Dodge and Jeep vehicles will be available at prices similar to those Chrysler employees pay -- typically thousands of dollars below the sticker price.
In addition, customers will receive discounts of up to $3,500 on 2009 vehicles and $6,000 on 2008 models.
=================
Saturday, December 20, 2008
Unemployment rate continue rising
Nonfarm payroll employment rates rose in 9 states and fell in 41 states and D.C., the department said.
Unemployment:
Michigan: 9.6%
California: 8.4%
Oregon: 8.1%
Unemployment rates continue to rise for about a year after a recession ends.
===================
1/24/2009 update:
California: 9.3%
===================
2/6/2009 update:
Nationwide: 7.6%
===================
2/27/2009 update:
California: 10.1%
===================
3/5/2009 update
Santa Clara County in CA: 9.4% (where Intel, Google, Yahoo, Cisco are.)
Unemployment:
Michigan: 9.6%
California: 8.4%
Oregon: 8.1%
Unemployment rates continue to rise for about a year after a recession ends.
===================
1/24/2009 update:
California: 9.3%
===================
2/6/2009 update:
Nationwide: 7.6%
===================
2/27/2009 update:
California: 10.1%
===================
3/5/2009 update
Santa Clara County in CA: 9.4% (where Intel, Google, Yahoo, Cisco are.)
Simple ways to save money now
. Save gas money. In the past five months gasoline prices have dropped 56%, from an average price of $4.11 to $1.80 a gallon. Also, combine multiple errand trips to one trip, and don't drive your big 4x4 SUV unless necessary.
. If a couple dines out four times in a month the expense is close to $300 in low-cost areas and $600 in higher-cost regions. Cut back on dinning-out to fewer times will save money.
. Get lower cost phone services. Cancel landline long distance service and use phone card or Skype. Reduce cable bill costs by choosing cheaper program package.
. Better insulate your home to reduce winter energy costs.
. Shop smart by doing comparative shopping online, by looking for coupon, by looking for free shipping or lower cost shipping, etc.
. Keep receipt for returning the merchandise, or to get the lower price if the store lower the price further.
. If a couple dines out four times in a month the expense is close to $300 in low-cost areas and $600 in higher-cost regions. Cut back on dinning-out to fewer times will save money.
. Get lower cost phone services. Cancel landline long distance service and use phone card or Skype. Reduce cable bill costs by choosing cheaper program package.
. Better insulate your home to reduce winter energy costs.
. Shop smart by doing comparative shopping online, by looking for coupon, by looking for free shipping or lower cost shipping, etc.
. Keep receipt for returning the merchandise, or to get the lower price if the store lower the price further.
Friday, December 19, 2008
Simple case study of nest egg change from 12 months ago
This is a made up case study in considering a household's assets, for 12 months change. This is to compare with the stats published in the news of 4.7% change in a quarter. I found using the numbers in my case study the asset is down 18.3% for the year and is comparable with the 4.7%/quarter number.
12 months ago:
100,000 cash savings
100,000 stock/bond investment
80,000 IRA (baby boomer average)
207,000 home, no outstanding mortgage (U.S. median price), or consider this as home equity
--------------
487,000 Total nest egg
12/2008:
104,000 cash savings
62,000 stock/bond investment
50,000 IRA
182,000 home (U.S. median price change, down 12.1% from 12 months ago)
---------------
398,000 Total nest egg (or down 18.3% from 12 months ago)
12 months ago:
100,000 cash savings
100,000 stock/bond investment
80,000 IRA (baby boomer average)
207,000 home, no outstanding mortgage (U.S. median price), or consider this as home equity
--------------
487,000 Total nest egg
12/2008:
104,000 cash savings
62,000 stock/bond investment
50,000 IRA
182,000 home (U.S. median price change, down 12.1% from 12 months ago)
---------------
398,000 Total nest egg (or down 18.3% from 12 months ago)
U.S. car makers bail out
NEW YORK (CNNMoney.com) -- President Bush announced a rescue plan for General Motors and Chrysler LLC Friday morning that will make $13.4 billion in federal loans available almost immediately.
The money will come from the $700 billion fund set aside to bail out Wall Street firms and banks in October.
Wednesday, December 17, 2008
Madoff scandal and Ponzi scheme
Bernard Madoff, founder and president of Bernard Madoff Investment Securities, a market-maker for hedge funds and banks, was charged by federal prosecutors in a $50 billion fraud at his advisory business.
Madoff, 70, was arrested today at 8:30 a.m. by the FBI and appeared before U.S. Magistrate Judge Douglas Eaton in Manhattan federal court. Charged in a criminal complaint with a single count of securities fraud, he was granted release on a $10 million bond guaranteed by his wife and secured by his apartment. Madoff’s wife was present in the courtroom.
"It’s all just one big lie," Madoff told his employees on Dec. 10, according to a statement by prosecutors. The firm, Madoff allegedly said, is "basically, a giant Ponzi scheme." He was also sued by the Securities and Exchange Commission.
====
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from the profit from any real business. It is named after Charles Ponzi. The term "Ponzi scheme" is used primarily in the United States, while other English-speaking countries do not distinguish in colloquial speech between this scheme and other forms of pyramid scheme.
A snapshot of the layoffs - 11/2008 and follow up
| Circuit City | 7,300 | 11/3/2008 | Retail |
| Hartford Financial | 500 | 11/4/2008 | Financial |
| GlaxoSmithKline | 1,000 | 11/5/2008 | Pharmaceuticals/Healthcare |
| Fidelity | 1,300 | 11/6/2008 | Financial |
| Mattel | 1,000 | 11/6/2008 | Toy |
| Borgata Hotel Casino | 375 | 11/6/2008 | Hotels Casinos Resorts |
| La-Z-Boy | 850 | 11/6/2008 | Retail |
| Avis | 700 | 11/6/2008 | Auto services |
| Ford | 2,600 | 11/7/2008 | Auto |
| General Motors | 3,600 | 11/7/2008 | Auto |
| DHL Express | 9,500 | 11/10/2008 | Logistics |
| Nortel | 1,300 | 11/10/2008 | Technology |
| Circuit City | 700 | 11/10/2008 | Retail |
| General Motors | 1,900 | 11/10/2008 | Auto |
| Altria | unspecified | 11/10/2008 | Tobacco |
| Horizon Lines | 70 | 11/11/2008 | Logistics |
| Marietta Corp | 130 | 11/11/2008 | Manufacturing |
| Yum Brands | several hundred | 11/12/2008 | Food Service |
| Morgan Stanley | 8,360 | 11/12/2008 | Financial |
| Cessna | 665 | 11/13/2008 | Aerospace |
| ADT | 380 | 11/13/2008 | Security |
| University of Texas | 3,800 | 11/13/2008 | Education |
| Sprint | unspecified | 11/13/2008 | Telecommunications |
| U.S. Steel | 677 | 11/13/2008 | Steel |
| OfficeMax | 245 | 11/13/2008 | Retail |
| Sun Microsystems | 6,000 | 11/14/2008 | Technology |
| Fidelity | 1,700 | 11/14/2008 | Financial |
| Citigroup | 53,000 | 11/17/2008 | Financial |
| Pepsi Bottling Group | 3,000 | 11/18/2008 | Beverages |
| Louisiana-Pacific | 200 | 11/18/2008 | Construction |
| Time Inc. | 600 | 11/19/2008 | Media |
| HSBC Mortgage | 325 | 11/19/2008 | Financial |
| Pilgrim's Pride | 335 | 11/19/2008 | Food Products |
| Boeing | 800 | 11/19/2008 | Aerospace |
| Rolls-Royce Group Plc | 2,000 | 11/19/2008 | Aerospace |
| Akamai Technologies | 110 | 11/19/2008 | Technology |
| Bank of New York Mellon | 1,800 | 11/20/2008 | Financial |
| Wendy's | 59 | 11/20/2008 | Food Service |
| The Associated Press | 400 | 11/20/2008 | Media |
| Washington Mutual | 1,600 | 11/20/2008 | Financial |
| Washington Mutual | 7,600 | 12/1/2008 | Financial |
| U.S. Steel | 3,500 | 12/2/2008 | Steel |
| City of Atlanta | 222 | 12/2/2008 | Government |
| State Street | 1,800 | 12/3/2008 | Financial |
| Jefferies Group | 358 | 12/3/2008 | Financial |
| Adobe Systems | 600 | 12/3/2008 | Technology |
| Carlyle Group | 100 | 12/3/2008 | Financial |
| Credit Suisse Group | 5,300 | 12/4/2008 | Financial |
| AT&T Inc. | 12,000 | 12/4/2008 | Financial |
| DuPont | 2,500 | 12/4/2008 | Chemicals |
| Viacom | 850 | 12/4/2008 | Media |
| NBC Universal | 500 | 12/4/2008 | Media |
| Avis Budget Group Inc. | 2,200 | 12/4/2008 | Auto services |
| Cummins | 500 | 12/5/2008 | Industrial Equipment |
| Newsday | 100 | 12/5/2008 | Media |
| General Motors | 2,000 | 12/5/2008 | Auto |
| Gentex | 400 | 12/5/2008 | Technology |
| Pratt & Whitney | 350 | 12/5/2008 | Aerospace |
| Paetec | 222 | 12/5/2008 | Technology |
| 3M | 1,800 | 12/8/2008 | Miscellaneous |
| Dow Chemical | 5,000 | 12/8/2008 | Chemicals |
| Anheuser-Busch InBev | 1,400 | 12/8/2008 | Beverages |
| Sony Corp | 8,000 | 12/9/2008 | Technology |
| Danaher Corp. | 1,700 | 12/9/2008 | Scientific Equipment |
| Wyndham Worldwide | 4,000 | 12/9/2008 | Hotels Casinos Resorts |
| Novellus | 367 | 12/9/2008 | Scientific Equipment |
| National Football League | 150 | 12/9/2008 | Entertainment, Sports |
| Principal Financial Group | 550 | 12/9/2008 | Financial |
| Rio Tinto | 14,000 | 12/10/2008 | Mining |
| Electronic Arts | unspecified | 12/10/2008 | Technology |
| SKF | 2,500 | 12/10/2008 | Industrial Equipment |
| Office Depot | 2,200 | 12/10/2008 | Retail |
| National Public Radio | 85 | 12/10/2008 | Media |
| Stanley Works | 2,000 | 12/11/2008 | Household and Personal Products |
| Sara Lee | 700 | 12/11/2008 | Food Products |
| Total: | 199,450 |
==========================================
Update: 2/10/2009
NEW YORK (CNNMoney.com) -- General Motors announced Tuesday it is cutting 10,000 workers, or 14% of its salaried jobs worldwide. A third of those job losses will be in the United States.
The troubled automaker also said it will cut the pay for its remaining U.S. salaried staff.
===========================================
Update: 2/13/2009
Hit by expectations of further financial losses, Pioneer Corp. has announced 10,000 job cuts, plant closings in the US and UK, and plans to leave the plasma display market. Job cuts will include 6,000 full-time salaried employees and 4,000 contract workers both in Japan and other countries.
In a move resulting in some 350 job layoffs, the company will shut down two overseas plasma display assembly plants, located in Pomona, California, and Castleford, Britain. Pioneer plans to exit the plasma display business entirely by March of this year, according to wire reports.
=========================
2/24/2009 update:
Employers cut nearly 600,000 jobs in January, the biggest loss since 1974. That sent the unemployment rate to 7.6 percent, the highest in 16 years. Since the recession began in December 2007, companies have cut a net total of nearly 3.6 million jobs. Home Depot Inc., Boeing Co., Pfizer Inc., Caterpillar Inc., Micro (2000), Spansion (3000) each announced job cut.
==========================
3/5/2009 update:
Northrop Grumman to cut 750 jobs.
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