Forbes wrote that as banks are grappling in their battlefield, they may have civilian casualties. Expect to be bled when banks are given the opportunity to offer a premium service such as overdraft fees and ATM fees for a hefty rate, and that those fees will be increasing and less frequently waived. Banks have realized that they must collect from their customer base in every corner of the market if they are to expect to survive in this gory economic times.
Forbes comforts the reader by offering the same common sense advice I believe in for dealing with the opponent: know the battlefield and plan ahead.
The AP reported on a rough day on another rough day in Wall Street. It is one of the best articles I have read in awhile. Having dropped 800 points during the day, it finished at 370 less than last closing. Indeed it was rough. The article has an interesting statement : “[he] believes investors are sensing that what’s happening in the economy is a shift in the extent to which consumers and businesses take on debt.” I am interested in seeing how this will carry out. Will we have some way of engaging self-finance? It is obvious that will change banking, but how will it affect other markets. We can assume technology through forms of automation.
Also significant in the article is Joseph V. Battipaglia’s discussion on the deleveraging of economies and the open discussion that this phenomenon is occurring right now and very quickly. It will be interesting to see what will happen after the deleveraging of the economies, which is omitted from the article. I expect it to have some radical impacts on politics and perhaps even borders.
I also appreciate the candidness which fund manager Ryan Jacob openly admits that other big name players are still attempting to gain ground in the market, mentioning Buffett’s new checkmate and the melee over Wachovia.
You can find the article here.
Much of the world’s economy is based on the dollar and the dollar’s value has dropped. As a result, the price of food is increasing on a global scale. The economic advisors from seven of the largest economic-countries met along with the International Monetary Fund and the World Bank Group.
All members recognized the impact that the falling dollar has had on food, and more important the all agree that price control and subsidies are not the answer because they “tend to create fiscal burdens and distortions.”
Interestingly enough, for the first time in a long time, the G7 is breaking the mold by bringing into action a move to slow the foreign exchange markets, hoping to put a halt to the dollar’s decline.
With reports such as this one at Bloomberg, shed some alarming light into the dark world of the U.S. real estate economy. Some of the highlights include a 16 percent decrease in the average price of a home in Tampa while San Diego is the third worst in the nation, with a 21 percent plummet in value. Sacramento’s value dropped the most at 28%.
Watching this happen, I kind of believe it’s just beginning. I don’t know exactly how long it will continue, but I’m sure it’s not over, and I know things will turn around again. I feel that we’ll be experiencing more factors over the coming months that will be pulling down the value of home prices even more. We’re also seeing an increase in the unemployment filings, and as those increase we will likely expect to a corresponding increase in foreclosures which will affect the overall value of homes. Interestingly enough, the decrease in value will also affect tax revenue related to price of homes which has a negative impact on civic infrastructure.
I recently got an offer from one of my credit cards for a lower interest rate for balance transfers. I had already received an increase in my limit, and thought it would be a good opportunity for me. The promotional balance transfer rate is only for 3 months, but even after it’s over, the interest rate was better than another card with a balance, so I went for it.
Here’s where I saw the new strategy. The promotional rate will automatically be extended for another 9 months if I have another balance transfer post before before the current promotional period ends.
That’s some incentive to make sure I do another one.