Help Bankruptcy Blog

In our modern, pampered world, many people don’t want to take care of themselves and are always crying out for the government to “do something” about whatever it is that is causing discomfort in their situation.

Unfortunately for all of us, those cries for the government to “do something” do not fall on deaf ears. Politicians will jump at any chance to buy more votes for themselves by “doing something” in the name of helping people.

When government response is applied to the field of economics and prices, just about every action the government takes is going to cause more pain and discomfort than it solves.

The free market, with honest weights and measures, is the most efficient method available to humanity for providing the highest standard of living for the entire population of the globe. Inevitably, if some outside force, such as government, interferes with the free market, it will cause everyone to experience a lower standard of living (with the possible exception of those who directly benefit by the government action, but even then, that is not always true).

Prices are merely the free market’s method of finding a balance between supply and demand.

Let’s use an extreme example of prices for a new Lexus in order to explain the point. Suppose that the price to buy a new Lexus, in today’s dollars, was only $10.00. Yes, ten dollars apiece. How many would you buy? I’d probably buy 50. That would cost about $1,000.00. I would only be limited by the space it required to store them. Everyone would surely want to buy more than just one, and many people would want dozens of them for that price.

It is easy to understand that a low price will encourage an extraordinary amount of demand. The reverse of that is also true. If a new Lexus cost $50,000,000 each in today’s dollars, the company would be able to very, very, very few of them. The exceedingly high price would greatly discourage demand.

If the price is too low, the result it that there is too much demand and the manufacturer can’t keep up. If the price is too high, there is too little demand and the factory goes idle for extended periods of time.

Prices too low will spur too much demand, while prices too high will greatly curtail demand. This also applies to profit. If one company is making an extraordinarily high profit by manufacturing an item, other companies will see this and jump in to make a very similar product. This results in more competition and greater supply. The effect of an increase in supply will be a lowering of prices. That is how supply and demand interact with each other.

Price is like a thermostat that regulates demand and supply. If anyone forcibly plays with that thermostat, it is going to upset the balance of supply and demand.

What often happens when the government gets involved with rising prices is that the central banks start the process by printing too much currency. In so doing, all the well connected insiders get to enjoy the fantastic benefits of the new money by the billions, while the common man doesn‘t. Instead, as this new money gets introduced into the economy, the value of the money gets watered down. It is like taking one gallon of milk, pouring it into two containers, and adding a half a gallon of water to each. Magic, presto! Now you have two gallons of milk.

Except that you don’t. You simply have one gallon that has been diluted by 50%.

The central bank creates out of thin air new money by the billions. Once it is spent into the economy by those that receive it, the effects of that inflation are felt by the entire population several months later in the form of rising prices. As this process continues, at some point the public will cry out for the government to “do something”.

And those wonderful politicians will indeed take some very visible actions by passing a price freeze law. This is price controls. The problem with this approach is that instead of creating price stability for the comfort of the population, it will place more misery and a lower standard of living on the population.

The public yearns for relief from misery, and the government sends even more misery as a result.

How so?

Well, supply, demand, and profit. Let’s return to our example of the Lexus. Let’s assume that a new Lexus sells today for $50,000 dollars. Let’s also say that it cost the company $40,000 to produce it. As the central bank dilutes the value of the currency, the cost to buy that Lexus goes up to $60,000 and cost to manufacture it goes up to $50,000. More central bank dilution of the currency further dilutes the purchasing power and the cost to buy that Lexus goes up to $70,000 and cost to manufacture it goes up to $60,000.

This cycle continues until the cost to buy that Lexus goes up to $200,000 and cost to manufacture it goes up to $190,000. At that point the cries from the public are overwhelming and the government steps in to “do something” about the problem. Instead of doing what it should do and implement an honest currency that cannot be diluted (which would supremely benefit the people and put an end to the well connected insiders stealing from the system for their own benefit by diluting the currency), the government institutes price controls to stop the rising prices.

If the cycle of diluting the currency continues while price controls are in effect, it will bring about dire results. Let’s go back to the example of the Lexus. What if the value of money is further diluted so that the cost to buy that Lexus should be $220,000 and cost to produce it is $205,000, but the government instituted price freezes and Lexus is only able to charge $200,000 due to the recently enacted price control laws? How long will Lexus continue to lose $5,000.00 per car they produce? What if the central bank continues to dilute the currency, and the cost for Lexus to produce a car goes up to $225,000?

You may be asking how the cost for the Lexus company could rise with price controls in effect? Well, Lexus doesn’t buy all the necessary raw materials in the country where the price controls have been enacted. Therefore, their costs can and do go up. The result is that at some point they will stop making their cars, or at a very minimum, stop selling their cars in the country where the price controls exist. No company can exist if it costs it more to make their product than the product can legally be sold for. Therefore the company will simply stop making and selling their product in the country with the price control laws.

With price control laws enacted and a continuing of currency dilution by the central bank, eventually most companies will not be able to function properly and will have to cease making and selling their product in the country with the price control laws. Taken to the natural conclusion of this process, the store shelves will become empty as no company will be making the items needed to restock the shelves.

This is not just some philosophical ivory tower theory. It is reality. Just look back at the Soviet Union a little over a decade ago. Yes, the official price of sausage may be $1.00 per pound, but if there is no sausage available, what good did the official price do? Did it make the people’s lives any better? The grocery store shelves in the Soviet Union were always empty. People would wait in line for hours and even days for the chance to buy what little might become available. 5,000 people lined up to buy 6 chickens. Is that the type of situation that the government wants to create by “doing something”? Cheap auto insurance is one thing, unavailable car insurance is another.

Price controls cause shortages. Honest weights and measures that the elite cannot water down to their own advantage bring about price stability. We will all suffer from shortages when price control laws are passed and enforced. If the current financial trends continue, prices will continue to rise at an ever faster rate. Price controls will likely be passed before Bush’s depression reaches its final end.

Rather than cry for the government to “do something” as a nanny, Americans should demand the total elimination of the current dishonest financial system that only benefits the powerful insiders. Americans should demand that government enforce the Constitution, and re-institute and protect honest weights and measures for the benefit of the people, rather than prevent honest weights and measures for the benefit of the few well-connected insiders.

America needs to wake up before it is too late.

We love our credit cards but the pay back can really bite. If you are one of the millions that have to much credit debt and think your getting over your head you need to know a few things. First your not alone, second there is help for you know matter how much debt you have stacking up. The first thing to do is make a decision to do something, the next is to read this article then start taking action.

Although when a person is in debt it may often feel like the end of the world, it is pleasing to know that it is possible to find help and arrange some relief to help with the situation. Loans that are arranged for emergency debt relief are available from a number of sources and combine all outstanding loans into one with just one payment being made every month to simplify and lower the amount being paid with many loans. These can help to pay off your debts while you make a payment to the loan company or program holder and this may be your best solution as high interest rates tend to increase, and low interest rates climb further up the ladder as well. Debt Help

Their intervention needs to be done fairly early or the ongoing money problem will get worse and may result in a case of bankruptcy if it is allowed to continue. Emergency debt relief is often sought by those individuals who no longer control their finances; this may be the result of a long term problem which has just got out-of-hand. However, it may be a situation where the debts have become unmanageable because of increasing interest rates or a job loss perhaps.

Once these emergency debt relief agencies are involved they can assist with negotiations with credit card companies and other debtors, sometimes helping to lower the amounts owed, thereby reducing the overall burden. There are also programs to help educate people about managing finances which can be arranged through these agencies in the hope that this type of situation will not be repeated. The purpose of these debt relief programs is to open negotiations and arrange settlement figures which can be managed whilst freezing the interest rates.

They agencies help to ensure that finances are handled prudently and more importantly, if someone is worried about their personal information, there’s no need as they are protected under the fraud act for their state. Becoming debt free does not come easy but if a person follows the proper procedure and works at the emergency debt relief program then they should become free of money problems within a few short years. To start the process off, cancel your credit card and replace it with one that has a lower interest rate; then start paying for everything with cash because you will soon learn to budget your expenses.

Each person knows exactly how much money is due for payment each month so must learn to keep a check on this spending then when spare cash is available, a little extra can be paid off; ensuring early payments to creditors are made wherever possible. Many people now have a number of credit cards but only one is really needed so if this is your situation and you have four credit cards cancel three and keep the one with the lowest interest rate; this will reduce how much you have to pay each month. Although none of this will happen overnight, in relation to financial terms, three to five years is the norm which is about the same time that the average personal loan takes to repay.
Personal information security is always a concern but there should be no cause for concern as each individuals personal data is protected by state laws. The thought of being free of financial worries should be enough to work through any problems that may be encountered even with a debt relief program in place. One of the first things to do is arrange a lower interest rate credit card and learn to pay for goods and services with cash as this is a sure way to see just how much money is leaving a bank account.

Everyone knows how much their payments are in addition to how much they earn per month so wherever possible, pay more than just the minimum required; it is always a good habit to pay early and not wait for the final reminder each time. Reducing the number of credit cards will also help so if there are five, then cancel four of them because only one is needed; this will be more manageable and will reduce the payments and interest rates. Clearing debts is never a short term option so a person should be looking at having to make adjustments in their lives for anything up to five years but hopefully this will be a situation that will never repeated.

Good Credit, Credit Guide.

I’ve always been suspect of “stock trading systems”. While I assume that the markets can leave behind footsteps, and they can leave behind tips on the direction of the market, there was no way that any stock trading systems could produce results consistently. I came across Market Club, and decided to review one of their videos which highlights the marketclub trading software.

So with my skeptical eye on things, I started my marketclub trading service review.

The first thing that struck me was that the quality of the videos. They didnt appear like many of the other smooth videos I have seen. What I mean is, so many of these free videos are created by marketers. They talk about all the right things, they show you all the right charts, they an acquaintance who was impressed by the results, and wanted to share them with me.

Sure enough, the video showed me a very easy method of buying and selling stocks. Trade the triangles is the methodology they use to determine the trend of the market. First, they determine the trend based on the monthly chart. A green arrow gives the thumbs up that the trend is up, while a red arrow notes that the trend is down. This also indicates where you should jump in either long or short. Then they switch to a weekly chart. This indicates when to get out, and when to get back in.

Seems too simple doesn’t it.

Unlike other videos, they actually showed a trade that didnt work out initially. That alone suggested to me that they are being honest. Bonus points there.

I checked out every one of the videos they have on their site, many of which provided great opportunities to learn about the markets. Adam Hewison’s comments about oil were bang on what I have been saying for awhile.

So I signed up just to see if this was true. Is it that simple.

As you are no doubt predicting, yes, I was impressed, and yes I made money. Lots of it actually.

The only downside to their methodology is that you’re in trades later than you might want to be (their sell signal recently on AAPL was about $30 from the 52 week high. Of course, if you were in AAPL when they said to first buy, you’re not complaining!). That said, how many times have you wished that you stayed in a trade a little longer and not shaken out at the first wave of selling pressure? MarketClub helps those like me who are tempted to sell at the first push of profit taking, only to watch it push up even higher.

The only downside is that the charting platform is java based, and is rather resource intensive. There is an automatic Fibonacci tool which is very handy, and its easy to move between the weekly and monthly charts.

The biggest benefit to this type of trading system is that you don’t have to watch the markets on a daily basis. I no longer am glued to my computer throughout the day worried about where my stocks are trading at.

They offer a 30 day trial at which time, you can cancel your membership, and get a full refund. I know that in my first MarketClub trade, I made more than the cost of membership. If you follow the “Trade the Triangle” system, I’m confident you wont be contacting them asking for a refund.

Do yourself a favor. Watch the stock market videos they offer, including the Trade Stocks In 90 Seconds, just to see how easy it is. 90 second can make a huge difference in your trading results.

Living life free from debt seems like an unattainable dream to most people. Society has encouraged quantities of debt through financing, credit card and rent-to-own merchandise.
Do you ever feel resentment toward the person you owe or to the item that was purchased? It is hard to enjoy what we feel tied to!

There are three things that should be accomplished in order to become a debt free success. First, an honest cash flow analysis should be created, giving principles should be implemented, and future purchases should be disciplined expenditures according to a
realistic budget. Below is a look at each of these three areas in more detail.

Cash Flow Analysis

In order to understand how to reach the goal of becoming a debt free success an honest assessment of the current financial situation needs to be completed. You can do this yourself by finding a cash flow or budget spreadsheet and tracking your expenditures for the month. Different Excel spreadsheets can be found online at microsoft.com and by searching for “budget templates”. Once you have the template you will utilize this to
track any expenses you have each day no matter how small. In order to gain an accurate picture of spending patterns, the expenditures should be tracked for at least one month (assuming all bills are monthly or more frequent).

Spend time looking at the things that were purchased during the month and how many of those were consumables such as meals eaten out, or coffee drinks from the local coffee house. Finding a less expensive alternative or foregoing these items altogether will allow more money for paying down debt. Becoming a debt free success will take discipline if progress is going to be made on outstanding debt. Consider alternatives such as packing a lunch instead of going out for lunch each day. A healthy and filling lunch can be made for about 25% or less of what it costs to eat out. Saving five dollars a day on meals during the week equates to an additional one hundred dollars a month!

Becoming a Debt Free Christian through Giving

It is a fact that giving attracts positive influence and blessings to those who give. This is a natural law that is used by people everyday both Christian and non-Christian to
achieve wealth and financial blessings. Often overlooked, this principle is very powerful and important step to achieving being a debt free success. Start off with a small amount each month
to your church, as an anonymous gift to a person in need, or to a local charity. Budget this money to come out first in your budget instead of last or it won’t happen.

Using Discipline for Future Purchases through Budgeting

Once you know where your money is being spent and you have dedicated yourself to becoming a giver it is time to focus on the discipline it will take to gradually get a debt free success. If you are married it is very important to be on the same page with the guidelines you have decided upon for future purchases. Make a decision to hold one another accountable for any purchases over a certain dollar amount that you decide
upon.

Keep in mind the goal that you have and the benefits and freedom you will feel once you have become a debt free success.

It may help to print out each debt you have and place them on the refrigerator door so that you can track the progress of the paying down of each bill. It will help to start with your smallest bill no matter what the interest rate is and pay it off first. It is important just to get started and with each bill that is paid off you will gain confidence and have more money to roll onto your next largest debt.

Visit http://www.debt-free-christian.com/ for more information and resources for calculating debt and becoming debt free.

Globalization has brought several opportunities to the average investor who is looking for as many trading opportunities as possible. As little as 20 years ago, the majority of traders were confined to the major US markets to buy and sell their shares. Factor in the stock market holidays, and you were looking at a very set schedule for investing your hard earned money.

Of course, the largest global equity markets reside in North America. Of the major stock markets, none are bigger and trade more volume than the NYSE, Nasdaq and Amex exchanges. Even the TSX trades at a lower volume when the US enjoys a holiday. Therefore, its important to remember the days when the US markets are not open, and plan your trades around this.

There are several variables that make up a trader’s decision to buy or sell, and the timing of a holiday is one of them. Historically, some holidays are better than others for getting in before, and others suggest that its time to sit on some cash. Many larger institutional traders will close positions several days before a holiday, causing lighter trading volume around stock market holidays. This increases the stock market trading risk you’re taking on.

While we have covered other world markets in the past, for our purposes here, we’ll look at the holidays that impact the US stock exchanges.

<ul>
<li>New Years Day - January 1, 2008</li>
<li>Martin Luther King Jr. Day - January 21, 2008</li>
<li>President’s Day - February 18, 2008</li>
<li>Good Friday - March 21, 2008</li>
<li>Memorial Day - May 26, 2008</li>
<li>Independence Day - July 4, 2008</li>
<li>Labor Day - September 1, 2008</li>
<li>Thanksgiving Day - November 27, 2008</li>
<li>Day After Thanksgiving Day - Closes at 1pm</li>
<li>Christmas Eve - December 24, 2008 - Closes at 1pm</li>
<li>Christmas Day - December 25, 2008</li>
</ul>
As with many large companies, there are also some special rules that apply:
<ul>
<li>While not an official holiday, the day after Thanksgiving the markets close at 1pm</li>
<li>If the holiday that is being observed falls on a Saturday, then the market is closed on the proceeding Friday</li>
<li>If the holiday that is being observed falls on a Sunday, then the market is closed on the following Monday</li>
</ul>
<p>Some holidays change from year to year such as:</p>
<ul>
<li>Martin Luther King Jr Day falls on the 3rd Monday in January</li>
<li>Presidents Day falls on the 3rd Monday in February</li>
<li>Memorial Day is celebrated on the last Monday in May</li>
</ul>
Keeping track of the stock market holidays on the exchanges you trade on will help you become a better informed trader.