Swift Boating Subprime Lender into Being Honest (Pt. 3)

John Kerry’s heart bleeds for the CRL

Starkman goes on to attack and defend in forgettable style. Click here if you missed parts one or two.

• “Now the Swift Boat-style campaigns against borrowers and their advocates have begun; business journalists just need to be on guard.”

Last I checked, Forbes has a distinguished history of business journalism under it’s belt. Perhaps they also have better sense than to use a political hot-button topic; it comes across as very manipulative, Dean.

But the Burger King might need them…

• “90 percent of payday loans are rolled over, most of them more than five times. Why? Because someone who need a 400 percent loan is probably too strapped to pay it back… if 400-percent loans are so popular, why doesn’t Steve Forbes have one?”

Studies have shown that most payday loan customers earn very livable annual wages, and hence aren’t “too strapped” to pay them back on time. And 90 percent are rolled over and not paid back on time? Where does that data come from? The Center For Responsible Lending? You don’t say?

Regarding the Steve Forbes quip, that’s ridiculous. We all know why Mr. Forbes doesn’t need them. Neither do Tiger Woods, Bill Gates or Ronald McDonald, for that matter.

Those economists! They know nothing of finance!

• Regarding Donald Morgan and Michael Strain’s Federal Reserve research paper “Payday Holiday,” Starkman dismisses the paper as “an academic work that relies on assumptions that only an economist would make.”

What’s the problem now, Mr. Starkman? An academic paper involves meticulous research. Furthermore, wouldn’t the ideas of  expert economists like Morgan and Strain be pertinent to the financial issues America faces. They make it very clear that payday loans are not responsible for the problem. In fact, they show that the battle against payday loans that has been run largely by the Center For Responsible Lending has harmed consumers. Click here to go on to part four and see how Starkman concludes his attempt at journalistic impartiality. ... click here to read the rest of the article titled "Swift Boating Subprime Lender into Being Honest (Pt. 3)"

Center For Responsible Lending: Subprime/Subpar (Pt. 2)

Dean Starkman defends CRL, trips over self

But let’s look at his case against the Forbes article. It’s full of holes. Click here if you missed part one of this story.

• “Payday loans, by the way, are even ranker than subprime mortgage lending, which, despite years of diligent research in sub-basement laboratories, has yet to find a way to charge the working poor 400 percent annual interest rates, as payday lenders do.

The subprime mortgage crisis has hit hundreds of thousands of families in America. It has put hundreds of thousands of people out of their homes, Mr. Starkman. Do not condescend to say that payday loans have had the same effect. It insults the intelligence of your readers. We already know that payday loans are not annual loans, so the 400 percent APR figure you bandy about is a propagandist’s toy. Self-Help, Eakes’ baby and forerunner/forefather to the Center For Responsible Lending, had everything to do with the subprime crisis and America’s economic collapse. Eakes admits this. And since studies have shown that 90 percent of payday loan customers pay on time, that 400 percent APR remains a myth. Try again, Dean.

Payday loans, Goldman Sachs… these two are NOT the same

• “The financial-services industry - from the payday crews to Goldman Sachs - is rightly being blamed for breathtaking corruption that led to the cratering of the U.S. economy and global credit markets.”

Based upon your career history previous to this article, I would conclude that you make a habit of such ridiculous comparisons. But there it is. You are placing payday lenders and Goldman Sachs in the same boat. And of course, you neglect to mention Self-Help, Herbert Sandler or Marvin Eakes‘ role in the subprime meltdown. Payday loans don’t come anywhere close to that kind of damage, they are government-regulated and they inform customers of all fees up front. No surprises. Click here for more of Starkman’s self-satisfied but errant analysis. ... click here to read the rest of the article titled "Center For Responsible Lending: Subprime/Subpar (Pt. 2)"

Taxpayers Strategize About How to Avoid $250K Tax Bracket

Obama proposals raise taxes on high incomes

Some taxpayers say they will try to hold on to more of their money by making less.

President Barack Obama’s budget proposals have drawn the line: $250,000. Many tax hikes and phased out credits will apply to households with annual incomes that cross that line.

A pretty small group of people fall into this category: incomes so close to $250,000 that they could manipulate them to be just lower than the quarter-of-a-million mark.

Always seeking opportunities

Not all people who make this approximate income are opposed to paying the higher taxes. Many people are perfectly happy just having enough money to be comfortable and live without needing payday loans.

However, I can’t say that I was surprised today when I came across an article from ABC News that reports on ways people are trying to skirt taxes.

It’s true, people who make just more than $250,000 could stand to lose more money than they would if they pull in $249,000 instead.

Scaling back business

People with incomes in this range generally are not paid hourly and have plenty of vacation days. So avoiding the extra taxes is more complicated than just skipping work for a few days.

An attorney in Louisiana says she will scale back her business if the Obama tax increases pass. She says she will take on fewer clients to ensure her income falls below the $250,000 mark. ... click here to read the rest of the article titled "Taxpayers Strategize About How to Avoid $250K Tax Bracket"

Search for Bargains Sends Consumers to Secondhand Merchants

Used cars selling well

While regular retailers are still seeing declines in sales and profits, the secondhand sector is doing more business than ever.

Used car sales have gone up significantly, which has been a goldmine for the web site usedcars.com.

Company falls on lucrative times

Sales through usedcars.com jumped significantly. The web site, operated by Dealix, reported sales of $1 million in 2007. Sales jumped up to $5 million in 2008. People are having a tough time getting cheap loans to finance cars, so they are turning to used cars.

The company reports that the dealers it works with sold two new cars to every one used car in 2007. Now dealers are selling two used cars for every new car.

Discount hospital equipment in demand

Centurion Service Group has seen an increase in sales of used hospital equipment through its web site, centurionservice.com. The company buys up all the surplus medical equipment it can find and sells it through live online auctions.

Closures keep merchandise flowing in

Hospitals all over the world have jumped on the opportunity. The company sold $6 million in 2007 and $10 million in 2008. Most hospitals that continue to operate have been holding tightly to the equipment they have. However, hospital closures have provided the company with plenty of equipment to sell.

Bank assets

In other case of “one man’s misfortune is another’s opportunity,” firms that sell assets banks have acquired through business closures are booming.

Comly Auctioneers & Appraisers auctions off the collateral banks are left with when a business fails and turns those assets over to creditors. The company sold $4 million in its 2007 auctions. In 2008, it reported sales of $7 million. ... click here to read the rest of the article titled "Search for Bargains Sends Consumers to Secondhand Merchants"

Fear, Stress, Anxiety: A Global Recession's Personal Economics

Eileen Griffin always wanted to own a bookstore. So three years ago, when she retired from her job as a national account manager for Random House, she took all her savings and opened the Griffin Bookshop and Coffee Bar in downtown Fredericksburg. It became a local favorite, with live music perfor…

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Pizza Profit Plummets | Saving Slices into Industry

Sales slip at Pizza Hut, Domino’s, Papa John’s

Every major pizza chain in the United States has reported a drop in sales at all stores that have been open at least a year.

Along with Domino’s and Pizza Hut, Papa John’s sales fell over the last year. However, Papa John’s was able to raise profits anyway.

Domino’s takes a hit

Domino’s profit fell 32 percent in the fourth quarter of 2008. Same-store sales fell 3 percent, and the company predicts that number will stay flat throughout 2009.

This year Domino’s introduced sandwiches to try to make up for the loss in pizza sales. It has brought in more customers into stores, but it didn’t offset the lower pizza sales.

Pizza Hut posts a challenge

Chief Executive David Novak said Pizza Hut sales have fallen because dinner has been the hardest-hit meal. It’s more expensive to eat out at dinner time, so more consumers are staying home to eat in the evenings. Because pizza is mainly a dinner food, sales have declined.

Pizza Hut has also expanded offerings to try to offset lower sales. New items on the menu include lasagna and pasta. It has also amped up promotion of its chicken wings.

Papa John’s posts a victory

Papa John’s pizza sales fell just like everyone else’s, but the company still managed to make a profit.

Papa John’s was the only major pizza chain that opened more stores than it closed in 2008. A market analyst attribute’s Papa John’s success to stealing other pizza place’s customers by emphasizing quality. ... click here to read the rest of the article titled "Pizza Profit Plummets | Saving Slices into Industry"

Training, Benefits Aim To Save Sinking Communities

In Wilmington, Ohio, a DHL facility has closed, leaving thousands without work. In communities across America, programs are sprouting up to help those who have lost their jobs learn computer skills and obtain benefits such as health care, food stamps and energy assistance.

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