Consumer Finance Center – financing

TheDude asked:


is

http://emac.blogs.foxbusiness.com/

Time to Listen to Ron Paul?
By Elizabeth MacDonald
Time to listen to Texas Congressman Ron Paul, the lone voice of reason in Congress today who’s got to feel like he’s shouting into a field of cotton with his repeated warnings about the dangers of a collapsing dollar, while the administration goes AWOL on the problem.

The dollar just hit a record intraday low against the euro on reports that consumer confidence levels have dropped to levels not seen since the post-Watergate era. It is down 7% year to date against the Chinese renminbi, it’s weaker than the Japanese yen and the Canadian loonie.

The joke is the greenback is now only stronger than the Mexican pesos and the Zimbabwe dollar, an overstatement for dramatic effect, to be sure.But since hitting a peak in 2002, the dollar has lost about a quarter of its value against a trade weighted basket of currencies.

A weak dollar acts as an anvil around the neck of the US economy and consumers. Rising inflation is essentially a tax on consumers, so are rising energy prices, and that double whammy threatens to undermine the purchasing power of the rebate checks due out in May–backed by printing even more dollars.

A bellwether event of significant import to our nation’s finances happened this past January 1 with little notice. That’s the day the first baby boomer was allowed to retire. A new federal report wearily warns once again for the umpteenth time that the nation faces some $60t in Social Security and Medicare unfunded liabilities alone.

We’ve heard time and again conservatives say deficits don’t matter. To say that deficits don’t matter is like saying ketchup is a vegetable or trees cause pollution.

The $406b we pay annually in interest on the $9t in federal debt alone would rank as the world’s 30th biggest economy.

That annual interest cost surpasses the gross domestic product of Belgium, and is bigger than the GDP of Denmark and Hungary combined. The $406b would cover the annual cost of investigating Medicare fraud.

Stack all those one dollar bills making up our $9t deficit (and that doesn’t include the $60t in unfunded liabilities for Medicare and Social Security) and you would reach the moon and back. “Printing money cannot create wealth, if it could counterfeiting would be legal,” economist Brian Wesbury has said.

Even Milton Friedman, the Nobel Prize-winning economist and a forceful advocate for laissez-faire economics, got so sick of the way central bankers were willy nilly printing money in the ‘70s, he advocated that the government should replace the Federal Reserve with a computer. “Money is too important to be left to central bankers,” he quipped.

Broad zoom: The US economy has spent all of a year and four months in a downturn over the last two and a half decades. During that time we’ve seen a market crash of 22% in 1987, the S&L crisis, four wars, three financial crises (Mexico, Asian flu and Russian debt crises), the blow up of the hedge fund Long Term Capital, two asset bubbles (dot com and telecom). Since the Bush tax cuts of 2003, the US economy added the equivalent of China’s GDP–and government spending has boomed.

Now Federal Reserve chairman Ben Bernanke has both cut rates at a breakneck speed and pumped a massive amount of monetary stimulus into the markets to cure the credit crisis. I still think he is doing his level best to fix a crisis not entirely of his own making. The question now is, will Bernanke yank the liquidity punch bowl when the economy returns to trend growth in 2010 or 2011 as the central bank projects?

Let’s hope so, because the case for a weak dollar is, to me, well, weak. Namely, that a lame greenback softens the housing and credit crises as it fuels profits at US exporters whose goods are now dirt cheap in the eyes of foreign customers. Strong foreign sales at places like Boeing and Caterpillar reportedly added 1.4% to US growth in the second quarter of 2007. But exports make up just 13% of GDP. Consumers make up a larger 70%.

It’s no surprise consumer confidence is as weak as it was in the ’70s. LBJ had promised this country it could have both guns and butter in the ‘60s, so the Federal Reserve gunned the printing presses to pay for spending on entitlement programs and for the Vietnam war. For the first time, too, politicians got their mitts on taxpayers’ Social Security funds, after Democrats passed a so-called “unified budget” in the late ‘60s.

All that spending caused the dollar to nosedive in the 1970s amidst an oil embargo that sent oil costs, priced in dollars, soaring. Paul Volcker, then Fed chairman, enacted rapid rate hikes hitting 21% by 1979, and the Treasury went so far as to sell $6.4b in “Carter bonds,” largely denominated in Deutschemarks, to prop up the dollar. Gold got ripped off its mooring of an average $35 an ounce in the ‘70s, and in 1980 it hit a record $835 an ounce, around $2,250 in today’s prices.

Gold acts as a dew line for inflation. We essentially have a good handle on how much gold there is in the world and potentially below ground. When gold rises in price, it signals we are printing too many dollars, which indicates a concurrent drop in the greenback’s value. Over the last seven years, gold and oil prices have risen in lockstep, up 239% and 267% respectively. If the dollar had also risen in value at the same rate, oil would be selling at about $30 a barrel.

But now central bankers say that because of the weak dollar, they’ve seen capital losses carved out of an estimated $3.34t worth of US dollars they hold in foreign currency reserves; Japan holds the most dollars, China is second. The fear is they may unload these plunging greenbacks en masse to cut their losses and run–which would really tip the US into a protracted recession. Already reports out of China show government officials there willing to rotate future planned investments out of US treasurys into other investments.

Countries pegged to the dollar are rightly saying, too, that we are exporting inflation to their shores. Saudi Arabia is a land that has had nearly zero inflation since 1998, but recently inflation soared to 7% annually, despite the fact the country is flush with petrodollars.

Congressman Paul rightfully warns us when he says the US government has “systematically undermined” the US dollar by expanding “the money supply at will for financing war or manipulating the economy with little resistance from Congress–while benefiting the special interests that influence government.”

It’s not just the US gunning the mints. Goldman Sachs figures that three-fifths of the world’s broad money supply growth came from emerging economies over the past year or so. Three-fifths. That’s gigantic.

Goldman Sachs says the growth in Russia’s M3 measure of broad money grew 51% over the last year or so, India by 24%, and by 20% in China, Saudi Arabia, South Africa and Brazil. That’s three times as fast as the US and the rest of the developed world, and it’s faster than their GDP growth rates. It’s the fastest pace in decades.

All that loose money is pouring into commodities, stock exchanges around the planet as well as bond markets–it’s largely why our long-term bond yields have been historically low, spurring a dramatic increase in mortgage borrowing, as mortgage rates typically track the 10-year Treasury note.

Watch out here–emerging economies are just as susceptible to minting lots of money due to political pressures, including things like paying for wars, or calming local populations clamoring for higher pay and more jobs.

What can be done stateside?

The administration needs to state more emphatically that it supports a strong dollar. A stronger dollar would draw liquidity back into the credit markets, lower inflation risks, cut oil prices and restart economic growth, notes Bear Stearns economist David Malpass.

Presidential candidates vilify NAFTA and free trade, when the weak dollar is partly to blame for problems like jobs lost to overseas operations, Malpass adds.

“Empires fail because they run out of money, or more accurately, run out of the ability to spend or inflate,” Congressman Paul warns. “We need to control spending, immediately, before it is too late.”

Warren

crimedog asked:


I got hurt really bad got a staff infection. I went to the mortgage company 10 mo. Prior asking to refinance but my mortgage company said i was 140,000 upside down and they would not tough my loan. All i needed them to do was lock the rate so i would not lose the home. but all attempts they kept saying maybe up until i lost my home and 20 years of my life i worked for. Now these banks are getting all bailed out but nobody seems to be looking at the full picture. that banks could have prevented all this by just lowering th intrest rates when honest people like me went the the bank before i had a problem not paying. I could make my payment but when it went to 11 % i could not .I told the baks 10 mo. prior but because i was 140,000 upside down they said NO. that was my bank and they should have took action and now they are selling the home for 221,000 and i paid 500,000 and put 60,000 upgrades. and lost it all because their was no equity. so they would not finance. But now the banks are alll getting bail out money and blaming the consumer but alll reality it is there fault becauce the market turned and they should have started locking people in on their loans to prevent all of this. And yes they did encourage their brokers to sell adjustables to people to get more money from their consumers. They should alll be in jail just for encouraging this type of behavior. Is someone willing to try to help sue these people ?

Raymond

– asked:


Why not pick some low hanging fruit, how about reasonable limits on jury awards for medical law suits?

If you really care about health care costs, consider the all the costs passed onto the medical consumer due to trial lawyers and fear of litigation:

1) the cost of unnecessary tests, procedures and operations patients
are forced to endure and finance, for fear of lawsuits.
2) the “run-away” jury awards, which trial lawyers take 35% – 40%
3) all the frivolous law suits- trial lawyers initiate 20 suits, hoping just
one pays off where they can be compensated $10,000 per hour for
the time they spent on the case.
4) the high cost of malpractice insurance, all health care providers
and doctors have to pay for and then pass the cost back to the
consumer.
5) America is by far the most litigous country in the world because
we are the only country where the plaintiff has no financial
obligation to the defendant for the cost to defend frivolous law
suits.

All these costs are passed onto the consumer, exponentially increasing the cost of health care.

Whatever you think of insurance companies, drug companies and capitalism, there is no argunment to oppose reasonable limits and caps on jury awards and judgements IF you care about the cost of health care.

Why do liberals stand against reasonable caps and limits on law suits?

If you oppose tort reform isn’t it obvious its really just about breaking the back of the health care industry to achieve socilaized medicine?

Ellen

beavanjb asked:


U.S. auto sales plunge as recession deepens
DETROIT (Reuters) – U.S. auto sales dropped by more than 40 percent in February to the lowest level in almost three decades as Americans pulled back from taking on more debt in an economy showing signs of spiraling from bad to worse.

The results mark the 15th consecutive monthly drop in auto sales and come as a deepening recession in the United States and slowing global markets push major automakers to ratchet back production and ramp up discounts in a bid to survive.

“In our view, we are in an automotive depression,” said Standard & Poor’s equity analyst Efraim Levy.

“Shell-shocked consumers fearful for their jobs, the value of their homes and stock market assets are wary of making the sizable discretionary purchases,” he said.

General Motors Corp (GM.N), which has been kept afloat with $13.4 billion in U.S. government loans and needs more aid this month, posted a sales decline of 53 percent.

Sales at Ford Motor Co (F.N), now considered the best-positioned of the embattled U.S. automakers, dropped 48 percent.

Japanese automakers fared only slightly better with sales drops of 37 percent at Toyota Motor Corp (7203.T) and Nissan Motor Co (7201.T) and 38 percent at Honda Motor Co. (7267.T)

GM said the industry-wide sales plunge brought February sales to the lowest level for the month since 1967.

Automakers said still-incomplete sales numbers pointed toward overall sales for the month of about 695,000 cars, trucks and SUVs — or about 9 million units on the annualized basis tracked by industry analysts.

That annualized sales rate would represent the lowest result since about 1982, based on the initial sales data.

“These are obviously unsustainable levels and will cause almost every major automaker across the world to seek government aid,” said GM’s chief sales analyst Mike DiGiovanni. “Americans are hunkered down.”

Toyota, which passed GM as the industry’s largest automaker last year, said earlier that it had applied for a Japanese government loan to help its finance arm cut funding costs, showing how the industry’s crisis was hitting its best-capitalized player.

U.S. auto sales account for as much as one-fifth of retail sales. The results made it certain the battered sector will be a further drag on a weakening economy in the current quarter.

Ford and GM responded to the weak sales results by dropping planned production for the second quarter. GM cut its quarterly production plan by 34 percent.

Ford said it would cut quarterly production by an even deeper 38 percent, saying it would take a hit by losing revenue in order to keep inventories in check.

HOPES FOR SECOND-HALF TURNAROUND FADING

The No. 2 U.S. automaker has held out hope that sales and the U.S. economy could begin to recover by the second half of the year. It said on Tuesday, however, that nothing in the grim February results supported that view.

“It may be that this month represents the bottom but there is no economic anchor to allow us to make that call definitively,” said Ford economist Emily Kolinksi Morris.

S&P’s Levy said he did not see an uptick in U.S. vehicle demand until the fourth quarter at the earliest.

Meanwhile, there were some worrying signs that retail sales in February had dropped from the already-weak levels of the past four months.

GM and Ford estimated sales of cars and trucks through showrooms to individual car shoppers dropped to an annualized rate of 7 million to 7.5 million in February, down from a rate of more than 8 million in recent months.

That contraction came despite steeper discounts on offer. Industry-tracking firm Edmunds.com estimated that incentives, including rebates and low-cost financing, rose 16 percent from a year earlier to an average of just over $2,900 per vehicle.

Chrysler LLC, which has been hardest hit in the downturn and kept afloat by $4 billion in government aid, led the way on incentives, according to Edmunds.

Chrysler spent more than $6,000 per vehicle on incentives in February, followed by nearly $5,700 at its Dodge brand, Edmunds said.

Korea’s Hyundai Motor Co (005380.KS) outperformed again in a collapsing market. Its sales were down only 1.5 percent.

Hyundai has been buoyed by a highly-touted promotion that allows Americans to return new cars if they lose their jobs.

So, considering Hyundai’s success in January/February with this marketing strategy, don’t you think its about time other manufacturers implement a similar plan? Of course not everybody can sell the same # of cars as previous year, but better then losing 40% of your business each month.

Eileen

Tylor West asked:




Whenever you decide to spend your hard-earned money on an item, whether it’s a car, an appliance or a vacation, you want to make certain you get the best bang and value for your buck. However, you can’t really make that determination until after you have made the purchase. In that case, there are either one out of two outcomes that await you. You are either pleased with your purchase decision, or you are not so pleased with it. It would be easier if you could predict what the outcome would be before you decide to buy the item in question. Since we are unable to see the future, you can use consumer reports to help guide you through the purchase process.

Consumer reports are documents authored by actual consumers or by independent outside parties. The foundation of the consumer report is that they are honest and impartial, so that the consumer report that you read gives you an accurate review of the product in question. Let us use buying a car as our example. By reading a variety of quality free consumer reports, you can get an honest feel for whether or not the vehicle that you want to buy is right for you. Consumer reports for cars can compare and review all aspects of a car, from fuel efficiency to safety. If there is something direct about the car that you want to know more about, a good consumer report will easily tell you.

The authorship of a consumer report can also be of great benefit. Those written by customers are appreciated for their simplicity and commonality to you. You will easily be able to understand and appreciate the pros and cons that are listed in a consumer report that was written by fellow customers. A consumer report created by an honest expert is praised for its detailed honesty and professional conclusion. The more consumer reports you read, the better off you’ll be.

Vanessa

Louis Fabiano asked:




Car buyers know the benefit of a loan. A loan can help you get a vehicle you want at a monthly payment that fits their budget. What you may not know is that in the case of an auto loan, you can avoid travel and apply for the car loan from your computer! The availability of online auto loans comes from the emergence of online financial institutions. Banks and several other businesses have become comfortable operating online, with some banks even performing loan interviews over the internet. In the case of online auto loans, banks and other financial aids can operate via online lenders to help people receive their loans through online transactions.

One of the benefits of applying for a car loan online is that the car loan application takes no time at all to finish. Whereas you would have to commute to the bank and then the dealership to fill out the paperwork involved with applying for a loan, you will not have to leave the house to fill out an online auto loan application! The streamlined service involved in applying for an online auto loan comes from the plethora of online loan lenders that will work with you quickly and efficiently to find the best loan that you need.

A simple search will reveal thousands of sites and lending services ready to help you on the spot and the applications are stress free. As with all loans, whether they are for a car or house, when applying for a loan online, research it! The online loan rates can differ wildly depending on what bank, company, or business the online lender works with. In order to find the best APR on a loan, I would recommend searching various lender web pages, such as Up2drive.com or Myautoloan.com. These sites have APR estimates on the main web page and can give you a rough idea of what you are looking at paying for your monthly bill.

As with all loans, the APR is extremely important to take into account when looking at repaying your loan. The APR, or annual percentage rate, is the interest returned on your borrowed loan from the bank or financial service. These institutions can help settle your financial matters through a fixed APR, meaning an interest rate that cannot change, regardless of the bank’s situation. A non-fixed APR means that the interest rate on the loan from the bank or in some cases, the dealership itself, would fluctuate at the end of a year. At the beginning of the New Year, the bank can either decrease or increase your APR, and although they are rare, a decreased APR could be obtained under the precedent that your financial institution is working with you to help you repay your loan.

This could stem from a financial hardship or simply not having enough money at the time to repay your loan. To counteract bad credit, a bad credit auto loan can be applied for. These loaning situations are for those that have a credit score of 600 or lower. When applying for loans, if your score is below 600, it’s very likely that a loan corporation or business will simply pass you over. However, applying further for loans will actually hurt your credit score more, so to counter this you could visit Myautoloan.com. This site helps you connect with high risk lenders and nearby car dealers that can help you finance your new car.

An online auto loan holds many benefits to the average consumer. In one example, an online auto loan will typically beat out a dealer’s overall APR. As well as being cheaper overall, an online auto loan application does not incur fees, such as one may be subject to at a dealer’s. Many car dealers tack on application fees to squeeze that extra bit of cash out of the customer beforehand. In another example of why an online auto loan is more beneficial than an in-person one, you may find that the online application is considerably easier to fill out, since you do have the internet at your fingertips. Besides having the information needed to properly fill out an app online, you will also be able to work at your own pace to fill the application out. Lastly, the best part about an online auto loan would be that with most online auto loans, there is no down payment involved. Unlike at a dealership’s, an online auto loan steps around any down payments by working directly with the lender, as opposed to working through the dealer to find financing.

The availability of online auto loans comes from the emergence of online banking and financial institutions. Banks and several other businesses have become comfortable operating online, with some banks even performing loan interviews over the internet. In the case of online auto loans, banks and other financial aids can operate via online lenders to help people receive their loans through online transactions.

One of the benefits of applying for a car loan online is that the car loan application takes no time at all to finish. Whereas you would have to commute to the bank and then the dealership to fill out the paperwork involved with applying for a loan, you will not have to leave the house to fill out an online auto loan application!

The streamlined service involved in applying for an online auto loan comes from the plethora of online loan lenders that will work with you quickly and efficiently to find the best loan that you need. A simple search will reveal thousands of sites and lending services ready to help you on the spot and the applications are stress free.

As with all loans, whether they are for a car or house, when applying for a loan online, research it! The online loan rates can differ wildly depending on what bank, company, or business the online lender works with. In order to find the best APR on a loan, I would recommend searching various lender web pages, such as Up2drive.com or Myautoloan.com. These sites have APR estimates on the main web page and can give you a rough idea of what you are looking at paying for your monthly bill.

As with all loans, the APR is extremely important to take into account when looking at repaying your loan. The APR, or annual percentage rate, is the interest returned on your borrowed loan from the bank or financial service. These institutions can help settle your financial matters through a fixed APR, meaning an interest rate that cannot change, regardless of the bank’s situation.

A non-fixed APR means that the interest rate on the loan from the bank or in some cases, the dealership itself, would fluctuate at the end of a year. At the beginning of each year, the bank can either decrease or increase your APR, and although they are rare, a decreased APR could be requested and obtained under the premise that your financial institution is working with you to repay your loan. This could stem from a financial hardship or simply not having enough money at the time to repay your loan.

For car buyers with bad or no credit there are special bad credit auto loans available. These loans are for those that have a credit score of 600 or lower. When applying for loans, if your score is below 600, it’s very likely that a loan corporation or business will simply pass you over. However, applying further for loans will actually hurt your credit score more, so to counter this you could visit Myautoloan.com. This site helps you connect with high risk lenders and nearby car dealers that can help you finance your new car.

An online auto loan holds many benefits for the average car buyer. In one example, an online auto loan will typically beat out a dealer’s overall APR. As well as being cheaper overall, an online auto loan application does not incur fees, such as one may be subject to at a dealer’s. Many car dealers tack on application fees to squeeze that extra bit of cash out of the customer beforehand.

Another example of why an online auto loan is superior to a traditional in-person one, you will find that the online application is considerably easier to fill out. Besides having the information needed to properly fill out an app online, you will also be able to work at your own pace to fill the application out.

Lastly, the best part about an online auto loan would be that with most online auto loans, there is no down payment involved. Unlike financing at a car dealership, an online auto loan steps around any down payments by working directly with the lender, it also lowers your cost and rate and removes dealer mark ups.

Heather

NickO. asked:


Does any body know exactly what www.findmysoft.com does .

I think I mite know,… but I would like to know if anybody really honestly knows what this website truly does and it’s functions .

Because the fact is… there’s so many websites out their now these days I just don’t really know WHO or WHAT WEBSITE to go to and REALLY TRUST .

Because frankly,… anything could Happen,. .. like your Security for your Finances could be Breached and then Infiltrated, Lose your identity or Even Worse… Viruses, Worms, Trojans and other nasties that can really infiltrate your Computer… that Can, Does or Will do a Search ‘n Destroy type of Maneuvers to your Computer and everything will be ether… Lost, Destroyed or Just Pain Stolen for someone elsie’s advantage over you,… all because you were just convenient just for them .

I also would like to know if anybody can tell me if there’s a website that I can go to that does some really serious research on all websites and all free downloads and also the unfree downloads as well… kind of like {CONSUMER REPORTS} does for “(ALMOST)” Everything,… but I just don’t know if they do this .

‘Oh,… when I said the unfree downnloads in other words I mean the ones you haft-a pay for ether their downloads, services or their programs or if not all .

And 1 other thing,… is WinDirSt.1.2 or WinDirStat 1.1.2.8 safe to download for a Disk Cleanup program .

P.S.
I Thanks You to all of you Yahoo Consumers that have helped me in the past .

You people are Superbly Honorable and I’m most Grateful for all of you for your help .

You people have gotten me to feel gate for using www.Yahoo.com and I have gotten nothing but the most Respect and Positive Feelings Towards www.Yahoo.com .

Please People Do not Stop .
And God Bless you all .

Kimberly

Mark Dawson asked:




A complacent attitude towards their finances could see many Britons struggle with money as they get older, new figures highlight.

In research released by Defaqto, a number of consumers are “sleepwalking” into financial hardship as they are saving an inadequate amount of cash into pension schemes. And as a result of a shortfall of deposits into savings accounts, they may face pressures on their ability to service demands on their spending in later life, for example on utility bills, secured loans and mortgage costs.

The study also revealed that there are more people who are saving up for their next foreign holiday than those putting cash away for retirement. Meanwhile, money management difficulties could be even more pronounced for the one in three consumers who are not making any pension contributions at all.

Commenting on the findings, Matt Ward, principal consultant of pensions and wealth management for Defaqto, said: “Our research showed that many people are sleepwalking into retirement. While the majority are planning to retire from full-time work at or around normal retirement age, many people realise that their income in retirement may meet their needs”.

“For this reason, some 50 per cent of those currently working expect to either continue doing some work in retirement or to defer their retirement to make their savings last as long as possible. Relying on part-time work could be really dangerous, partly because the jobs might not be there when they are needed and partly because people may not be able, or indeed inclined, to work when it actually comes to it.”

Mr Ward added that consumers need to start thinking about their financial future “now”. By putting as much money as possible into pension accounts when they are able to do so, they will be able to provide themselves with “the greatest degree of comfort” for when they get older.

Additionally, the financial research company revealed that people are looking for greater assurances about the money they are saving for later life, with consumers wanting more guarantees concerning how much they will be due to take out upon giving up work. Meanwhile, a larger number of Britons are seeking “more incentives” to begin saving for retirement. About a third of respondents believe that everyone should be made to put money towards a pension scheme, while there was also support for the idea that employers should have to provide retirement accounts for their staff.

For those concerned their present financial situation does not give them enough opportunity to put money into pension schemes, taking out a debt consolidation loan could be an advisable option. In doing so, borrowers will be able to merge existing debts owed on loans, overdrafts and credit cards into a single monthly repayment. Such a move could be welcomed by some 1.5 million people over the age of 55, as research from Scottish Widows showed that such consumers will have to work beyond retirement age due to a shortfall in the money saved into pension schemes. The study also indicated that some 41 per cent of this age group view their current financial situation as being “tight” as they do not have sufficient disposable income at the end of each month to allow them to begin saving.

Edward

Timothy Croy asked:




With tanning beds becoming an increasingly popular way for anyone looking to get a fast tan, many people are choosing to buy their own tanning bed for convenience and long term savings. For the average consumer, financing is the only option in obtaining one of these high cost commodities. Fortunately, there are tanning beds available for quick and painless financing, and I’ll show you how to spot the perfect deal.

1) When possible, buy direct. Factories that offer financing may seem uncommon, but they are not. In fact, they usually offer lower interest rates than most brick and mortar shops. You also get the added benefit of a lower sales price because you are buying wholesale or direct.

2) Buy used when possible. It’s very easy to locate a used tanning bed in excellent condition. Due to liability and legal issues, most dealers won’t sell a tanning bed that is anything other than mint condition. Be sure to find out the history of the unit as this can affect your overall decision. You should also try to haggle a lower price for a used unit, as the prices on them aren’t set in stone like a brand new one. Dealers are also more willing to give you better financing options on a used tanning bed. There is less risk to the seller, and they pass that on to you in a better deal – even if you have bad credit!

3) Be aware of the fine print on your financing terms. Tricky lending is very common on luxury items like tanning beds, so be sure to go over everything in detail. Even though you think you may be getting the deal of your life, there may be overlooked terms that can destroy your credit rating and interest rate. Once you have decided on a unit, your next step is to sign on the dotted line and enjoy your new tanning bed!

Darlene

Charles D asked:


I read FT partly to get myself up to speed on the finance most biz majors learn their first year of school. I came across this passage which has several concepts that go over my head.

“But even following the plan to convert preferred shares to common equity, Citi will have $80B of tangible equity versus assets of $2T. With Citi’s consumer bias, that is still worryingly geared.”

This passage concentrates much that I don’t know into a small space. What is the significance of the stock conversion; because it would reduce Citi’s expenses by reducing their dividend payments? Why is the ratio of tangible equity to assets concerning? (I guess I find this puzzling b/c I thought all assets qualify as tangible equity. Is the difference b/n the two the claims against the assets?) Why does the consumer bias of Citi’s services make it more worrying? (By “consumer bias” I presume is meant they emphasize retail services over commercial clients.) Why do they use the qualifier “tangible”? Is this to distinguish it from equity raised through stock issues?

Thanks a million! (And if you’d prefer I break up the questions for more points, just ask.)

Mathew