By self-filing, a person can save time and cash by not giving a preparation service a pay day. Image from Wikimedia Commons.

A lot of people might be better off self-filing their taxes instead of giving a preparation service a pay day. It is not difficult, and most people can file electronically for free through numerous avenues. It is a good way to gain self sufficiency and save some money during tax season.

Cut the middleman and save money by self filing

Soon enough, the tax filing deadline of April 18 will be here. A lot of people take their tax returns to a tax preparation service, such as H&R Block, and a preparer fills out and submits an income tax return for them. The majority of Americans, from Alabama to Alaska, use a professional preparer, as about 60 percent of all returns are done by a preparation service annually, according to USA Today. Unless a person has a laundry list of itemized deductions to make, a lot of Americans really don’t have to give preparers a pay day and could be saving instant cash by self preparing. That said, people with complex returns should have their returns prepared by a professional. However, someone with only a 1040 EZ or 1040A likely doesn’t need to worry.

E-file for free

The Internal Revenue Service has an entire page dedicated to E-file services, many of which are available completely free of charge for people with an Adjusted Gross Income less than $58,000. There are numerous tax software companies, including TaxSlayer and TurboTax, that allow a person to file a free federal return, and free software for preparing a return through numerous other companies. TaxAct and H&R Block both offer free home editions of their tax return software, though that means people won’t be able to get short term loans against their returns if they need them.

Direct deposit means faster dispersal

People who elect to receive their income tax return through direct deposit can expect to get it sooner than a person who chooses a paper check. That way, instead of having to check out Wheresmyreturn.com, taxpayers need only to check their account balances.

Sources

USA Today

Retailers can celebrate, as the November haul of quick cash was better than anticipated. Image from Wikimedia Commons.

The retail industry has cause to celebrate, as the haul of quick cash was better than expected last month. November brings with it Black Friday at the end, which is when a lot of money gets spent. The retail industry has been hurting for payday cash throughout the recession.

November nets retail industry a lot of quick cash

Holidays bring with them tradition. Thanksgiving, in particular, has certain traditions like pumpkin pie and the Thanksgiving Classic series of football games, but the day after Thanksgiving, or Black Friday, is a huge shopping day. Many people spend a lot of quick cash buy Christmas presents for themselves or others, and the retail year revolves around that time period. November 2010 retail sales, according to USA Today, were even better than expected, and a better pay day for an industry in a down economy is good news, indeed. Also, since fewer shoppers are using credit cards, that means fewer installment loans are needed to cover the tab in January.

Gains posted over last year

Analysts were predicting a gain in retail sales of 3 to 4 percent in November 2010 over November of 2009, but were closer to 6 percent. That means more instant cash is going into the economy, and also reveals that consumers are feeling more confident this year. Luxury retail stores Neiman Marcus and Saks posted sales gains over 5 percent more in November 2010 than in 2009, and Abercrombie and Fitch posted a 22 percent gain in November 2010 over November 2009. These brands experienced declining sales in 2009, but have begun rebounding. This is impressive, since some items in those stores would send the average person running for payday loans to cover the bill.

Good signs

This does not exactly mean that gray skies are clearing up and happy days are here again, but it means that recovery is certainly on track. The American economy is a consumer economy, and that is where some very positive signs are coming from.

Sources

USA Today

Recent college graduates have higher unemployment than average, and have less of a pay day to look forward to than ever. Image from Wikimedia Commons.

One of the hardest hit groups in the job market are recent college graduates. The unemployment rate for the recently graduated is 50 percent higher than the national average. A lot of people have a smaller and less likely pay day if they can get one after graduating.

Fewer pay day opportunities for recent grads

Recent college graduates have one of the highest unemployment rates in the nation. Currently, Americans aged 20 to 24 have an unemployment rate of 15 percent, according to USA Today, making it hard to get a decent pay day for people who have worked hard to make better opportunities available to them. That’s 50 percent higher than the national average, which is just under 10 percent. Many recent graduates have to resort to taking internships, or have to start far lower on the ladder, and take far less payday cash for their effort, as a result. A college education is supposed to be a great investment, and eventually it does pay off, but an average student debt load of $24,000 or more can make things very difficult. With a debt load like that, it’s no wonder people sometimes need a loan until payday.

All hope is not lost

However, there are things that recent graduates can do to bolster their chances at earning a position of gainful employment. For instance, taking some time to edit one’s resume so it emphasizes the unique strengths a person has will always help. Also, 70 percent of employment opportunities come from networking, so using the contacts that one has is an absolute must. After all, fraternities and sororities aren’t just about guzzling Four Loko. Going to the student employment office and job fairs is a good idea, too.

Harder to make the American Dream reality

It is becoming a harder proposition for people to attain the American Dream. More Americans are getting saddled with more and more debt just to make a decent living these days, and it’s no wonder people are having to run for payday loans.

Sources

USA Today

The wealth gap between rich and poor Americans is growing, but people don't want mansions handed to them. Image from Wikimedia Commons.

The growing wealth gap in America is a disturbing trend. The wealthiest of Americans are getting wealthier, and the gap is wider than most people realize. With conditions like these, it’s no wonder people are running for payday loans.

Wealth gap is astounding

The gap between the wealth held by the richest 20 percent and the rest of the nation is growing, and it’s significantly larger than a lot of people realize. According to the Los Angeles Times, recent data indicates that the richest 20 percent of Americans hold about 85 percent of the wealth. The poorest 40 percent hold close to zero, and the middle 40 percent have between 14 and 15 percent to split between them. That’s not a lot of payday cash to go around for the 80 percent of the nation. It was also found that most Americans did not realize it was that wide a gap. The study that delved into these issues, done by Edward Wolff of New York University, also revealed that Americans, both liberal and conservative, want the gap to narrow but are mostly opposed to a mandated redistribution.

Americans prefer to work for it

If the study done by Wolff is correct, the typical attitude of Americans is that they do not want anything given to them, but instead want more available opportunities to get ahead. It gets harder to have an opportunity to get ahead if things like credit cards and other debts get in the way. People making their way in the world is difficult indeed if most of a persons’ proceeds from pay day end up going toward debt. Because the costs of so many things — such as college education and medical care — are skyrocketing, it’s no wonder so many people are rushing out for a cash advance or a payday loans.

Obstacles are many

Achieving the American Dream is getting harder for a lot of people. Working life away to pay debt is not something most people envision, but it is something people are encouraged to get into. You can read more in Payday Loan Facts and Statistics Report on Personal Money Market.

Watch out for new ATM and overdraft fees, as you may be better off getting a payday loan. Image from Wikimedia Commons.

Overdraft and account fees are the way banks get a lot of instant cash from their customers. Granted, a fee of some sort is not unreasonable in some situations. However, bank fees generate quite the pay day for the typical banking institution.

Fees rise as laws force banks to find more instant cash

Legislation passed earlier this year forces banks to adhere to new rules concerning overdraft fees and other account fees. For instance, customers now must be asked whether they want overdraft protection. Customers also have to be asked if they would prefer to get a cash advance from the bank to cover overdrafts or just opt out of a transaction. However, because practices that omitted that information are no longer legal, banks and credit unions now have to find more ways of generating income from customers. For instance, according to CNN, ATM fees have risen by 5 percent this year. Overdraft fees rose 3 percent on average, and the average overdraft fee is now $30.47 per occurrence. That’s actually about the same cost as a small payday loan.

Interest in excess of what is excessive

The interest rates on overdraft fees are insane. For instance, let’s assume a person spends $200 more than he has on his debit card, which a lot of people will do this holiday season. Assume also that the person has done this with three purchases, at $30 per occurrence, for a total of $290 that he will have to repay the bank when he gets his next infusion of payday cash. That’s 45 percent in simple interest, but in APR, that’s 2,340 percent interest.

Banks make a lot of money from fees

Overdraft fees are the greatest method of generating revenue from bank customers. Considering that the average person pays $620 per year in fees or more, the average person may be better off getting a payday loan a few times per year to head them off. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Things like recent gains for financial services giant Dollar Financial prove that demand for services like payday loans isn't diminishing. Image from Wikimedia Commons.

Recent earnings gains for financial service giant Dollar Financial Group indicate demand for payday loans and other services hasn’t diminished. Alternative financial service providers, or AFSPs as they are called, have a long history in the U.S., and indeed, throughout the world. The company, which offers check cashing, money orders and pawn loans as well as cash advances, is having a banner year.

Dollar Financial among largest payday loan lenders

Dollar Financial Group is one of the largest among corporate payday loans lenders, although that isn’t the largest of the company’s offerings. Payday loans and cash advances only make up 50 percent of how the company makes a pay day, with the other half being from check cashing, pawn loans, military loans and other financial services. Out of the largest global alternative financial services firms that are publicly traded on the market, Dollar Financial realized the greatest gains this quarter. Profits were $28.7 million this quarter with only 15.2 percent of loan revenue being lost, though payday advance loans are only 9 percent of its business in the U.S., according to MSNBC.

Demand for services like payday lenders are constant

There will always be a demand for alternative financial services, like payday loans, short term loans and check cashing outlets. Granted, the demand isn’t as huge as one might think. People who don’t use banks for their every financial service need fall into two categories, according to the FDIC and the Federal Reserve. There are the “under banked,” who use alternative financial services but have bank accounts, and the “unbanked,” who have no bank account whatsoever. The underbanked amount to just under 18 percent of the U.S. population, and the unbanked make up around 10 percent.

The demand will remain

Alternative financial services have a long history. Pawn lenders and short term loan lenders, like payday lenders, have been around in some form since before the Roman Empire existed. Obviously, with evidence like the booming business in companies like Dollar Financial, demand is not going away. You can read more in the Payday Loan Fact and Statistics Report on Personal Money Market.

A person needs a payday to get a payday loan. Image from Wikimedia Commons.

The idea that payday loan lenders want to loan to anyone and everyone to get them hooked is ridiculous. Critics of the industry like to make claims about an awful debt trap and of predatory lending. The story goes that anyone with a pulse can get a loan of they ask. It isn’t true, and if any loan lender did business that way it would soon be out of business.

Pay day is the operative phrase in payday loan

A person has to have upcoming payday cash to get a payday loan. It’s as if the phrase “payday” somehow goes unnoticed, and that is not exactly the best way to build an argument. In order to get a payday advance, a person needs an upcoming payday; it is that simple. There are some glaring contradictions to claims about payday loan lenders, first being that they will let anyone borrow money, regardless of ability to repay. Nothing could be further from the truth. Not only do lenders pay strict attention to ability to repay, but if they ignored it they would soon be bankrupt and looking for a loan until payday themselves.

Ability to repay is the first criterion

The absolute first criterion among payday loan lenders for loaning money to someone is whether they can pay the loan back. Not only that, but the size of a loan is often pegged to income. The claim that lenders disregard income level and just loan to everyone is preposterous. Study of the payday loan industry reveals that profit margins are incredibly tight, leaving little room for error. One study found that a lender has to successfully lend and fully collect six loans to come up with enough money to lend one single small loan.

Only one industry was able to disregard income

There was only one industry that was able to disregard ability to repay, at least for awhile. Pressure on Congress got banks pressured into lending mortgages to people that couldn’t afford them, which led the subprime mortgage crisis, as risky mortgages had to be insured against. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

As working class Americans have seen their wages stagnate, they are faced with problems much bigger than payday loans. Image from Wikimedia Commons.

Some claim payday loans and the ensuing debt trap are a huge obstacle to the middle and low income classes. The evidence for that claim doesn’t really hold up. In fact, it distracts from the problems facing working Americans. A person will only get a cash advance if it’s needed. Furthermore, there are reasons why a loan until payday actually helps more people than ever.

Wages and costs are bigger problems than payday loans

Numerous studies on the demand for and use of payday loans point to usually one factor that explains why anyone goes to borrow money from a payday loan lender: unexpected expenses. For example, if a water heater quits or a tire picks up a nail, the cost is more than a person can cover between the time that it happens and next pay day. There are multiple reasons fewer people are able to meet these expenses. First of all, overall wages have been stagnant for a long time. However, living costs are going up, especially for health care. In fact, health care costs are the cause of 60 percent of personal bankruptcies.

Wage stagnation

A decrease in wages during a recession is to be expected. The labor market has been depressed since 2008 but has held at about 9.5 percent unemployment. That said, wages have actually been falling since 2000, according to ABC. According to a report by the White House Council of Economic Advisers, wage stagnation in that time period is partially linked to an increase in cost of health insurance. Stagnating wages, combined with inflation, is a recipe for middle class disaster. Considering how many more people are out of work and have had their homes foreclosed, the problem may be getting worse. Payday loan lending is the least of middle class problems.

At a disadvantage

The middle class is at a disadvantage of epic proportions. As early as 2005, it was found that 10 percent of the nation held 70 percent of the wealth. The lack of wealth creating opportunities is a far more dangerous problem than any small dollar loan product. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Payday lenders do not move into a poor area to turn it into a dust bowl. The truth about payday loan borrowers is actually surprising. Image from Wikimedia Commons.

The actual people that are payday loan borrowers are not who some claim them to be. Payday loan lenders are thought to target the most desperate and poor. Cash advance lenders are also said to concentrate in areas that are more densely populated by minorities. Like most stereotypes, the larger picture is actually a little more complex. Like most stereotypes, there isn’t a lot of truth in these views either.

The poorest of the poor cannot get a payday loan

The thing about the people who actually do borrow money from payday lenders, be it from a payday loan store or online payday loan lender, is that they are not the poorest and most desperate. First of all, one has to have a coming pay day to even be considered for a payday loan. One also has to have a checking account. Now, when it comes to banking, there are two designated people that don’t use a bank for every need. There are the “unbanked,” and the “under banked.” The FDIC and the Federal Reserve define the “under banked” as people who have a transaction account (e.g. checking or savings accounts) but still utilize alternative financial services (AFS) in order to obtain the products they need.

Proof of income is required

By definition, only the under banked can even get access to a payday advance. That means a person has to have a stable income. The unbanked, who are the poorest and most desperate, can’t get a payday loan if they tried. Furthermore, it is economics, not ethnicity, that determines where payday lenders locate. Studies have found that payday lender concentration correlated better to urban and rural areas where most of the population was younger than 40 and lived above the poverty level.

Stereotypes never live up to reality

The average payday loan borrower has a high school education or better, and makes between $25,000 and $50,000 per year. That is middle class, through and through. Considering how easily minimum payments and accumulating interest can trap a person for years, credit cards are far worse for that demographic. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Overdraft using debit? Expect to owe some instant cash in bank fees. Image from Wikimedia Commons.

Bank fees are never fun to deal with, but it is ingrained in banking as it is a huge source of instant cash for banks and credit unions. In fact, the pay day that banks get from fees is one of the largest sources of revenue the banking industry has. As the rules for fees on credit cards and other things get more complicated, the fees are going up. There are a few things a person should always watch out for.

Bank fees going up

As new federal regulations come out which limit the amount and the way in which customers can be charged for account services. The major banks are all raising fees, according to CNN. The new laws governing banking and credit cards in the CARD Act place limits on things like overdraft fees. So banks are creating new fees or raising rates on others to get a little more of a pay day where they can. For instance, Bank of America is raising the minimum account balance. If a customer dips below the minimum balance, the bank assesses a monthly fee for doing so.

How overdraft works

Banks previously did not have to inform a customer of being enrolled in overdraft protection. Protection programs can be very costly. For instance, some banks allow account linking and transfers as overdraft protection. A person can transfer emergency money to savings to cover checking. Each transfer will cost you $10 if you bank with Wells Fargo. Then again, that is pretty cheap for a cash advance. Citibank will charge some customers up to $30 a month just for having a checking account with them. A person could wind up needing a payday loan for not spending any money.

Nature of the beast

Banks assess fees for certain things, like going into overdraft. Sticking to the straight and narrow will pay off. The further a person stays from these fees, the less will be paid to the bank.

Sources

CNN

The job market is still in ruins. Image from Wikimedia Commons.

A lot of people lost their jobs during the worst parts of the recession. The idea was that if the government doled out a huge cash advance, the unemployment rate would decrease. Instead, the number of unemployed has only increased. In the month of August, there were 27 states that recorded an increase in unemployment. There were only 13 states that marked an improvement, and 10 that did not change. The recession is supposedly over, yet the economy as a whole does not seem to be improving fast enough.

Spike in unemployment rate

The unemployment rate has shot through the roof over the last month. According to CNN, there were 27 states that recorded an increase in the unemployment rate. Nevada still has the highest unemployment rate in the nation at 14.4 percent.  Michigan and California have unemployment rates of 13.1 and 12.4 percent, respectively. These have been the hardest-hit states throughout the recession. It appears emergency loans that went to these states to stimulate job growth, such as the auto bailout for Detroit, have not helped as much as was hoped.

Census accounted for losses

The end of the 2010 Census had a heavy hand in the increase in unemployment, according to USA Today. The Census employed about 114,000 people nationwide. That said, private employers are slowly starting to add jobs. About 67,000 private sector jobs were added, which has to be a relief for people looking for a pay day again. The end of the Census was anticipated to have a negative impact on the unemployment rate and jobless claims, as there isn’t enough instant cash floating around to hire all of them back into the private sector.

Slow but steady wins the race

Recent data was released indicating that the recession was supposedly over. However, it is difficult to reconcile that idea with the levels of unemployment and decreased spending and credit activity.

Sources

USA Today

CNN

Bacon prices on the rise could mean the economy is magically recovering. (Photo Credit: CC BY-SA/w:User:Porge/Wikipedia)

It may be disheartening that the price for a pint of beer in Europe has risen to $6.30 due to harvest problems and a Russian wheat crisis, reports the London Telegraph. But here’s something to really take the sizzle out of your day: bacon prices are stampeding onward and upward. According to CNBC, bacon is currently 20 percent more expensive than it was a year ago. While grease-loving foodies who may need payday loans before their next pay day aren’t in hog heaven over this sorrowful state of swine affairs, researchers claim this is actually a good sign for the U.S. economy.

Bacon now costs approximately $4 per pound

The Department of Agriculture claims that the steep bacon price increase over the past year is the result of a classic supply-and-demand situation. There’s a shortage of pork bellies, as pig farms have trimmed their herds during the recession. Tomatoes are currently ripe, so BLT sandwiches are a hot item – and thus there’s a need for more bacon. The National Review has gone so far as to call this culinary conundrum “Obama’s Next Crisis.”

One man’s crisis, another man’s baby steps to recovery

The National Review, in its swine sorrow, has failed to see the silver lining. Consumers are looking to invest more of their carefully hoarded money in bacon and bacon-related products – essentially, luxury items. It’s a step in the right direction, for when people reach for luxury items, things tend to be going better as a whole, economically. Rich Nelson of market research firm Allendale, Inc. said that “They may not be buying steak instead of hamburger, but they will put bacon on their hamburger or other things.” Restaurants know this, so bacon is often a newly featured item on tried-and-true recipes.

Demand will fatten the herd

Pig farmers will no doubt respond to increased demand by expanding their hog stocks. Nelson speculates that by mid-2011, bacon prices will begin to drift down. In the interim, some consumers may settle for the generic bacon brands, which are generally fattier and leave eaters with less meat after cooking as the fat melts away. Jason Mosely of the Mr. Baconpants blog and podcast sounds the clarion call – “Your BLT deserves the best bacon you can afford!” – while bacon book author Heather Lauer tells CNBC that if bacon prices are indeed a sign of America’s economic recovery, perhaps the charge will forever remind Americans of the greatness of bacon. Then everyone will celebrate Sept. 4 with patriotic fervor, for that is International Bacon Day. Really and truly, it is.

Sources:

CNBC

“The only problem with bacon is that it makes you thirsty… for more bacon.”

A GM IPO has just been filed, and the installment loans from the Treasury will get a huge payment toward them. Image from Wikimedia Commons.

General Motors has finally put in the papers for what has been anticipated for weeks. A GM IPO has just been filed, although exact details are not known yet. So far, what is for sure is that GM will be offering preferred shares, but how many shares is unclear. This will bring the company a good amount of debt settlement relief, as it might pay off a good chunk of its debt to the U.S. Treasury. It will get the company closer to independence, and maybe get it some big time cash quick.

GM IPO to begin soon

General Motors filed for a GM IPO today. According to the New York Times, it could be quite the pay day for an IPO. The company will be offering preferred shares. However, GM hasn’t announced the total number of shares the company will be selling. Chairman and CEO Ed Whitacre announced he will retire completely from GM by the end of the year; he’d previously said he’d retire once the company was back on track. An initial sale of shares will probably liquidate a lot of debt.

Clearing of debt a major bonus

Among the many benefits of this sale of shares, and re-listing of General Motors, will be paying off a large part of the installment loans from the Treasury. According to CNN Money, the Treasury has agreed to sell some of the government’s stake in General Motors. Currently, the U.S. Government holds 60.83 percent of GM shares, and the Canadian government holds a further 11.67 percent. GM has paid the Treasury back about $7 billion so far.

Getting back into the black

General Motors, with this Initial Public Offering, will get at least part way to paying the debt the company owes to the U.S. government. GM is posting profits again, so it isn’t as if GM will need another loan until payday from the taxpayers again. The IPO would have to clear about $67 billion for taxpayers to break even on the auto bailout.

Further Reading

New York Times

CNN Money

Wall Street is on watch, thanks to the whistle-blower provision in the new reform law. (Photo Credit: epicharmus/Flickr/CC BY)

The Wall Street reform bill has been signed into law by President Obama. Yet the vast majority of those who support the Obama administration’s call for tighter regulation of banking and investment are probably unaware of a whistle-blower provision, reports the Los Angeles Times. This bounty provision entitles private sector individuals who blow the whistle on rule-breaking organizations to receive 10 to 30 percent of money the federal government obtains from fines and settlements.

A whistle-blower provision to catch Ponzi and insider trading schemes

The whistle-blower provision requires that the citizen “provide the Securities and Exchange Commission with original information that reveals the fraud and leads to a successful recovery,” writes the Times. Lawmakers hope the bounty provision will provide the necessary incentive to strengthen Wall Street reform, but some legal experts see potential problems. For instance, if an employee is more likely to go to the SEC rather than to internal management if they spot something suspicious, a potential climate of fear scenario could erode business acumen. Not only that, but there is great fear that the potential pay day for whistle-blowers represented by aggressive law firms will invite a flood of new claims. In both cases, a “society of paid informants,” as Walter Olson of the Cato Institute puts it, would be the result.

‘Fast’ cash for the whistle-blower

Imagine if this whistle-blower provision had been in place when Goldman Sachs settled with the SEC for $550 million. If a whistle-blower had turned in the tip leading to Goldman Sachs’ censure, that whistle-blower would have made at least $55 million in quick cash. That’s money going back to the taxpayer, points out Stephen Kohn of the Washington-based National Whistleblowers Center. Of course, “quick cash” is a relative term. Long legal proceedings will follow, but if whistle-blowers’ tips pay off, they’ll have their pay day when the government collects from the guilty corporation. However, the government must recover at least $1 million for the whistle-blower provision to go into effect for an informant.

Sources:

Los Angeles Times

An example of whistle-blowing in high government:

George W. Bush once spotted a 45 percent estate tax during his presidency. The wealthy will likely find a larger one in 2011. (Photo: Klearchos Guide to the Galaxy)

At the end of 2009, Congress allowed former President George W. Bush’s estate tax to expire. At the time, the Senate literally encouraged rich people near the end of their lives to postpone their terminal engagement with the choir invisible and stay alive until New Year’s Day, 2010. That way, their families would avoid having to pay a 45 percent estate tax (or death tax, if you prefer). But the estate tax appears to be on its way back in 2011, unless Congress goes against the consensus of experts and actually changes the law.

Estate tax at 55 percent, much smaller exemption

The Wall Street Journal reports that the top estate tax rate will rise to 55 percent, while the previous exemption of $3.5 million per individual taxpayer will fall dramatically to $1 million. That will rope as many as eight times more taxpayers into the estate tax arena, possibly putting some in a position where they may even have to borrow money. The example the Journal gives to illustrate the change is how the new estate tax would affect a $5 million estate. If the wealthy individual dies one minute after midnight on January 1, 2011 rather than just two minutes earlier, the added estate tax cost would be over $2 million. For a $15 million estate, the new cost would be approximately $8 million. This is prompting some heirs to wail, “I want my cash now!”

‘The largest increase in a major tax that we’ve ever seen’

Few average Americans will weep for the wealthy being separated from more of their money, of course. But this sudden turn of the taxation screw is dramatic. Joseph Thorndike of the nonprofit organization Tax Analysts told the Journal “a jump from zero to 55 percent would be the largest increase in a major tax that we’ve ever seen” and a huge pay day for the government and Internal Revenue Service. Elderly estate-holders and their heirs have come to ponder the rather perverse death incentive the looming estate tax provides. Congress has had numerous opportunities to soften the upcoming blow, but no action has been taken as yet, with fall elections on the line. Many unanswered questions – such as whether retroactive extension to the current zero-level estate tax will be approved – weigh heavily on the minds of estate holders and their kin.

Doctors do not recommend estate tax suicide

Money is never worth more than human life. This is something any doctor will tell you – it ties into their Hippocratic Oath – but not all patients are listening, including those sweating out the estate tax problem. They partake of such morbid ventures as suicide tourism, where the estate holder near the end of life travels to a nation with aid-in-dying laws. According to the Wall Street Journal, Switzerland and the Netherlands allow physicians to help people die, but only Switzerland allows its doctors to extend death “benefits” to foreign visitors.

Sources:

Wall Street Journal

Oh yeah? Well, Bill Gates’ dad likes it!

Citgo is trying desperately to raise enough money to continue operations. Image from Flickr.

Given the BP oil spill disaster, it is no surprise that oil-refining company Citgo is having problems getting financing. Originally, the company was looking to raise $1.5 billion by selling bonds. However, the business they are in combined with the fact the company is “exposed” to Venezuela made this sale a flop. Now, the company is turning to $2 billion in bank loans combined with just $300 million in bonds.

Bond sale fail

Citgo, which is the child company of Venezuelan PDVSA, has been running at a net operating loss for the first quarter of the year. In order to raise quick cash to run the company with, the company tried to sell $1.5 billion in bonds. Bonds are a group of individual little loans, where the company must repay the bond plus interest to investors. Citgos bonds were slated for 2017 maturity, meaning any investor who bought them would have to wait seven years to get paid back. Investors, though, were not interested.

Bank loans to the rescue

Because the pay day of bonds didn’t pan out, Citgo was forced to find other options for money loans. The company turned to banks and private money lenders, and it was able to raise $2 billion. That money is partially from new credit extended to the company, and partially from “extension of existing credit lines.” In other words, these lenders were willing to take on the risk of extending credit to Citgo. These lenders, however, have said that they are planning on turning these loans into bonds — in other words, spreading the risk out among many, many more investors.

Citgo’s operating loss

The operating loss that Citgo had over the last quarter is for many reasons. There is political instability in Venezuela, where Citgo’s parent company lives. Though Venezuela’s state-owned oil company does not do much offshore drilling, the BP oil spill is generally affecting the oil and fuel market. This instability within the market is contributing to companies like Citgo being unable to get financing to continue operations.

What is a payday loan?

A payday loan is a short-term loan that is made to meet a borrower’s financial needs temporarily. The loan is usually paid back with their next paycheck. These loans benefit people who are in need of money right now.

How much cash can I get?

You can get payday loans of up to $1,500. The amount you will get, however, will be based on the information you put on your loan application. Be sure to provide accurate information on your application, so you can have a better chance of approval.

What are the requirements for payday loans?

1. Must be 18 years old to apply
2. Have a valid Social Security Number
3. Employed for at least three months and actively working
4. A valid United States citizen
5. Provide current U.S. address

Can I get this loan if I am in the Military?

Yes, Personal Money Market can even help find you the best military loans available.

How long is the application and loan process?

A loan application generally takes 2-5 minutes to fill out. Once you complete and submit your application, a message should pop-up on your screen to notify you of your status, so pay close attention.

If I have questions, can I contact the loan company?

Yes you can. Just visit the contact page on their website. It will have all the information you need concerning their location online and off.

Where can I get advanced payday loans?

A short convenient loan application is located right below this article, where you can begin the process.

Apply for advanced payday loans today!

Genetic engineers have created an artificial life form using synthetic DNA, leading to both hopes for beneficial new technology and fear of bioterrorism. Flickr photo.

Genetic engineers have announced that they have created a living organism with synthetic DNA sequencing. That scientists have created a so-called life form from scratch has created a good news/bad news scenario. Man-made DNA sequencing could lead to new fuels, drugs, vaccines and sources of food. It also leads some to imagine thriller scenarios like killer germs in the hands of state-sponsored bioterrorists. And then there’s the Catholic church, which has, by ancient custom, issued a warning to scientists about synthetic DNA.

Synthetic genome sequencing from scratch

Synthetic DNA sequencing is the result of 15 years of work and an investment of $40 million by the J. Craig Venter Institute. As reported Friday in the journal Science, genetic engineers succeeded for the first time in making a copy of a bacterium’s entire genome. The synthetic genome was then transplanted into a different bacteria emptied of its own genome. Once the DNA assimilated, the recipient bacteria began to function and reproduce in the same manner as the naturally occurring bacteria from which the synthetic DNA was copied.

Gluing together genetic code

Computer designed synthetic bacteria have fueled scientific curiosity for years with the promise of a big pay day from cheap, efficient production of custom enzymes, fuels and medications. The Christian Science Monitor reports that to create the synthetic DNA, scientists at J. Craig Venter Institute used yeast to glue together thousands of DNA snippets. With painstaking microscopic precision, the strands of genetic code came together in runs of tens of thousands of base pairs, and then hundreds of thousands, until the yeast produced a complete 1.08 million-base-pair synthetic genome.

Genetic engineering controversies

Genetic engineering of synthetic DNA, if perfected, promises exciting technological benefits. At the same time, it arouses fear and the attention of government regulation. Bloomberg reports that some bioscientists warn that genetic engineering companies like the J. Craig Venter Institute that can manufacture synthetic DNA should watch their backs. Speaking about the way the J. Craig Venter Institute coordinated efforts with other laboratories to cook up the genome, James Collins, a Howard Hughes Medical Institute-supported bioengineer at Boston University, told Bloomberg that “They sent out chunks of the genetic code to companies and asked them each to synthesize parts of it,” Collins said. “You don’t want bad guys to order 10 parts of a nasty virus from 10 different groups and then put them together.”

Synthetic DNA scares Catholic Church

The Catholic Church has weighed in on the issue. The Associated Press reports that Catholic Church officials said Friday that the recently created first synthetic cell could be a positive development if correctly used, but warned scientists that only God can create life. Bishop Domenico Mogavero, expressed concern that scientists might be tempted to play God. “Pretending to be God and parroting his power of creation is an enormous risk that can plunge men into a barbarity,” Mogavero told the newspaper La Stampa in an interview. Scientists “should never forget that there is only one creator: God.”

Somali pirates got their ransom for a London-based tanker Friday, but increasing naval power and more assertive shipping companies are putting a dent in pirate attacks. Flickr photo.

Somali pirates scored another pay day Friday when a bag of loot was parachuted onto the deck of a chemical tanker they seized last December. The amount of the pirate ransom was unknown. The successful extortion attempt by Somali pirates Friday follows last week’s rescue of a Russian tanker crew by Russian commandos that killed one Somali pirate and set 10 others adrift 300 miles offshore. Despite stepped-up international efforts to patrol the seas off Somalia, modern day pirates are an increasing threat to maritime security. The Telegraph reports that as many as 22 vessels from 11 different countries with up to 380 crew members are still held by pirates in Somalia.

Pirates flee with ransom

Somali pirates seized the St. James Park tanker on Dec. 28 as it passed through the Gulf of Aden on its way from Spain to Thailand. The vessel was anchored offshore from the pirate bastion of Garacaad while the pirate ransom was negotiated with Zodiac Maritime Agencies, the owner of the St. James Park. The Telegraph reports that the London-based firm said commenting on details of the pirate ransom could endanger the crew of another of its tankers, the Asian Glory, which was seized just four days after its sister ship was taken. The St. James Park steamed for the port of Oman on Friday. The gang of brigands fled with their pirate ransom.

Modern day pirate war

To battle modern day pirates, the United States, European Union, China, Russia and other nations have deployed naval forces to fend off attacks, which have threatened one of the world’s busiest shipping corridors. The Globe and Mail reports that Russian forces stormed a hijacked oil tanker in a rescue operation last week, killing one pirate. Russia said the 10 other pirates were stripped of their weapons and navigation equipment and set adrift aboard one of the skiffs they used in the attack. Russian media later quoted a military source saying the pirates were now likely dead. Somali pirates vow revenge.

Real pirates making millions

Today’s real pirates would make Jack Sparrow envious. The Globe and Mail reports that real pirates have made tens of millions of dollars seizing ships for ransom in the Gulf of Aden and the Indian Ocean. With foreign navies patrolling the busy shipping lanes around Somalia, pirates are venturing out to other areas. According to the International Maritime Bureau, Somali pirates accounted for more than half the reported piracy incidents worldwide in 2009 and nearly all of the hijackings. Between August 2008 and December 2009, 706 pirates were captured, but nearly 60 percent were released.

Meeting a pirate’s fate

The tide may be starting to turn for Somali pirates. The Christian Science Monitor reports that the USS Nicholas, a guided missile frigate, was sailing west of the Seychelles islands April 1 in the Indian Ocean when it began taking small-arms fire from a pirate skiff. The frigate fired back, pursued the skiff and arrested three pirates. The Nicholas then captured the pirates’ mother ship nearby and arrested two more.

Fighting fire with fire

On March 23, private security guards hired by the Panamanian-flagged commercial ship MV Almezaan shot back at pirates, killing one. The Christian Science Monitor said it could be  described as the beginning of a trend in which shipping companies are mad as hell and aren’t going to take it anymore. When the Maersk Alabama, an American-flagged ship famously attacked a year ago, was attacked again in November, a four-man security team aboard the ship fired back and thwarted the attack.

Palm became best-known for Personal Digital Assistants, but the transition to smartphones did not go smoothly. Image from Flickr.

Despite grandfathering the concept of smartphones with personal digital assistants, Palm hasn’t been doing so well lately – so the Palm HP buyout that has been announced this week couldn’t come at a better time. This $1.2 billion pay day purchase of Palm, HP is acquiring the Palm operating system, intellectual property, and phone handset designs.

HP Palm purchase saves Palm

The HP Palm purchase could not have come at a better time for Palm. Despite receiving standing ovations and great reviews for its new operating system and web browser, Palm has been struggling. The technology behind Palm smartphones has been well-reviewed, but a combination of slow sales and frustrating design have meant that Palm’s revenues have been falling to dangerous levels. In its latest filing with the SEC, Palm even outlined this problem as “slow sales of the company’s products, which has resulted in low order volumes.”

HP Palm plans

The HP Palm purchase has been questioned by some Wall Street investors. The $1.2 billion price tag seems overvalued for a company whose stock was trading at about $1 in 2008. However, Hewlett Packard has plans for the Palm operating system. In the HP Palm purchase announcement, HP outlines its strategy as “creating a mobile ecosystem” that “leverages HP’s channel and enterprise connections.” Translation – HP may be distancing itself from being a Windows-only manufacturer and entering the phone, tablet, and mobile markets.

HP Slate to run on Palm OS?

Though HP has been a strategic partner with Microsoft for a very long time, HP may very well be using the HP Palm partnership to get a new operating system. There are doubts that Windows 7 will be “lightweight” enough for the HP Streak. The HP Streak is rumored to be released as a smartphone, slate computer, and more – so the polished Palm OS would be the perfect match. This would also release HP from Window’s regulations and release delays. It could be a very powerful partnership that has a chance to challenge Apple’s dominance.

HP Palm to merge in July

The HP Palm purchase is not yet approved by all regulatory agencies. While both boards of directors have approved the purchase, Palm stockholders and regulatory agencies still need to approve the purchase. If the HP Palm merger is approved, HP will become complete owner of Palm around July 2010.

Sources:

HP Press Release
Palm SEC filings
ZD Net