Gold As an Alternate Currency

Gold is an alternate currency! That’s it folks; when the value of paper currencies are worth less all the time, then gold becomes a more attractive option. And right now, currencies across the developed world are in fact becoming worth less and less because of their deficit issues and the amount of money that is being printed in order to try to support their economies. This of course is eroding the value of fiat currencies, and now we are seeing gold become a more attractive option, hence the rising prices. I know it sounds simplistic, but just as I tell my clients, there is no need to suffer paralysis by analysis, just view gold as an alternate currency and remember, value of paper currency down, alternate currency up.

Now, as you know, we went through a dramatic housing/banking crisis that has a long cast of characters to blame. To better understand what we are currently facing I believe it’s extremely important to know where we came from.

This housing/banking crisis was in the making much longer than some of the politicos would have you believe, and some of the funniest things that I have read or heard was that this was G.W’s fault and that his “failed policies” over the last eight years and lack of regulation were to blame. That has to be one of the most laughable and ignorant answers you will hear.

The reality is that this housing/banking crisis can be traced all the way back to the days of FDR. In 1938 Fannie Mae was created as a mechanism to make mortgages more available to low-income families but just like with most Federal plans, the politicos were well-intentioned, but constructed fundamentally flawed programs. It was added to the Federal Home Mortgage association, a government agency during The Great Depression in 1938, and was meant to provide liquidity to the US mortgage market under FDR’s NEW DEAL. Then in 1977, under the Carter Administration, they passed yet another well-intentioned piece of legislation known as the (CRA), Community Reinvestment Act of 1977 which was basically done to provide more assistance to individuals in low-and moderate-income neighborhoods. Then in 1999, Fannie Mae came under tremendous pressure from the Clinton administration to expand mortgage loans to the lower income populace in distressed inner city areas designated in the CRA of 1977.[6] Because of the increased ratio requirements, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans.

The reason I refer back to these dates, programs, and pieces of legislation, is because these decisions that were made contributed to the housing crisis. They were noble decisions with the best intentions, but when the government starts pressing the housing industry to alter their risk management decisions by allowing people who shouldn’t qualify for home loans, then this is something that is certainly a major problem in the making.

Today, Fannie Mae and Freddie Mac own or guarantee 53% of the nation’s $10.7 Trillion in residential mortgages, according to a June 10 Federal Reserve report, and considering that the U.S taxpayer owns 80% of Fannie and Freddie, that leaves we taxpayers with serious liabilities. Fannie and Freddie already have drawn $145 Billion from an unlimited line of government credit (can you believe that?) granted to ensure that home buyers can get loans while the private housing-finance industry is caught like a deer in the head lights, not making many loans… and rightfully so (not in these conditions).

To make things worse, the US taxpayers’ exposure to the market is growing, not reducing; last year they bought or guaranteed three-quarters of all U.S. home loans. There are estimates from Barclays Capital and Egan-Jones Ratings Co. that state that the U.S tax payer could face losses anywhere in between $500 Billion to a $1Trillion over the next 10 years. Can you believe that? Let me repeat: $500 Billion to $1 Trillion dollars in losses! Now I know that these numbers, Millions, Billions and Trillions all sound alike and they get thrown out there with such regularity that they can lose their meaning, but they represent an awful lot of dough, folks, and just to put things into perspective, we haven’t spent $1 Trillion in the Iraq and Afghanistan wars together the entire time we’ve been there.

I want to be clear, this is not the only reason for the banking/housing crisis, and there are many more culprits to blame here. The repeal of the Glass Steagall act in 1999 was another monumental moment basically allowing depository institutions such as Bank of America and Citigroup to partake in risky behavior that the Investment banks were supposedly better equipped to handle. You can also go back to Alan Greenspan who left interest rates too low for too long which helped fuel the mortgage markets.

When you combine the three influencing factors of Government interference on basically dictating who is creditworthy or not, depository institutions packaging unregulated risky subprime bonds, and record low interest rates, speculative fervor will occur and bubbles will be created in a capitalist society. Unfortunately these conditions created a massive amount of liquidity for home loans, which meant that the capital was available for new mortgage companies to pop up in just about every corner. With these new mortgage companies appearing everywhere, unscrupulous activities took place and it was like the wild wild west for the mortgage industry. There was virtually no enforced regulation and these guys were advising their applicants to lie about their incomes, net worth, you name it; anything to circumvent the process to get their client in the home, who in many cases should never have received that loan.

Of course, the banks are to blame as well; it’s not as if they were stupid and didn’t know what was going on. But they had their shareholders to answer to and everyone was making record profits, so they were chasing those profits, and as long as interest rates were low, and home prices were rising, then everything was copacetic. Then of course the Investment banks were continuously creating new investment vehicles such as synthetic CDO’s which basically were side bets on the subprime mortgage markets that realistically speaking had no tangible value for helping out the markets other than investors betting on the markets.

The problem is that these CDO’s were valued in the Trillions and they were 20 to 30 times leveraged, and when the prices began to fall, all banks that owned these CDO’s (which was most of them) came crashing down, and as a result Bear Stearns, Lehman, Merrill Lynch, WAPO and others weren’t able to survive the carnage that took place.

It was mainly the confluence of many factors that contributed to the housing/banking crisis, and the IMF estimates that over $4 Trillion was lost during this economic crisis; for this reason there was a historic reaction from governments and central banks across the world. The Chinese poured in over $500 Billion in stimulus spending (and very effectively, I might add); the U.S has earmarked over a $1 Trillion (very ineffectively); Europe over $550 Billion; Japan $160 Billion, and many other governments followed suit.

This doesn’t include the unprecedented actions of the central banks as the Federal Reserve has brought down interest rates to as low as 0% for some banks and they also engaged in a very bold yet risky action called Quantitative Easing, which is essentially the printing of money out of thin air to buy Mortgage Backed Securities (MBS) and Treasury bonds. The reasoning behind this action was to bring down mortgage rates, auto, credit card, and business loans. One of the effects of the banking/housing crisis was that liquidity for the markets had dried up. No one was lending, so the Federal Reserve stepped in and became the lender of last resort. And did they ever!

To be more detailed the Federal Reserve printed over $1.4 Trillion in (MBS) bonds and $300 Billion in Treasury bonds. And now the (ECB) Europeans have recently embarked in Quantitative Easing as well, something that they always vowed not to do, but now the Southern European Economies such as Greece, Spain and Portugal are facing such National Debt problems, the (ECB) now is essentially printing money to fund these irresponsible countries’ spending woes.

So let me ask you folks a question; if governments across the world are racking up tremendous debt, and money is being printed across the globe like there is no tomorrow, what do you think that does to the value of their paper fiat currencies? That’s right, paper currencies are becoming debased, and that is why you are seeing the value of precious metals go higher. Yes, printing and spending money does have inflationary implications, but right now that isn’t the main reason why gold is going higher. Right now, it’s all about paper currencies vs. hard assets and paper currencies are losing and they will continue to lose for the foreseeable future.

Right now, Europe is going through a debt crisis and it’s only a matter of time before the focus shifts to England, Japan and eventually the U.S. Along with the previous countries I’ve mentioned, virtually every other nation in Europe has racked up tremendous debt. The way each of these countries could keep accumulating this debt was by having other investors, governments, and banks, invest in their bonds. If these entities continued buying their bonds (which is essentially a loan) then they could continue with their reckless deficit spending.

One thing that this housing/banking crisis did was to seriously damage each one of these countries abilities to generate tax revenues. So when this happened? Those entities that were funding each of these countries spending binges started to rethink whether or not these countries would be able to repay their debt, and when that began, these bond holders began to sell their bonds, but at a loss. Remember, when there are more sellers than buyers in the bond market, rates go up, when there are more buyers than sellers, rates go down.

Considering that the selling was at panic levels, interest rates soared in these countries, and when interest rates go up, it makes it that much more difficult for these countries to repay their debt, hence the downgrades from the ratings agencies in these countries. The reality is that these countries will most likely never be able to repay their debts, and they will either default at some point in the future or the (ECB) will print more money to support these countries. As a condition from the (ECB) and European Union to help these countries, they have to make very painful cuts in their spending to receive this money, which means wages are going down, people are losing jobs, and pensions are being reduced, which is why you are seeing all these Unions riot, like the images we saw coming from Greece. So you can pretty much bank on Europe going through a protracted downturn for quite some time, and it’s not just these countries that are making cuts, but all of Europe is following suit, so this will weigh on the value of the Euro for quite some time.

Of course, this is causing the value of the EURO to go down, and by default the dollar to go up because after all the Dollar is still the Reserve currency in the world and just as I tell my clients, the Dollar is basically the prettiest house in ghetto, so there is a lot of money flowing back to the States. But this shows you how strong gold is; even though the value of the dollar has been strengthening, the value of gold is strengthening even more. Why? Because it isn’t just gold vs. dollar but more so gold vs. paper currencies, and right now paper currencies are becoming debased, and you can pretty much expect this to happen for quite some time.

Right now the focus is on Europe, but as I stated earlier, it’s only a matter of time before Japan, England and U.S go through their debt crisis. The U.S has a $13 Trillion national debt and is expected to grow by another $10 Trillion over the next 10 years and that is by the W.H’s rosy projections. This is unsustainable, some of the greatest economic minds are warning of a coming U.S debt crisis, and once the bond vigilantes (bond investors) deem U.S treasury bonds too risky to hold, then our rates will soar, and our dollar will free fall. If you think gold is moving high now, you aint seen nothing yet.

I would advise investors to allocate a portion of their reserves into an asset which is highly unlikely to lose value, and that is precious metals, and I urge you to do it soon. You do not want to wait to buy into gold after the focus of our National Debt shifts to us. There are many ways to invest in gold and I believe that the best way is by investing in physical gold and farther down this page is a link that you can click on to learn how to do this. Once again, thank you for taking the time to read what I have to say concerning current economic conditions and some of the measures that you may take to help you achieve financial security.

Finance Online Help – How to Manage Your Personal Finances Using Online Services

Finding Finance Online Help is possible if you need help in dealing with money troubles or other financial difficulties. You can find a great deal of financial help for your household finances, online loan applications and even applying for a personal loan online with online finance help sites, without paying the cost of high fees.

Dealing with financial planning is not something most of us enjoy, particularly if there is not so much coming in to actually plan with. However, it is necessary to properly manage our personal finances otherwise it could be too late once a downturn or emergency hits us.

Most of us turn to credit and bank institutions to help us through, which can compound the problems. Seeking out help from online financial help sites, blogs and services is a good place to start to discover valuable ideas to consolidate debts in order to lessen your payments or how to manage your tight budget as well as how to bring in some extra money from other sources.

If you want to seek out free finance online help websites you will be surprised to find you can organize your household finances and personal money issues for wealth building without paying a cent. It has never been easier to get help online and there are a ton of tools and articles that can help guide you to success.

The type of help you can expect to find with online finance sites will come in the from informative articles on managing your personal loan online, household budgeting, free personal accounting software downloads, to advice on debt consolidation, refinancing and getting financial aid, household finances and online loan applications. You’ll even find budgeting spreadsheets as well as free software to download as well.

Let us cover a few of the best online help services for managing your personal finances:

• First is YouTube. There are plenty of resourceful people giving so much advice and how tools on all sorts of money issues.

• Second is the Mint.com. It is a completely free website to help with personal finances, budgeting and expense tracking that includes a number of helpful tools and suggestions for reducing your expenses and tracking you’re spending.

• And of course there is always Google Search: This search engine contains millions of sites that give a wealth of information on just about anything from experts covering on topics from investing in gold to bad credit repair.

The benefits of getting online financial help means you don’t have to sit through presentations, waste your gas, pay for parking, or worst, waste your time and money, getting the wrong type of advice.

Finance Companies – Tips on How to Select the Best

Finance companies are designed to provide leasing or hire purchase contract to many business owners. They are there to help you achieve your business or investment opportunities. There are many things that you need to put into consideration when you are looking for one that will provide you with the services that you need. You will need to do research since there are many finance companies that have come up in the market, making it competitive. Some of them provide funding with the aim of marketing their products and/or services.

Others are part of major banks while there are those who are members of financing and leasing associations. Since there are many finance companies out there, it is only advisable that you search for one that has a reputable background. A good reputation and the fact that the company is a member of the finance and leasing association is the kind of company you want to deal with.

When you settle for a particular finance company it is also vital that you fully comprehend the contract you have with them. It should be in agreement with any verbal or written quotation. They should openly inform you of any penalties that may be incurred in every situation of the agreement. You should avoid companies that have hidden prepayment penalties. It is important that you are aware and understand the terms and conditions of the company before you sign on the dotted line.

If you are leasing equipment from the company, ensure that it is new or in superb condition. Be aware that once you select a finance company that you are in a long term agreement. It is advisable that you go for a company that can give you the flexibility to change between the fixed and floating rates without charging you extra.

5 Things To Look For In A Car Finance Company

Sometimes choosing a finance company can feel like something of a lottery. You look at all the deals available, choose the one you like the sound of and hope that it is a good deal and that the company offering it are sound.

But by applying a few set criteria you can actually shop around and reduce the risk of going with a company that isn’t what you are looking for in a car finance company. But what criteria should you be using?

5 Things To Look For in a Car Finance Company

Price. No matter what you read about choosing companies for finance, price has to be an important aspect of your consideration. It is a simple fact of life that no matter how good the approved auto loan offers are, we have a budget that we can’t afford to break. Stick to your budget and you’re avoid problems. So shop around and make sure that you are only dealing with companies that can give you approved car finance deals that are within your budget. Getting a good car is important, and applying for credit may help you get a better car today, instead of saving money gradually. Still you don’t want to break the bank.
Trust? Can you trust the company that are offering you approved car finance? And before you answer yes or no have you looked around and compared the deals? Every company develops a reputation, whether good or bad, so it is important that you find out what that reputation is. Ask people that you know, ask on car forums, Google their name (and remember that all companies get some complaints – and what’s even worse, many companies get fake negative ratings from competitors).
Age. You want to know that a company that is offering you approved car finance is not some shifty company that will end up going bust next month and forcing you to repay all the money you borrowed over night. So make sure that they are a company in it for the long haul… and a good indicator of this is how long they have been around.
People. Can you get in touch with actual people? It’s all well and good being offered a good deal by a company but if you can’t speak to anyone when you have a problem then that can be a huge issue. Make sure that there are REAL people involved in the company. A tell-tale sign is the presence (or a lack) of a phone number on their website.
The Fine Print. It is amazing how few people read the fine print after they sign their documents. They get too excited about the money and the car. But the fine print can be vital to any deal.

Such things as changing interest rates, fines for late payment, what control they have over the deal etc can make a massive difference to what you thought was a basic auto loan offer. So apply your due diligence and check out what they are really offering you by reading the fine print and asking questions.

The Myth Of Inventory Finance Companies

Your company carries it. You need to finance it. We’re of course talking about inventory. Discussions with clients reveal a lot of misconceptions around inventory financing in Canada. Let’s try and resolve some of those myths around the financing of your inventory, who the players are, who they are not ( that’s the most common myth ) and we’ll also try and provide some straight forward direction on next steps in your inventory financing challenge.

The overall quality of your inventory management will play a large part in your ability to finance your products, which are a part of the current assets component of your balance sheet. You cannot overlook the importance that an inventory lender will place on your ability to report and count your products. The reality is that most firms are either carrying a ‘ continuous’ or ‘ ‘periodic’ system of inventory control.

So here is solid tip # 1 – be aware that inventory lenders prefer a continuous type of inventory accounting, for all the obvious reasons. Essentially you are counting and monitoring inventory (with the use of software of course!) at all times. That’s a good thing when it comes to a lenders valuation on an ongoing basis and their ability to lend.

You’re company is growing. Unfortunately so is your inventory! And that places a huge drain on your cash flow. The working capital cycle dictates that cash turns into inventory which turns into receivables and then we start all over… that lag can be anywhere from 60 – 120 days, sometimes longer. Never underestimate the problem that higher sales will bring to your inventory financing needs.

Clients typically are looking for inventory financing because the level of investment that you have in product and receivables drains your cash flow. As sales volumes increase your cash flow decreases based on your overall collection period of A/R and of course those inventory turns.

Your sales staff of course never wants to be in a position to tell a customer you don’t have the product they have worked so hard to sell.

Does your company have an inventory financing strategy? The majority of firms we talk to in Canada, certainly in the small and medium business sector do not have access to the inventory financing they need. Do true inventory financing companies exist in Canada? We feel that the answer is generally ‘ no ‘, they do not. However if your firm would consider an asset based lending scenario that in effect takes the place of inventory finance companies in Canada.

Under an asset based lending strategy your inventory is margined for what its worth, by experts who categorically know what its worth. You will enhance your ability to finance your product if you have the controls, reporting, and inventory accounting system in places that makes the inventory and asset based lender ‘ comfortable ‘.

Finance Online Help – How to Manage Your Personal Finances Using Online Services

Finding Finance Online Help is possible if you need help in dealing with money troubles or other financial difficulties. You can find a great deal of financial help for your household finances, online loan applications and even applying for a personal loan online with online finance help sites, without paying the cost of high fees.

Dealing with financial planning is not something most of us enjoy, particularly if there is not so much coming in to actually plan with. However, it is necessary to properly manage our personal finances otherwise it could be too late once a downturn or emergency hits us.

Most of us turn to credit and bank institutions to help us through, which can compound the problems. Seeking out help from online financial help sites, blogs and services is a good place to start to discover valuable ideas to consolidate debts in order to lessen your payments or how to manage your tight budget as well as how to bring in some extra money from other sources.

If you want to seek out free finance online help websites you will be surprised to find you can organize your household finances and personal money issues for wealth building without paying a cent. It has never been easier to get help online and there are a ton of tools and articles that can help guide you to success.

The type of help you can expect to find with online finance sites will come in the from informative articles on managing your personal loan online, household budgeting, free personal accounting software downloads, to advice on debt consolidation, refinancing and getting financial aid, household finances and online loan applications. You’ll even find budgeting spreadsheets as well as free software to download as well.

Let us cover a few of the best online help services for managing your personal finances:

• First is YouTube. There are plenty of resourceful people giving so much advice and how tools on all sorts of money issues.

• Second is the Mint.com. It is a completely free website to help with personal finances, budgeting and expense tracking that includes a number of helpful tools and suggestions for reducing your expenses and tracking you’re spending.

• And of course there is always Google Search: This search engine contains millions of sites that give a wealth of information on just about anything from experts covering on topics from investing in gold to bad credit repair.

The benefits of getting online financial help means you don’t have to sit through presentations, waste your gas, pay for parking, or worst, waste your time and money, getting the wrong type of advice.

Car Finance Company

Having a new car is one of the biggest achievements that most people can have. Other than financing education and buying a home, there is really nothing else that can compare to the huge expenditure that comes with purchasing a new car.

Therefore, only a few people can really afford to pay for a car outright. Most people rely on car financing in order to purchase a new car. But with the many car financing options available nowadays, it is wise to research thoroughly for a car financing company that offers the best rates.

Most car financing companies offer better deals compared to local car dealers. While it is convenient to have your car dealer provide you with the loan and plan, it is still better to get pre-approval from a car financing company because they offer more reasonable interest rates and payment options. To choose the car financing company with which to conduct your transactions, you have to consider two things: their rates and reliability.

Car financing companies vary on the interest rates they offer to customers. If they have seen that you have good credit history, the interest rate on your car financing loan may not be as high compared to a person with bad credit history. And if you really want to secure car financing with low interest rates, you should try looking for an online car financing company. By applying for your loan online, you save the company time and money, thus the savings from the cost of doing business are passed on to you.

In addition, you should also check the credibility of the company, especially if you want to do your transactions online. You have to make sure that the company you choose has been in operation for years. Aside from this, you can also ask your colleagues and friends who have already secured car financing from a car financing company about their experiences in loan application. They can recommend a suitable company to you.

Finding a car financing company for your loan application can be difficult if you do not know what to consider and where to start your search. But if you go online and ask trusted sources for their recommendations, you can easily compare car financing rates and select the best deal for you.

Lawsuit Financing Companies

Attorneys, law firms, lawyers, beneficiaries or clients usually form lawsuit-financing companies. Lawsuit financing companies can also provide appeal finance, firm finance, custom finance or estate finance.

Many lawyers and attorneys create lawsuit financing companies based on their experience and the types of cases they encounter the most. Attorneys and lawyers with expertise in personal injury lawsuits or patent lawsuits help by providing cash advances and support in their fields.

Lawsuit financing companies provide many financing options. With a significant monthly fee, a few lawsuit financing companies may help to settle the case faster. Though a large variety of options are available, the plaintiff has to discuss with the attorney which option is best suited to him.

The lawsuit financing company and the plaintiff can make an agreement of the amount of share the lawsuit financers would obtain after the settlement or the verdict is known. This is called “flat fee”. Apart from the flat fees, the plaintiff has to pay a minimum fee every month, called “recurring fees”, to the lawsuit financing company. This recurring fee can be as low as 2.9% in the case of a few lawsuit financing companies, or could be as high as 15% with other companies.

It is the financing company’s decision as to how much to pay as the cash advance. Lawsuit financing companies pay from $1000 to about a million dollars depending on the case.

Every lawsuit financing company would have a team of lawyers to assess the strength of the case. The key is to avoid funding frivolous complaints. Thus the financing companies will scrutinize the complaint and decide the chances of success of the case.

Lawsuit financing companies do not term their cash advances as loans but as investments. The applicant has to repay after the verdict. Usually the monetary settlement that is obtained after the settlement by the court is larger than the company’s advance. The lawsuit financing company should be paid the principal and the predetermined share of the monetary verdict.

Many lawsuit financing companies can be approached through the Internet. Companies like legalcashnow.com, legalfundingnetwork.com and lawsuitcash.com are available on the Internet. Websites like these are flooded with information and instructions regarding lawsuit financing.