Senin, 29 April 2013
Is the Chained CPI the Right Fix for Social Security?
One of the most controversial elements of President Obama’s 2014 budget is the proposal to reduce future cost-of-living adjustments to Social Security benefits by changing the inflation index. The Social Security Administration now bases inflation adjustments to on the consumer price index for urban wage earners and clerical workers (CPI-W), a close cousin of the more widely publicized CPI for all urban consumers (CPI-U). The administration proposal would instead use a relatively new index called the chained CPI, or C-CPI-U, which, in the past, has increased slightly less rapidly. Predictably, deficit hawks love the idea, while seniors and those who defend their interests hate it. Suppose, though, that we set ideology and interest group politics aside to look at the underlying economics of the issue. On those terms, is the switch to the chained CPI the right fix for Social Security? >>>Read more
Jumat, 26 April 2013
First Time Auto Buyer Program with No Credit History – Guaranteeing Uncomplicated Car Buying
You will always remember your first car and that’s why; make sure that the process of buying your first car is pleasurable. A first time car buyer or someone with more experience of car buying, car loans are common to one and all. Buying a car with cash is out of question because cars – used or new have become very expensive.
The prototypical first time car buyer usually has no credit score. He is making a credit purchase for the 1st time which means there is no credit history. But, don’t worry. This article will help you get the best interest rates on your maiden car loan.
How to score Better Rates on a First Time Auto Buyer Program with No Credit History?
Remember that the American auto financing industry is highly competitive. There is an auto loan for every situation and car buyers can easily get affordable financing programs. All you need to do is know where to search. There are many auto financing companies that provide auto loans to first time car buyers. When you fill in the application form, make sure that you choose a reliable lender. But, before filling the form, you must know the auto financing process. Just as a half-baked recipe spells disaster, insufficient knowledge can be extremely harmful. So, get ready to know how you can secure low rate first time auto buyer’s program with no credit history.
A Realistic Budget for a REALLY AFFORDABLE Loan
No interest rate will be high and unaffordable if you make a budget. Once you prepare a list of your monthly income and expenses, you can easily know whether a particular car loan quote will be affordable or not. Understand your financial constraints before saying yes to any lender. It will help you in making a better choice.
What Car suits you?
It’s not like yesteryears when you had just few options for buying a car. Today, there are abundant choices and it is better if you have a few favorites. Most cities charge for parking. Add insurance, cost of fuel, maintenance, etc. to the list of car-related expenses. So, make sure that you don’t buy anything that is not necessary. Decide on your needs. If you will have to travel long distances every day, it’s better to go for a fuel-efficient car. If you are going to live in highly populated city like NYC, better to opt for a compact model that doesn’t take too much place. Also, understand your neighborhood because it will let you decide on the kind of safety equipments you want.
Do remember to check the manufacturer’s incentives for first time buyers. There are many companies who offer special discounts and cash back schemes. GM offers student-college discount to first time buyers. Ford also provides a financing option to young car buyers.
Check your Credit Score
Grades were important when you were in school. And, now it’s credit scores. It is essential because it will determine the approval of your loans. Even if you don’t have any credit history, it is always better to have your current credit score before applying for first time car loan. There are high changes that your department store credit card had some positive effect on your credit score.
De-stress with Down Payment
If uncertainty over car loan approval is giving you unnecessary stress, down payment can help you. It is the time-honored solution to car loan ambiguity. When you make a down payment, lenders get a corroboration of your financial stability. This helps in getting quick approval.
Securing the Deal with a Co-Signer
Co-signing is a powerful antidote to your no credit problems. By getting a co-signer, you assure the lender of regular payments. This ensures that approval on your first time auto buyer’s program is in the near future.
Income-Proof
Don’t have a co-signer? Don’t know how to manage money for making a down payment? Well, your problem can be solved with a proof of your income. When lenders know that you make steady dime, it will be a perfect solution for unavailability of a co-signer and down payment. So, make sure that you have income proof with you.
All these steps will ensure that you get an affordable first time auto buyer’s loan. Zero credit history won’t trouble you anymore because this car loan will start building your credit score.
Fastautoloanapproval.com provides low rate auto financing options to 1st time car buyers. Get affordable car financing with no credit history. Apply now to secure FREE auto loan quotes today!
Happy 1st Car Buying! All the Best!
Used Car Auto Loans for People with Bankruptcy – Perfect Way to own a Car after Bankruptcy
If you have suffered a terrible financial blow that resulted in bankruptcy, you know how hard it can be to get any type of loan. Don’t worry if you are tired of rejection on your car loan from neighborhood lenders. You won’t have to wait for a decade to apply for a car financing program. You can buy a car and enjoy work and life before bankruptcy comes off your credit report.
With this article, you can avoid steep rates that often accompany a bankruptcy auto loan. Use the suggestions to get better rates and avoid the feeling of being stuck with a terrible auto financing program.
Why Used Cars are better for People with Bankruptcy?
While it can be appealing to purchase a brand new car, you must go for a reliable used car. A new car is very expensive and it’s better to go for cheaper used cars. It will lower your used car loan amount and thus, reduce the car loan cost. You can opt for anything in the range of $10,000 to $15,000 because most reliable pre-owned cars come in that range. Nevertheless, don’t forget to get inspected from your mechanic.
Also, most used cars that are available in the market are not very old. This is ideal for people who have recently come out of bankruptcy.
Who can apply for Used Car Loans?
Modern auto financing has ushered in a fresh wave of change. Now, anyone and everyone can get used car loans. There are many new lenders and online companies who have made easy auto financing for used cars. Also, the car is used as collateral which makes it easy to secure better rates.
You can get an auto loan with Chapter 7 or Chapter 13 bankruptcy. It is always better to go for used car loans after you have successfully tackled bankruptcy. It is because getting an auto loan during bankruptcy means excessively high interest rates.
Process of getting a Used Car Loan with Bankruptcy
Prepare for the WORST, but don’t hope for it
Remember that there is absolute profusion of car loan choices. You can get a used car loan despite bankruptcy but you must work for it. You will have to prove the lender about your current financial capacity and ensure regular payments. It is beneficial to prepare a budget because it will give you the perfect idea of making payments.
Is Down Payment and Co-Signer possible for you?
Down payment and co-signer are two things that can turn the events in your favor. When you have bankruptcy on your credit report, lenders want to be very sure of your financial capacity. Manage a down payment of at least 10% of the total price of the car.
A co-signer with good credit history can counterbalance the effects of your bad credit history. Lenders require a co-signer with a stable debt-to-income ratio so that he can make payments in case of any failure from your side.
Know your Credit Ratings
Coming out of bankruptcy, your credit score must have taken a hit. But, that shouldn’t keep you from checking your credit ratings. Know how bad they are, just so that no lender can con you. It is often seen that lenders take undue advantage of car buyers who are unaware of their credit scores.
Applying for an Affordable Used Car Loan
Once you are done with this, open your computer and start searching for auto financing companies that offer used car loans for people with bankruptcy. You must have Bankruptcy Discharge Notification. It will tell the lender that you have successfully handled bankruptcy and will be able to handle regular payments as well.
Also, set up the payment schedule according to your convenience. If you can pay every week, ask the lender to set up payments that way. It will help you make payments on time. And, thus improve your credit score.
Remember that there is substantial car financing options available for people with bankruptcy. You just need to work hard so that you get the best deal.
US GDP Growth Accelerates from a Crawl to a Walk in Q1
US GDP growth accelerated from a crawl to a walk in the first quarter of 2013, according to the advance estimate issued today by the Bureau of Economic Analysis. The reported annual growth rate of 2.5 percent was just a bit faster than the average rate during the recovery, and much stronger than the 0.4 percent reported for Q4 2012. Compared with yesterday’s news that the British economy had barely escaped a triple-dip recession and that unemployment hit a record high in Spain, the latest numbers position the United States as one of the healthiest of the advanced economies. Behind the headline growth rate, however, some of the details were less encouraging.
Personal consumption expenditure was the most important component of the acceleration. Consumption contributed 2.24 percentage points to the Q1 growth rate, compared to just 1.28 percentage points in Q4. Nearly all of that came from the service sector. Housing services and utilities, recreation, and financial services all showed strong gains. Growth in consumption of goods slowed slightly. >>>Read more
Follow this link to view or download a classroom-ready slideshow with charts and commentary on the latest GDP data
Personal consumption expenditure was the most important component of the acceleration. Consumption contributed 2.24 percentage points to the Q1 growth rate, compared to just 1.28 percentage points in Q4. Nearly all of that came from the service sector. Housing services and utilities, recreation, and financial services all showed strong gains. Growth in consumption of goods slowed slightly. >>>Read more
Follow this link to view or download a classroom-ready slideshow with charts and commentary on the latest GDP data
Rabu, 24 April 2013
Guaranteed Plan of Action for Guaranteed Approval on Auto Loans for People with Credit Issues
Does car financing take the fun out of car buying? Do you think buying an automobile with cash is the best option because of ceaseless rejections from sub-prime lenders and 2nd chance auto dealerships? If you are getting harassed by your bad credit or zero credit history or even a past bankruptcy, this article is the right choice for you. Let's understand how to get guaranteed approval on auto loans.
Put on Judging Glasses
It is essential that you understand your situation before taking any decision. Do you really have bad credit history? Know the reason behind it. Is it a past bankruptcy or a repossession that has made your credit score terrible? Get your free credit report from annualcreditreport.com and comprehend it. If you find any unwarranted transaction, ask the credit bureau to remove it.
Is Bad Credit bothering you?
If you have bad credit history, your past financial transactions are the cause of it. Dig in deeper and know exactly which outstanding debts are ruining your credit ratings. If possible, pay-off some of the debts. It will improve your credit score. Also, the lender will be able to discern the importance of a car in your life.
Did you have Bankruptcy in Past?
Bankruptcy stays on your credit report for 10 long years. So, if your credit report shows bankruptcy, you must know that it is going to affect your interest rates for long. You can combat it by making some positive transactions which include paying off debts and checking for unknown entries.
No History Case
Most young buyers assume that they have no credit history. But, there are chances that a certain department store credit card has had some impact on your credit report. So, check your credit report. When you are assured of no credit history, only then apply for an auto loan with zero credit history.
Plan of Action
After knowing your credit situation, you must start working on getting guaranteed approval Don’t worry if your credit score is not excellent or up to the mark. You can get approval for affordable car financing by alleviating lender’s risk.
Down Payment
A down payment amount is ideal for lowering the lender’s risk. When you make a down payment, the overall loan amount is reduced. A lower auto loan amount means lesser risk. This means improved approval chances.
Co-Signer
Ask someone with a good credit score and decent debt-to-income ratio to become a co-signer. When a co-signer enters the picture, the lender knows that his money is secured.
Documents
Be ready with documents and papers related to your car loan. It includes your recent pay stubs, receipts of utility bills like electricity, water, etc. Few lenders may even ask you for an Employment Verification Letter. So don't forget to get it from your employer.
Get the vehicle details from the dealer or private party if you have already selected a car.
Correct Lender
When you have credit issues, it is important that you apply with a lender that offers auto loans program to people with less than perfect credit score. Contact only those lenders who offer second chance car loans to sub-prime credit borrowers. If you are an individual with zero credit history, search for a lender that has no problem in approving a no credit auto loan application form.
Internet can be used for searching lenders and online auto financing companies. Make sure that you are dealing with a reliable and highly secure company.
If you follow this Plan of Action, guaranteed approval on auto loans for people with credit issueswill be a reality for you. Go ahead! Fulfill your car dreams with these essential tips.
Sabtu, 20 April 2013
Selasa, 16 April 2013
US CPI Lower in March on Falling Gasoline Prices
The US Consumer Price Index fell in March at an annual rate of -2.14 percent. The decrease reversed a sharp upward spike in February, when the annualized inflation rate rose to over 8 percent. Almost all of the volatility in recent months has been due to ups and downs in energy prices, especially gasoline. Energy prices have a weight of over 9 percent in the CPI. Energy prices rose by 5.4 percent in February, and decreased by 2.6 percent in March.
Energy prices are strongly influenced by events in the global economy. For that reason, policymakers at the Fed and elsewhere pay more attention to measures of underlying inflation. One such measure is the core CPI, published by the Bureau of Labor Statistics. The core CPI, which strips out food and energy prices, rose at an annual rate of 1.33 percent in March.
Another measure of underlying inflation is the 16-percent trimmed mean CPI published by the Cleveland Fed. That index drops the 8 percent of prices that increase most in a given month, along with the 8 percent that increase least or decrease most. The 16-percent trimmed mean index rose at an annual rate of just 0.72 percent in March. The following chart shows all three measures.
The Fed considers that inflation of 2 percent is consistent with its mandate to maintain price stability. In March, both measures of underlying inflation were well below the 2 percent target. Furthermore, estimates of expected inflation also remain well below 2 percent over both 5- and 10-year time horizons. In view of those data, most observers consider it unlikely that the Fed will tighten monetary policy any time soon.
Follow this link to view or download a classroom-ready slideshow with charts of the most recent inflation data.
Energy prices are strongly influenced by events in the global economy. For that reason, policymakers at the Fed and elsewhere pay more attention to measures of underlying inflation. One such measure is the core CPI, published by the Bureau of Labor Statistics. The core CPI, which strips out food and energy prices, rose at an annual rate of 1.33 percent in March.
Another measure of underlying inflation is the 16-percent trimmed mean CPI published by the Cleveland Fed. That index drops the 8 percent of prices that increase most in a given month, along with the 8 percent that increase least or decrease most. The 16-percent trimmed mean index rose at an annual rate of just 0.72 percent in March. The following chart shows all three measures.
Follow this link to view or download a classroom-ready slideshow with charts of the most recent inflation data.
Senin, 15 April 2013
Slovenia isn't Cyprus, but that doesn't Mean it's Not in Trouble
Leo Tolstoy wrote that all happy families are alike, but each unhappy family is unhappy in its own way. Much the same is true of economies. Maybe that was what EU Commission President Jose Barosso had in mind when he said recently that, “it is a completely different situation in Cyprus and in Slovenia.” Different, but in many ways no less dangerous. For those struggling to keep up with the ever-evolving euro crisis, here are some of the key ways in which the impending crisis in Slovenia differs from—and resembles—the others.
The macroeconomic context
As in many other countries, the crisis in Slovenia, which now centers on the banking system, has developed against a background of broader macroeconomic problems. Not long ago, Slovenia’s economy was doing well. The country was one of the ten that entered the EU in 2004. Like others in its cohort, it initially enjoyed rapid economic growth. The following chart, which compares Slovenia’s economic growth since 2000 with selected other countries, shows that before the global financial crisis, Slovenia looked a lot like Poland, one of the EU’s biggest success stories. Since the crisis, it has looked more like Portugal.
What accounts for the shift from success story to problem case? Although many factors were at play, two were especially significant. >>>Read more
The macroeconomic context
As in many other countries, the crisis in Slovenia, which now centers on the banking system, has developed against a background of broader macroeconomic problems. Not long ago, Slovenia’s economy was doing well. The country was one of the ten that entered the EU in 2004. Like others in its cohort, it initially enjoyed rapid economic growth. The following chart, which compares Slovenia’s economic growth since 2000 with selected other countries, shows that before the global financial crisis, Slovenia looked a lot like Poland, one of the EU’s biggest success stories. Since the crisis, it has looked more like Portugal.
What accounts for the shift from success story to problem case? Although many factors were at play, two were especially significant. >>>Read more
Kamis, 11 April 2013
A Disappointing, Procyclical, and Highly Politicized Budget
The White House has officially unveiled its budget for fiscal year 2014. I hope to have a chance to look at some of the numbers and programs in depth over the coming weeks, but the overview alone confirms what many leaks have suggested, namely, that this is a disappointing, highly politicized document. Here are some first impressions:
A commitment to continued procyclical austerity
The first thing the proposal makes clear is that the White House has joined Congressional Republicans in a bi-partisan commitment to austerity. It promises $1.8 trillion of additional fiscal consolidation over 10 years, in addition to $2.5 trillion already achieved, about the same as the GOP is looking for. The only difference is a fig leaf’s worth of proposed new revenue in the White House version, $1 for each $2 of spending cuts.
Under the proposal, federal tax receipts would reach 20 percent of GDP by 2020, about same as would have been allowed by such conservative initiatives as a balanced budget amendment proposed last year by Sen. Orin Hatch. True, some Republicans have held out for a still lower target, but even capping tax receipts at 20 percent of GDP would, in view of the demographic realities of an aging population, mean a much smaller government than Americans have become accustomed to during most of the post-World War II period. (See here for some relevant charts.)
The path of fiscal policy under the budget proposed by the White House continues the procyclical pattern that has prevailed for most of the past decade. A countercyclical policy would move the structural balance (that is, the surplus or deficit adjusted to take account the state of the business cycle) toward deficit when the economy is operating below its potential and toward surplus only after it approaches or reaches full employment. Instead, the pattern since 2010, and continued under the budget plan, is exactly the opposite.>>>Read more
A commitment to continued procyclical austerity
The first thing the proposal makes clear is that the White House has joined Congressional Republicans in a bi-partisan commitment to austerity. It promises $1.8 trillion of additional fiscal consolidation over 10 years, in addition to $2.5 trillion already achieved, about the same as the GOP is looking for. The only difference is a fig leaf’s worth of proposed new revenue in the White House version, $1 for each $2 of spending cuts.
Under the proposal, federal tax receipts would reach 20 percent of GDP by 2020, about same as would have been allowed by such conservative initiatives as a balanced budget amendment proposed last year by Sen. Orin Hatch. True, some Republicans have held out for a still lower target, but even capping tax receipts at 20 percent of GDP would, in view of the demographic realities of an aging population, mean a much smaller government than Americans have become accustomed to during most of the post-World War II period. (See here for some relevant charts.)
The path of fiscal policy under the budget proposed by the White House continues the procyclical pattern that has prevailed for most of the past decade. A countercyclical policy would move the structural balance (that is, the surplus or deficit adjusted to take account the state of the business cycle) toward deficit when the economy is operating below its potential and toward surplus only after it approaches or reaches full employment. Instead, the pattern since 2010, and continued under the budget plan, is exactly the opposite.>>>Read more
Jumat, 05 April 2013
US Payroll Job Growth Slows; Unemployment Rate Drops as Labor Force Shrinks
The U.S. economy created a disappointing 88,000 payroll jobs in March, according to today’s report from the Bureau of Labor Statistics. That was down sharply from the 268,000 gain in February. The unemployment rate fell to 7.6 percent, a new low for the recovery, but even that was largely due to a drop in labor force participation.
The bulk of the 88,000 new jobs were created in the private service sector. Professional and business services provided 51,000 jobs, followed by 44,000 in educational and health services. Goods producing industries contributed just 16,000 jobs, mostly in construction. Manufacturing employment fell slightly. Government employment continued its long downward trajectory, led by a loss of 14,000 federal jobs. State government employment gained slightly and local government jobs barely changed. >>>Read more
Follow this link to view or download a classroom-ready slideshow with charts of the latest US employment situation
The bulk of the 88,000 new jobs were created in the private service sector. Professional and business services provided 51,000 jobs, followed by 44,000 in educational and health services. Goods producing industries contributed just 16,000 jobs, mostly in construction. Manufacturing employment fell slightly. Government employment continued its long downward trajectory, led by a loss of 14,000 federal jobs. State government employment gained slightly and local government jobs barely changed. >>>Read more
Follow this link to view or download a classroom-ready slideshow with charts of the latest US employment situation
Kamis, 04 April 2013
Why Hasn't the US become another Greece?
How many times have we heard the warning that if the government in Washington doesn’t change its ways, the United States could become another Greece? Three years ago, when the crisis in Greece was just getting underway, I wrote a post making some comparisons between Greek and U.S. fiscal performance, along with a separate slideshow that presented a supporting set of charts. One key chart showed the two countries’ fiscal balances moving in an ominously parallel pattern that suggested that the United States might be about to follow Greece down the fiscal drain.
Last week, a reader who had run across the old slideshow scolded me for having been an alarmist. While the crisis in Greece has morphed from a crisis into a disaster, he pointed out, the U.S. economy has gradually recovered and its fiscal balance has improved markedly. Why? What were the key factors that made the difference? >>>Read More
Follow this link to view or download a classroom-ready slideshow version of this post complete with additional charts.
Last week, a reader who had run across the old slideshow scolded me for having been an alarmist. While the crisis in Greece has morphed from a crisis into a disaster, he pointed out, the U.S. economy has gradually recovered and its fiscal balance has improved markedly. Why? What were the key factors that made the difference? >>>Read More
Follow this link to view or download a classroom-ready slideshow version of this post complete with additional charts.
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