Europe’s Financial Crisis Leads to Suicide Surge
The harsh spending cuts introduced by European governments to tackle their crippling debt problems have not only pitched the region into recession — they are also being partly blamed for outbreaks of diseases not normally seen in Europe and a spike in suicides according to the AP.
The report goes on to say that the “worsening health was driven not just by unemployment, but by the lack of a social welfare system to fall back on. People need to have hope that the government will help them through this difficult time”.
I think that it is “nice” to have public assistance programs available for the truly needy. There is however something inherently wrong with these social programs. I believe these programs promote government dependency.
A growing dependency of government is what got us into so many of our problems, and what is our own government doing? They are promoting that very dependency. Instead of raising people up, we are keeping them down. We are creating a generational dependency on social programs.
According to the 2012 Index of Dependence on Government more people than ever before—67.3 million Americans, from college students to retirees to welfare beneficiaries—depend on the federal government for housing, food, income, student aid, or other assistance.
Once considered to be the responsibility of individuals, families, neighborhoods, churches, and other civil society institutions, Americans are looking to the government to take care of them.
The ethic of self-reliance joined with a promise to the brotherly care of those in need appears threatened, well nearly absent in today’s society. There was a time, before all of the social programs, when people took care of each other. If you were having trouble the first thing you did was —anything you could — to get back on your feet.
There was no sitting around waiting for the government to come to the rescue. Your church, or family or friends helped out, and you helped others when they were in need. We took care of ourselves without a dependency on the government.
Our social programs including Social Security, Medicare and Medicaid are unsustainable in their current form.
Over the next 25 years, more than 77 million baby boomers will begin collecting Social Security checks, drawing Medicare benefits, and relying on long-term care under Medicaid. There will be no event so financially challenging to these programs over the next two decades than this shift of boomers into retirement.
More than 70% of Federal spending goes to dependency programs.
With so many Americans on or soon to be on the government dole and nearly half of all Americans not paying income taxes, there is no way we can pay for all of this and our spending will spiral out of control (it’s almost there now). With an increase in recipients and a decrease in the number of workers left paying for these programs, we will soon reach our fiscal tipping point much as other countries have already, and this will put us in a certain domestic debt crisis of our own.
In doing research for this article I have found no evidence that Americans are suffering a rise in medical ailments and suicides. But we have not quite reached the same crippling financial problems as our friends across the pond.
…but trust me when I tell you, it’s coming.
Senate Narrowly Passes First Budget in Four Years
So finally, the Senate passes a budget. (Wall Street Journal) How is it possible to run a country without a budget? Well, simple really, the government doesn’t have to play by the same rules you and I do. Can you imagine if you just didn’t keep track of your finances for four years? Just continue to spend like there was no tomorrow and if you felt like you were getting too deep in debt, just announce that you are going to extend or raise the amount of debt you are going to have?
The U.S. Senate narrowly passed the budget. Do they ever pass anything with everyone in agreement? I doubt it. The budget plan was passed by a 50-49 vote in the Democratic-controlled chamber. Four Democratic senators facing tough re-election campaigns in 2014 joined all the Senate Republicans in opposing the measure, which seeks to raise nearly $1 trillion in new tax revenues by closing some tax breaks for the wealthy.
I’m a bit confused as to how the government method of accounting works. They’re going to raise $1 trillion by closing some tax breaks, OK, I guess I buy that, although I think it is more speculation than fact. But I recently heard the president say that by increasing the debt ceiling to $16 trillion instead of $18 trillion he has reduced our National debt by $2 trillion.
…What?
Congress will be out of town for a two-week spring recess.
I guess after three months of work, Congress is worn out and needs a little va-ca. I guess passing a major tax increase, raising the federal debt limit, allowing $85 billion in spending cuts to take effect and enacting a bill to keep the government operating only through Sept. 30, really takes it out of you.
This budget mess is not over. It still needs to pass the house and we all know that it is not going to be that easy. With the Democrat controlled Senate and Republican controlled House, it seems like nothing ever gets done. Well, nothing of any importance. If there is a spotted, ring-neck, hootie bird spotted in a field in Whocares county in the state of Ridiculous, they have no problem agreeing that there should be millions spent of studying it and determining why it will only crap when it is facing north. …or some such nonsense.
The problem is that each side has a different view on how our country should be run. The Democrats, keeping up the stereotype, seem to be all about tax and spend and “entitlement” programs with no regard for a budget, whereas the Republicans appear to be for a smaller government and controlled spending.
The House wants a balanced budget by 2023
The House plan ostensibly brings the government’s taxes and spending into balance by 2023 with cuts to domestic spending even below the levels of automatic across-the-board cuts roiling federal programs now, and it orders up dramatic and controversial changes to Medicare and the tax code.
The Senate plan, by contrast, includes $100 billion in upfront infrastructure spending to bolster the economy and calls for special fast-track rules to overhaul the tax code and raise $975 billion over 10 years in legislation that could not be filibustered. Even with that tax increase and prescribed spending cuts, the Senate plan would leave the government with a $566 billion annual deficit in 10 years, and $5.2 trillion in additional debt over that window.
As if all of this isn’t enough to make your head explode, coming this summer… Congress must again raise the government’s statutory borrowing limit or risk defaulting on the federal debt. …The good ole Debt Ceiling problem is coming back.
So the Senate passed a budget, the first in 4 years, but guess what? It will never be passed into law as it is. …and no one seems to every compromise.
I think it’s better for me to just stick my head back in the sand and stop watching the news.
…I have had just about enough.
Careful Consolidation can Resolve your Debt Woes
Yahoo News — If you have racked up a lot of debt on credit cards, loans and overdrafts, then you may need a quick-fix solution.
If you are scared to death to look at your checkbook balance, you avoid opening bills, you are late on making payments to creditors and you never answer the phone at home, you might consider debt consolidation.
Essentially, debt consolidation combines all of your debts into one loan so you only have to make one payment. This idea might sound appealing, but it has its disadvantages as well as advantages. To determine if debt consolidation makes sense for you, take a look at these facts.
There are a few ways that exist to get funding to consolidate, and pay off, your debts. One of them involves working with a debt consolidation firm. It is true that you can consolidate your debts on your own, too, and pay off debt but it sounds easier than it is. It is best to let a professional like DebtHelper.com, who has experience and knows the ins and outs of the industry, handle your debt management.
Some people look to refinancing or borrowing against their homes as a route toward debt consolidation. Refinancing your home and taking cash out can help pay down high-interest debt, and can be tax-deductible, but carries risk. What I don’t like about refinancing to pay off debt is that you have now financed your debt for usually 30 years. Don’t you think you could come up with another alternative to paying off high interest debt? Again, if you find yourself in this situation, seek the advice of a professional that helps get people out of debt. A loan officer who sells refinances is likely not your best resource for honest advice on curing your debt problem.
If you do end up refinancing your home make sure that there is no possibility of missing a payment. The last thing you want is to face foreclosure because you transferred too much unsecured debt to secured debt. (Unsecured debt is not supported by any type of collateral or asset, and it includes debt from medical expenses, credit cards and utility bills.)
With a home equity loan or line of credit, you borrow against your home’s equity.
With a home equity loan or line of credit, you will borrow against the equity in your home in order to pay off those bills. However, you of course have to put up your house as collateral. This is essentially a second mortgage on your home. This means, just like a normal refi, you could lose your home if you are unable to make the payments. Plus, if your home’s value drops, you will likely be upside-down and you may not be able to pay back all the money you owe if you sell your home.
Some people like to find a low interest rate credit card with a credit limit large enough to cover all of their other debt and use that to pay stuff off. This is a wreck waiting to happen. Chances are that if you got yourself in trouble with your other credit cards, something will come up and you will use this new, larger limit card, and increase your debt even more.
You must at all costs, avoid adding to the mountain of debt.
Debt consolidation can make things easier for some people by helping to make payments on-time. But it does not address issues like overspending and poor budgeting – issues that, for a lot of people is what created the original debt problem. If you choose debt consolidation, you must also educate yourself and change your way of managing your money and dealing with debt.
If you are currently past due or overwhelmed with your debt situation, seek the advice of a professional.
The professionals at DebtHelper.com can explain the benefits of a debt management program and provide you with a fresh start.
One of the biggest long-term benefit of the debt management plan is the reduction in interest. Reduced interest allows you to pay off your principal balances faster while saving you possibly thousands of dollars in finance charges.
In order to determine if you are eligible for a debt management program, you can fill out an online budget application form now and then you can contact one of their Certified Personal Finance Counselors© at (800) 920-2262.
DebtHelper.com can currently accept clients from the states listed here. DebtHelper.com is licensed, insured and complies with all state licensing requirements to ensure mandated regulations are followed. They are diligently working on becoming licensed in every state and are opening new states monthly.
Please call (800) 920-2262 if you have any questions. DebtHelper.com’s consultations are free, call them any time.
H&R Block Snafu Delays Refunds
…mandatory field on tax form left blank
Marketwatch.com — H&R Block, the nation’s largest tax preparer, confirmed that its software failed to fill out a mandatory field on Form 8863, which is used to claim educational credits. The IRS would not say what percentage of the roughly 600,000 faulty returns came from H&R Block (US: HRB), but the company received thousands of complaints on its Facebook page and on Twitter.
I have to tell you, I would be pretty mad if this had happened to us. My wife and I used TurboTax to prepare and file our tax return; we have for the last 5 years or so, and have never had a problem. I used H&R Block when I was younger and all I remember was an expensive “loan” in order to get my return immediately. I thought the days of those short term refund loans were over but they are not. Now there is what is called a RAC / RAL or Refund Anticipation Check / Loan.
RALs are those short-term loans usually at outrageous interest rates, for the amount of an expected refund. Tax prep fees are usually deducted from your return amount also. A “good” RAL might have an APR of 40%; a bad one can end up costing 10 times that much.
When combined with other the cost of the RAL can approach loan-shark levels.
Thankfully, this might the last year people need to be warned about RALs. That’s because the RAL industry is getting squeezed by federal regulators, who are cutting off bank funding to the biggest RAL lenders, and by the Internal Revenue Service, who is making it easier to get refunds quickly and without crazy fees.
You know, what’s really problematic is the fact that you have to pay H&R Block something like $150 for 30-40 min of time with their “tax consultant”. If I’m paying for an “expert” to prepare my taxes, I would expect there to be no errors. I realize the “tax consultant” is a human, prone to making mistakes, but this goes farther than the individual tax preparers, the fault falls on H&R Block for failing to stay up-to-date with the IRS and failing to properly train their “tax consultants”.
H&R Block explained that a form had changed, Form 8863 relating to student tax credits, and that in previous years, five lines on the form could be left blank for a “no” answer. Starting this year, preparers must enter an “N” in those fields or risk a delay.
H&R Block said it learned about the tax form change after it had submitted hundreds of thousands of tax returns. The IRS said it was aware of the problem and it is continuing to review the situation and work with “affected software companies to assist in the processing of those tax returns.”
You know, I was always instructed when filling out any form, to never leave a “blank”. If it’s a “no” answer, mark it “no”. If something doesn’t apply, use “n/a”. You would think that H&R Block’s highly trained tax preparers would follow this thinking just from common sense, especially if you are dealing with the Government.
I feel sorry for Mr. & Mrs. John Q. Public who filed their tax return and is expecting their refund only to find out it’s going to take at least 21 days for the IRS to figure everything out and issue the refund.
Now, my good friend TurboTax is not exempt from errors either. Last week, the Minnesota Department of Revenue warned taxpayers against using TurboTax to file their state income taxes, finding 10,000 returns had problems. In a terse statement, the Minnesota Department of Revenue said it would stop processing tax returns filed through Intuit (the company that operates TurboTax) if the problem is not fixed.
Well, I don’t live in Minnesota so it doesn’t affect me but if I did, I wouldn’t be as upset with TurboTax since I know full well that I am filing my return on my own with the help of a computer program. There’s not a $300 an hour “Tax Consultant” using their knowledge and expertise to make sure my return is done correctly.
If you want to insure your taxes get prepared correctly, seek out an Accountant or Bookkeeper certified to prepare tax returns.
… Often times you get what you pay for.
How Cee Lo Green Taught Me to Achieve
I’ve got to make a confession. On November 9, 2010, my life changed. You see I was minding my own business, watching the Colbert Report, and saw Cee Lo Green pick up the microphone to finish the show by singing his hit single “Forget You” (aka “[expletive deleted] You”).
Since that day, that song has been playing in my head non-stop…for almost 6 months now. (By the way, if you haven’t heard it yet, open up YouTube and listen before reading further). Well wait, I’ll put it right here. If you’ve seen this, skip it and scroll passed the video.
With a song stuck in my head for 6 months straight I had two options:
– Punch myself very hard in the face and hope a different song would start playing in my head, or
– Analyze the lyrics until I learned something useful.
That’s how Cee Lo Green taught me to achieve. Let me explain…
I’ve never been all that productive of a person. You see, I’ve always waited until I was “good enough” until I started taking meaningful action. I would do tons of work trying to become “good enough,” but since that’s a pretty vague goal I tended to get stuck always preparing to take real action. I would rarely accomplish something meaningful.
Luckily Cee Lo stepped in. You see, in “Forget You” he tells a beautiful story: guy loves girl, guy sees girl in a car with a rich dude, guy gets angry that he wasn’t rich enough for her, guy says screw this. He sings, “I guess the change in my pocket wasn’t enough I’m like, forget you!” And moves on. He could have sang, “I guess the change in my pocket wasn’t enough I’m like…well, I guess I’ll get a second job, try to invest wisely, and eventually win you over.” Not quite as catchy.
The wise Cee Lo realized that it wasn’t worth wishing he had more money, or waiting until he got his Ferrari. If that girl wasn’t going be with him…forget her. Realistically, even if he did wait until he got that cash, car, and xbox, that girl still wouldn’t want him (or by then he would have been over her). So he started from where he was, not from where he hoped to be one day.
What does any of this have to do with real world achievement?
On one hand, most of us want our life to change in some way. On the other hand, most of us are waiting for something before we can really take action. We’re waiting to finish a class, get a promotion, have a new situation, or find a direction. Many of us think that if only we had that one thing in our life happen, then we could start making progress.
– I need a perfect outline before I write that essay or blog post
– I need the perfect work out and diet plan before I start exercising
– I need the perfect website, traffic, blog, or product before I can start an online business
– I need to wait for the right time before I quite the job I hate
I know what I did for the longest time is either:
– work my butt off trying to be prepared enough to start making progress, or
– pout and feel sorry for myself.
If only I had asked, “WWCLD?” (what would Cee Lo do?). He would have said, “forget being ‘good enough.’ I am where I am. I don’t need to wait until I’m ‘good enough’ or ‘ready.’ I am going to start moving forward from where I am right now.”
Start achieving like Cee Lo
I’m not telling you to go record a hit record (although if you do, referencing Mr. T’s catchphrase like Cee Lo does in “Forget You” is always the right choice). Instead, pick the one biggest goal you currently have in your life. Got it? Okay, I don’t care if you’re starting at zero in pursuing that goal. I don’t care how much you have to learn before you can really do it. The most important thing you can possibly do is to say “forget you” to whatever you think you need to do before you act. Figure out how to take your first step now.
Don’t be like Cee Lo was before his “Forget You” kick. He had to “borrow, beg and steal and lie and cheat, trying to keep” the girl. In the same way, you’d have to work your ass off to get to a point where you are “good enough” to start taking real world action. Screw the ideal. Start from where you are right now.
P.S. I’ve not consulted Cee Lo, but I’m pretty sure we’re best friends and he probably agrees with everything in this warped interpretation of his catchy song lyrics. Sorry Cee Lo if you’re being misrepresented here!
The New Financial Reform Bill: What Does it Mean for You?
You may have seen stories in the news lately about the Financial Reform Bill, but still might be confused about what it all means, especially when it comes to your financial situation.
Though the bill would cause some changes it might not affect your financial situation or any loans you may have taken out immediately. In fact, it is more of a precautionary program that would be set in place so future financial meltdowns could be prevented.
Though there are other parts of this bill, it can mainly be outlined in three basic sections.
The first part of the bill states that regulators would have more authority. It is not a big secret that in the past regulators have had a dangerously friendly relationship with financial firms and lenders, or more bluntly, just haven’t been as strict as was necessary. If the new bill were to pass, regulators would be overlooking items such as mortgages and complex securities. This measure might prevent past mistakes such as undocumented loans.
The next part of the bill would require financial firms to retain less debt and store more capital in reserve. By having more capital in reserve, firms would be able to use it as a cushion if investments go bad.
The last major part of the bill comes in if, even after the first two precautions, a firm is still unable to manage themselves. In this case, the government would be allowed to seize the firm long enough to sell off its parts.
Though the new bill seems like it might make a positive change in the way that finances are handled by firms, due to a lack of bipartisanship support the bill may have lost the strength it was expected to have.
In the end, the bill, if passed, may not immediately affect any loan you may have, but it could affect future loans and other ways of borrowing, along with the way firms use your money.
To read more about the bill go to: http://topics.nytimes.com/topics/reference/timestopics/subjects/c/credit_crisis/financial_regulatory_reform/index.html?inline=nyt-classifier
Sources:
http://www.nytimes.com/2010/07/14/business/14regulate.html?_r=1&ref=business
DEBTHELPER.COM 