IM Report Card

I was recently introduced to the Internet Marketing Report Card (IM Report card).  This is a wonderful free site where you can check out the reputation of any product, service or person related to making money on the internet.

I had no idea that I was reviewed there until one of my radio listeners (www.wsradio.com/skipmcgrath – 10 am every Wednesday) emailed me that I was ranked 3rd in the country out of the top 25 internet marketers. You can read my review at the Skip McGrath Page on IM Report Card.

So take a look at Internet Marketing Report Card. Sign up for a free account (it only takes a minute) and post a comment. If you like any of my books you can write about them. I would love to hear your unbiased comments.

The other thing that is really neat about IM Report Card is that you can actually make money every time you  rate someone or post a comment –or even when you recommend someone.  You won’t get rich, but there are a few active folks who make an extra $50 to$100 a month or so for just a few minutes work each day.  And you are also doing people a service when you warn them away from bad promoters or crappy internet products.

This is a guest article by Martin D. Weiss, PhD, publisher of Money and Markets

UP to 200 Banks Could Fail in 2010

Washington has so thoroughly botched its supervision of the banking industry that 200 banks are likely to fail this year — easily surpassing last year’s 140 bank failures … inevitably involving the greatest bank losses in history … and already costing the FDIC ten times more than the great S&L and banking crisis of the 1980s did.

I am not basing these conclusions on conjecture. They come straight from official sources. Specifically …

In her testimony before the Financial Crisis Inquiry Commission on Thursday, FDIC Chairman Blair attacked the Fed under Greenspan for causing the housing bubble and subsequent debt crisis with its highly stimulative, low interest rate policy of the 2000s.

She slammed virtually all of Washington for allowing banks to establish a huge, high-risk “shadow banking system.”

And she made it abundantly clear that, without sweeping, far-reaching reforms, we risk another devastating debt crisis.

Each of her conclusions is abundantly obvious and thoroughly documented. What she did not mention, however, are the following equally obvious facts:

Obvious fact #1. The Fed under Bernanke is now pursuing an even more stimulative, lower interest rate policy than it did under Greenspan, threatening to create even larger bubbles and more devastating busts …

Obvious fact #2. In just the last two years, between bank bailouts and easy money, Washington has done more to encourage the growth of the shadow banking system than in all previous years combined, and …

Obvious fact #3. Despite all the talk and testimony, the nation’s powerful banking lobby virtually guarantees that, in the absence of another Wall Street meltdown, the chance of sweeping reforms is virtually nil.

So here’s America’s financial dilemma in a nutshell:

Without sweeping reforms, the nation is doomed to repeat history with another debt disaster. But without another debt disaster, the nation’s political will for sweeping reforms is dead or dying.

In the meantime, the aftershocks of the 2008 debt crisis are getting worse, as the latest news clearly illustrates …

171 actual total failures: In addition to the 140 banks and S&Ls that failed in 2009, 31 credit unions went under, bringing the total tally to 171.

Worse than the 1980s: If you’re among those who think today’s banking crisis isn’t nearly as bad as the great S&L and banking crisis of the 1980s, think again. The average bank failing today is six times larger than it was back then, producing far greater losses. Moreover, each bank failure is costing the FDIC about TEN times more than it did in the 1980s crisis, according to the Meridian Group of Seattle. As a result …

Worst FDIC losses of all time: The FDIC lost more money in bank failures ($36 billion) than it lost in the ENTIRE five-year banking crisis from 1987 through 1992 ($29.6 billion). And in 2010, with the number of failures likely to increase, the losses will be even larger.

Big banks still losing billions with consumers: Until last week, the consensus opinion on Wall Street was that the troubles at the BIG banks were over; that to close this chapter in history, the only task remaining was a mop-up operation at smaller regional and community banks around the country.

That theory was shattered on Friday when JPMorgan Chase revealed it was forced to add $1.5 billion to its consumer loan loss reserves. The big problem: When it took over Washington Mutual last year, the biggest failed S&L of all time, it inherited a cesspool of mortgages that are now going bad at an accelerating pace. Other big consumer banks — like Citigroup and Bank of America — likely face similar woes.

The trading profits of big investment banks are a bubble: What most Wall Street bank analysts still don’t seem to recognize is that the giant trading profits they’ve been so enthusiastic about are generated by the same low-interest Fed policy that created the housing bubble — and is now in the process of creating MORE bubbles.

Without the Fed’s largesse, without the low-cost financing, and without the big risk appetite it generates, most of the big bank trading profits would have been impossible. More to the point: Just as soon as the Fed finally executes an exit plan, the bulk of those profits are likely to turn to losses.

What To Do

First and foremost, do not let up your guard when it comes to keeping your money safe. Yes, I know. With all the talk of the “end” to the crisis and Treasury bills paying virtually nothing, it’s tempting to venture away from safe harbors.

But how much more yield can you get by doing so? If you switch from Treasury bills to bank CDs, for example, the most you can gain is a small fraction of a percent. And if you switch from bank CDs to low-rated corporate debt, the extra yield you get is even less attractive.

In sum …

At this early stage so soon after the worst debt crisis since the Great Depression, the TRUE RISK of putting your money in higher yielding savings vehicles is still very high. Nevertheless, banks and other borrowers are asking you to take that risk WITHOUT paying you more than pennies for it.

My recommendation: Tell them to go fly a kite!

For your keep-safe funds, use strictly short-term Treasuries or equivalent.

Second, if you do other business with a bank or if you still want to keep some part of your savings in bank CDs … at least be sure to avoid the banks most likely to fail and stick with the ones most likely to survive. (For the latest Weiss Lists of the weakest banks and S&Ls, click here. For the strongest, click here.)

Third, bear in mind that, when it comes to your investment decision-making, TIMING is everything.

Last year, the stepped-up pace of bank failures did not derail the weak-but-continuing recovery in the U.S. economy. And for now, that’s bound to remain the case. As soon as we see signs that’s about to change, we’ll do our best to alert you. Until then, we stick with our current posture: Continue to invest, but do so with great caution.

Good luck and God bless!

Martin

About Money and Markets

For more information and archived issues, visit http://www.moneyandmarkets.com

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

Here are some quotes from Thomas Jefferson that are highly germane to what we are experiencing in today’s world.  Where are the modern Thomas Jefferson’s when we need them?

“When we get piled upon one another in large cities, as in Europe, we shall become as corrupt as Europe.”

“The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.”

“It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.”

“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.”

“My reading of history convinces me that most bad government results from too much government.”

“No free man shall ever be debarred the use of arms.”

“The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.”

“The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. “

“To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical. “

And, In 1802 Thomas Jefferson said:

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…”

This economy has been tough on everyone –with seniors on fixed incomes especially hard hit. I spent a few hours doing research for an article today and thought I would share some of what I found with my readers.

So here are some of the best sites I found with tips to budget, save money, reduce expensesmake extra money or  raise some fast cash.

Budgeting

Personal Budgeting is a great site that walks you through the right way to set up a budget. Another great site is Always Frugal. It has tips on on frugal living, suggestions on how to save money on groceries, a budget worksheet and more. Ten tips for staying on a budget from How Stuff Works is also very helpful.

Dave Ramsey has a very different view of budgeting that you may want to look at.

Saving Money  & reducing expenses

The Simple Dollar is a great site with 101 money-saving tips.

DoughRoller has 75 Painless ways to save money

ZenHabits offers up 106 Money-Saving Tips for a Frugal Lifestyle

Frugal Dad gives you over 100 money-saving, expense reducing tips from his readers.

Making Extra Money

The MSN Money Blog offers up 52 ways to make extra cash quickly.

Us News Personal  Finance Blog offers 7 ideas to make extra money in your spare time.

The Wisdom Journal covers 26 ways to make extra money while keeping your job.

Low cost lake, river and bayside communities

US News and World Report has just issued their waterfront retirement report.

“Few retirees would complain about spending each evening watching the sunset sparkle off the water, if it weren’t for the B-word. Budget. Most condos with an ocean view will gobble up even more of your nest egg than the stock market did last year. However, if you’re willing to spend your golden years by a lake, river, or bay, a retirement filled with beach bumming and sandcastle building is still attainable. Read the rest of the story…..

+++++++++++++++++++++++++++++

The Official Geezer Guide to Selling Online helps seniors find legitimate ways to make money online.

Forbes magazine just released the periodic study of the best places to retire overseas.  There are several surprises, for example Costa Rica is not on the list but France is.

The story is in two parts. First click here to see the picture version of the 10 best places to retire. When you get to that page just click on the arrows right above the name of the country and it will play throuogh all ten locations. 

Then click here to read the story and get some advice about retiring overseas.

Both features make fascinating reading even if you are not thinking of retiring overseas.

This is a guest article by Nilus Mattive from Wiess Research. Nilus is the publisher of Dividend Superstars

Yet Another Government Insult to Retirement Incomes
by Nilus Mattive

As if it isn’t bad enough that most retirement portfolios are still down significantly from their levels a year or two ago … that housing wealth has been evaporated in towns across the country … and that near-zero interest rates are punishing responsible savers … Washington recently issued another piece of official bad news — Social Security recipients won’t be getting one single penny in cost-of-living increases next year.

The news wasn’t entirely a surprise. And, sure, President Obama has asked Congress to send out another one-time payment of $250 to more than 50 million seniors as a little relief (emphasis on “little”).

But whatever way you slice it, this Social Security snafu highlights two simple facts that we all need to recognize, no matter what stage of life we’re in …

First, the Social Security system is flawed on MANY levels.

Second, we should only depend on our private investments to truly sustain us in our golden years.

I’ll talk more about two steps you can take for higher income in a moment. First, let’s start with my initial assertion …

Four Reasons Social Security Is Completely Flawed

Reason #1: A pay-as-you-go structure.

I’ve talked about it before, but it’s worth repeating … Social Security’s pay-as-you-go structure is essentially a giant ponzi scheme.

Ostensibly, we’re all paying into our “own” retirement futures every time money gets siphoned out of our paychecks and into the government kitty.

But realistically, our future payments depend on future workers. And that means something has to expand indefinitely — either the workforce or the tax rate. Otherwise, future benefits are going to have to shrink in some way, shape, or form.

Reason #2: Rising life expectancies.

Don’t get me wrong … I’m glad we all stand a good chance of living longer, healthier, more productive lives than the generations of yore. But the side effect for Social Security is additional strain.

Remember, Social Security was designed in the 1930s, when people lived to an average age of 60. Today, the average American is hitting 76!

The end result is another strike against the system’s ability to pay out promised benefits to millions of Americans based on current inflows.

Reason #3: A markedly expanded coverage universe.

When Social Security started, it covered about half of the U.S. population. Entire swaths of workers were not promised benefits.

But today, nearly all workers are covered by the program. In the event of injury, they usually qualify for disability. In the event of their death, their spouses — and possibly their children — receive benefits.

Plus, as one reader pointed out on my blog a few months ago:
“Please go to the federal budget for 2008, look at the social security section, and see for yourself that SS going broke has less to do with seniors collecting benefits, and more to do with people UNDER retirement benefit age collecting money each month.

“Examples of programs include; payments to unwed mothers, WIC program, disability benefits to anyone at any age for most any injury, funding for drug treatment centers, tuition dollars for re-training workers, the list goes on and on. Don’t misunderstand, these are great programs, but they don’t belong under SS.”

His point is well taken. There’s no question that many of Social Security’s expanded responsibilities help Americans who are down on their luck. But this broader coverage also comes with a huge price tag and adds to an already struggling system.
Reason #4: Skewed cost-of-living adjustments. Since 1950, Social Security has adjusted recipients’ checks for inflation. The current method, adopted in 1972, uses the change in Consumer Price Index (CPI) from July through September vs. the same period a year earlier.

Let’s ignore the fact that it doesn’t compare a complete year, which is a flaw in and of itself as far as I’m concerned.

Instead, let’s focus on the fact that the CPI itself is an imperfect indicator of the inflation that you and I feel in our daily lives.

I covered this topic in depth back in June of 2008, so I think a few simple questions will make my point today …

Has your food gotten any cheaper in the last year? How about your healthcare costs? And sure, gas dipped temporarily, but what are you paying now? Is it significantly less than you were paying over the last couple years?

Heck, consider this: Social Security’s biggest COLA since 1982 came last year, with a 5.8 percent boost. The few preceding years saw adjustments of 2.3 percent (2008), 3.3 percent (2007), and 4.1 percent (2006).

Meanwhile, the Kaiser Foundation says health insurance premiums for families have risen 131 percent since 1999 more than FOUR TIMES the general rate of inflation over the same period (28 percent).

So the fact that retirees aren’t getting any raise this year is just a more extreme example of the less-than-accurate adjustments they’ve been getting every year.

I could go on and on about Social Security’s shortcomings. But let’s just get to the main point, one that is stated quite plainly on the official Social Security website …

“Social Security Was Never Meant to Be The Sole Source of Income in Retirement.” In Other Words: You Must Rely on Your Own Investments!

We’re on our own when it comes to building and maintaining a solid retirement nest egg … one that can hand us steady income through thick and thin … and continue to grow your cash flow faster than the true rate of your own costs.

So how can you do that?

Certainly not with CDs or money market funds, given the pitifully low interest rates right now.
Instead, I have a couple suggestions:

First, stick with solid dividend stocks that have a long history of rising payments. It’s no secret that I favor these kinds of investments in my Dividend Superstars newsletter.

These companies tend to hold up very well during market downdrafts, post solid capital gains over time, and can continue to provide you with greater income year in and year out.

Second, also consider balancing your income-producing stocks with a solid mix of bonds. Not only will you get much needed diversification, but by selecting carefully, you can also get very solid yields with relatively moderate risk.

And don’t just stick to bonds here in the U.S., either! Remember that there are plenty of foreign companies and governments that are also competing for investment dollars by offering very attractive interest rates right now.

That’s one of the big points made in a free webinar called “Earning Higher Income in a Low Yield Market,” which was recently put together by Weiss Capital Management, a separately-managed affiliate of Weiss Research.

If you’re an income investor, consider taking a few moments to watch this very insightful video now. After all, Washington clearly isn’t worrying much about our income needs.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

There is a new phone phishing scam aimed at online business owners and eBay sellers. I received one of these calls this morning. Here is how it works:

You receive a phone call and an operator on the line explains that she is on the line with a hearing impaired person who is typing her message and the operator will translate. So you say “OK” and the operator gives the person’s name and asks for yours. Then the operator says the person is overseas and wants to buy one of your products.  She then started asking questions wanting my location and address and eBay ”name.”  

I wasn’t sure what was going on and being very careful, when suddenly I heard a click and an another operator came on the line. She said she was from AT&T and that she was disconnecting the call because it was a fradulent call. I asked her what was going on and she explained that this was a phone phishing scam designed to get personal information and the calls were originating from overseas.

So, if you get a call like this, my best advice is to just say “No thank you,” and hang up.

People who continue to work after retirement have fewer diseases, fewer functional limitations, and better mental health than people who quit completely, according to a new study. Yujie Zhan and colleagues at the University of Maryland and California State University at San Bernardino published their findings working after retirement and elderly health in the October issue of the Journal of Occupational Health Psychology. Read the rest of the story…

Baby Boomers Flocking to Tyler Texas

Forecasts of a lurking recession convinced Jim Alberts two years ago to grab his pension and run from the Florida company he oversaw as chief executive officer.  Alberts and his wife, Sue, shopped for a place to retire and whittled their choices to two states: Texas and Tennessee.   Read the full Story…

Spot gold hit $1,063 per ounce this week before backing off slightly. Its no surprise gold has gone this high and may head higher. As the Federal Government continues to pile up debt and print money the dollar will surely head lower. Since gold is priced in dollars, as the dollar heads South, gold will head North.

The recent high price of gold has spurred companies that buy gold jewelry from consumers back to higher advertising. just this week I have noticed more ads on Google and on television telling consumers to send in their gold. Technically these companies are not running a scam because they do pay you for your gold. But the amount they pay you is usually far less than what your gold is worth.

Here is an example: A lady neighbor of mine sent in a pair of 18K gold earrings that weighed 0.6 ounces. OK – I am a little math challenged and if I get this wrong I am sure I will hear from some of you –but here goes:

Eighteen karat gold is approximately 75% pure gold. So 75% of 0.6 oz = 0.45 ounces. Multiply this this by $1000 oz and the earrings would be worth $450 gold value. However, scrap god is usually valued at 50% to 60% of its gold content value. So using 50%, the earrings should be worth $225. The Cash for Gold company she mailed the earrings to offered her $108 –less than half what they are worth. So yes –technically that is not a scam, but its pretty close.

On my advice she called the company and asked them to return the earrings.
When she did this, they upped the offer to $125 –still half what they were worth.
She declined and asked them to return the earrings and they said they would. After 2 weeks the earrings still hadn’t arrived so she called again. They spun some story and said they were on the way. To make a long story short she had to call once a week for 6 more weeks before the earrings came back.

The good news is that in the 6 weeks it took to get her earrings back the price of gold had increased. She took them to a local coin shop who is also a gold dealer. He gave her $270 for the earrings and paid her in cash.

So yes now is a good time to sell your gold –or if you want a while you could even get more in a few months as the price of gold will probably work its way higher as the dollar continues to weaken. But before you send your gold off to some mail-order dealer, check with pawn shops and coin and gold dealers in your local community. And shop around –don’t take the first offer.