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We’re spending a huge amount giving money to corrupt foreign governments who steal it, rather than give it to the proper programs in their countries. U.S. foreign aid spending topped $16 billion in 2003. Many say we should give even more, taking into account the size of our GDP. Maybe so, but I think we should give nothing to the tin hat dictators who use the money to buy a new villa in the mountains or the latest Maybach limo with gold trim. Let them rot in hell, not condemn us to a debt ridden future.

I know there are often things we need in these countries that benefit our national interests(?), and we need to give the money to buy off these two bit thugs, but we’re just getting totally out of hand. If we were to get the money to the right places and demand that, in exchange for their new diamond encrusted Lamborghini, the leaders of these third world countries would actually engage in some economic development, this money would be well spent. As it is, we're flushing much of it down the crapper. If we made sure these countries had a just rule of law, and the people had real property rights, maybe something could be accomplished to enrich the common citizens, not just the fake generals with the shiny medals and the harem.

We need to get handle on our situation soon before our dollar lags behind Canada’s and we’re the butt of their jokes for a change. If the Euro’s worth $2.00 U.S. one day, where will we find ourselves? Take a look at one of many countries throughout the world that have been thought of as second tier powers. If we don’t want to join them, we better get it together. Soon.

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Posted by debtblog at 01:35 PM | Permalink | Comments (2) | TrackBacks (0)

Limiting our speed to 55mph was a dismal failure the last time we tried it and it will be just as bad if they implement it again. Why not reintroduce prohibition? Is our time worth nothing? Let everyone decide for themselves if they want to incur additional fuel costs by driving 70mph on a trip. Why take an extra hour of your time (that you'll never get back) by forcing you to drive like a sloth with a broken leg? I personally, would rather spend the extra $6 or so to save an hour. Most of you probably make more than that on an hourly basis. A 55mph speed limit would be bad on many levels. All our goods will take longer to get to market, you'll spend more time behind the wheel. Write to your senator and congress member and tell them Just Say No to more 55.

Now on to other business....

They're a total environmental mess. That's one way China can compete globally. They have little in the way of environmental controls that American and European businesses have to deal with. China is home to six of the world's ten most polluted cities. Looks pretty in pictures, stinks in person. It's a whole lot easier to keep production costs low when you can ignore what your competition must spend precious resources on; keeping your environment clean. That may be changing, as China has indicated they plan to spend almost $200 billion in the next 15 years to increase their renewable energy supplies to 15% of their total. Earlier this month, the World Bank signed and agreement to loan $200 to Chinese firms for energy efficiency and conservation measures.

In the next five years, GE alone plans to sell over $20 billion of energy related products and services to the Asian giant. GE's Chinese subsidiary has a technology agreement with China and forecast up to $500 million will be spent by the Chinese on wind turbines alone in that time period. This is huge opportunity for GE, the king of wind turbine producers, and other wind turbine manufacturers. GE also has a deal to sell new, fuel efficient locomotives to China. China could soon be the world's largest market for clean and renewable energy technologies. That, coupled with increased demand from the U.S. in the face of rising fuel costs, spells opportunity for you. Take a look at the renewable portion of the energy sector when looking at new investments. The demand for such technologies is likely to be strong for the foreseeable future.

Personally, you can save your hard earned pennies by conserving energy at home and in your car. There are 3 quick and inexpensive things you can do to easily conserve energy.

• Switch to compact florescent light bulbs. You'll save a ton of electricity for lighting. As a bonus, they last about 8 – 10 times as long. Make sure you put CF bulbs in hard to reach places such as cathedral ceilings, where you hate to change bulbs. One of the downsides to these bulbs has been that they can't be dimmed. That's now changing. Look for newer units with dimable ballasts.

• Get a programmable thermostat. These used to be pretty expensive, but they're not any more. No more excuses. If you don't have one, spend the $80 and go get one. If you've got a newer home, chances are you've already got one. Get off your butt and program it. It may take you all of 10 minutes. Keep your heat low (66 deg) and A/C high(78 deg). Heat and A/C are some of the largest energy users in your home, start knocking them back.

• Drive to conserve gas. This is a no brainer and it'll cost you nothing. It's way better than most things you'll get for free. Keep your speed down. Accelerate slowly, don't punch it away from lights and stop signs. Your A/C compressor already turns off at idle in most newer cars, so don't worry about that. Make sure your tires are properly inflated and your engine is well maintained and tuned up. Practice conservation of momentum wherever possible. Lift off on the gas early before a stop, don't go right up to the stop & then use the brakes to slow down.
  

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Posted by debtblog at 01:40 PM | Permalink | Comments (0) | TrackBacks (0)

More troubling is that the national personal savings rate experienced it's 11^th straight negative month. Why is no one saving? Are you all just living high on the hog and doing your best to make sure Mastercard's IPO will be a rousing success? Well, clearly not everyone is doing so, but personal income is rising at the highest level at almost 2 years, with income from wages rising .9% in April. Hey people, start using that money to retire some of your credit card debt! We'll all be much better off in the future.

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Posted by debtblog at 01:42 PM | Permalink | Comments (0) | TrackBacks (0)

Ken, why don’t you go tell it to all the people you completely scammed out of their security, while leaving yourself enough to squander an astounding $70 million on your defense. Good thing you sold all your stock to lock in some profits, while simultaneously telling other folks to buy more. It’s people like you that make people hate people like you. Big business in this country gets a bad enough rap already, without those of your ilk damaging it’s reputation even further. Way to go, Ace!

This is a prime example of why you don't, no matter how fantastic of a company you might think you work for,  put all your retirement eggs in the company basket.

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Posted by debtblog at 06:08 AM | Permalink | Comments (0) | TrackBacks (0)

In this era, when U.S. gas prices are approaching that of Europe, these larger vehicles are still in high demand. GM, for example, saw an overall 2% decline in SUV & truck year over year sales for April, compared to 2005. However, hiding within this 2% drop, one of GM's largest SUVs, the brand new for 2007 GMC Yukon, showed a robust 36% sales increase! Obviously, American consumers still like their big SUVs, much to the chagrin of some (you know who you are). A key component of the increase, beyond the complete redesign of the vehicle, is likely the inclusion of GM's technology to deactivate ½ the big, 5.3L V-8's cylinders under light load conditions to save gas. This contributes to an EPA highway rating of 21MPG for the 2007 4WD Yukon.

Other automakers use similar technology in their V-8s as a gas saving measure. If they could just dispense with the advanced engineering and manufacturing required for such complicated gas saving schemes, such as seamlessly turning off ½ the engine's cylinders under certain load conditions, and add an easy to manufacture gas saving gizmo, don't you think they would have? For those who see large corporations as just profit hungry monsters, the answer to that question is easy; hell yes, they would! Beyond that, it just makes good business sense. Getting a similar result with much lower capital investment means you can use that capital for increasing profit in other ways.

So, logically, the simple gas saving devices probably don't work. But I'll try a few out so you don't have to. I'm not doing complete, scientific testing. However, I am completing a 2,000 mile baseline test now. I'll try to be consistent with the driving conditions as much as possible. Hopefully the 2,000 mile distance will let everything average out. The vehicle is a Jeep Grand Cherokee 4x4 with the selec-trac transfer case, 4.7 V-8 & 50,000 miles. Prior to the start of the baseline, it was given a new set of plugs, the engine was checked by a mechanic, and the air filter was cleaned and re-oiled. The aforementioned air filter is the only modification on the vehicle so far. When new, the factory air filter was replaced with a K&N factory replacement filter. Stay Tuned.

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Posted by debtblog at 01:18 PM | Permalink | Comments (1) | TrackBacks (1)

You may have what amounts to your own private bank. At least that seems to be the prevailing opinion among many Americans. Low interest rates, coupled with the surge in real estate values around the country, have been fueling a boom in refinances and home equity lines of credit. At the end of 2004, over $719 billion was outstanding on HELOCs and home equity loans. This spectacularly large figure represents almost triple what the country's borrowers owed five years previously.

If you want to join the masses, by all means, go right ahead, but don't just jump blindly into the pool with all the other fish. Look carefully before taking the leap. In many instances it makes financial sense to tap into the equity in your home, but remember, you'll be risking what is most likely your largest asset in the process. You don't want to lose it. Many have used this newfound source of cash for such purchases as cars and vacations. Don't be so stupid. If you do use money for which your home is collateral to take that trip to Fiji you've always wanted, you probably deserve whatever happens to you.

You could use it to retire debt that you're paying a higher interest rate on. Since HELOCs and home equity loans are secured by real estate, a fairly stable asset, the rates are very low compared to other forms of consumer credit. If you choose this path to debt rearrangement, make sure your home is protected first. If you have excessive credit card or other high interest consumer debt due to excessive spending, it is essential you change your spending habits before risking your home. To do otherwise is inviting disaster.

One popular use for your newfound cash is to start your very own real estate empire. While still risky, this is a far better choice. Let's repeat that. It is still risky. Leverage is a well known path to creating wealth. You can leverage the equity in your home that would otherwise go unused to create real estate wealth. In some real estate markets, you can do very well. Do your research first. You'd do well to first determine if being a landlord is something you really want. You may have to deal with difficult tenants or jump in your truck for a drive across town to take care of a problem at 2:00AM. Still, more millionaires have been created through real estate than with any other method. If you are going to have debt, this is one of the few good reasons for it.

If you choose a HELOC, you'll be more susceptible to interest rate fluctuations. A home equity loan will allow you to lock in a low interest rate in times of increasing rates (like now). A HELOC will give you more flexibility. You only need to use what you actually need. If your credit score is over 700, you should be able to get an interest rate on a HELOC at prime or better. Unless you are the sub-prime borrower category, you shouldn't have to pay loan or appraisal fees. Check carefully to see you don't. You may have to pay an annual fee, however.

Where can you start? First, you must collect all the necessary information. Pull a copy of your credit report. You get one free each year from each of the three major credit reporting agencies. Call 1-877-322-8228 for your report. That is a central request number for all three agencies. See if there are any inaccuracies on the report. One 2004 study found that over 25% of all credit reports contained errors. These credit report errors can be things like false accounts or delinquencies (25%), listing the same debt multiple times (22%), or paid off (closed) accounts that are still listed as open on the credit report (30%). Your credit may not be as bad as you think. Some of your negative credit history may be due to these errors. If you find any inaccuracies, correct them. This may take some time, but will be worth it. You'll improve your credit score and get a better rate on your refinance or HELOC. It will take from 30 – 60 days after any inaccuracies have been corrected for the results to be reflected on the credit report.

So, you want to refinance, but your credit is less than perfect? Don't worry, all isn't lost. You have some options. You can still refinance to take advantage of the equity in your home for extra cash. You can consolidate debt, pay for home remodeling or just about anything else with the extra cash. It could be used to get you on the path to financial independence. Remember, if you've got bad credit now, you can reclaim a good credit rating with just a little patience and prudence. Remember, if you're trying to be financially secure, whatever you do, don't use the cash from the refinance for frivolous purposes such as a vacation or a ski boat. You can leverage the equity in your home to achieve financial freedom through a cash out refinance, if you've got good or not so good credit. Just be extra careful, it's your your home you're risking.

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Posted by debtblog at 02:20 PM | Permalink | Comments (0) | TrackBacks (1)

High oil prices are reviled by motorists. As gas prices rise seemingly every day, a stream of “Do you kiss your mother with that mouth?” language can be heard emanating from the mouths of drivers everywhere. The gas pump is where the effects of high fuel prices is most visible. You're constantly reminded about it every time you drive by your corner gas station. High oil prices actually effect you in countless other ways that many are unaware of.

For example, did you know that most plastics are made from petrochemicals? Think for just a second about all the items you use every day that contain plastic. If you buy a new one of any of those things in the future, it'll be more expensive due to the rise in oil prices. Other materials will be affected as well. Anything made from asphalt such as roads, roofing tiles, and soundproofing material found in cars, boats and refrigerators, will all rise in price. Oil powers our entire economy, from power generation to manufacturing to transportation. The rise in oil prices will be felt by all, even those in the green sector that favor the bicycle, Prius and ride the bus.

Speaking of hybrid cars, check all the facts before you're seduced by the lure of passing by all the gas pumps this summer. Any fuel savings you'll see really depends upon your driving style and environment. For example, you'll save more if most of your driving is in an urban setting. Keep in mind that those batteries won't last forever, and will need replacement at some point. Guess who'll be footing the bill for that? Start saving now. The battery packs for hybrid vehicles can run from $3,000 to $5,000. Ouch!

Another thing that the those of green persuasion tend to overlook in their enthusiasm for hybrids is that all those lovely chemicals in the battery packs are hazardous and must be properly disposed of. What happens when 5,000,000 hybrid vehicles a year are sold in the U.S. alone? What a disposal problem. Will we be able to recycle all of the chemicals? Add this to the fact that, given the driving habits of many, hybrids may not deliver the promised increase in fuel economy. For most, even including the generous federal tax incentives, hybrid vehicles cannot justify their higher initial cost, and they're not as green as many think.

Back to oil prices for a second. All goods are transported to market (including the gas at the pump), and so are affected by the rise in oil prices. With the summer driving season upon us, people will be taking vacations and driving more, and consequently demanding a greater quantity of fuel. Watch for that to drive prices at the pump up some more. Some locations are predicted to see $4.00/gal gas. Hope yours isn't one of them. If this continues though, there is a silver lining. The high fuel prices will spur development of alternative energy sources and processes. This spells great investment opportunity for the investor that's willing to do a little research.

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Posted by debtblog at 03:00 PM | Permalink | Comments (0) | TrackBacks (0)

Hey asshole! They weren't trying to get gold from you. They were trying to offer you an equitable solution to your power generation needs so you'd stop your incessant whining about wanting a peaceful nuclear program. We know you want to be just like India and Pakistan, and have a bomb of your own. You feel weak, inadequate and not in control of your own destiny without one. Plus, it would be so much easier to eliminate Israel if you could just nuke 'em.

China and Russia have stated that they'd not support military action against Iran, even in light of the latest statements from Немногая tyrant. You'd think Russia and China might be a bit more concerned about the latest turn of events. After all, whatever ballistic delivery system Iran may be likely to acquire in the coming years won't reach anyone in the US, Mexico, or Canada, but it sure would be a short hop to anywhere in the middle east, Europe or south eastern Russia.

Iran holds the third largest proven oil reserves in the world, with over 125 billion barrels. I'm sure that if military action is ever undertaken against Tehran, there will be endless hand wringing, and all the “No Blood for Oil” signs will come out of the closets once again. The fact is that while Sadam may not have had a nuclear program that could produce a bomb, Iran has stated that they will have the capability to enrich uranium, no matter what anyone else may think about it. This is the most technologically difficult portion of creating a nuclear weapon. If they manage to stockpile enriched uranium, a bomb may not be too far behind.

In light of President Ahmadinejad's past statements regarding the elimination of Israel and other troubling proclamations from the leader, military action may become, at some point, unavoidable. We never want military action to become a standard instrument of foreign policy, yet we can't afford to pull another Chamberlain either.

I've met many Iranians, and to a person they've all been some of the nicest, most hospitable people I've ever met. None of them, however, have actually been in Iran. Maybe President Ahmadinejad should take a cue from those Iranians who've left and change his attitude before it gets a whole lot of folks into a spot of trouble. $5.00 a gallon anyone?

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Posted by debtblog at 01:13 PM | Permalink | Comments (1) | TrackBacks (0)

Are you going deeper into debt? Hell yes, you are, if you're the average American family. According to Federal Reserve Board's most recent Survey of Consumer Finances, the average debt load of American families earning $45,000 annually rose 33% in the last 3 years. While $ 45K/ year may not be what it once was, it represents a realistic yearly wage for many families. Realistically though, that amount of money will render you S.O.L in many metro areas like New York, Boston, Seattle, or San Francisco. Maybe you should move to Nebraska or Kansas. Interestingly enough, the study also suggests the debt wasn't accumulated by trying to keep up with the Jonses. Many things contributed to the debt such as medical bills and rising fuel costs.

Take a look at so many things that are now considered necessities that once were luxuries, or didn't exist at all. Were not talking the $4.00 latte either, but things such as Internet access, cable TV, two cars (because both parents work), microwaves, cell phone(s), and a myriad of consumer electronics such as VCRs, DVD players, TVs and computers. In addition to rising prices, there are just many more things to spend money on every month. Couple that with the skyrocketing cost of education, fuel and housing, and you can see how it doesn't take much to erode any increases in income many families have received in the past decades.

So just how are you supposed to stay out of debt? It may not be easy. First, you must create a household budget. Analyze your expenses to see how much you really do spend on every item. You may be surprised where all your money really goes. Next, see if all your expenses really make sense. Does your wife(or husband) really need to work? If you have kids, and the secondary wage earner doesn't make enough to make it worthwhile, have them stay home and take care of the kids or change careers.

Look at all the expenses associated with the second job. By the time you figure in child care, the second car, wardrobe, insurance, fuel, parking, lunch, and taxes, you may be surprised at how little you really net from a second wage earner. If the second wage earner is an attorney earning $150K/yr, then it obviously makes financial sense. If they are working in a downtown department store making $14/hr, and  drive 20 miles a day each way to work, then pay $10 to park, it may not.

Make sure you pay all your credit cards and other debt on time every month. This is supremely important, as the lenders use any excuse they can to ratchet up the cost of your credit. With a few late payments, you could find yourself with 23% credit cards. Try getting out of debt with a few of those. If your friendly, mega bank does raise your credit card interest rate, call and make sure they lower it again at some point, otherwise they'll keep at the elevated rate for as long as they can. After all, their bottom line is important.

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Posted by debtblog at 01:39 PM | Permalink | Comments (0) | TrackBacks (0)

 Balance transfers from one credit card to another are all the rage these days. Consumers regularly take advantage of the myriad of credit card offers they receive in the mail. It gets so bad at times, you’d think the credit card issuers had nothing better to do than kill as many trees as possible to print your offers on.

It can make great sense to take the balance off one high interest credit card and put on to a different card at a zero or low interest rate. It can also cost you plenty if you blindly sign the form and mail it back after being seduced by the huge “0% for Balance Transfers” headline at the top. Remember, credit card companies are in this to make a profit, not help you out in your hour of need. A common tactic is to offer a low initial rate and then roll your remaining balance into an extremely high rate after the promo period expires.

Something else the credit card execs probably stay up nights getting hard over is the sneaky terms they slide into the fine print, like this gem seen on one card offer: "we reserve the right to change the account terms including the APRs at any time for any reason." That just proves the print on those offers is fine for a reason. They’re praying you don’t read it.

Something else a balance transfer offer can contain is transfer fees. Avoid those too. There’s no reason to pay them unless you own stock in the credit card company and are trying to help its bottom line. Maybe the CEO needs a new yacht and you’re just the one to help him get it.

There’s nothing wrong with credit card balance transfers. They can be a great tool to help you pay less for your credit. Just look before you leap. The money you save will be your own.

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Posted by debtblog at 03:26 PM | Permalink | Comments (0) | TrackBacks (1)

$5 Billion is a ton of money, no matter how you slice it. The Mr. Olympia Guv, Ahnold, The Terminator, is proposing to use much of the unexpected windfall to pay down Kaliforneya's mammoth state debt. What a novel proposal! Of course, the Dems in the Cali state legislature are shuddering at the prospect at actually retiring some debt. The good Guv has indicated he'll spend a huge percentage of the $5 bil to bolster the state's education budget. Predictably, that's not enough for the teacher's union controlled legislature. They want even more.

I'm a huge proponent of education spending, up to the point where it gives the students maximum benefit. After a while however, you can reach the point of diminishing returns. Just look at DC. They have the highest per student education funding and one of the worst educational systems in the nation. Support education. We can't have a vibrant society or economy without it, but don't continue to saddle future generations with oppressive debt that threatens their future.

Where did all this extra cash come from, you may ask? Amazingly enough, not from raising taxes, but because the state's economy actually grew! California's state and local tax burden fell from ranking 9^th in the year 2000 to 15^th today. The people of the good state, as might be predicted, responded by spending that money in their state and local economies at such a rate that it caused them to expand. Lo and behold, the economy grew to such an extent that the state pocketed more green. It's pretty simple, really. A smaller piece of a much bigger pie works out to more than a bigger piece of a smaller pie. Of course, Kali still has one of the worst business tax pictures anywhere in the nation, causing business to flee to neighboring states. At $193 per capita for state and local corporate income taxes collected, California ranks number 7 in the nation. Stop the madness.

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If you're one of the thousands of American homeowners that maximized your home buying power in the last few years by going with an adjustable rate mortgage, you may be able to breathe a little easier. With the Fed's last intrest rate nudge, it indicated the trend may finally be ending. Good thing for all you ARM equiped homeowners out there. As the rates moved skyward from the historic lows the market has experienced for the last 4 years, thousands of homeowners saw their house payments do likewise. Many of you follwed the trend of getting the most house you could afford. You were hoping the red hot real estate market would lift your home's value far enough to protect you as your mortgage payment soared like a ballon with the burner full on.

In most cases you lucked out. For years, home values continued to climb like Sir Edmund Hillary on meth. Even if you had financial problems, you could sell your home and, in most cases, realize a hefty profit no matter how long you had owned the property. Those days may be at an end in most places. While real estate prices are still rising in many markets, they have also leveled off in many places, but thankfully for many, so have the Fed's interest rate hikes.

The rising interest rates point out the dangers of ARM financing. While ARMs are fantastic for getting you into that McMansion you maybe shouldn't be living in, they can also turn and bite you like that stray dog you fed at the park. Most of you did ok, because property values more than kept pace with the rate hikes, enabling you to use your house like a giant money generating machine. Nationwide, home prices have doubled in tha last 5 years. Some markets, such as Miami, Las Vegas Boston, parts of  California and Seattle have bettered that considerably. In most areas, the increases in real estate values have cooled considerably and won't protect you as well they have in the past.

If you are going to get an ARM, be careful. Calculate what happens if interest rates do continue to rise, even though indications are they may have stopped doing so. Look at the real estate market trends and economic factors in your area. Maybe your area has entered one of the periodic flat periods in real estate appreciation. Your home is most likely your most important financial asset. Protect it. You don't want to be one of the thousands who are now finding it almost impossible to make their mortgage payments. In the first quarter of 2006, a study by RealtyTrak Inc. indicated a whopping 72% increase in foreclosures. Don't be one of those statistics.

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Posted by debtblog at 01:33 PM | Permalink | Comments (0) | TrackBacks (0)

Bolivia, that South American nation made famous in the '80's for it's contribution toward satiating  Americans' lust for that flaky, yellow/white product of the coca plant, is trying its best to follow Venezuela down the path to communisim. While making alot of noise about getting screwed by foriegn nations taking oil and gas profits out of Bolivia, Bolivian President Luiz Inacio Lula da Silva (try to say that 10 times real fast) pissed off the Spanish, Italians and Brazilians by nationalizing Bolivia's oil and gas fileds.

How did that piss off the aforementioned nations, you may ask? Well, they all had companies producing petro products in Bolivian fields. da Silva claimed they've been raping his nation for years by extracting precious petro products while providing Boliva with insufficient compensation. A major flaw in his theory is that Bolivia had neither the resources or expertise to develop it's own petro resources. Without the assistance of these foriegn companies, all that oil and gas would still be in the ground. Bolivia privatized it's oil and gas industry in 1996, and has since attracted over $3 billion in private investment. Nice ploy, Bolivia. First, privatize everything to attract outside investment and get the ball rolling. Next, totally screw all the investors you attracted by taking your bat and ball and going home, after the foriegners payed to build the staduim.

How does this affect you? Why should you care? Outside of the fact that it further complicates the oil and gas market, possibly leading to even high fuel prices (especially if you live in Brazil or Italy), it illustrates how you need to keep aneye on the political situations in countries where you have investments, lest they become worth less or worthless through national decree. If your portfolio, IRA or 401K includes any foriegn equities, keep a close eye on not only the markets, but the political situation in the appropriate countries. Oh, and it would be wise to steer clear of the Chavez, Castro, da Silva triumvirate as well. 

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Posted by debtblog at 01:40 PM | Permalink | Comments (0) | TrackBacks (0)

If you're thinking about consolidating your student loans, you'd better get off your duff and get with it! Traditionally, there is a grace period so that as long as you've filed your paperwork before the deadline, you'll get the rate from the previous year. Pretty important if interest rates are rising, which, at this point, they are. Student loan interest rates adjust once every year. For the 2006 fiscal year (this year) it is at 4.7% for student currently attending school. This is set to increase to 6.8% for fiscal year 2007.

To illustrate how this can affect you, take a $45,000 example loan. Rather than enjoying the $300/month payment, you could find yourself paying almost $350/month!This year, because of the 2005 Budget Reconciliation Act, you may not get to enjoy the grace period. There is a strong chance that if you don't have the completed loan in hand by the deadline, it will just be too bad. You'll still get your loan, but you'll have to pay the increased interest interest rate from 2007. Bad news. So get off your ass and get down there man! This ain't no riddle, to me it makes good, good sense.

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Posted by debtblog at 06:07 PM | Permalink | Comments (0) | TrackBacks (0)

With the price for June crude up to $72.50, and the dollar free falling like a safe pushed out a top floor window, getting your money to strech even farther every day is a challenge. As tensions with that wack job Ahmadinejad (lil' Hitler) that calls himself the president of Iran increase, refinery fires break out now and again and Nigeria develops into more of a mess every day, I don't see things improving on the fuel price front any time soon. I know you're thinking that gas prices are quite high enough, thank you, but the summer driving season traditionally brings with it the highest fuel prices of the year, so I suspect we ain't seen nothin' yet.

I know you'll be tempted to put your $80 a tank fill ups on your credit card, but please don't. If you think gas prices are high now, wait until you're also paying a 15% finance charge on top of the $3.19/ gal.  Time to switch to a Prius? Maybe so. I know where you can get a Yukon XL, cheap! Which brings up another point. Beleagured U.S. automakers, traditionally making the lion's share of their profits on SUVs and pickups, stand to be hurt  more than  foriegn auto producers by the climbing gas prices. Ford and GM announced layoffs prior to gas jumping higher than Jesse Williams on 10 cups of Starbucks finest. If you work for one of them, look out. Start looking for new income streams, being frugal and maybe shopping around for a new line of work.

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Posted by debtblog at 01:32 PM | Permalink | Comments (0) | TrackBacks (0)