How is the housing meltdown the fault of Bush?

July 16th, 2010

The bulk of the problem began during the Clinton years:it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street's most revered institutions.

Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties.

The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but "predatory."
I will blame Bush for the war. The war took away his focus from these other matters being fixed?

The accounting definition of income is:?

July 14th, 2010

Question No: 1 - Please choose one
The accounting definition of income is:
Income = Current Assets Current Liabilities
Income = Fixed Assets Current Assets
Income = Revenues Current Liabilities
Income = Revenues Expenses
Question No: 2 - Please choose one
What would be the capital spending for an organization who has purchased fixed
assets of Rs. 200,000 and sold fixed assets of Rs. 45,000?
Rs. 245,000
Rs. 200,000
Rs. 155,000
Rs. 45,000
Question No: 3 - Please choose one
Selected information from SNT Company's accounting records is as follows:
o Cash paid to retired common shares Rs. 15,000
o Proceeds from issuance of preferred shares Rs. 20,000
o Cash dividends paid Rs. 8,000
o Proceeds from sale of equipment Rs. 25,000
On its cash flow statement for the year, SNT Company should report net cash
flow from financing activities as:
Rs. 3,000 net cash inflow
Rs. 3,000 net cash outflow

Rs. 8,000 net cash inflow
Rs. 8,000 net cash inflow
Question No: 4 - Please choose one
SNT Company has a current ratio of 3:2. Current Liabilities reported by the
company are Rs. 30,000. What would be the Net Working Capital for the
company?
Rs. 45,000
Rs. 15,000
( Rs. 45,000)
( Rs. 15,000)
Question No: 5 - Please choose one
Which of the following would not improve the current ratio?
Borrow short-term to finance additional fixed assets
Issue long-term debt to buy inventory
Sell common stock to reduce current liabilities
Sell fixed assets to reduce accounts payable
Question No: 6 - Please choose one
Which of the following are incorporated into the calculation of the Du-Pont
Identity?
I. Return on assets
II. Equity Multiplier
III. Total Assets Turnover
IV. Profit Margin
I, II, and III only
I, III, and IV only

II, III and IV only
I, II, III, and IV
Question No: 7 - Please choose one
The concepts of present value and future value are:
Directly related to each other
Not related to each other
Proportionately related to each other
Inversely related to each other
Question No: 8 - Please choose one
Which of the following is a special case of annuity, where the stream of cash flows
continues forever?
Special Annuity
Ordinary Annuity
Annuity Due
Perpetuity
Question No: 9 - Please choose one
Which of the following is an unsecured bond for which no specific pledge of
property is made?
Mortgage
Debenture
Collateral
Note Payable

Question No: 10 - Please choose one
Which of the following type of return refers to the percentage change in the
amount of money you have?
Nominal return
Real return
Inflation return
None of the given option
Question No: 11 - Please choose one
When real rate is _____, all interest rates will tend to be _____.
Low; higher
High; lower
High; higher
None of the given options
Question No: 12 - Please choose one
Which of the following is the extra yield that investors demand on a taxable bond
as a compensation for the unfavorable tax treatment?
Interest rate risk premium
Inflation risk premium
Default risk premium
Taxability premium
Question No: 13 - Please choose one
In which type of the market, previously issued securities are traded among
investors ?

Primary Market
Secondary Market
Tertiary Market
None of the given options
Question No: 14 - Please choose one
Place the following items in the proper order of completion regarding the capital
budgeting process.
(I) Perform a post-audit for completed projects;
(II) Generate project proposals;
(III) Estimate appropriate cash flows;
(IV) Select value-maximizing projects;
(V) Evaluate projects.
II, V, III, IV, and I
III, II, V, IV, and I
II, III, V, IV, and I
II, III, IV, V, and I
Question No: 15 - Please choose one
An investment will be ___________ if the IRR doesn t exceeds the required return
and ___________ otherwise.
Accepted; rejected
Accepted; accepted
Rejected; rejected
Rejected; accepted
Question No: 16 - Please choose one

IRR and NPV rules always lead to identical decisions as long as :
Cash flows are conventional
Cash flows are independent
Cash flows are both conventional and independent
None of the given options
Question No: 17 - Please choose one
A project whose acceptance does not prevent or require the acceptance of one or
more alternative projects is referred to as :
A mutually exclusive project
An independent project
A dependent project
A contingent project
Question No: 18 - Please choose one
Finding Net Present Value comes under which type of capital budgeting criteria
?
Discounted Cash Flow Criteria
Accounting Criteria
Payback Criteria
None of the given options
Question No: 19 - Please choose one
___________ Cost is an outlay that has already occurred and hence is not affected
by the decision under consideration.

Sunk
Opportunity
Fixed
Variable
Question No: 20 - Please choose one
Which of the following is the overall return the firm must earn on its existing
assets to main

Can I ask for higher then advertised security deposit if renting to a high risk tenant?

July 14th, 2010

I have an application from a tenant with several past evictions. I would like to give her a chance but it puts me at risk. I live in Maine and I usually ask and advertise for first months rent and a security deposit of the same amount as first months rent. The state allows for me to ask up to double the rent amount as a deposit, but would I get in trouble with any of the discrimination laws? She has children so I worry I might run afoul of laws protecting tenants with children. If I am allowed to increase the deposit from what is advertised for past evictions, are there any other factors that would allow me to do the same? So many laws to protect the tenant, but I still have to make the mortgage payment. Thanks ahead of time for any help.

Top 3 Real Estate Investment Strategies – The Good, Bad and the Profitable

July 8th, 2010

LeahCoss.ca Real Estate Investment Options & Info Slideshow slides Basic Options Active ? Buy & Hold ? Buy & Flip ? Lease to Own ? Vendor Take Back ? Construction ? Rezoning ? Unique Property Passive ? MIC's ? REIT's ? RE Investor ? Private Lender This presentation will be on Buy & Hold, Buy & Flip, Lease to Own Buy and hold ? Buy a Property for the Purpose of Renting it to a Tenant ? Collect a monthly rent cheque ? Responsible for the home's condition -- depends on rental agreement ? Must qualify for both mortgage payments Benefits ? Potential for Positive Cashflow ? Equity Investment Savings ? Can Use a Mngmt Company for Low time & Energy Output ? Exit Strategy -- New Renter, Lease Property, Sell Downfalls ? Potential for Negative Cashflow ? Decrease in Property Value ? Renters Damaging Property ? Property Maintenance ? Qualifying Upon Renewal Buy and Flip ? Buy a Home Below or at Market Value, Renovate/Improve & Re-Sell in 1-3 months ? Dependent on Contractors/Materials ? Strong Market Understanding ? Good Timing is Needed ? Must Qualify for Both Mortgage Payments Benefits ? Potential for Quick Capital Gains ? Transactions Can Be More Frequent ? Exit Strategy -- Sell Downfalls ? Expensive Cost of Entry ? High Risk of Investment ? Dependent on Contractors/Materials ? Wont work in a Declining Market ? High Output of Energy & Time ? Difficult to Qualify for Mortgage ? Conventional Lenders Don't Like You Lease to Own ? Buy a Home ...

After having fraud done on my account 3 times with Nationwide, they have terminated all my accounts?

July 5th, 2010

I have banked with Nationwide for several years, and over the years i have had fraud done to my card 3 times. The last time it happened, they took ages to give the money back. However i received a letter to say that due to me being a 'high risk'. I can no longer bank with them, that all my accounts have been terminated, and that my mortgage with them would be cancelled and so will my shares and savings bond. They are not giving the money back either from the fraudulent transactions. I just cannot believe they can do this, the lady who i spoke to regarding the letter they sent, was extremely rude and arrogant over the phone, a manager should be ringing me back tomorrow. I just can't believe that they can do this to me and i can't do anything? The money from the shares was for my kids, yet they have no remorse as the shares are paid out in a few years so i lose that.
If anyone has any experience with matters like these, please help!! I don't know where i stand with this, and if i stand back and do nothing I lose more money, and for what? Being honest and paying my debts on time, to have someone steal my money and a bank to leave me with bigger problems i started with. I don't mind losing the bank account, but I'f there's a way i can keep the shares and mortgage that will help me a great deal.

Thanks in advance for any advice given

x

My husband's parents are driving me crazy?

July 2nd, 2010

I married my husband 2 yrs ago, we lived with his parents to help them out. We had a huge fight a year ago because they said they were going to give the house to my husband and I since we were the ones living there and helping. My husbands other two sibilings are also married and choose to live there own lives. Everything was fine until me and my husband got a little money and wanted to make some decorating changes to make the house feel like our own. We were paying all billings for the house and mortgage. My mother in law made a big fight about it and my husband told them to keep there house and we moved to an apt. Now I am pregnant 1 yr later due in 2 days and we just bought our own house and moved this past weekend. My in laws lost there house since they couldn't pay for it and have been living with different relatives for the past year. We let my father in law come live with us in our new house. My mother in law is not allowed to come live with us because she causes to many issues and I don't need her issues right now. My husband told my father in law he could move with us now instead of wating a few months for us to get settled because I am due any day now and he would like him to help take care of our two dog by walking them in the mornings only and when were are in the hospital. He agreed however the first day we were here he didn't wake up until 11am and I had to take the doggies out. I am a high risk pregnancy and should not be walking around especially walking dogs and have been out of work for 2 months, before we moved to the house we lived in an apt very close to my husbands job he walked them before and after work. Now he leaves home at 5:30 am and can't walk them so early which is why he made this arrangement with his father. The second day here by 9:30am I had to call my husband and ask him to pls call his father and wake him up to walk the dogs.My dogs are very good and they won't do anything inside they just keeping watching me because they really have to go and I feel so bad for them. This man has no job and states he is currently looking for one however he hasn't found anything fitting for him (his words). Once he finds one he is supposed to help us with electric bill. My husband even says he sees how lazy he is and is very disappointed. He worries about my all day long while at work because he is so far away over 1 hour and there is no one close by that we can rely on to help if something happens. I don't know what to do my husband is the only one working right now we have a new house to pay for and a little baby on the way. We have saved money since we knew I wouldn't be working my normal job anymore. I will be getting a part-time evening job once my husband gets home so we don't have to leave the baby with a sitter or daycare. With one move adult in the house expenses are going to go up and we were hoping he would have a job by now. It's so embrassing that when we go anywhere he has no money and doesn't feel any shame in asking for things. Especially after I make a point to say lets have lunch before we go since were going to be out until around dinner. He did this the other day and it upset me because my and my husband try no to buy food outside because I cook everyday so we don't waste money. We are very cautious with our money and save all we can to make sure we can pay for the important things like our house and bills. I feel like his father is taking advantage of our kindness. I want him gone, I want to live a quiet happy life with my husband and my child. Any suggestions on what I should do?
I love my husband and he loves me and our baby... my issue is not with my husband it's with his lazy father.

What is the analogy between home fire insurance and CO2 emissions cuts?

June 30th, 2010

I'm pretty sure this analogy has come up here and elsewhere quite often as an argument supposedly for the "Precautionary Prinicple". Well Professor Bob Watson of the UK has recently brought it up again on the BBC in a climate discussion:

< "What risks are we willing to take? The average homeowner probably has fire insurance. They don't expect a fire in their home [but] they are still willing to take out fire insurance because they don't want the risk and there's probably a much better chance of us seeing the middle to upper end of that temperature projection than a single person saying they'll have a fire in their home tomorrow morning," he (Prof Watson) said. > http://www.telegraph.co.uk/earth/environment/climatechange/7849441/Michael-Mann-says-hockey-stick-should-not-have-become-climate-change-icon.html

Maybe I'm wrong but I think he is saying that anyone who owns an home and realizes fire insurance is a good idea shoiuld be completely on board with CO2 emission policies (i.e. for similar reasons). I find this analogy completely out the window.

The entire premise of this analogy is that even if the chance of occurence is very, very low, the cost of the occurence would be very high. This assumes several things: you are not wealthy enough to take such a sudden loss, the cost of the insurance makes sense compared to what could be lost, the insurance is covered for all scenarios and the loss would be complete, not partial.

And one of the most important aspects is this part of this statement: "...because they don't want the risk...". Except in cases of public liability and mortgages, people have a choice whether they want fire insurance or flood insurance or personal bellongings insurance. Nobody wants risk, but if you have it, you assess it vs cost and other criteria and make a decision. Well you know what, perhaps people are willing to accept the risk of climate change.

But why do alarmists need to make such analogies? Doesn't this guy sound like an insurance salesman?

Does Watson try to associate someone who is against CO2 policies with someone who is stupid enough not to get fire insurance on their home? Is this another guilt trip argument?
Oh and as an added "LOL", Mann admits "uncertainties in his work.
Trevor, you are right about sensible precautions. Right now I don't find CO2 cuts a sensible precaution and I hope my vote counts.
And comparing CO2 cuts with fire insurance (no with any of the other things you listed as sensible precautions) makes CO2 cuts a sensible precaution.

The analogy is dumb and the argument is illogical. The only purpose I can see is to sway people who can't think it through.
Sorry, comparing DOESN'T make CO2 a sensible precaution.
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Dana makes a good point in that any comparision to insurance should include liability. That makes it all the more strange that Watson would omit this. Perhaps he sees people as rather dim-witted and could relate more to a vision of their house burning down.

However, insurance doesn't actually prevent anything, does it? Auto insurance doesn' reduce accidents or damage or death. Speed limits or mandatory seatbelts or airbags do that job. So the comparision of CO2 cuts to ANY sort of insurance is completely off course.

How about this analogy? CO2 cuts is like reducing the maximum national speed limit to 10mph. That would probably elimate most if not all road fatalities. But is it a good policy?
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Pegminer, there is nothing for me to correct about Jim Z here. I understand perfectly what he is saying about the rabid wombats. Yes, their bite is bad, but I'm not getting wombat insurance either. I'll just be careful and support local wombat community watches. I accept the wombat risk and therefore do not want to pay for wombat insurance at this time given the current state of wombat data and risk.

Jim Z, if I misread you, please correct me. It's almost like some people around here have preconceived thoughts and whatever they read is just tranformed to meet those thoughts regardless of what is being said.
Pegminer, actually Jim Z's wombat story is analogous to this entire thread. While fire insurance might be sensible, that does not make CO2 cuts sensible (as an insurance). Jim Z points out that while there are sensible choices for insurance, not all insurance is sensible, rabid wombat insurance for example. Thus, we cannot argue CO2 cuts are sensible just because they give us a form of insurance. Actually, that's pretty good support for my overall intent here. I think that gives Jim Z best answer so far.
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Pegminer, I have no idea about rabid wombats, it's just a talking point. Why are you guys always so angry?

Do you see any problem here Students face deportation to countries they don't remember?

June 29th, 2010

Their secret was out: Despite their upbringing in middle America, their academic success and their network of native-born friends, they had no permission to be in the United States. Their parents had brought them here illegally as children.

The Robles brothers, now out of jail but fighting removal in Immigration Court, are among thousands of young illegal immigrants in similar situations, living at risk of being expelled to countries they barely remember.

Two weeks ago, a Harvard University student who came from Mexico at age 4, Eric Balderas, joined their ranks after he was arrested by immigration agents at the San Antonio Airport.

They are known in some circles as "Dream Act" kids, named after proposed legislation that would grant them legal status.

Their cases underscore a contradiction in the Obama administration's approach to immigration enforcement. Even though the president supports the Dream Act — which would provide a path to citizenship for illegal immigrants brought here as children who enroll either in college or the military — his enforcement bureaucracy continues to pursue deportation cases against the increasing number of students who would be protected by it. It's part of a push that is on track to remove a record 400,000 illegal immigrants this year.

"It highlights the inconsistencies in immigration policies," said William Perez, a Claremont Graduate University professor and author of "We Are Americans," a book about undocumented immigrant students.

Immigration authorities say they rarely deport students, particularly once their teachers, coaches, friends and elected representatives speak out on their behalf.

Balderas, for example, was placed in "deferred status," meaning the government won't remove him unless he gets in trouble. But even so, the young people remain in legal limbo, often unable to land a professional job after earning a degree. And they live with a legal sword of Damocles over their heads, subject to removal at any moment.

"These cases illustrate the need for comprehensive immigration reform," said Virginia Kice, spokeswoman for Immigration and Customs Enforcement. "ICE uses its discretion on a case-by-case basis, as appropriate."

Carlos and Rafael Robles were on the way to visit a friend at Harvard — not Balderas — when they were arrested. They spent a weekend in jail before friends posted ,000 bond for each of them. They had to travel to Buffalo again recently for a court hearing after an immigration judge turned down their request to move the case to Chicago. Their next court date is next year.

Their father works for a car dealer, and their mother is an assistant at a mortgage company. They came to the U.S. by airplane five years ago on a tourist visa and never went back.

"We want to go to school and to work here," Carlos Robles said.

Several residents of their community, a Republican-leaning Chicago suburb where most people have little patience for illegal immigration, have written letters on their behalf, said Robert Carroll, a teacher at Palatine High School.

"Gee whiz, these are just two quality kids," he said. "They are everything you would want your kids to be. These kids are going to be leaders in their communities — taxpayers, not tax recipients."

In recent months, immigration rights activists have renewed their push to convince Congress to pass the Dream Act. Activists have staged hunger strikes and occupied congressional offices. Earlier this month, about 30 students marched outside the Los Angeles office of Sen. Dianne Feinstein (D-Calif.). Feinstein is a co-sponsor of the Dream Act, but activists criticize Democrats for not moving the bill this year.

"Immigration reform may be dead this year, but we feel that smaller pieces like … the Dream Act can move forward," said Marisol Ramos, founding board member of the national United We Dream network. "Democrats should really step up."

The Dream Act, sponsored by Sen. Richard J. Durbin (D-Ill.) and others, came up eight votes short in the Senate in 2007, when an effort to overhaul immigration law fell apart. The following year, then-candidate Barack Obama urged its passage during a presidential debate, saying that youths who "have essentially grown up as Americans" deserve legal status. But Obama has done little to push the bill as president.

http://www.latimes.com/news/nationworld/nation/la-na-deport-student-20100628-1,0,218526.story

how did the Republicans get the democrates to force lenders to handout high risk mortgages to deadbeats?

June 22nd, 2010

how did they get carter and then clinton to force lenders to approve at least 50% of their home loans to low credit, low income deadbeats?
how did they make barney frank, rahm emanuel and dozens of community organizers to shoot down Bush's attempt in 04' to create an agency to oversee Fannie and Freddie?
I am only asking because I was too busy during the 7 years that I was a loan broker to watch MSNBC and find out how they did what they did

Why would we ask government to fix the things they broke, given their track record?

June 14th, 2010

Fed aid to education: created dumb kids that can't even name or state the branches of government, and they vote!
EPA: Made oil companies drill 20 and more miles out in the Ocean to "help the Environment" (that worked out well)
Mortgage Loans: Barney Frank and ALL dems mandated high risk lows, yep another Genius move.
Fed Gov. Stimulus: All the big dems that supported Obama got a check, thank you American Taxpayer
Deficit Spending: No end in sight and going higher
THE GOV. TRACK RECORD MAKES ME WONDER WHY WE EXPECT BETTER BEHAVIOR OUT OF THE SAME OLD POLICIES. IT'S LIKE CONTINUALLY DOING THE WRONG THING, BUT EXPECTING DIFFERENT RESULTS.

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