Category: Uncategorized

The average price of a new car in the US is north of $36,000. Can the average blue-collar American afford to buy a new car? While talking to a friend I learned the true nature of the automobile industry. The loan term for a new car can reach beyond 85 months. The economic community is concerned about student debt, and rightfully so, another issue is the possibility of a car loan bubble. If the economy slows down, as all markets eventually do, what will happen to the automobile market? If the Big 3 are depending on 60 to 85 month loans for business the auto business model is built on sand not steel.

Walk into an auto dealership these days and you might walk out with a seven-year car loan.

That means monthly payments that last well past when the brake pads give out and potentially beyond when the car gets traded in for a new one. About a third of auto loans for new vehicles taken in the first half of 2019 had terms of longer than six years, according to credit-reporting firm Experian PLC. A decade ago, that number was less than 10%.

https://www.wsj.com/articles/the-seven-year-auto-loan-americas-middle-class-cant-afford-their-cars-11569941215?mod=hp_lead_pos8

Many people are shy about social media, viewing the use of the tool as a sin or evil. Not all media tools are created equal. The busy business professional can use the electronic badlands to an advantage, if you understand it.

If you want to have a successful career, maintaining an online presence on LinkedIn is crucial.

Not only is it an effective way to network with other professionals in your field, but it can get you noticed by others and potentially land you several job opportunities.

https://www.cnbc.com/2019/09/25/example-template-of-perfect-linkedin-profile-according-to-harvard-career-experts.html

President Trump suggested the Federal Reserve drop the Fed rate to zero. While this sounds like a good idea if you plan to bring money, if you plan to leave money at a bank would you like to get a zero or negative interest on your money. Remember, bank offer interest on the money you deposit, would you leave your money in a bank with a negative rate? This would mean you would owe the bank to hold your money. Does this idea appeal to you?

President Trump’s latest attack on the Federal Reserve has him calling central bank officials “boneheads” for not cutting interest rates to zero or lower to boost the slowing economy.

Wells Fargo Securities’ senior economist Sarah House calls the president’s tweet “irresponsible.”

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https://finance.yahoo.com/news/trump-latest-fed-tweet-is-irresponsible-economist-172835874.html

Trade disputes never end will. This could break the long market rally by Christmas. Only time will tell if the tariffs are a boom for the economy or a mill stone.

To the Man & Women in the Military (California I understand is following the Exchange) thank you. How much stock should the country place in Financial Education?

Financial literacy is an important and necessary life skill. While we don’t widely see it on the classroom agenda, many are surprised to learn that it has been a formal part of the American education system for more than a century.

https://www.cnbc.com/2019/08/28/politics-is-hindering-the-effectiveness-of-financial-education.html

Often written about on the news is the trade deficit with China. However, the US does TRADE with China. This means the US also sells goods and services to China as well as buys goods and services. Rarely do both sides gain from a trade dispute between large economic entities.

The White House recently announced that it would be providing an additional $16 billion in aid to American farmers affected by the trade war between the U.S. and China.

But the problem for American farmers has becomes bigger than something a bailout can fix.

https://finance.yahoo.com/news/trade-war-farmers-trump-markets-154935903.html

While most of the financial advice suggest to fund your 401(K), remember to fund other investment vehicles along the way.

The number of Fidelity 401(k) plans with a balance of $1 million or more jumped to a record 196,000 as of June 30, up 17% from 168,000 last year, according to a new report by Fidelity, the nation’s largest provider of 401(k) plans. The financial services firm handles more than 30 million retirement accounts altogether.

https://www.cnbc.com/2019/08/21/the-number-of-401k-millionaires-hits-an-all-time-high.html

The next time you see an ad to flip houses, remember the only thing guaranteed is death and taxes.

A heated court battle, a last-second offer and a sparsely attended auction behind a fountain in Pomona — this chapter of the famed Mountain of Beverly Hills ends not with a princely sum but a sale price more like that of a sports car.

https://www.latimes.com/business/real-estate/story/2019-08-20/

Harry Markopolos, a noted whistleblower, states GE is on the hood for long term care contracts. As a former financial advisor, who cost long term care, the industry is a bit shaky.

. NEW YORK, Aug 20 (Reuters) – General Electric Co ranks among the riskiest backers of long-term care insurance, suffering from both high exposure to claims and a relatively small cash pile to pay them, Fitch Ratings said in a report on Tuesday.

https://www.cnbc.com/2019/08/20/reuters-america-update-1-general-electric-ranks-among-riskiest-long-term-care-insurers-fitch.html