The minimum wage went up to $7.25 an hour on July 24th as the last of a three year planned increase passed by Congress. The increase is $.70 an hour over the minimum in 2008, a 10.7 percent increase. Since inflation is reported at 3.8 percent for the year the buying power of the minimum wage went up for 2009.Despite three years of increase, the Federal minimum wage has a history of falling buying power. During the years 1997 to 2007 the federal minimum wage was frozen at $5.15 per hour. Even with annual inflation in the one to three percent range...
Monday, 16 November 2009
Sunday, 8 November 2009
Banks and Hedge Funds
Posted on 10:57 by Unknown
Banks are essential, but troublesome institutions that keep checking accounts for depositors, but only hold a fraction of deposit liabilities in reserve to pay for checks. Normally 15 cents on the dollar will be adequate reserves because those writing checks will about equal those making deposits. Normally borrowers will be paying principal and interest to further assure that banks have reserves to pay on their checking accounts.Because a bank’s liabilities include personal and business checking accounts, i.e. money, the larger society has a special...
Sunday, 1 November 2009
Thoughts on Used Cars
Posted on 11:49 by Unknown
Automobiles have a unique place in American consumption and personal finance. Nothing else remains our personal choice that costs so much and depreciates so fast. As everyone knows cars are more than transportation. For people in business it is often important to have a late model car to project an image of prestige and prosperity. Others are interested in style and performance and buy one car over another for a range of personal reasons.For those who buy cars to minimize their personal expense, they buy a used car. Automobile companies, dealers...
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