Granted, many are using their credit card for used Mother Nature never intended—buying groceries and gas—and how else to get these things when paychecks and interest rates are not keeping pace with the costs of basic living? But as more and more people continue to expand their revolving debt (credit card—think stuck in a spinning revolving door) for stuff they really don’t need, but perhaps have grown accustomed to during the recent spend, splurge and spoil years, kind of like a New Age Roaring Twenties, it is almost refreshing to read how someone who could probably buy half the world feels about such expenditure.
Here are some excerpts from an interview conducted by Christoph Pauly and Janko Tietz and published in Der Spiegel this weekend [ http://www.spiegel.de/international/business/0,1518,556114,00.html ] . Among other things, Warren Buffett explained why he doesn’t feel the need to live large:
SPIEGEL: You have pledged about half of your fortune to the Bill & Melinda Gates Foundation. What happens with the other half?
Buffett: In addition to the Gates Foundation, I have pledged money to four other foundations. So far, 80 percent of my stock holdings have been firmly committed to these five organizations. I have promised that I would ultimately donate every one of my shares in Berkshire Hathaway. My will clearly specifies what will happen to the remaining shares. But I can still change this decision while I'm alive.
SPIEGEL: You are the richest man in the world…
Buffett: … maybe not anymore…
SPIEGEL: Let's not argue about a few billion. How does your immense wealth affect your everyday life?
Buffett: I have everything I need. But that's also the way I felt at 25, when I didn't have that much money yet. I have a wonderful family. I have a job that I love and wonderful people who help me with it. It can't get any better than that.
SPIEGEL: You have no interest in a new mansion in Omaha, or perhaps a luxury house at the beach? After all, you've been living in the same house for decades.
Buffett: I don't need 15 houses. Owning real estate doesn't mean much to me. I don't like to think about things like that. I don't need 12 boats, or even the world's largest boat with a crew of 80. I'd have to take care of them, to worry about them. I get a lot more fun out of life without all the bells and whistles.
Yep, those bells and whistles seem to eventually rust and fall apart so maybe it is just better to not get too used to them. Just stick with the basics. The basics are priced pretty much like luxuries these days anyway.
Showing posts with label shopping. Show all posts
Showing posts with label shopping. Show all posts
Saturday, May 31, 2008
Sunday, May 25, 2008
Charge it! (Words by Tim Curry)
I keep hearing that Americans are still buying as much gas for cars. It is as if we are in denial—but then, not everyone can take public transportation. It may not exist for our itinerary. Does that mean more of us are charging it—putting off until tomorrow what we can’t pay for today?
Let the song speak:
You can Telex my accountant
Call up Tele-Credit, too
I know they sent a monthly statement
But I never read it through
You say you won't accept my Visa
Or American Express
And the computer is suspicious'
Cause I've got no fixed address
Lady, that's a valid document
Check out the way I'm dressed
You know the way I'm feeling now
I'd take a lie-detector test
Paradise lost for capital gain
Traded for a ticket on the gravy train
I can amortize the cost with a minimum of pain
But I need it for a write-off
Can't take another night off
You know I never carry change
I just Charge It
Where do I sign?
Charge It
Show me the dotted line
Charge It
I don't have the time to waste.....
Let the song speak:
You can Telex my accountant
Call up Tele-Credit, too
I know they sent a monthly statement
But I never read it through
You say you won't accept my Visa
Or American Express
And the computer is suspicious'
Cause I've got no fixed address
Lady, that's a valid document
Check out the way I'm dressed
You know the way I'm feeling now
I'd take a lie-detector test
Paradise lost for capital gain
Traded for a ticket on the gravy train
I can amortize the cost with a minimum of pain
But I need it for a write-off
Can't take another night off
You know I never carry change
I just Charge It
Where do I sign?
Charge It
Show me the dotted line
Charge It
I don't have the time to waste.....
Tuesday, May 20, 2008
I consume, therefore I am………………….broke
Consumer. Producer. Consumer. Producer. These days I find myself cringing when I think about making a purchase—any impulse to buy any item that is really and truly outside the realm of a staple. I think “CONSUMER”-- a kind of never satisfied monster devouring more goods ever day. A financial version of Jabba the Hut with a wallet.
And it seems as if there are more and more ways to spend money. Every other ad on television is either for a car or a restaurant or fast food place. Sprinkled among these calls for consumption are ads for beer or cosmetics and pharmaceuticals—“Hey—let’s all get made-up, get drunk, pig out and pop a few pills! But make sure you’ve filled up the tank in the new car because the price of a gallon of gas is going up 25 cents a day.” Here I am about to consume and what exactly is on the other end of that increasingly scary spectrum—PRODUCER? Where are more and more of these things being produced? Not here. Not anymore. I’ll get to the statistics but you know what you see when pick up a bag of broccoli or an umbrella or a pair of shoes or a shirt you can pretty much name it…..and you read where this stuff is made. And just suppose, those countries decide, for whatever reason—political, financial, or the wrath of nature—they can no longer send us all this STUFF either at all or for so few dollars?
Maybe it is time to take a step back and have second thoughts before buying. It really shouldn’t be a hobby.
And it seems as if there are more and more ways to spend money. Every other ad on television is either for a car or a restaurant or fast food place. Sprinkled among these calls for consumption are ads for beer or cosmetics and pharmaceuticals—“Hey—let’s all get made-up, get drunk, pig out and pop a few pills! But make sure you’ve filled up the tank in the new car because the price of a gallon of gas is going up 25 cents a day.” Here I am about to consume and what exactly is on the other end of that increasingly scary spectrum—PRODUCER? Where are more and more of these things being produced? Not here. Not anymore. I’ll get to the statistics but you know what you see when pick up a bag of broccoli or an umbrella or a pair of shoes or a shirt you can pretty much name it…..and you read where this stuff is made. And just suppose, those countries decide, for whatever reason—political, financial, or the wrath of nature—they can no longer send us all this STUFF either at all or for so few dollars?
Maybe it is time to take a step back and have second thoughts before buying. It really shouldn’t be a hobby.
Tuesday, April 29, 2008
The Economy by Any Other Name......
So—Are we or are we not in a recession? Like many issues having to do with anything financial, it depends on whom you ask.
Our President says we are not in a recession. Times are hard, but…(The less said about that and the rather discomfiting news conference earlier today, the better. ) Many economists think we are, indeed, in a recession and at least one financier went so far as to allude to “depression.”
Why can’t anyone agree whether we are in a recession?
As respected economist Bernard Baumohl, Managing Director of The Economic Outlook Group, based in Princeton, NJ, explained, “The main reason you are not going to get any agreement whether we are in a recession right now is that none of the pundits can officially declare it. The group that formally declares whether the economy is in a recession is a group of academic economists who are part of a non partisan organization called the National Bureau of Economic Research based in Cambridge, Mass. Led by Martin Feldstein, they might get together at the earliest in the Fall, more likely at the very end of the year when all of the economic data has been revised and updated. They will then look back at what happened from the end of 2007 and what took place in 2008 and make an official declaration as to whether economic activity in fact contracted. They are the official arbiters—the referees on the economy.”
But can a recession be determined only after it has ended?
Baumohl believes that “employment numbers are bad enough to suggest that we are in a recession. We now have at least three months of net job losses from payroll numbers so far this year. The payroll numbers include government hiring, which I don’t like to include because the government doesn’t really care about profit and losses—they’ll hire whenever they need to hire people—so I take a look at the part of the jobs report that focuses only on hiring and firing in the business sector. That’s one of the more important economic indicators for me. The others that are critical are industrial production (and if that’s shrinking, that’s certainly an indicator), consumer spending and housing. So there are a lot of things we need to consider. I know the common definition people use to define a recession these days is 2 consecutive quarters of negative growth. But that’s one of those ‘finger in the wind’ definitions.
The recession, in my opinion, most likely began in December, and will probably last through the second quarter. That’s based on the economic evidence we are getting. Having said that, on Wed., April 30, we will get the first quarter GDP. That’s the first set of numbers for 2008. So we’ll see right then and there whether there’s negative growth.”
How would Baumohl sum up things right now?
“I think there are just enough economic indicators to tell me that this economy is in real jeopardy and there’s probably a recession underway right now. It certainly feels like a recession regardless whether it is one technically or not. Most people are not going to be able to tell whether we are in a recession or not. It still is going to feel awful for most Americans if the economy grows by 1% or whether it shrinks by 1%. It’s going to feel essentially the same.”
In other words, a recession by any other name would be very painful.
http://www.economicoutlookgroup.com/
THE ECONOMIC OUTLOOK GROUP
Princeton Junction, New Jersey 08550
Our President says we are not in a recession. Times are hard, but…(The less said about that and the rather discomfiting news conference earlier today, the better. ) Many economists think we are, indeed, in a recession and at least one financier went so far as to allude to “depression.”
Why can’t anyone agree whether we are in a recession?
As respected economist Bernard Baumohl, Managing Director of The Economic Outlook Group, based in Princeton, NJ, explained, “The main reason you are not going to get any agreement whether we are in a recession right now is that none of the pundits can officially declare it. The group that formally declares whether the economy is in a recession is a group of academic economists who are part of a non partisan organization called the National Bureau of Economic Research based in Cambridge, Mass. Led by Martin Feldstein, they might get together at the earliest in the Fall, more likely at the very end of the year when all of the economic data has been revised and updated. They will then look back at what happened from the end of 2007 and what took place in 2008 and make an official declaration as to whether economic activity in fact contracted. They are the official arbiters—the referees on the economy.”
But can a recession be determined only after it has ended?
Baumohl believes that “employment numbers are bad enough to suggest that we are in a recession. We now have at least three months of net job losses from payroll numbers so far this year. The payroll numbers include government hiring, which I don’t like to include because the government doesn’t really care about profit and losses—they’ll hire whenever they need to hire people—so I take a look at the part of the jobs report that focuses only on hiring and firing in the business sector. That’s one of the more important economic indicators for me. The others that are critical are industrial production (and if that’s shrinking, that’s certainly an indicator), consumer spending and housing. So there are a lot of things we need to consider. I know the common definition people use to define a recession these days is 2 consecutive quarters of negative growth. But that’s one of those ‘finger in the wind’ definitions.
The recession, in my opinion, most likely began in December, and will probably last through the second quarter. That’s based on the economic evidence we are getting. Having said that, on Wed., April 30, we will get the first quarter GDP. That’s the first set of numbers for 2008. So we’ll see right then and there whether there’s negative growth.”
How would Baumohl sum up things right now?
“I think there are just enough economic indicators to tell me that this economy is in real jeopardy and there’s probably a recession underway right now. It certainly feels like a recession regardless whether it is one technically or not. Most people are not going to be able to tell whether we are in a recession or not. It still is going to feel awful for most Americans if the economy grows by 1% or whether it shrinks by 1%. It’s going to feel essentially the same.”
In other words, a recession by any other name would be very painful.
http://www.economicoutlookgroup.com/
THE ECONOMIC OUTLOOK GROUP
Princeton Junction, New Jersey 08550
Friday, April 25, 2008
Spend, Don't Save
So let me see if I have this right--- Interest rates are so low because, even though, as a population, we have always been nagged about not saving enough, we are now not supposed to be saving. The line now is spend, spend, spend. The government wants us to buy. Hence those tax rebate checks. But what can we buy if we can never save? A house? Not anymore. More likely that ballpark G will go to the 2 g’s--gas and groceries.
And if we just keep spending, buying, consuming, stuff that really won’t hold any value, then what will happen if we are suddenly faced with an unexpected life change—it does happen—usually just when you think everything is hunky-dory.
Talk about mixed messages. Cut interest rates so people (oh, and businesses) will borrow and/or spend, not save. Then give the people a tax rebate so they, for some reason, feel flush and go out and spend more. (Reality—that rebate is long gone, baby) Maybe we are now supposed to follow the example of the government and rack up a big deficit.
It seems as if that has already been happening. The Federal Reserve states that revolving credit increased at an annual rate of 6 percent, meaning we have been sliding our credit cards through those MSRs (magnetic stripe readers) quite a lot.
Revolving, or open-ended credit is an agreement by a bank to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. http://www.investorwords.com/
According to the Federal Reserve Bank of San Francisco, open-end credit is a line of credit that may be used repeatedly up to a certain limit. (Also called a charge account or revolving credit.)
The key words here are “again” and “repeatedly” Think “revolving doors”—the kind that can turn so fast and for so long that you never know what hit you until you're flung out onto the walkway with your head still spinning.
(To ease some of the pain, while there is a time lag from when the Fed cuts rates, it does pay to call your credit card issuer and ask about a reduction in the rate you are charged, particularly if you have been paying on time.
In any case, a straightforward site to read about credit cards in general and how to avoid the quagmire that so often ensues, is
http://www.federalreserve.gov/Pubs/shop/ )
And if we just keep spending, buying, consuming, stuff that really won’t hold any value, then what will happen if we are suddenly faced with an unexpected life change—it does happen—usually just when you think everything is hunky-dory.
Talk about mixed messages. Cut interest rates so people (oh, and businesses) will borrow and/or spend, not save. Then give the people a tax rebate so they, for some reason, feel flush and go out and spend more. (Reality—that rebate is long gone, baby) Maybe we are now supposed to follow the example of the government and rack up a big deficit.
It seems as if that has already been happening. The Federal Reserve states that revolving credit increased at an annual rate of 6 percent, meaning we have been sliding our credit cards through those MSRs (magnetic stripe readers) quite a lot.
Revolving, or open-ended credit is an agreement by a bank to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. http://www.investorwords.com/
According to the Federal Reserve Bank of San Francisco, open-end credit is a line of credit that may be used repeatedly up to a certain limit. (Also called a charge account or revolving credit.)
The key words here are “again” and “repeatedly” Think “revolving doors”—the kind that can turn so fast and for so long that you never know what hit you until you're flung out onto the walkway with your head still spinning.
(To ease some of the pain, while there is a time lag from when the Fed cuts rates, it does pay to call your credit card issuer and ask about a reduction in the rate you are charged, particularly if you have been paying on time.
In any case, a straightforward site to read about credit cards in general and how to avoid the quagmire that so often ensues, is
http://www.federalreserve.gov/Pubs/shop/ )
Monday, March 31, 2008
Shopping List for a Damaged Economy
Shopping List for a Damaged Economy
Has President Bush gone grocery shopping recently? Has anyone who has anything to do with our economy set foot in an A&P or Shop-Rite within the last month?
We all know that prices have been rising, but it seems that in less than a week, on the consumer end, anyway, the price of bread and anything having to do with any kind of grain, frozen foods, and dairy products has shot up into the territory of disbelief. “Sticker Shock” was a term usually used for over-priced cars, not over-priced cornbread.
So when entering a supermarket or market or bodega, you must prepare yourself to make hard choices about whether to buy the orange juice or the yogurt and whether you should do without the extra milk your family likes because this week, anyway, it is not on sale.When you have to cut the basics, then something is basically wrong with the economy. So basic, that it had to have taken such a long time to happen that no one in charge noticed. But we all notice now.
Has President Bush gone grocery shopping recently? Has anyone who has anything to do with our economy set foot in an A&P or Shop-Rite within the last month?
We all know that prices have been rising, but it seems that in less than a week, on the consumer end, anyway, the price of bread and anything having to do with any kind of grain, frozen foods, and dairy products has shot up into the territory of disbelief. “Sticker Shock” was a term usually used for over-priced cars, not over-priced cornbread.
So when entering a supermarket or market or bodega, you must prepare yourself to make hard choices about whether to buy the orange juice or the yogurt and whether you should do without the extra milk your family likes because this week, anyway, it is not on sale.When you have to cut the basics, then something is basically wrong with the economy. So basic, that it had to have taken such a long time to happen that no one in charge noticed. But we all notice now.
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