Effective Monday May 11, 2009, the price of a first-class stamp goes up from 42c to 44c while the price to send a postcard increases from 27c to 28c. Buying the "Forever Stamp" in future is therefore the most convenient way to overcome the hassle of having to buy 2c stamps each time the cost of stamps increase. The Postal Service announced it had incurred a net loss of $1.9 billion from Jan. 1 to March 31 of 2009, due mainly to a sharp drop in mail volume. The amount of mail for the period was 43.8 billion pieces, … (8 comments)
inflation: Oil below $47 a barrel
- 12/02/08 09:21 AM
In the midst of all the gloomy financial news, there is some good news, and that's the huge drop in the price of oil over the last 6 months. In June of this year I blogged about the daily increase in the price of gas, to the point where it was over $147 a barrel and over $5 a gallon in certain parts of Los Angeles. Today, oil was at a 3-1/2 year low. Part of the reason for the continued slump in oil prices is the negative economic outlook as well as the fact that oil inventories have spiked higher … (10 comments)
inflation: The Financial Services Mess - A nightmare of greed and ignorance
- 09/15/08 07:36 AM
Although the current Financial Crisis on Wall Street is a complicated and intricate matter, I believe that simple "greed" is the root cause of the current mess. Stock Brokerages, Investment Bankers, as well as traditional Commercial Banks wanted to be "everything to everyone" in an attempt to make money wherever possible. The opportunity for huge profits blindsighted senior management of so many of the Financial Services companies, resulting in traditional commercial bankers and stock brokers becoming mortgage lenders. I also believe that ignorance played a major role in the enormous losses suffered by these instutions. These players weren't specialists in the products they were selling and trading in ... … (0 comments)
inflation: US Fed take control of Fannie and Freddie - Extraordinary Takeover
- 09/07/08 04:02 AM
Confirming that the Mortgage Crises is far from over, Federal officials unveiled an extraordinary takeover on Sunday of troubled mortgage giants Fannie Mae and Freddie Mac, signaling the most dramatic move to date aimed at shoring up the nation's housing market - CNN Money Under conservatorship, the government would temporarily run Fannie and Freddie until they are on stronger footing. "We examined all options available, and determined that this comprehensive and complementary set of actions best meets our three objectives of market stability, mortgage availability and taxpayer protection," Paulson said. "The move is intended to prevent major financial turmoil. Our economy and our markets will … (10 comments)
inflation: Mortgage business declines, so what do they banks do next?
- 08/20/08 12:05 PM
As banks have tightened their lending criteria for homebuyers I've noticed a new strategy in their plan to lend money to the public. My observations are based purely on my own experiences - so I'm curious to hear if fellow ActiveRainers are receiving the same or similar offers that I am from several of the well-known banks. Over the last few weeks I've started receiving a noticeable increase in the number of offers from a variety of banks (Bank of America, Chase, and Capital One) - but not for credit cards. Instead they're offering $30,000 - $50,000 of unsecured credit for whatever I'd like (debt consolidation, a large … (2 comments)
inflation: Freddie Mac's chief earns over $10 Million despite disastrous performance
- 07/19/08 05:55 AM
Freddie Mac's chief - Richard Syron - made $10.6 million last year, according to Freddie Mac's latest report with the Securities and Exchange Commission. Syron was appointed Chairman of the Board and Chief Executive Officer of Freddie Mac in December 2003. Freddie Mac's mission is to "provide liquidity, stability and affordability to the housing market." If management was at all responsible or effective how could they have ignored their own standards for lending requirements? And why should managment (the likes of Richard Syron) continue to earn huge incomes while Freddie Mac needs a Federal bailout? Since it's taxpayer's money that will be … (3 comments)
inflation: Finally, oil drops $14 a barrel - Is the "Oil Bubble" about to burst?
- 07/17/08 07:01 AM
"Oil prices fell steeply Thursday, extending this week's decline to more than $14 a barrel, as natural gas prices tumbled and a report suggested that the United States may be establishing a diplomatic presence in Iran" - CNN Business News It appears that the US Government is finally taking concrete steps to communicate with Iran, the second-largest producing member of the Organization of Petroleum Exporting Countries. Press Reports indicate that the U.S. may announce a diplomatic interest section in Tehran (which would mark the first step to a permanent embassy) in less than a month. Accordingly, if the belief is that there will … (22 comments)
inflation: Looking for Cheap Gas? .... You must read this
- 06/23/08 09:17 AM
Take a look at this new "Widget" I discovered online. You can load it onto your website and it's a great resource for everyone to use.Take a look at this new "Widget" I discovered online. You can load it onto your website and it's a great resource for everyone to use. Change the variables such as ZIP, gas grade, readius and sort. I've tested it for my local area and it works. Try it yourself - it's pretty cool. … (13 comments)
inflation: Off-shore oil drilling, President Bush & Congress, and other oxy-morons ....
- 06/19/08 06:16 AM
Why is President Bush blaming the current Democratic-majority Congress for the non-starter status of the initiative for off-shore drilling for oil? The Democrats weren't the majority up until 2007. Why wasn't he pushing for off-shore drilling then ....? Now that the clock is ticking until his Presidency ends, has he suddenly woken up and decided to get something positive done for the country? He's sweating like crazy to promote some sort of legacy. Bush could have taken a bolder step by overturning a 10-year-old executive order that bans drilling off most U.S. shores. But he said he wouldn't do that because he wanted Congress … (39 comments)
inflation: Stunning Prediction for Oil - $250 a Barrel by 2009
- 06/12/08 03:47 AM
Alexei Miller - CEO of the Russian oil company, the world's largest energy firm - Gazprom - told reporters at an event in France yesterday that he predicts oil will reach $250 a barrel by 2009. (CNN Money) Obviously he has a vested interest in seeing oil prices continue to spike upwards, but $250 a barrel seems incredible. I believe that such comments fuel further speculative activity in the oil markets and this becomes a self-fulfilling prophecy. The queation is: Is the Oil Market in a Bubble? If one believes that it really is, then the retreat could be sharp and quick making many traders … (2 comments)
inflation: What should The Fed do now?
- 06/10/08 02:55 PM
On 5/22/08 I posted a Blog: "Stagflation - is The Fed out of bullets for now?". I was surprized that I had very few comments and little feedback. The essence of my post was that The Fed was "behind the curve". The Fed's action was overdone, and in any event it was too late. Then today I read an article on CNNMoney.com that Bernanke is hinting at raising interest rates to curb inflation and support the US Dollar. "As long as U.S. interest rates are relatively low, some believe that the dollar will just continue to weaken against the euro and that oil prices will … (8 comments)
inflation: How far will my salary go in another city?
- 06/10/08 03:21 AM
CNN Online has an interesting "Cost of Living Calculator" where you can enter your Salary (Income), the City and State where you live, and then make a comparison as to how far your salary will go in another City and State. I tried it and found some fascinating results: Los Angeles (where I live) compared to Manhattan, New York Groceries cost 14.33% more in New York; Housing costs 45% more; Utilities cost 50% more For interest I then compared Los Angeles to Tulsa, Oklahoma In Tulsa, Groceries cost 28% less; Housing cost 71% less; Utilities cost 6.4% less. One of the other disparities I noted was in … (32 comments)
Record Gas Price in West Hollywood / Beverly Hills / Los Angeles February 2008 - Bush on $4 a gallon gas: "I hadn't heard that."
June 6, 2008 - Premium gas reached $4.99 a gallon in West Hollywood / Los Angeles.
June 18, 2008 - Premium gas reached $5.05 a gallon today in West Hollywood / Los Angeles. June 20, 2008 - Premium gas reached $5.19 a gallon today in Beverly Hills / Los Angeles.
Where to next? We are in a crisis and yet our Federal and State Governments appear … (22 comments)
inflation: “Who Killed the Electric Car?” - and why?
- 05/30/08 08:21 AM
With Oil prices reaching all-time record highs and gas prices rising on a daily basis, it's worth taking a look at whether anything happened over the last decade that may have averted our current dilemma. Two significant factors come to mind: (1) The continued transfer of oil to the Strategic Oil Reserves despite rising prices; and (2) The concerted effort to stop the benefits of technological developments. (1) In 2002 Senator Carl Levin directed the staff of the subcommittee on Investigations to consider whether the Department of Energy's program to fill the Strategic Petroleum Reserve was increasing the price of crude … (18 comments)
inflation: Stagflation - Is the Fed out of bullets for now?
- 05/22/08 03:15 AM
When the Fed held interest rates steady back in August, some critics claimed the Fed was "behind the curve" and that his failure to act quickly would lead to a deep recession. Once the Fed began cutting interest rates in September 2007, others warned that the Fed was overreacting and risked fueling inflation with its monetary leniency. It's true that the Fed's rate cuts and its expanded lending to banks "stopped the spiral" of financial-sector problems that threatened to deliver a further shock to an already slowing economy. But the difficulty now facing the Fed is Stagflation - the scenario where … (3 comments)
inflation: The History of Postage Rates
- 05/12/08 09:42 AM
With the unexciting increase in the cost of a stamp from 41c to 42c I wondered how rates have increased over time. I found a few sites that had some interesting information on what it cost to mail a 1 Ounce letter over the years. 1885 - 2c *** 1985 - 22c *** 1995 - 32c *** 2005 - 37c *** 2006 - 39c *** 2007- 41c *** 2008 - 42c According to a news release by the USPS, the Postal Service has sold 5 billion Forever Stamps since the launch last April and plans to have an additional 5 billion in stock to … (1 comments)
inflation: US Postage Rates increased today - May 12, 2008
- 05/12/08 09:29 AM
A reminder to all that effective today (May 12, 2008) it now costs 42c to mail a standard letter (First Class Mail). I forgot about this and have already had a reminder from the mailman to add additional 1c stamps to all my mail today. The U.S. Postal Service has raised the price for 1-ounce first-class mail from 41 cents to 42 cents. Other forms of mail also are rising in price. Mailing a certified letter will cost $2.70 instead of the previous rate of $2.65. The cost of "forever" stamps was also raised today, to 42 cents. Those stamps will … (4 comments)
inflation: Housing Rescue Package
- 05/05/08 01:14 AM
CNN featured an interesting article today titled: "White House opposes Housing Package". "Official contends Democrats' package is a bailout that would expose taxpayers to risk, says Bush would veto $15B bill to rehabilitate foreclosed properties". http://money.cnn.com/2008/04/24/news/economy/Congress_Housing.ap/index.htm?postversion=2008042418 Put into perspective, America is spending over $12 Billion per month on the Iraq war. Does the Housing Market for struggling Americans mean so little to the Administration? Take a look at this site: National Priorities Project analyzes and clarifies federal data so that people can understand and influence how their tax dollars are spent. http://www.nationalpriorities.org/costofwar_home … (2 comments)
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