China and the Stock Market

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China! Aggghhhh! Everyone panic. (And China panic again…) The Chinese stock marketing is crashing, and it’s making everyone nervous. As always, long-term investors with diversified portfolios need do nothing other than sit back and watch. I, for one, like following along the headlines. You know, the ones that swing violently from doom, to fine, and back again. What Is Happening In China? Once upon a time, China was a communist country without much of an economy to speak of. Then, the government decided it wanted to be a big world economy, and in China, what the government wants, the government gets. The Chinese government devoted billions and billions of dollars to building up new cities filled with factories, and then spent even more money subsidizing those endeavors until, everything was made in China. With a new power economy, China also decided to get the other “regular” economy things like banks, lending and even a stock market. Fast forward a few years, and the Chinese stock market has been roaring along. Then, earlier this summer, the Chinese stock market started to drop. The government stepped in and put a stop to it. Unfortunately, real stock markets eventually end up doing what they want …

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Bad News, Politics and Investing

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Here it comes… THE SKY IS FALLING! THE SKY IS FALLING! A presidential campaign is officially coming, and unofficially already in full swing. With it comes political ads, ads that make it sound certain that we are doomed, we will be doomed, or we must fix the doom. Are things really that bad? Is Washington really ruining the economy? The answer, as always, is no. Politics and Investing Do Not Mix The reality of America is that everyone, in both parties, wants the same thing: a stronger, better, bullet-proof economy. The only difference is in the ideas on how to get there. Even tougher to follow is that there is not definitive proof that ANY of the political ideas out there do what their followers think they will. Republicans think cutting taxes puts more money in the hands of businesses and consumers which boosts the economy. Democrats think government spending puts more money in the hands of business, while improving society, thereby improving the economy. Who is right? They both are. And, they are both wrong. The key to a strong economy isn’t really political at all. It is cyclical. Go back over the years and you can prove anything …

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Credit Sesame Safe, Scam or Legit?

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Credit Sesame is another online financial utility that lets you check “your credit score for free.” Of course, there are always more than a few caveats with these kinds of websites. So, let’s take a look at CreditSesame.com and see how it stands up. Credit Sesame Review Any reviews of Credit Sesame need to start with how much does Credit Sesame cost, and is Credit Sesame legit, or is it an online scam? One catch comes during the signup process where you are asked to “do more” with your credit score by adding “goals”. Some clicks there and you’ll get targeted ads, and maybe more. There isn’t a way to skip this step, so choose something you don’t mind hearing about, and as always use your “store email” or “email list” email address. (You should have a separate email address that you never use for anything “real” that helps avoid hacking attempts and keeps your real inbox clean. If you don’t have one, get a free email from Yahoo, Google, Microsoft, or other service before signing up.) I chose rewards cards when I signed up and the first thing at the very top of my screen every time I log in is …

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Windows 10 and Microsoft’s Earnings

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I don’t usually do a lot of analysis of company moves. I just don’t have the time, and often don’t have the insight. But, as a freelance technology writer, I spend a lot of time looking at technology and technology companies. Microsoft is rolling out its new operating system called Windows 10, and it has some interesting marketing and PR behind it. Free Windows 10 Upgrade The first interesting thing about Windows 10 is that it is free. Well…. kind of… and sort of. If you already own Windows 7  or Windows 8, Microsoft will allow you to upgrade to Windows 10 for free, for up to one year. That is, you have one year from now to upgrade to Windows 10 and get it for free. Free? How does this make sense for a publicly traded, profit motivated company? The first thing to understand is that most customers don’t actually upgrade their operating system when new operating systems come out. For retail customers (that is, people who have their own computers that they use and set up themselves) the process of upgrading an operating system is complicated, and unnecessary. After all, if your computer works now, why bother doing …

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Tech Earnings and Stock Market Moves

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The U.S. stock market is composed of thousands of stocks. Of course, when it comes to moving the overall market, some stocks matter more than others. The biggest stocks, those in the S&P 500, and those in the Fortune 500, have some of the biggest impacts on the overall stock indexes. However, in most cases, the news that comes out of those companies is relatively expected. The exception to this rule are the technology companies. Unlike, say oil companies, or big manufacturing companies, it isn’t always easy to use the economic information surrounding them to accurately predict what will happen, especially when it comes to earnings reports. And, with those same companies forgoing the usual “guidance” that other companies provide, what happens in tech company earnings can be a true market moving surprise. This week saw a negative report from industry titan IBM. IBM is not only a household name technology company, but it is also the second highest weighted component in the Dow Jones Industrial Average, commonly referred to as The Dow. The company itself is down over 5 percent so far today, and the Dow is down over 1 percent, or more than 150 points. (Also dragging on …

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States Still Not Recovered Jobs Lost In Recession

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A researcher published some data showing how the individual states are doing recovering jobs lost during the recession. The highlight is that 15 states have not recovered all of the jobs lost during the recession. The interesting part is what that might mean. (Note: this is from total nonfarm employment and counts both part-time and full-time jobs) The 15 states that still haven’t recovered all the jobs lost during the recession are: Alabama Arizona Connecticut Illinois Maine Mississippi Missouri Nevada New Jersey New Mexico Ohio Rhode Island West Virginia Wisconsin Wyoming If your life is all about politics, I’m sure you’re rushing to count Democrats and Republicans as a way to “prove” that your side is the best side. Sorry, but that shows little understanding of economics. But, if you insist, there are more Republican governors than Democrat governors on the list. Of course, to be fair, a lot of those states are the so-called purple ones. A more realistic analysis shows some obvious ones. Nevada and Arizona were the poster children of over-heated housing markets that collapsed, so it’s natural, they are one the list. On the other hand, Florida was hit pretty hard by the housing bubble but is not …

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Does The Deficit Really Matter?

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The U.S. national deficit marked up some interesting news coverage these last few months. First up, was news at the total national debt hit $18 trillion earlier this year. Then, seemingly different news when a May report showed that the U.S. ran its largest budget surplus in seven years during April. What does all of this deficit stuff mean, and does the national debt really matter? (The government often runs a surplus in April; it’s when the majority of U.S. taxes are collected, so it is a larger than normal inflow of funds.) The Deficit vs The National Debt It is important to understand some terminology. First, the national debt, is the total amount owed by the United States government. Contrary to popular belief this debt is not owed “to China” or to any other government. Rather, the debt exists in the form of Treasury Bills, Notes, and Bonds (including those U.S. Savings Bonds your grandmother gave you). These all trade as securities on the open market. The Chinese government is free to buy them if it wants, and so are you, and anyone else. Owning these securities entitles you to an interest payment and the repayment of principal on a predetermined schedule. Neither …

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PayPal Debit Card Worth It?

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paypal debit card

PayPal is a popular way to pay people online and also a useful resource for freelancers to get paid electronically. Funds can be transferred electronically from your PayPal account to your linked bank account at anytime. However, there can be a significant delay between when you initiate a PayPal transfer and when it shows up in your account. To help alleviate this issue, PayPal offers a debit card linked to your PayPal account. I recently got my own PayPal debit card and have had a chance to use it and see how all the little tricks work. Technically, I got a PayPal Business Debit Card, but I don’t see any differences from the regular one. Is a PayPal MasterCard Debit Card a Good Deal? PayPal is no different than any other for-profit company, they want to make money. They take a commission on certain types of payments and charge fees for things like receiving international currency in your PayPal account and for letting customers or clients pay you via credit card. The PayPal debit card is another way for PayPal to make money while giving you more ways to access the funds in your PayPal account, which the company hopes …

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IRS Hacked Again

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This is getting ridiculous. The IRS was hacked again. This time, hackers were able to circumvent the security protocols used to prevent unauthorized use of the online system to get a tax transcript. For those of you that aren’t familiar with the concept, you can see a tax return transcript example. Basically, a tax transcript is like a school transcript. It shows a summary of all your dealings with the IRS. It shows how much taxable income you had, what you paid in taxes, what, if anything, you owe, and so on and so forth. It also includes your name, address, and social security number. It also includes all your spouse’s information if you file jointly. In this particular case, it seems that the hackers did not break into an IRS database, or use phony security logins. Instead, they used the online tax transcript ordering system to just order the transcripts. As the IRS notes, it does take a fair amount of personal information to be able to order a tax transcript in the first place. The gold mine for thieves might be the spousal information. Just because I have a bunch of info on one person, doesn’t necessarily mean …

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Higher Minimum Wage Help or Hurt?

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Now, Los Angeles becomes the biggest city to pass a $15 per hour minimum wage law. Note the very big difference between having a law, and having an actual $15 minimum wage, which it does not, and will not until 2020. Almost exactly one year ago, I wrote about how raising the minimum wage doesn’t really end up hurting businesses or the economy, in large part because minimum wage jobs are already, well… minimum. The idea is that minimum wage jobs pay the minimum, are done by the minimum number of people, and cannot be outsourced to somewhere where you could pay less than the minimum. The only possible downside, then, is a mass closing of minimum wage businesses. This was because Seattle had just become the biggest city to have a $15 minimum wage law. Various publications and “news” organizations are already trying to claim to see whatever effect their side predicted is happening. The irony is that anyone saying they know, or can already see what the effects of a higher minimum wage are, is probably lying, or misconstruing their data. What Happens With $15 Minimum Wage Here comes hard fact number 1. There is no $15 minimum wage yet. …

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