Finance Globe

U.S. financial and economic topics from several finance writers.

House of Representatives Reject Bailout Plan

The latest version of the $700 billion bailout plan has been rejected by the U.S. House of Representatives, voting against the package 228-205. Earlier this morning before the vote, President Bush expressed confidence that the Emergency Economic Stabilization Act of 2008 would be passed by both houses. Stock markets around the world took a dive in response to the news. The rejected legislation addressed the following: Giving the Treasury $250 billion, initially, to buy bad mortgages...
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Getting the Most From Your Rewards Card

Getting the Most From Your Rewards Card
Using a rewards card can be a smart way to cover your normal expenses. And if you're going to spend the money anyway, you might as well get something back from it. Depending on the card issuer's rewards program, rewards may be used for anything from cash-back, gift cards, merchandise, travel, or donations to your favorite charity. Rewards cards typically give you one point for every dollar spent, and some cards give you bonus points if...
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Morgan Stanley and Goldman Sachs Change Banking Status

Morgan Stanley and Goldman Sachs, the nation's last two major investment banks which each own about $1 trillion in assets, were granted approval by the Fed to let them switch to bank holding status. The banks both have previously operated as industrial loan banks, meaning they did not have to adhere to the strict regulation that applies to a commercial bank. The banks' change will be official after the mandatory five-day waiting period. The change means...
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Credit Card Convenience Checks

Convenience Checks Anything that has "convenience" in its name should signal that you're going to pay for that convenience. Convenience foods save time and cost more because of it, convenience fees are added to online purchases for concert tickets, and convenience checks are one of the most expensive ways to access your card's credit line. If you have a credit card, chances are that you've already received some of these convenience checks; they're often mailed to...
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President Bush Says They're Making Progress

President Bush said that his Administration and members of Congress have been working hard over the weekend to find a solution to controlling the damage to the nation's financial markets caused by the sub-prime mortgage collapse. He says that they've made good headway on a bill addressing the ensuing financial crisis, but that they have some differences to work out. "Americans are watching to see if Democrats and Republicans, the Congress and the White House, can...
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Advance-Fee Loan Scams

Advance-Fee Loan Scams The Federal Trade Commission, the nation's consumer protection agency, warns us of "Advance-Fee Loan Scams." Looking for a loan can be frustrating for someone who doesn't have a good credit history. After being turned down by several conventional lenders and creditors, it may be tempting to try your luck with a lender who claims they can give you a loan regardless of your credit history. But, watch out before you apply with a...
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FTC Cracking Down On Misrepresented Prepaid Calling Cards

The FTC Fights Prepaid Calling Card Scam The Federal Trade Commission, the nation's consumer protection agency, is going after shady prepaid calling card companies who misrepresent the value of their product to consumers. The FTC "works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them." “In the fall of 2007, the FTC established a joint federal-state task force concerning deceptive marketing practices in the...
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Federal Reserve Unites with Five Central Banks

The Federal Reserve Board announced on Thursday a plan to inject $180 billion into the global economy in an effort to ease the pain of the credit crisis and calm the fears of nervous investors. The Fed is working in a united effort with five central banks: the Swiss National Bank, the European Central Bank, the Bank of Canada, the Bank of Japan, and the Bank of England. The central banks said in a statement, "These...
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U.S. Government Talks of a Broad Rescue From Bad Mortgage Investments

U.S. Government considering a broad rescue. There's talk of a historic move by the federal government to control the ensuing credit crisis by rescuing financial institutions from their bad investment decisions. Though details of the plan have not been finalized, the government is considering forming a government entity to absorb the bad loans that are responsible for the failures of huge companies and the uncertainty of the economy. This move is reported to be similar to...
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President Bush Attempts to Reassure Americans

President Bush made a brief statement on September 18th stating that he shared the concerns of the American people regarding the financial markets and the state of the economy. The President has cancelled today's GOP-fundraising travel plans in order to stay in Washington to meet with economic advisors and to keep an eye on the situation in the financial markets. He briefly talked with Treasury Secretary Henry Paulson this morning and plans to meet again later...
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