Weekend Warriors No More

BILL MOYERS JOURNAL gives viewers an intimate look at how deployments of National Guard troops to Iraq affect the state Governors' ability to swiftly respond to domestic disaster at home and impact the families left behind. Traveling to New Jersey, the Journal follows families preparing for the deployment of nearly half of New Jersey's National Guard to Iraq.

Source: http://feedproxy.google.com/~r/bmjvodcast/~3/GnBz2_rOoA0/profile.html

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Alabama County Could File for Biggest U.S. Municipal Bankruptcy Ever

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AlabamaWith a Thursday afternoon deadline fast approaching, investors and officials in Alabama are working to review new proposals to avert the biggest municipal bankruptcy in American history. Jefferson County, home to Birmingham, Ala., may have to file Chapter 9 on its $3.14 billion debt if is isn't able to negotiate a settlement.

So far, the negotiations have come up short by $300 million. Jefferson County has asked bondholders to forgive $1.3 billion of its debt, while creditors have offered to write off $1 billion, according to Bloomberg.

"I think they should have filed bankruptcy a year and a half ago," Craig Harris, mayor of Jefferson County town Kimberly, Ala., told the North Jefferson News. "This is a no-win situation."

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Even as negotiations come down to the wire, bankruptcy and debt expert James Spiotto, an attorney with Chapman and Cutler, tells DailyFinance it is in the county's best interest to find a solution outside of bankruptcy. He cites New York City's debt crisis in 1975 and Philadelphia's in 1991 as historical precedents.

"[An alternative solution] saves time, expense and market disruption," he says. "It has been to the benefit to state and local to do it that way. They prefer that they pay their bond debt so they can maintain access to markets and [have cash flow] to pay for [expenses]. It allows local governments to make decisions locally."

Sewers, Scandals and Derivatives

The bankruptcy drama stems from a federal court order requiring the county to rebuild its sewer system years ago. To finance the project, the county issued bonds that were ultimately linked to derivatives. Some of the deals were marred by scandals, and then, in 2008, the financial crisis took its devastating toll, according to The New York Times.

This year, things took another turn for the worse after a key tax revenue stream was lost, forcing the county to lay off hundreds of employees, slash services and raise sewer rates.

If Jefferson County does file Chapter 9 tomorrow, it will have a long-term effect and will prevent the county from accessing capital down the road, Spiotto says. Bankruptcy would not eliminate the debt, but would allow the municipality itself to present a debt-adjustment plan.

"This is not the time to see how much charity there is in capital markets," Spiotto says. "They will see that the market is not that forgiving. It's cheaper in the long run to find [an alternative solution.]"

A default in Alabama also could rattle the $2.9 trillion municipal bond market, which has already seen plenty of fluctuation in the last six months.

More Municipal Bankruptcies

The possible bankruptcy comes on the heels of at least five other municipal bankruptcies this year, including those in Central Falls, R.I., which filed Chapter 9 on Aug. 1 over pension problems. Harrisburg, Pa., has also been talking about filing for bankruptcy over its $5 million deficit, even as the City Council struggles to find an alternative plan by its Sept. 6 deadline.

The largest municipal bankruptcy to date was that of Orange County, Calif., in 1994. The county suffered losses of $1.6 billion from bad investments. Since 1980, there have been 254 municipal Chapter 9 filings, mostly by small special-tax districts and municipalities, according to Spiotto. One-third of these have been dismissed, he adds.

"We need to keep in mind that municipal bankruptcies are extremely rare, so in that sense it is best to look at them as outliers," Gregory Minchak, spokesperson for the National League of Cities, tells DailyFinance. "They are very specific to the cities and where we see them happen and there usually has been some big event that caused it."

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Source: http://www.dailyfinance.com/2011/08/03/alabama-county-could-file-for-biggest-u-s-municipal-bankruptcy-ever/

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Buffett's Gloomy View of Our Economic Future?

This morning Warren Buffet's company Berkshire Hathaway announced that it was buying Burlington Northern Santa Fe in a deal valued at $44 billion. In the announcement, Buffett called the purchase an "all-in wager on the economic future of the United States."

Is Buffett right that a bet on Burlington Northern is a bet on the economic future of the U.S.? Because if Buffett is right, we've got real problems.

Let's take a look at what Burlington Northern carries. Its major freight revenues (as of 2008) come from coal (23% of revenues); agricultural products (20%); international intermodal shipments of consumer products, which is probably mostly imports (16%); construction and building products (14%); and petroleum products (4%).

In essence, Buffett is betting that the next ten years will look a lot like the last ten: A lot of growth in imports, construction, energy and agricultural products. If he thought that innovation was going to be the driver of the next ten years--biotech, energy, and infotech--he wouldn't be buying Burlington Northern.

I'm not saying that Buffett is wrong. His skepticism about the tech sector in the late 1990s, and innovation in general, turned out to be right on the mark. Berkshire Hathaway stock over the past decade has risen by 84%, whil the S&P 500 is down by 18%.

But his "all-in wager on the economic future of the United States" paints a remarkably gloomy picture of where we are heading.

Source: http://www.businessweek.com/the_thread/economicsunbound/archives/2009/11/what_does_buffe.html

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August long weekend

With July already a memory it's time to face August. Thank goodness August comes with a long weekend. For my family (the whole group) it means camping.  Same place up north I've shown you pics of before. This is a series of lakes but the particular place we stay has only a dozen sites, with some summer home cabins nearby. It's quite intimate and being invaded by the Moneytree clan this weekend. If I have done my  number count correctly, there will be about 30 of us there. A few got there yesterday to start getting set up. This includes my boys.  I have to tell you it was a very odd feeling to watch them pack up and head off, all on their own to join the rest of the group. I have hit 'that age' as a mother when they drive 2 and a half hours on their own I guess.

I wasn't sure if I was going to be going. My dad had a ministroke on Wed  morning. Since I was the only daughter still at home, I martyred up to stay home near them in case they need someone. My boys were leaving on their own and DH was heading out tonight after work.  Well my dad is a stubborn sort and will eventually die in the middle of doing something. I get a phone call from my mom this morning saying he's hooking up the 5th wheel and would I mind coming to help. ohhhh k dad you drive me nuts LOL

I msg'd the troops to tell them Grampa and Gram are en route and they had all better be there to help him set up.

I got a text from one of my nephews a bit ago to say that they had pulled in. Within 15 minutes the grandkids had the 5thwheel backed in, level, unhooked from truck. Awning was out, outdoor carpet (to keep dirt away) out, picnic table adorned, chairs up and a fire going in the firepit. My mom was gently pushed into  a chair with a baileys and my dad was surrounded by the dogs. Made my parents proud they had raised their kids/grandkids right.

Looks like I will head up tonight. Crossing fingers colitis isn't an evil bitch. See y'all on Monday!

Source: http://shakingthemoneytree.blogspot.com/2012/08/august-long-weekend.html

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Many Are House Poor and How You Can Avoid The Same Mistakes

One of the biggest mistakes I’ve seen friends (and acquaintances) make is to buy a home that’s simply too expensive for them. Most professionals suggest a rule of thumb to spend no more that 35% of your net income on housing. And for the record, housing includes more than just a mortgage payment with additional [...]

Source: http://www.financefox.ca/house-poor-avoid-mistakes/?utm_source=rss&utm_medium=rss&utm_campaign=house-poor-avoid-mistakes

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Should You Take a Bite of the Latest Restaurant IPOs?

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It's been more than two months since Facebook's (FB) messy IPO cooled the market for new listings, but things are starting to heat up again.

There were seven companies that pulled off successful IPOs last week, and one of the more notable names on that list is Del Frisco's (DFRG).

The restaurant operator watches over 32 high-end chophouses. There are nine Del Frisco's Double Eagle Steak House eateries, 19 Sullivan's Steakhouse restaurants, and four of its newer Del Frisco's Grille concept locations.

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Del Frisco's wanted to go public in 2007, but iffy markets got in the way. As soon as the economy began to get wobbly, chophouses frequented by corporations taking their prized clients out to eat fell out of favor.

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It's not as if the market is hungry for upscale steakhouses again. Ruth's Chris parent Ruth's Hospitality (RUTH) has been trading in the single digits since late 2007. The parent company of Morton's of Chicago agreed to be acquired late last year, but that buyout also took place in the single digits.

Del Frisco's had to make sacrifices to make its own deal happen. Underwriters originally planned to offer 7 million shares for as much as $16 a share. Uninspiring demand resulted in the chain offering just 5.8 million shares at $13 apiece.

Save Room for Dessert

The good news here is that Del Frisco's is in a good groove lately. Revenue climbed 24% in its most recent reported quarter, and profitability nearly doubled. There's also the Del Frisco's Grille concept to warm up to. Nation's Restaurant News just named it one of its Hot Concepts for 2012.

Del Frisco's Grille is a more casual spin on the classic steakhouse. The menu and decor is more modern, and there's even a rooftop bar to draw patrons upstairs before, after, or in lieu of the restaurant itself.

The company itself realizes that it has plenty of expansion room for all three of its concepts. There are still plenty of major cities that don't have any of the company's eateries. Del Frisco's plans to open three to five new locations annually, giving it years of growth if it's able to successfully introduce its iconic steakhouses in new territories.

Del Frisco's wasn't the only restaurant chain to go public last week. Chuy's (CHUY) -- a chain of casual Tex-Mex restaurants that stand out because of their hourly made salsa and Elvis Presley shrines -- also went public at $13 last week.

The market seems hungry for restaurant stocks. Let's see if indigestion kicks in again this time.


Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Facebook. Motley Fool newsletter services have recommended buying shares of Facebook.


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Source: http://www.dailyfinance.com/2012/08/01/restaurant-ipo-del-friscos-outlook/

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Interesting Survey: How Women View Money Matters

A survey I saw recently asked women, age 45 to 64, how they viewed money matters.  Here are some of the questions and my comments on the results. What is the most important goal for you in your career now? 16% of responders said they wanted to retire or retire early, but 62% said they [...]

The post Interesting Survey: How Women View Money Matters appeared first on Boomer & Echo.

Source: http://www.boomerandecho.com/how-women-view-money-matters/

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Median Wages Have PLUMMETED Since 1969

Real Wages Much Lower Than They Were Four Decades Ago Wages need to rise to keep up with inflation, especially since the value of the dollar has been trashed: But Michael Greenstone and Adam Looney of the Hamilton Project  document … Continue reading

Median Wages Have PLUMMETED Since 1969 was originally published on Washington's Blog

Source: http://www.washingtonsblog.com/2012/08/median-wages-have-plummeted-since-1969.html

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Women Taking the Wheel

Women in RetirementMany women have not realized that now is the time to take control of your finances.  For too long, a great number of you have relied on men, be it a husband or whatnot, to control your finances and help you plan for retirement.  And the truth is, this line of thinking continues to this day.

Now is the time to put a stop to all that.  Now is the time you take the wheel.  Now is the time to realize that a successful retirement may very well hinge on your own ability to prepare.  Let's take a look at a few facts that every woman should be aware of.

Fact #1:  A longer life expectancy can have a huge effect on your retirement.

If you are a married woman, there is a good chance that your husband is older than you.  In many cases, your husband may be several years older.  More than a decade of difference isn't all that uncommon.  Because of this, there is a good chance that when your husband passes away, he will do so several years ahead of you.  This can mean a great deal to your retirement, as you will need to prepare for the long haul without your husband's guidance.  In many cases, a widow will see her standard of living go down without proper planning.

The same goes for a single woman.  The average lifespan is now close to 85, and you may find yourself living many years beyond that.  While this is clearly a good thing, you must prepare for at least 30 years of retirement, just to be on the safe side.

Fact #2:  A little knowledge can go a long way.

You can't beat a little education to help you get through life.  When it comes to retirement planning, this is especially true.  Whether or not you've been following your husband's lead and allowing him to control all of your finances or allowing a professional to handle things for you, it's time you educated yourself.  Take the time to learn as much as you can about the financial products contained in your retirement portfolio.  Ask questions.  Maybe even take a few basic classes to help you understand anything you might be having trouble with.  Finances can often be a bit difficult to understand for anyone, so never hesitate to educate yourself and stay informed.

Fact #3:  Surveys back up the consensus.

If you follow the numerous financial surveys that are conducted each year, you'll find that retirement planning is a huge issue for women right now.  One of these was conducted by the Society of Actuaries.  Here are some facts that this survey unveiled, and they're not exactly encouraging:

-- Only 8% of female retirees are planning for the long haul, which can translate to a twenty year gap in finances.  In turn, this gap translates to a large number of women who simply aren't prepared for their extended life expectancy without the benefit of a spouse.
-- For men over the age of 85, a total of 45% of them are widowed.  For women, the number is nearly doubled at 85%.  That number may be staggering, but it simply reinforces the need for a woman to know how to handle her finances into her later years.
-- 20% of men at age 65 are expected to need professional care for a number of years after their retirement.  For women, the number is 30%.  While this isn't a huge difference, it's large enough to be concerned.

Source: http://firstsecurityfinancialshow.com/blog/bid/142483/Women-Taking-the-Wheel

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James K. Galbraith

Bill Moyers sits down to talk about the economic future with with James K. Galbraith, Lloyd Bentsen, Jr. Chair in Government/Business Relations at the LBJ School of Public Affairs at the University of Texas at Austin. Galbraith is the author of six books, the most recent, THE PREDATOR STATE: HOW CONSERVATIVES ABANDONED THE FREE MARKET AND WHY LIBERALS SHOULD TOO.

Source: http://feedproxy.google.com/~r/bmjvodcast/~3/uhzp1QaZVyQ/profile.html

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