North Carolina Bank Fails
It is the 22nd bank failure of 2009. Cape Fear Bank of Wilmington, North Carolina, has become the 47th failure of the recession. The First Federal Savings and Loan Association of Charleston, South Carolina will assume all of the deposits. The FDIC has said that Cape Fear’s eight offices will reopen on Monday, April 13th as branches of First Federal.
The Standard and Poor’s Rating Services lowered the debt ratings of Chrysler’s loans from CBS.UL, which are due in the year 2013 and in 2014 from to C. This will lower the potential recovery of loans by its debtors if the carmaker defaults. The downgrade indicates that its creditors can only expect the average of recovery potential of 30- 50%. It is a prediction that if Chrysler goes into bankruptcy, liquidation would be the likely answer. Gregg Maddock (S & P’s recovery analyst) has said that he expects that the assets of Chrysler’s would be sold completely or partially. Mr. Maddock further said that Chrysler will not have any chance of reorganization, instead it will be completely liquidated i.e. Chrysler will be no more!
April 15th Tax Day
It’s that annual pound of flesh time. There is much ado about all of the different tax preparation packages and preparation services. Type in tax preparation packages on your search bar and you will immediately come up with thousands of ‘hits’. The truth is that your taxes are only going to be as complete as your records. The software can lead you item by item – line by line – but you still need to have kept your records and details of deductible costs. PC World did an experimental return using 5 different software packages and the totals varied by over $1,500. Bottom line – be familiar with the IRS rules and keep records of your deductible expenses as the year rolls along – just so you can ‘remind’ your tax preparation package that you’ve got yet another deduction.
PC Worlds final decision – “bottom line can be directly affected by the amount and quality of hand-holding provided. If you need specialized knowledge to fill in a little white box, you might consider calling a CPA, and even then, be prepared to be second-guessed if you’re audited.”
President Obama was totally clear
President Obama was totally clear when he told those at the global economic conference in London that the U.S. consumer cannot be expected to make the entire world economy go around. The U.S. cannot be responsible for jump-starting world-wide economic recovery. French and German leaders rejected the idea of spending any money to stimulate their economies. China’s president agreed to spend billions more for the International Monetary Fund gave no announcements on ways to encourage their economy.
Part of the issue is that the U.S. has such a large economy that it takes a huge increase in other spending to offset a small decrease in U.S. consumer spending. Americans are saving more since the recession started. Some reports show that the rate has climbed to 4.4% instead of the -1% reported in 2006. In 1994 savings averaged about 8% - so we are still way behind on this game. Consumer saving isn’t all voluntary; much of it has been caused because credit lending has tightened. Banks and credit card companies have tightened so much that some of us have to save our money because we can’t get a loan to spend.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
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