Need another dose of reality to share at the dinner table?  People are still looking for the quick fix over the slow accumulation of money more than ever as lottery sales have skyrocketed of late.  26 of the 43 states with lotteries saw revenue growth last year, and “ticket sales in at least 17 of those states set records…”²  In other words, we don’t know what to think about tomorrow, but we sure wouldn’t mind getting rich quickly.

Read on:

NHJournal.com – Fidelity: 401(k) balances drop 12 pct in 3Q

USAToday.com – Lottery ticket sales increase across country

(image taken from WorldNewsInsight.com)

The prime minister of Greece (George Papandreou) has called for a national vote on a controversial rescue plan set forth by the European Union.  Originally, the plan was what caused markets to climb in recent weeks, but now that Greece has decided to vote on it (putting its production into question), there is speculation that the rescue plan may never see the light of day.  Here’s the important part to know:

“The plan requires banks that hold Greek national bonds to accept 50 percent losses to help keep the Greek economy afloat. It also beefs up a European bailout fund and requires banks to strengthen their financial cushions.”¹

Convincing banks to accept major losses is a bit of a last-ditch effort, but with the Greek economy hanging in the balance, investors are hoping that something can be salvaged.  The vote is not expected to take place until January, however, so expect plenty of volatility and speculation in the markets until then.

Read on:

CSMonitor – Markets swoon, hit by thunderbolt news of a Greek debt referendum

CNN.com – Greek vote rattles world markets

The stock market took a big hit this past week after the Fed tried to stimulate the economy again by buying back about $400 billion in longer term Treasuries (by selling the same amount of short-term bonds) in the hopes of keeping interest rates low and entice more refinancing, more borrowing, and more spending in the economy.  Of course, someone forgot to tell the Fed that until the banks ease lending requirements, low rates are irrelevant for the masses looking to refinance.  As a result, the market looked at this tactic (known as Operation Twist as a nod to a similar tactic used in the ’60s) with little surprise but with acknowledgement that the Fed still believes the economy is in trouble, and continued problems with debt-ridden countries in Europe haven’t helped.  The result?  A falling stock market until it stabilized briefly on Friday.

The real Billy Beane

On the lighter side of the weekend is the cineplex, where the “non-baseball” baseball movie Moneyball opens starring Brad Pitt and Jonah Hill.  Based on the book of the same name from Michael Lewis, the true story of Billy Beane (Pitt’s character) and his quest to even the playing field using statistical data to compete with larger market teams seemed like a tough sell for an entertaining night at the movies, but after several hiccups in trying to get the movie made, things must have gone right.  Roger Ebert gave it four stars, and many other critics seem to be praising the film, co-written by Aaron Sorkin (The West Wing, A Few Good Men, Sports Night, The Social Network, etc.) who seems to have a knack for making dry subjects interesting on the screen.

Abduction, starring teen heart-throb Taylor Lautner, debuts Friday but wasn’t screened for critics.  The very early returns are as expected for a movie now available for screening – critics are calling it one of the worst movies of the year, but the biggest critiques seem to be for the writing and not as much for Lautner’s performance.

Lastly, a family movie called Dolphin Tale debuts this weekend as well and is getting solid reviews.  Based on a true story, the plot revolves around a dolphin getting a prosthetic tail, thanks to some help from a boy in need of some life affirming events himself.  Some reviews peg it as “heartwarming” and “hokey.”  See it and judge for yourself.  If not, at least you will know what your niece is talking about when you hear something about a “tail-less” dolphin.

Read on:

Bloomberg.com - Fed’s ‘Operation Twist’ Fails to Convince Investors It Will Boost Growth

Freakonomics.com – Operation Twist 101

 RottenTomatoes.com – Moneyball

RottenTomatoes.com – Abduction

imdb.com – Dolphin Tale

From March 2011 - courtesy of Agamitsudo

All summer long, talks of exceeding the debt ceiling have dominated the business pages of your local newspapers and news websites, but much of the public may not understand why there is a debt ceiling or why it matters now.  Culling from some strong sources, here are the answers you need before the topic arises again:

The debt ceiling is “the legal limit on borrowing by the federal government. Before 1917, Congress had to approve borrowing each time it came up. In order to allow for more flexibility as the nation entered World War I, lawmakers agreed to give the federal government blanket approval for most types of borrowing — as long as the total was less than an established limit.”¹

The first debt ceiling was set at $11.5 billion and now resides at just under $14.3 trillion, so obviously the ceiling has been unceremoniously raised time and time again (74 times since 1962).²  This time around, there is a major disagreement between the two political parties in how to go about lowering the debt.  In an overly simplified answer, the Democrats are proposing tax hikes while the Republicans are demanding budget cuts, so a stalemate has resulted because the Republicans are currently unwilling to sign off on any legislation for an increased debt ceiling if major budget cuts aren’t a part of the mix.  The reality is that a lot of cuts AND a lot of extra income is required to even make a dent in the trillions of dollars owed by America’s piggy bank, but each political side will only budge as much as necessary at the risk of alienating any potential voters in the next election.

The irony?  The debt ceiling was established to CONTROL government spending.  Hee hee.  Thanks to circular tax cuts, budgets getting signed off with a predetermined negative bottom line, lending money the country doesn’t have, and billions invested in wars, America sits with an empty wallet and more money owed than the average politician can feasibly comprehend.  There is no easy solution, but at least now you have a few facts to form your own opinion on how to solve America’s financial problems in five easy steps!

One last fact: the actual ceiling was already reached on May 16, but some creative accounting and deferred investments have pushed the ceiling date to something closer to August 2.

Read on:

 USAToday.com – Obama, GOP, debt — what’s the real deadline?

WashingtonPost.com – What’s the debt ceiling, and why is everyone in Washington talking about it?

CNN.com – U.S. hits debt ceiling

If you are in the camp that believes our world can’t sustain itself as we grow, then you’ll enjoy the story about our planet being “unrecognizable” by 2050.  According to some scientists, our world population will be at 9 billion by then and the earth simply won’t be able to provide the necessary resources to keep us all alive and kicking.¹

On the other hand, if you believe our struggling American economy is due to a lack of qualified workers, you’ll enjoy the story about America’s slowest population increase since the Great Depression.²  Many counties have become ghost towns because the jobs in small to medium towns just aren’t available anymore.  The loss of jobs led to less people in those areas, and now the lack of people means no chance for those economies to rebuild.

Whatever your thoughts are on the future of our planet, there are plenty of stories on both sides (future of doom or future of progress).  Take your pick and start debating!

Read on:

WorldBank.org

(image above from OneUtah.org)

• Pending Sales of U.S. Existing Homes Rose 3.5% in November¹
• Business Activity in U.S. Grows at Fastest Pace in Two Decades²
• Jobless Claims in U.S. Fall to Lowest Level Since July 2008³

Match.com – Everyone knows someone who met on Match.com. Now it’s your turn. Search Now!
Read on:

Bloomberg.com

The new registry, if approved, would likely be called the “Do Not Track” list.  Legal and technical ramifications abound because of the complexities of the internet, surfing on public computers, willingly opting in to specific companies and agreements while opting out via the official list, etc.  Just as you still get sales calls because each phoning company falls under the blanket of a larger company which you somehow, somewhere, entered into an agreement giving permission to contact you regarding sales, marketing, specials, etc., the same will likely hold true for the “Do Not Track” list.  Play just one online game of “chase the dryer sheet” sponsored by Proctor & Gamble and subject to their terms and conditions, and suddenly you will once again be inundated with online ads for soaps, razors, food, and probably just about anything you can find at a nearby Walgreen’s.

Is it so bad, though?  Here’s where this subject makes for a good debate and a solid Dinner Topic.  While many of us claim to despise every online ad ever presented to us, others have probably clicked on an banner or two that happened to be properly targeted and purchased something they actually wanted or needed, possibly saving a buck or two in the process.

The question remains: would you rather have an ad-free internet with more pay-per-content sites (nothing can be had for free) along the way, or are you happy knowing you can receive a majority of internet content for free thanks to some individually targeted ads on most pages visited?  It’s subjective, so while there is no right answer, don’t let that stop you from giving your opinion tonight!

Want to be ironic or “meta” today?  Click on the ad below this post about ads and purchase something along the way!

Read on:

USAToday.com – FTC proposes ‘Do Not Track’ list for Web browsing