It has happened. California is handing out IOUs. Officially, they are called warrants and are redeemable at banks. Though some banks are skeptical about accepting the IOUs which have an interest rate of 3.75%. Even so, over $50 million have been issued. Which of the other states entering the new fiscal year without a budget will have the same thing happen to them? Read Full Story

    I will gladly pay you Tuesday for a hamburger, in a cartoon this was cute. For a state in the 21st Century it’s not. California’s budget woes will make the state start handing out IOUs. This is a very dire situation. People who depend on that money can’t give their creditors IOUs. What can they tell their creditors or utilities? We can’t pay you because we’re not getting my money. Even though the money isn’t directly for government salaries the vendors who deal with the state won’t ... Read Full Story

  Illinois, California, Pennsylvania, Connecticut, Arizona, Mississippi, and Ohio.   What do these states all have in common? As of today, they have no state budget. July 1 is the beginning of a new fiscal year for many states (and companies) and this group of states has failed to pass a new budget for the next year. The majority of the states are facing budget short falls which make citizens face the realities of two things – fewer services and more taxes.   The problem is that budget... Read Full Story

    Poor Ruth Madoff.   Bernie Madoff’s wife is now crying broke because she has been stripped of all but $2.5 million in assets. In New York her duplex apartment was worth $7 million.   The fascination with money and its excesses are intriguing. Last week, I read an article about the lack of skilled trade workerswho are needed and the positions pay $22 an hour which would be over $45k a year. Additionally there were other engineering positions that employers were having difficulty filling w... Read Full Story

    Ponzi schemes. When things sound too good to be true, they usually are. Even if someone is a friend, check out what they are telling you.   Bernie Madoff received the maximum sentence for his crime. Yet, his incarceration won’t bring back the life savings to those that he bilked out of millions of dollars.   He apologized.   “I live in a tormented state for all the pain and suffering I created,” Madoff said. “I left a legacy of shame. It is something I will live with fo... Read Full Story

  Still want to enjoy things that you used to like vacations? Dinners with friends or vacations keeping you from some social activities? If you are un- or under-employed you might not have the same amount of money you formerly earned. Or if you were forced to take furlough days or a pay decrease then there is just less money to go around.   As you parents used to say when you were younger, if they are really your friends then they won’t have a problem. True friends don’t want their friends t... Read Full Story

    In hot weather, water is your friend.  But after a while, plain water can get boring. No problem! In the summer many stores have lemons and limes on sale. This past week I saw limes on sale, 15 for $1. One lime wedge can give you a little zip to your water.  Limes aren’t the only fruits that add extra flavor to your water. You could also use some frozen mixed berries. Also, there are single serve packages that you can add to a pint or 20 ounce glass or bottle of water, which are convenien... Read Full Story

This morning before 8 a.m., it was 80 degrees.   Last week it was on the cool side for June. This mean it is time to turn on the air conditioner.   To save money but still stay cool, close the blinds or drapes and run the fan. This way the air conditioner doesn’t have to work as hard. The newer more efficient energy star air conditioners make a difference in your electric bill. Just because it is 90 outside, doesn’t mean that you need to have your air conditioning set at 68. Air-conditioning... Read Full Story

    Be a pest.   When you notice that something in wrong on your bank statement or credit card statement, politely ask for an inquiry. Sometimes you may have to ask twice but ti will work. Two months ago I found fraudulent charges on a credit card statement, then I found double billing from a company I actually placed an order with. The fraudulent charges, I had to place an inquiry twice, but while the charges were being investigated, I didn’t have to pay interest on those and checked freque... Read Full Story

    But by the spring of 2008, the financial world seemed to be coming undone, unemployment was rising, and among the fashionistas, cheap was the new black. [Lew] Frankfort and his executives reconsidered. They agreed it was time to create a more “youthful energy” for the brand. “This was an attitude we felt we were missing,” says Frankfort.   Higher end companies and brands are lowering prices to attract customers. Coach has announced a new line of products that cost... Read Full Story