Hiring to increase spending despite gas prices (AP)

WASHINGTON - consumers as a whole will probably spend more this year. But it is not because we will all be earn more money. Even lucky enough people get an increase will likely spend most of the additional dollars to pay higher gas and food prices.

But employers are hiring more freely this year and more people means more money spent on fuel economy.

"It is difficult to spend money without an income." "More jobs will be good for the consumer spending", said David Wyss, Chief Economist at Standard & Poor in New York.

People made more money and spent more money in March, the Commerce Department said Friday. But after adjusting for inflation, spending increased by 0.2 percent and the income after taxes were essentially flat.

Consumer spending, which represents about 70 per cent of economic activity, rose at an annual rate of 2.7 per cent during the period from January to March. It was a sharp decline in the growth of 4% in the previous quarter.

Spend less led the economy to grow at only an annual rate of 1.8% in the first three months of the year - lower than the growth of 3.1% in the quarter October-December 2010.

The Americans were willing to spend more this after Congress agreed to give them a 2 percentage points in social security contributions. But a constant increase in the price of gasoline has siphoned away greater part of this extra money, leaving consumers less discretionary money to spend on cars and appliances, restaurant equipment and to take vacations.

Gasoline prices are showing few signs of easing. The national average pump Friday was $3.91 a gallon_ 32 cents higher than what consumers paid at the end of March and a dollar more than what they paid a year ago.

"Consumers have been taking money from their tax cuts and put in their gas tanks to drive to work, said Mark Zandi, Chief Economist at Analytics of Moody." "Higher gas prices have really sucked the wind of the purchasing power of consumers."

Zandi and other economists are optimistic that the price of gasoline will be stabilizing this spring, before deleting the summer or autumn. That might give people more discretionary money and help lift economic growth to more than 3% for the rest of 2011, they say.

At the same time, the economy benefits from the best stretch of hiring two months in five years. Unemployment dropped to a minimum of two years from 8.8% in March. Economists expect employers will be keep adding approximately 200,000 jobs a month until the end of the year. As more people find a job, spending will rise.

But the growth of employment should not give workers a bargaining power more to demand higher wages.

"The unemployment rate is still very high," said Paul Dales, Chief U.S. economist capital economics. "You are not going to request a salary increase when you know there are a lot of people who could do your job.".

As a result, people are saving more than before the recession. It is good for the household budget, but bad for economic growth. The savings rate remains unchanged at 5.5% of the income after tax in March, well above the 2.1% pace in 2007.

Wyss believed that the savings rate remains around where it is now for the rest of the year.

"People were in debt up to their eyes when the recession started and they are working little by little their way out of debt so much," said Wyss.

Freeport-McMoran CEO compensation increased 76 percent (AP)

DENVER - jumped for the remuneration of the CEO of Freeport-McMoran Copper & Gold Inc. 76 per cent last year as the improvement of the global economy has been robust demand and higher prices of metals, according to an analysis of the Associated Press.

Richard c. Adkerson gets $ 35.3 million, mainly in stock awards grants and options, valued at $ 21.2 million when they were awarded, according to the calculations of AP based on a company filing made Thursday with the Securities and Exchange Commission.

That is compared with its system of remuneration of 20.1 million for 2009, when mining giant of Phoenix was still struggling against the effects of the recession.

Adkerson, who is also President of Freeport-McMoran, has been rewarded for the improvement of the year last in the financial performance of the company, led by higher gold and copper and stronger demand prices, especially in fast-growing countries such as China.

For the year, net income of Freeport-McMoRan was 4.3 billion dollars, or $9.14 per share, compared with 2.5 billion dollars, or $5.86 per share in 2009. Income increased by 28% to 1,003.00 billion.

Adkerson, 64, received a $ 2.5 million base salary and cash bonus based on performance of 10 million in 2010.

He received 1.77 million in benefits company and other personal benefits, including advice and financial a value of $20,000, the corporate aircraft use a value of $242,279, security and cars, a value of $179,771 and $ 1 million in contributions to a savings tax plan.

In 2009, Adkerson received a base salary of $, options price 2.5 million value 6.78 million dollars, a bonus of $ 10 million, $813,223 in other compensation and no stock grants.

The Associated Press formula calculates the total remuneration of the leader in the last year by adding the salary, bonuses, benefits, interest above the market, the company pays the deferred compensation and the estimated stock and stock options granted during the year.

The formula for the AP ignores changes in the present value of pension benefits. That is slightly different AP total in most cases the total reported by the companies of the sec.

The value that a company assigned to an Executive stock and option awards for 2010 has been the current value of that society expects prices worth the Executive over time. Companies use one of several formulas to calculate this value. However, the number is just an estimate and what leader receives ultimately will depend on the performance of the shares of the company in the years after the awards are granted. Most stock compensation programs require an Executive waiting time to receive shares or exercise options specified.

National sales tax Will Lead to economic growth (ContributorNetwork)

The fair tax act is not a new concept, but he is the one which brought to steam in the last two weeks. Since April 15, to speak of a national sales tax took the center stage, and those who have everything to lose attempted to stem the wave of a realistic and objective feasible to eliminate the IRS and the income taxas we know.

The concept is simple. Everyone tax all also in all areas. The use of a national sales tax will be based on the products we use every day. It will be a consumption tax. More a consumer spends the they will pay more tax. A consumption tax, such as the fair tax would take taxes on the 23 per cent of the purchase price.

Workers would receive their money forward, when is paid because it would no longer be a federal tax taken out of their control. All government programs would be also paid for the use of the fair tax. This will be the Player helps the consumer market and it will lead also to the Americans in fact save money instead of spending and borrowing.

The fair tax will also address the issue of undocumented workers. These workers will now be paying taxes like everyone in the United States. As with any radical change in the Government, many Americans are reluctant to back the fear of the unknown fair tax.

Host of talk show radio and well respected finance expert Dave Ramsey is in support of the fair tax as well. Ramsey gave the best explanation in simple form when he responded to a question from a listener on the subject in his column in City Hall.

Ramsey is one of the many experts respected in the field of finance who extolled the virtues of the fair tax. With the fair tax policy will be cleaned up and unnecessary expense would be a thing of the past. It is foolish to think that the system would be perfect, but if we do not take this step now the old system may collapse in the near future.

The fair tax is a simple way and fair to put an end to all faults currently taken advantage by large companies and United States. Some large companies employ hundreds of tax lawyers to take advantage of the tax code to the United States obsolete and unfair.

Bachmann: raise the federal debt ceiling (AP)

MANCHESTER, N.H. - presidential candidate potential GOP Michele Bachmann said that Congress should not raise the ceiling of the national debt despite warnings from economists that could follow the extreme circumstances.

The Member of Congress from Minnesota said Friday there are bills in Congress that would require the Government to make payments on the debt even if the debt ceiling remains unchanged.

Representatives of the Government and non-partisan experts say the nation probably would default on its loans if the debt ceiling is not raised soon.

Bachmann has made the remarks at a dinner of conservatives in New Hampshire, which holds the first primary presidential nation.

Files suggest elder Obama forced to leave Harvard (AP)

BOSTON - father of President Barack Obama was forced to leave Harvard University before completing his PhD in economics, because the school is concerned about his personal life and finances, according to the records of newly public of immigration.

Harvard had asked the Immigration and Naturalization Service to delay an application by Barack Hussein Obama SR. to prolong his stay at the United States, ""until what they decided what action they could take to get rid of him", responsible for immigration M.F. McKeon wrote in a memo of June 1964."

Harvard administrators, the memo said, "have difficulty with its financial arrangements and could not seem to discover how many wives he had."

A previous INS memo of McKeon, said that, while the eldest Obama has passed his exams and was entitled for academic reasons to stay and complete his thesis, the school was going to try and "cook something for him."

"They are planning on him saying that they will give him no money, and that he had better return to the Kenya and prepare his thesis at home", said the memo.

In May 1964, David d. Henry, Director of the international Bureau of Harvard, wrote to Obama to say that, while he had completed his formal course work, the Department of Economics and the Graduate School of Arts & Sciences is the money to support it.

"We have, therefore, come to the conclusion that you should end your stay in the United States and return to the Kenya to continue your research and writing your thesis," said Henry letter.

Application of Obama for a prolonged stay was dismissed by the INS. He left Harvard and - divorced from the mother of the President - returned to his native Kenya in July 1964. He did not complete his PhD.

Immigration, contained memos in the elder Obama of the file of the Immigration and naturalization, was given to a journalist for the Boston Globe in 2009 with a request for access to Information. The documents were first public Wednesday by the independent Arizona, a weekly newspaper. The Associated Press obtained copies of their Friday.

Harvard has released a statement Friday saying that he could nothing in its own records to support the accounts given in the notes to the INS.

"While we do not verify the accounts of conversations that took place nearly 50 years, there is a review of our existing files does any support for the language or implied intention described by the official Government of the United States in government documents,"the statement read."".

When Obama attended Harvard, the school faced serious constraints in the funding of research by international graduate students, the University said.

Spokeswoman Department of Homeland Security Matt Chandler refused to comment Friday, saying that the Ministry does not comment on specific cases of immigration.

Concerns about the personal lives of the Obama that he had studied at the United States had been raised previously, according to ins documents.

In 1961, while he was a student at the University of Hawaii, advise students of the school called an official immigration and said Obama had married recently Stanley Ann Dunham - mother of President - despite having already a woman at the Kenya.

According to a memorandum written by an official of the INS in Honolulu, the Advisor said Obama had been "running with several girls since he arrived here and last summer, it put on his playboy ways."

Obama said the Adviser that he had divorced his wife to the Kenya. He said a mother of the President of the same thing, even though she would later learn that it is a lie.

Obama works for an oil company, as an economist with the Government after his return to Africa, but his personal and professional lives deteriorate later. He died in a car accident in 1982, while the future President was 21 and a student at Columbia University.

five banks fail in Florida, GA, Mich. ; fact 39 ' 11 (AP)

WASHINGTON - regulators Friday closed banks in Florida, the Georgia, and Michigan, a total of five closures which lifted the number of bank failures in the United States this year to 39.

The pace of the closures has slowed, however, that the economy is improving and banks are working their way through piles of bad debt. At this time last year, the regulators had closed 64 banks.

The Federal Deposit Insurance Corp. took center of Florida, based in Winter Park, Florida, with $ 352 million in the First National Bank and the community of Cortez of Brooksville, Florida, bank assets with 70.9 million in assets.

The Agency took also during the first Bank of Community Choice in Dallas, GA, with 308.5 million in assets; Park Avenue, Valdosta, GA based Bank, with 953.3 million in assets; and the Central Bank community in Mount Clemens, Michigan, with 476,3 million in assets.

Miami-based American Premier Bank has agreed to assume the assets and deposits of First National Bank of Central Florida and the Cortez Community Bank. Bank of the Ozarks, based in Little Rock, AR, is to acquire the assets and deposits of first Community Bank of choice and the Park Avenue Bank. Talmer Bank & Trust, based in Troy, Michigan, has agreed to assume the assets and deposits of the Central Bank community.

In addition, the FDIC and the premier American Bank agreed to share losses on 270 million dollars of First National Bank of Central Florida loans and other assets and assets of the Cortez Community Bank $ 51.3 million.

The Agency and the Bank of the Ozarks are loss sharing 260.7 million of dollars in assets of first choice Community Bank and 514.1 millions of dollars in assets of the Park Avenue Bank. Talmer Bank & Trust shares with the FDIC and millions of dollars in assets of the Central Bank community.

The failure of First National Bank of Central Florida is expected to cost of $ 42.9 million deposit insurance fund. The failure of Community Bank of Cortez is supposed to 18.6 million. that $ 92.4 million first choice Community Bank. Bank of Park Avenue, $ 306,1 million. and the Central Bank community, wore million.

Florida and the Georgia were the hardest hit States for bank failures. Twenty-nine banks were a component in Florida last year and 16 in Georgia. The four cases in these States Friday to 4 to 10 the number of bank failures in Florida and Georgia, respectively this year.

In California and Illinois also saw a large number of bank failures.

In 2010, the authorities seized 157 banks who have succumbed to mounting loan bitter and occupied economy. It was the most in one year since the crisis of the savings and credit, two decades ago.

The FDIC said that 2010 will probably mark the apogee of bank failures.

There are 140 bank failures in 2009, price of the insurance fund approximately $ 36 billion. The failures of the last year cost about $ 21 billion, or a lower price tag because banks failed in 2010 were smaller on average. Twenty-five banks failed in 2008, the year of the financial crisis struck with force. only three have been closed in 2007.

2008, The year of the financial crisis hit, to 2010, bank failures cost Fund 76.8 billion. Deposit insurance fund fell into the red in 2009, and its deficit amounted to 7.4 billion at December 31.

The FDIC expects the cost to resolve banks having stranded in total approximately 52 billion from 2010 to 2014.

Silver - insured up to $ 250,000 per account - applicants is not in danger, with the FDIC backed by the Government. This insurance Cap became permanent law financial revision adopted in July.

The number of banks on the FDIC confidential "problem" list is passed to 884 during the last quarter of the year last 860 three months earlier. Banks in difficulty 884 is the highest number since 1993, savings and credit crisis.

COME Shirakawa warns economic prospects to the "very serious" (Reuters) Japan

TOKYO (Reuters) - the Bank of Japan Governor Masaaki Shirakawa said Saturday that the economic prospects of the country were very serious and that the Central Bank will take appropriate measures to support the economy.

But he offered a few clues as to if and when the Bank of the Japan would be expanding its system of purchase of goods, only to say that his next political step will depend on economic conditions at the time.

Shirakawa "Bank of the Japan sees the Outlook for the economy of the Japan as very serious", said at a meeting of the lower House of the Parliament of the Financial Committee.

"We would like to take necessary appropriate policy measures while the economy and prices, taking into account that the uncertainty about the prospects of monitoring is high," he said.

A legislator asked him if the Bank of the Japan would consider buying more government bonds to support the economy, Shirakawa said only: "we would like to consider seriously what would be the desirable step to take."

The Bank of the Japan kept unchanged monetary policy Thursday, even though it lowered its growth forecasts for the current fiscal year, which began in April and has warned of uncertainties about the magnitude of the devastating damage of the month last earthquake would impose on the economy.

Shirakawa reiterated that with just to extend its asset buying scheme days after the earthquake on 11 March, the Bank of the Japan preferred to spend more time to consider the implications of the step on the economy.

But he also rejected the possibility of easing monetary policy further if the damage caused by the earthquake has proven more than expected, noting that the Central Bank has focused on the risks to the decline in growth for the moment.

A sign that some members of the Bank of Japan were more cautious with regard to economic prospects that Shirakawa, Deputy Governor Kiyohiko Nishimura proposed Thursday to broaden the assets of the Central Bank buys the regime by 5 billion yen ($62 billion).

While the proposal was in the minority by the Council, some market players said it may be a sign that the Bank of the Japan can relax the policy as early as next month.

Japan is facing the worst crisis since the second world war after the 9.0 magnitude earthquake and subsequent tsunami devastated the northeast coast last month.

Reflecting the impact economic, exit the factory fell to a record monthly pace in March, spending households has declined to a record annual rate and another private survey showed manufacturing activity has languished in a two year low.

The Bank of the Japan facilitated political days after the earthquake by doubling to 10 billion yen funds put aside for the purchase of a range of financial assets, such as the corporate debt and Treasury bills.

If the next Central Bank to ease policy, the more likely step would be to extend the schema once again, say sources familiar with the thinking of the Bank of the Japan.

Apart from the obligations of the Government that it purchases under the asset purchase plan, the Central Bank buys 21.6 billion yen worth of bonds long term of the Government of the market each year.

Some legislators have called the enormous costs on the Bank of the Japan to buy government bonds in the market, or even directly, agree them to help fund the Government for the reconstruction.

Bachmann uses the Holocaust to illustrate the tax point (AP)

MANCHESTER, N.H. - Minnesota Rep. Michele Bachmann Saturday described the loss of "economic freedom" facing young Americans today as a "point Flash of history" in which the younger generation will ask what their elders have made the stop.

In a speech in New Hampshire Republican, Bachmann told a horrific time learning in history as a child - the Holocaust - and you wonder if his mother has done anything to stop it. She said that she was shocked to learn that many Americans were not aware that millions of Jews were dead until after the second world war has ended.

Bachmann, said the next generation will ask similar questions on what their elders have done to prevent cope with a huge tax burden.

"I tell you that this story because I think that our day and time, there is no analogy to this horrible action," she said, referring to the Holocaust. "But eclipsed only to say, we are seeing from our eyes a similar death and making similar away." "It is the right to vote that I think that we must respond to."

The generation of Americans just enter the labour market could now potentially see 75% of their earnings sucked by taxes on income, social security and Medicare, said Bachmann. These young workers are going to ask what people were doing then that "look at literally our economic freedom extracted under us."

"The question boils down to this: what will say you to this new generation on what you have done to make sure that would not be their fate?" she said.

Bachmann, with potential colleagues hopes presidential Rick Santorum and Tim Pawlenty, spoke at a forum organized by "We the people," a conservative organization created by the former candidate of the Congress Jennifer Horn.

States reach an agreement of insurance with John Hancock (AP)

SACRAMENTO, California – nearly two dozen States have concluded an agreement with John Hancock Life Insurance Co., to settle a dispute on how the Boston insurer pays insurance policies and annuities.

John Hancock executive vice president and General Counsel, Jonathan Chiel, said Friday that the company could improve its practices of claims under the agreement with 22 States and the District of Columbia. He said that the settlement was reached Thursday.

The move comes after an audit by 35 States and the District of Columbia alleged abuse with life insurance policies and annuity contracts. Office of the Comptroller of California found the colony in a release issued Friday.

In one case, John Hancock has used the cash surrender value of a life insurance policy to pay the premium of the individual for seven years after the death of this person in 1999, according to the Office of the controller. The controller said the company did not pay recipients or sent all of the benefits due in respect of the policy in the Office of the controller guard. California has an unclaimed property program that provides companies to send financial accounts lost or abandoned to the State after three years of inactivity which protect them to be lost or spent.

Under the agreement, the company will now make better identify policy holders who died and to notify their beneficiaries, according to the controller John Chiang. He said that values more 6 400 accounts of California dating back to 1992 will be also restored.

Chiang, said that he hoped that the colony will pave the way for reforms to the industry. In addition to John Hancock, 20 other companies were audited by the States.

"While John Hancock is the first to be held accountable, it will be the last," Chiang said in the statement. "I am ready to continue all the necessary measures - including disputes - to the rest of the industry in compliance."

John Hancock, a subsidiary of Manulife Financial Corp., denies any allegations or characterization of wrongdoing regulations. The company said it was outraged by Chiang allegations and characterizations of practices of the company.

"We are disappointed that our willingness to behave in a user-friendly way is being repaid by having our tarnished reputation", said Chiel.

The company issued a statement saying: it has a long history of keeping promises to its customers and agreed to improve its procedures beyond those required by law.

The total value of the colony is not clear, but the California controller, said the change should raise more than $ 20 million for benefits of death and maturation of annuities with owners or, in many casesthe heirs of the owners.

Outside California, the Office of the Comptroller said other States that installs the Georgia included, Idaho, Illinois, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Montana, New Hampshire, New Jersey, North Dakota, Oregon, Pennsylvania, South Dakota, TennesseeTexas, Utah, Wisconsin and the District of Columbia.

Other States which have participated in the audit include Arizona, Colorado, Delaware, Florida, Indiana, Mississippi, Missouri, Nebraska, Nevada, Ohio, Rhode Island, Vermont and Washington.

Summary box: fixed mortgage rates fall this week (AP)

RATES DIP this week: Freddie Mac said the average rate on the 30-year loan fell to 4,78% of 4.80% the previous week. It struck a minimum of 40 years of 4.17% in November.

RATE of 15 years, less than 4 per cent: the average rate in the 15-year fixed mortgage slipped to 3.97% 4.02%. She reached 3.57% in November, the level low on records dating back to 1991.

HOUSING still HURTING: four automakers reported lower sales in the latest quarter. And while more Americans signed contracts to buy homes last month, this was not sufficient to be considered as a healthy activity amount.

Sokol of Berkshire: misleading, sneaky, violate the rules (the Motley Fool)

Mislead. Insidious. The opposite of the truth.

It is not my words. They are Berkshire Hathaway(NYSE: BRK - A - News) NYSE: BRK - B - News) Audit Committee, which has just published a report on the resignation of the former Executive David Sokol. Sokol bought 10 million shares Lubrizol earlier this year. Berkshire purchased Lubrizol weeks later, after pressures of the Sokol, making trades feel awfully suspicious. (For more information, see here).

The Committee are as follows:

"The morning of March 14, Berkshire Hathaway and Lubrizol announced the signing of the merger agreement." A representative of Citi with which Berkshire Hathaway does business congratulated Mr. Buffett on the merger agreement and said Mr. Buffett that Citi's investment banks had brought Lubrizol to the attention of Mr. Sokol. It was the first time, Mr. Buffett has heard that investment banks played a role in the introduction to Lubrizol to Mr. Sokol, and did not square with Mr. Sokol note in January that he had just whether Lubrizol owning the stock.

"At the request of Mr. Buffett, Berkshire Hathaway CFO Marc Hamburg téléphoné Mr. Sokol March 15." Mr. Hamburg asked Mr. Sokol for the details of its capital stock of Lubrizol. Mr. Sokol provided the dates and the amounts of its purchases of Lubrizol. Mr. Hamburg also asked on the role of the ISIC in introducing Mr. Sokol at Lubrizol. Mr. Sokol replied that he thought that he had called a banker, that he knew to Citi to obtain the telephone number of Hambrick [Lubrizol CEO James]. When Mr. Hamburg noted that it sounds as if the banker must have exaggerated his role when he met with his colleagues, Mr. Sokol does not contradicted him. ?

Press release March 30 Buffett is not of any note of what appears to be the scepticism of the Sokol trades. There is no mention of Appeal Hamburg, which is strange, because it seems that the first stage of a survey of behind-the scenes. The original announcement implies that Buffett had no problem with the timing of the trades of the Sokol, which the audit report now somewhat contradicts.

But how Sokol disclosed his game to Buffett and why Buffett was originally OK with it now seems clear:

"He did step cross the mind of Mr. Buffett at this time that Mr. Sokol may have purchased Lubrizol shares after research through investment banks to initiate discussions with Lubrizol regarding a possible acquisition Berkshire Hathaway of Lubrizol.". Because the comment of Mr. Sokol about possess shares was in response to the question of Mr. Buffett how Mr. Sokol came to know the company, he implied that Mr. Sokol had followed Lubrizol as an owner of his shares and in this way came to think of Lubrizol as an acquisition of Berkshire Hathaway possible. ?

It really is the essence of this issue. That Sokol bought shares of Lubrizol before same Berkshire purchased the company is not what is suspicious. It is that he bought shares after a banker Citi brought the company to his attention in an acquisition of Berkshire as possible.

The Audit Committee continues:

"The actions of Mr. Sokol did not comply with the duty of full disclosure inherent in Berkshire Hathaway policies and prescribed by the law of the State.". His remark to Mr Buffett in January, revealing only that he had a stock of Lubrizol, said Mr. Buffett that he needed to know. In the context of Mr. Buffett question how Mr. Sokol met Lubrizol, its effect was to mislead: it implied that Mr. Sokol belonging to the stock exchange before he began taking into account the Lubrizol as candidate acquisitionWhen the truth was the opposite.

"Response of Mr. Sokol to CFO of Berkshire Hathaway, m. Hamburg, concerning investment banks similarly did not meet the level of sincerity of a corporate trustee and suggests its response to Mr. Buffett's first survey mentioned above was intended to deceive.".

No mincing no words. "Fool" and "deceive" is on the tougher language, I see a former employer using in a situation like this, where the credibility of the Berkshire, not only of the Sokol is at stake. If felt Berkshire Sokol nothing wrong yet chose to resign simply for the optical issues, he could have said. But the report makes it clear: it was not a good faith error. It is so unclear initially purchased Sokol Lubrizol in good faith. How he managed the next day, however, is. And it seems not good.

Is what makes it evil reputation of Berkshire? I do not think physically. If anything, it points out that the company has a zero tolerance for what either far from the ethical perfection. "Mr. Sokol threatened the reputation of the Berkshire Hathaway or the would have done if he remained with the company," writes the Audit Committee. That Sokol would have been fired had he resigned step seems likely. Remember warning Buffett since the beginning of the 1990s: "losing money for my business and I will understand;" losing the slightest reputation of the company, and I will be ruthless.

Contributor Fool Motley Fool inside value to choose. Berkshire Hathaway is a selection of Motley Fool Stock Advisor. The fool is the owner of the shares of Berkshire Hathaway. Try our services Foolish newsletter free of charge for 30 days. Us Fools can not all hold the same views, but we believe that treat a wide range of ideas makes us better investors. The Motley Fool has a disclosure policy.

Why little finished in jail after the financial crisis (Motley Fool)

While accepting the Oscar for best documentary earlier this year, Inside Job Director Charles Ferguson came out with a bang.

"Excuse me, I must begin by noting that three years after our horrible financial crisis due to the financial fraud, not a single financial Executive was imprisoned, and it is wrong," he said.

Now at least a. Lee Farkas, former President of the mortgage lender Taylor Bean, has been found guilty of the week last on 14 counts of fraud and conspiracy. He could spend the rest of his life in prison.

There is therefore a.

But why not others? After a financial crisis which has doubled the rate of unemployment and slaughtered the wealth in the world, person think an Executive and a little heard talk of - was the only one to blame. Or how these things usually work out. After the beginning of the 1990s loan crisis and economies, 800 financial executives went to prison. Not only most executives of the Bank have avoided prosecution this time, but many are still paid by the banks which took place in the economy into the ground.

Why is a difficult question. I think it can be divided into three parts.

1. The ground troops were charged.
The most disgusting, pure and simplefraudulent parties the bubble years took place on Wall Street. It took place on the ground in areas such as Orange County and Las Vegas, where mortgage brokers, real estate agents and borrowers mentis through their teeth, ready documents forged and actively pursues screwing on anyone within reach. The sale of the mortgage industry was a magnet for some of the sketchiest of society characters. As the Commission of inquiry of financial crisis noted in January, "at least 10 500 people with a record between the field [mortgage broker]in Florida, including high which had previously been recognized guilty of such crimes as fraud."", bank robbery, racketeering and extortion.

Thousands of mortgage brokers and borrowers from the scam have indeed been laid and in many cases imprisoned. In June 2008, before the financial crisis unraveled, the FBI busted 400 brokers a single sting. Sting last introduced a borrower has was found guilty of defrauding Bank of America (NYSE: BAC - News) by "" recruitment 'straw buyers' to apply for a mortgage for a House that it itself had the intention to occupy and inflated la value of this House to increase the amount of the loan. "") These guys did the same with loans from jpmorgan Chase (NYSE: JPM - News). These people of loan documents submitted to the financial areas counterfeit (NYSE: RF - News). All were captured. All have been charged. The public had not heard their stories because they do not involve the executive suite.

2 Saving the regulators, the detectives strapped
Some executives were indicted does not mean that they are all innocent, of course.

Fraud level of high-are usually called the Department of Justice by industry regulators. The Department of Health and Human Services, for example, works in tandem with the Ministry of Justice in fraud medical coil. Even for the Department of Agriculture. And the National Association of Insurance Commissioners.

The bank regulators are different. Since 2000, the Office control of savings does not return a single case of fraud in the Ministry of Justice, according to the New York Times. The Office of the Comptroller of the currency within just three cases.

There could be several reasons for this. Two regulatory bodies, however, have a long history of hatching the banks they supervise. They have every reason to do so: existence of regulators depend on banks or "clients", as the OCC refers to them as – since the fees paid by banks to finance their operations. In some cases, banks can shop for the lightest regulator with the key.

This is what made Countrywide in 2007. Then–CEO Angelo Mozilo was frustrated by the requirements of OCC regulators. were getting in his hair. Easy solution: Countrywide changed charters to fall under the blow of a more gentle regulator, the OTS. As noted by Connie Bruck of The New Yorker, the OTS did pressure Countrywide to make the switch.

Not that the OCC is a bull pit regulation itself. When the intended Virginia pursue A Capital (NYSE: COF - News) for abuse of credit card in 2005, the company has applied for a national Charter with the ABC. In so doing, Capital escaped jurisdiction of Virginia, and any lost State power to pursue his case. It was not an isolated incident. The ABC ceased Georgia when he tried to enforce the predatory loans laws. New York regulators were is intervened while pursuing discriminatory ready investigations. The head of the financial crisis Inquiry Commission said former Chief OCC John Dugan, "you linked to the hands of the States and then sitting on your hands."

If regulators have enough hard step, the FBI has seen a radical cut in the number of available agents to investigate financial crimes. Enforcement focus began changing fraud of health in the 1990s, and to terrorism after the attacks of September 11. During the crisis of loan and savings, 1,000 agents the FBI worked to financial crime scene. Today, 240 just do.

3. Stupid is not illegal
Crime deserves to be incarcerated. Idiocy is another matter.

This is what explains why if few major financial executives are behind bars. Explode your business not necessarily a crime. 30 - To-1 leverage effect is not illegal. Or bought securities backed by owners unable to repay. Neither ignores signs of caution. Or without taking account of the history. A large part of which has brought the financial system to its knees was incredibly stupid and unethical, but perfectly legal.

Investors have been shocked, for example, after the discovery of Lehman Brothers has used an accounting trick called repo 105 to hide the health of its balance sheet. Yet, as noted by the Wall Street Journal, "SEC officials have grown more concerned that they might lose a legal battle if they civil charges alleging investor Lehman have been deceived by the leaders of the company." The stone of stumbling block key: the move of accounting, although that controversial is not necessarily illegal. ?

Was this thing not only legal, but lucrative. For many executives markets away rich. Filthy rich. It was heads they win, tails you lose, and in both cases, the prison remains difficult to achieve. You can almost hear them laugh now.

Return every Tuesday and Friday for Morgan Housel columns on economics and finance.

Fool contributor for free for 30 days. Us Fools can not all hold the same views, but we believe that treat a wide range of ideas makes us better investors. The Motley Fool has a disclosure policy.

The most sensible way to resolve the budget deficit (the Motley Fool)

I am about to heal more than half of the budget deficit for the next decade. Theoretically, at least.

Do not involve these increases. We do not even need to reduce spending. Actually, we could raise a little spending. Ultimately, we shave the deficit of billions of dollars over the next 10 years.

It seems impossible? It is not the case. Unlikely, Yes, but keep reading. This should begin to make sense.

Tax evasion has added $ 3 trillion to the deficit over the last decade alone, an average of 300 billion dollars per year, according to data from the IRS. This is not income lost tax write-offs, as the mortgage interest deduction. It is not yet, as the IRS notes, "taxes that should have been paid on the income of the illegal sector of the economy". That $ 300 billion represents the amount of lost income of people deliberately cheat on their taxes every year. This includes the underreporting income, hidden bank accounts, trusts sham and other ways to unlawfully stiff the IRS.

Put this money in perspective. Tax fraud in the last decade, a sum equivalent to the Bush, the Obama stimulus tax cuts and the wars in Iraq and Afghanistan... of the combined costs. That $ 300 billion is the budget of the Ministry of education of more than four times and 10 times what we spend on science and technology. It is surprising that more people are not outraged by this stuff. Rather, they probably would be if they knew about it.

More than a few figures: according to the Bureau of the Budget from Congress, the cumulative deficit budget over the next 10 years is $ 6.97 billion. How is the additional debt, we will accumulate if current laws remain unchanged.

Now extrapolate the tax fraud in the last decade to another and adapt to inflation and economic growth. We are probably looking for 4 billion dollars in tax fraud over the next 10 years.

And there it is. Without higher rates of taxation or the reduction of expenditure, we could eliminate more than half of our deficit planned over the next 10 years by simply eliminating the fraudsters.

It is irrational, of course. It will never happen. As I said, this is moot. There will always be fraudsters. But stressing these figures is important for several reasons.

1 Prioritization of
I have often said that every politician seriously in the fight against the deficit should focus on a single issue: costs of health care. This is where essentially all are the long-term budgetary pressures. But after reviewing data tax-cheat, I think that there is a new qualifier: tackling tax evasion should be a priority in the short term. Areas which have been to pay attention deficit recently pale compared to what could be saved by exercising the application of the tax law. Cracking down on fraudsters is also probably the most politically feasible way to reduce deficit. It is simply to enforce the existing rules, rather that of defining a battle by changing rules of ways someone can find biased and unfair.

2 Investing
A plan of deficit reduction earlier this year proposed cutting the IRS budget $ 603 million. The Cup was finally abandoned and for good reason: the IRS Douglas Shulman Commissioner noted that the cuts would reduce tax collections by 4 billion per year, increasing deficits by a factor of six-against-one. This underlines an important point. The IRS agents can be very good investment for taxpayers. An officer from the application of the Act making $ 60,000 a year that a large case of cracks pays for his entire career. Any global deficit reduction planshould increase the budget from the IRS.

3. Learning from others
The Greece is a good example of what happens when the evasion is ignored. Current state of the Greece as a slave near bankrupt grip to his creditors caused by many factors, but the most important was an endemic culture of tax evasion. Only chumps followed the rules. Emphatic contempt for the tax man has become the norm.

Michael Lewis has done a wonderful job exposing this culture in an essay published year last in Vanity Fair. "Somewhere between 30 and 40% of the activity in the Greek economy that may be subject to tax revenue does are not officially mentioned," writes Lewis.

He continued: "the extent of Greek tax fraud was at least also amazing that its field of application: about two-thirds of Greek physicians reported incomes less than 12,000 euros per year - , which meant, because the income is less than this amount were not taxable., that even plastic surgeons making million a year paid no taxes at all the. ?

In a Greek city, 324 residents admitted having pools - an asset which increases property taxes. A satellite photo shows that the actual number of pool owners is 16,974. Nothing surprising Greece was there where it is today when 98% of the population cheats on their taxes.

We could next?

Return every Tuesday and Friday for Morgan Housel columns on economics and finance.

Mortgage rates in the 52 weeks, a blow of eye (AP)

The average rate on 30-year fixed mortgages fell to 4,78% this week, Freddie Mac, said Thursday. Here is a historical look at the rate of fixed and adjustable mortgages for 52 weeks.Average rate 52 week 52 weeks high low30-year of the current of the previous week average fixed 4.78 4.80 5.06 4 1715-year fixed 3.97 4.02 4.39 3, 575 - an adjustable 3.51 3.61 4.00 3. 251-an adjustable 3.15 3.16 4.25 3.15

Dai-ichi life eyes Y100 bln loss on TEPCO shares: source (Reuters)

TOKYO (Reuters) - Dai-ichi Life Insurance (8750.T) will be book loss special 100 billion yen ($1.2 billion) for the year ended March 31 after his participation in Tokyo Electric Power (9501.T) has plummeted in value, a source told Reuters.

Dai-ichi Life, largest shareholder of the company with a set of 4%, saw the value of its economic crisis by four-fifths as TEPCO holding struggles to master its Fukushima nuclear power plant disaster.

(Reported by Noriyuki Hirata.) Written by Tim Kelly; (Editing by Edwina Gibbs)

Happy People save more money for retirement (U.S. News & World Report)

More than half of the U.S. report having less than $25,000 registered for the future, according to a survey on the 2011 employee benefit Research Institute. An Associated Press and LifeGoesStrong.com survey found that 25 percent of baby boomers have no retirement savings at all. And the American Institute of Certified Public Accountants has recently revealed that 56% of people in their survey are not even saving for retirement.

[See the 10 best places for the rich pensioners].

We all know about celebrities who, after years of winning millions of dollars, declaring bankruptcy are. On the flip side, you probably know someone with modest means, who were able to sock away from savings. Savers good and poor savers cover all levels of income. Keith Redhead for Coventry University Business School research provides an overview of what separates really savers of non-économiseur.

Bad savers. Personal review of the Redhead of several studies on the financial behaviour reveals that investors are more likely to share these features:

-Negative-A in the opinion of other people

--A believe they are less happy and healthy and emotionally secure

-Inability to plan ahead

--A wary of financial advisors

--A a higher level of fear

--A believe that external events control their lives, instead of feeling that they are in control

[See 7 signs that you are not ready for retirement].

Good savers. It seems so simple. To save the most money, simply spend less. But the ability to save money is not always the result of a decision not to spend. A review of research shows that some people simply have little desire to go above a particular level. For them, the savings is just residual money remaining after that they bought what they wanted. They record without feeling private. Many studies have shown that beyond a certain level of income, the more money does not translate into more happiness. But the reverse is not true Cahit Guven study for accounting school Deakin University, inversion of the Question. Happiness affect the consumption and savings behavior of? Apparently, it does. The Guven results show that happy people:

-Are more capable of being of savers

-Are capable of saving even more money of

-Are less likely of having debts

-Have more control of itself on their spending decisions

-Are more likely to account for the future.

-Are more optimistic, which also leads to increased economies

Do not be surprised that people were looking forward to retirement and who have a positive view on aging save more for retirement. Perhaps in an attempt to delay the inevitable, those with more negative views of retirement and more old are only less likely to save for it. Perhaps to save we need just a little attitude adjustment.

[See 3 reasons to pay off the debt before saving for retirement].

Happy savers. Most of the people think that the problem of savings is a problem of will to power. It seems that you yourself deny things that you want to earn more money. But it seems that this is not really a problem of will, it is a problem of happiness. If instead of forcing yourself to exercise more control, try to be happier. In the best cases, your bank account will increase with your happiness. In the worst case, at least, you're a little happier.

Sydney lagier is a former chartered accountant. Since his retirement in 2008 at the age of 44 years, she has written on the transition the the productive members of the society to recreation in his blog, retirement gal: a full-time employment.

your fund portfolio can be thrown gas $ 4 per gallon (AP)

BOSTON - think positive. The pain you feel at the pump for $4 per gallon gas can become a little easier to bear once you receive your next quarterly statement of the mutual funds.

Chances are your fund portfolio is the holder of the names of oil that have been reported profits size Texas this week and stimulate the dividends to their investors. Exxon Mobil, for example, is the largest component in the Standard & Poor 500, the most widely followed by reference between index funds anchor of numerous plans of retirement accounts and 401.

Exxon won $ 11 billion in the first quarter, its largest income in more than two years. Exxon and Chevron rival increase their quarterly dividends, stimulate yields for investors. Combined, Exxon and Chevron compose approximately 4.6% of the & S P 500.

If your portfolio includes a specialized fund focusing on energy stocks, you have even more reason to consider the right side of the increase in the price of oil. Energy stock funds returned an average of 26 per cent in the past 12 months, the performance of third best among 21 categories of national funds of Morningstar. That at the top of return of the S & P 500 almost 17%.

Is the top performer among all Fund is a Fund of energy. Workplace integrity Williston basin Stock of North America (ICPAX) returned to 63%, with sizzling gains of the exploration of the energy and oilfield services companies that it promotes.

MAINTAINING THE BALANCE

These frightening numbers make these tempting funds. But be careful if you are considering a specialized fund whose returns are closely linked to fluctuations in energy prices.

"The initial knee-jerk reaction to jump in could not be justified, because most investors already have lots of exposure to energy, in their portfolios" said Rob Wherry, an analyst with Morningstar following the energy funds. "It is important to check what you have in your wallet first."

Energy stocks represent about 15 per cent of farms followed funds la S & P 500, it is a good threshold to assess the exposure of your portfolio energy bon

Still 15 percent may be too high for some investors to take risks. It is not just energy stocks that leave an investor exposure to fluctuations in energy prices. Price changes can also make or break the bottom lines of other companies, including airlines and makers of petrochemical products.

Also, take custody throughout recently hot market area, because the strong gains often before a crash. Witness what happened in 2008. Oil reached a record of $147 per barrel in the summer, and then dropped below $40 winter as the economic news was compounded et thirst for the planet of tail offshore oil. Energy funds lost an average 51 percent this year, compared to the loss of the S & P 500 37%.

THEY CAN PRICE LAST?

As for the most recent wave of oil company, two high energy fund managers don't expect a repeat of 2008. They are cautious, because it is difficult to predict if the war in Libya and Mideast political instability will continue to generate enough uncertainty about oil supply to support prices.

But they expect cheap oil and cheap gas disappear soon, based on the fundamentals of supply and demand.

"Oil is finite in quantity, and once you get a barrel of the Earth, it disappeared forever, says Bob Walstad, co-manager of the of inventory Integrity Williston Basin/Mid in North America, the Fund, which beat all the others over the past 12 months.".

In rising demand for oil, the world production was pushed for decades, Walstad, explains: "we have years of drilling just to catch up.".

Walstad co-manages Fund 319 million of Minot, n.d., at the heart of the Williston basin. The region, which stretches across the Dakota and Montana and in the South of the Canada, is experiencing a boom in the exploration and the production of oil extracted from shale deposits. The Walstad funds has changed its mission to name et of investment in 2008 to capitalise on the boom.

Many of the favorite stocks funds are oilfield services companies: Top holding Baker Hughes is 52 per cent in the past 12 months and no. 3 bearing Lufkin Industries has more than doubled.

Dan Rice, co-manager of BlackRock energy & Resources (SSGRX), said that the strengthening of the global economy made him confident that energy stocks will continue to benefit in high yields.

"I think that I can make returns of 20-30% for a number of years," rice said of its $ 2 billion Fund, one of the two choices of Morningstar analyst in the category of energy stock funds.

The Fund is 31 per cent in the past 12 months. Long-term investors have experienced an average of 18.4% annualized return more than 10 years. Which place in the top 4 percent of its class during this period.

Rice currently promotes stocks of coal and natural gas, such as Massey, a minor who is current top of the holding fund. He says that these strong recent gains for oil stocks have created fewer opportunities to find good business than in other segments of the energy industry.

Investors expected that probable oil prices cannot remain above US $100 a barrel much longer, so that of the reflected in the price of oil big stocks. Rice said oil could remain above $100, another six months or more. But he figures prices are likely to return to approximately $90 on long-haul, assuming that the global economy continues to grow at 2 to 3% per year.

VOLATILITY AHEAD

Again, rice is optimistic on energy stocks. This is why it is now more than 75% of its portfolio in small - to medium-sized businesses, rather than Exxon or Chevron. Smaller stocks are more likely to publish more strong gains in the increase in the market that the large countries and rice has positioned his capitalise Fund ranging from small.

However, it recognizes that invites approach more risk many investors may be willing to take. When stocks decline, the smaller names can not more difficult than the greatest probable.

"Because volatility is so high, it is really not appropriate for many people," says rice. "You must have a stomach strong."

AIG seeks to recover billions, he lost to fraud (Reuters)

 American International Group Inc. sued two companies managing cash Thursday in the beginning of a fight to recover billions of dollars, the refloated-out insurer said he lost because of fraud.

The insurer, 92% owned by the Government of the United States, joined the ranks of swelling of investors and insurers that take on Wall Street on so-called safe investments related to the mortgage at the heart of the financial crisis of 2008.

Insurance giant sued ICP Asset Management and Moore Capital of the New York State Supreme Court, but indicated that legal proceedings have been the beginning of a campaign that would put the major Wall Street banks in its sights.

AIG, which received $ 182 billion in rescue money, argued that he suffered losses through mortgage-backed securities that created one of the financial companies.

PIC could not be reached immediately for comment. A spokesman for Moore said: "we haven't seen the complaint and therefore cannot comment."

AIG campaign will probably aim to Bank of America Corp., Goldman Sachs Group Inc., and other Wall Street banks, according a person familiar with the strategy of AIG.

Banks selling mortgage bonds AIG with range high credit ratings have fallen since value.

Goldman Sachs and the Bank of America declined to comment on.

Investors, bond insurers and the Federal home loan banks have already sought tens of billions of dollars of banks for misrepresenting the quality of real estate loans that were packaged in bonds called mortgage-backed securities.

While none of the lawsuits went to trial, Bank of America recently concluded an agreement of $ 1.6 billion with the insured Guaranty Ltd., who has insured the mortgage bonds. Some legal, and financial analysts said that many showed the legal claims that pose a real risk to banks.

PART OF THE LARGER REVIEW

AIG reported that prosecution more could be on the road.

"At the annual meeting last year, CEO of AIG Bob Benmosche said that we would review our reports with all counterparties with whom we have business before and during the crisis to see if they we aggrieved by their behavior.". This combination is the first result of this review, the company said.

The prosecution was brought by AIG financial products unit in the context of "overall efforts the insurer to recover potentially billions of dollars of the fraudulent conduct of the defendants and the other parties", said the complaint.

Some stock analysts announce the ultimate cost of claims against various titles of mortgages from banks could reach tens of billions of dollars.

Claims could put an end to their return from America alone almost $ 30 billion, said Chris Gamaitoni, an analyst with Compass Point research & Trading LLC.

However, that could be spread over many years as a large part of the issue has bogged down in the procedure.

The United States Government rescued AIG at 2008 financial panic, pumping billions into society, after she and other giant financial companies suffered huge losses of securities linked to the crash of the housing market United States.

A great advantage of the rescue of AIG and will store possible Government before the 2012 U.S. elections would be a boost for the administration of Obama kick, in the wake of the success to Citigroup Inc. and General Motors Co.

A spokesman for the US Treasury, he was not involved in the decision to prosecute those responsible for the money.

350 MILLION ALLEGED DAMAGES

The trial said obligations breached defendants for AIG related to the creation of obligations backed complex or CDO.

AIG said it has suffered more than 350 million dollars in damages and interests of the alleged misconduct, which included using values inflated on mortgage bonds that were packed in the CDO. Inflating values, PKI created windfall profits for itself and to enlarge its management fees, the prosecution argued.

The complaint is based on the continuation of dry last year against PKI in Manhattan Federal Court, accusing the investment advisory firm of violating federal securities laws on several occasions.

The case of AIG is products financial AIG c peak Asset Management LLC et al, Supreme Court of New York, New York County, no. 651117/2011.

Investor continues to Citi Council in PAHO of the mortgage of poor quality (Reuters)

WILMINGTON (Delaware) (Reuters) - the Board of Directors of Citigroup Inc. (c.n.r.) was sued by an individual shareholder for the damage caused to the Bank by years of poor quality mortgage and the practices of foreclosure, which has recently led to a costly correction agreed with regulators.

The complaint, filed Wednesday in Federal Court in New York, seeks to recover the spiraling costs arising out of many housing-related legal battles, prosecution "robo-signature" disputes "putback".

"We believe that the combination is groundless and will defend vigorously against it," said a statement by Citigroup.

The prosecution by Michael Brautigam, who, according to court documents, is the owner of 380 shares of Citigroup, pointed out that administrators have not contributed money under a recent agreement with regulators.

The agreement required 14 financial institutions for the revision of mortgage operations and to compensate the borrowers that have been seized on. Expenses should run in the billions of dollars, and financial penalties must still be resolved.

The prosecution said that the current Board, and four former directors, including former US Treasury Secretary Robert Rubin, breached their fiduciary to shareholders by failing to properly oversee the third Bank of the country.

"They do not have to implement and maintain adequate internal controls to manage foreseeable huge financial benefits from the inadequate residential mortgage loan underwriting standards," the complaint said.

In addition to seeking to recover the costs of poor supervision of the defendants, the prosecution is seeking corporate governance reforms.

Of the resolutions of the shareholders which would allow the removal of directors who has breached their fiduciary duty, as well as proposals to tighten la surveillance of the foreclosure proceedings.

Citigroup said that he has worked since 2007 to tighten its internal controls and processes related to the mortgage of maintenance and seizures, including the addition of staff and increasing training.

The Bank is already facing a series of disputes arising from the financial crisis in 2008 and the crash of real estate in the United States. Prosecution include class actions by shareholders and disputes "putback" by purchasers of mortgage-backed securities now virtually no value which have been packaged by the Bank.

The case is Michael Brautigam v Robert Rubin et al., Court of District of United States, Southern District of New York, no. 11-2693.

Anger about corruption gets public notice in India (AP)

MUMBAI, India - for the past 12 years, a businessman in the Kanpur North Indian city paid a bribe of 5,000 rupees ($113) officials to obtain a refund of income tax.

The difference is now that he talks about it on ipaidabribe.com, a Web site that serves as an outlet for frustration with corruption in India refoulée.

This discontent - fueled by the vociferous media of the India and a burgeoning sense of empowerment among the middle class - burst into the open after a series of scandals of corruption of galling roiling third economy in Asia, end of last year. Thousands took the streets, courts are pursuing lawsuits high-level rare and the Government is scrambling to enact stricter anti-corruption legislation.

The Web site is the way to Raghunandan Thoniparambil fight against endemic corruption, which many say has worsened so that the Indian economy and opens, create enormous wealth without adequate regulation and foster a culture in which all - licensing pilot entry into schools and the spectrum of telecom - is apparently for sale.

"Contrary to popular perception, economic liberalization increased corruption in the short term," said Thoniparambil. "What people don't realize it is that liberalisation and opening of markets required by the regulations."

Privatisation has thrown open huge infrastructure contracts from bribes and increase la competition for votes has encouraged patchwork of the India of the political parties to use all means to build their war, he has said.

In little more than eight months, the site has documented 360 million rupees ($8.1 million) worth of small bribes paid - the largest number of them to the police. More than 9,000 messages were posted, and the site received more than last hits of viewers. The White House was impressed enough to schedule a conversation between the founders and President Barack Obama when he visited the India in November.

Thoniparambil, who has spent 26 years working for the elite Indian Administrative Service, said corruption exists since its debut in the Government - but cases have been isolated.

Today, he said, "each Department has their supply chain for corruption".

"He has massive social costs", he added. "It transfers a lot of wealth to those who do not deserve."

The Asian Development Bank, warned that the India - who last year was ranked 87 of 178 countries on the Transparency International Corruption Perceptions index - is at risk of lapsing into Russia oligarchic capitalism, if it is not shape up.

Allegations of corruption involving a Commonwealth Games of last year, purchase of legislative voting and a sale by auction rigged spectrum of Telecom 2 G that assess cost national Treasury Auditors 39 billion have frightened investors, including many long tolerate corruption.

Ageing Gandhian activist Anna Hazare successfully tapped into the mood of indignation, demanding that Parliament of the India to create a powerful and independent watchdog Committee to investigate corruption. His highly publicized hunger strike has thousands of protesters on the first time in the streets by broadening the fight against the corruption of the poor to the growing middle class of the India. Prime Minister Manmohan Singh said that he hoped that the measures against corruption will be introduced in the next session of Parliament.

Site of Thoniparambil, at the same time, offers a microscopic card pay "tea water" How is woven into the fabric of daily life.

Typical assignments include people complaining of having to pay bribes to get marriage certificates, passports and driving licences. Similarly, a person complains of being forced to pay a bribe at a municipal office to obtain a receipt to prove that he had paid his property taxes.

The Thoniparambil site hopes will do more that let people evacuate their frustration. It flows on the anecdotes it collects to discover patterns of corruption and packs the site with advice on how to avoid paying bribes.

The site offers "10 commandments" to avoid corruption, including "Get received" and "the request in writing why your form is rejected.".

Thoniparambil said many middle-class Indian Tweeting now against corruption often have themselves to blame for payers "facilitators" bribe officials on their behalf.

"People otherwise high integrity and professionalism in their Outlook is as lambs led to l'abattoir, when it comes to do business with the Government," said. "They are not ten minutes of required duties." Instead they will only pay a bribe. ?

Thoniparambil works in collaboration with the Department of transportation in his State of origin of Karnataka to come with ways to reduce opportunities for corruption and has launched a campaign to get the India to ratify the convention against corruption of the Organization of the United Nationswhich would require the India to strengthen its laws against corruption.

The Act anti-corruption 1988 India, offenders face a maximum of five years in prison and unspecified fines, but prosecutions are rare, and fines rarely exceed a few hundreds of dollars, lawyers said. In addition, only illegal transactions involving an official qualify as corruption. Under other legislation, corruption in the private sector may be prosecuted, but rarely is.

Some argue that corruption is a symptom of the India economic adolescence, reforms started in the 1990s transformed the country from a State led to a market-based economy.

"If you look at the State of the United States or the United Kingdom when they were at corresponding points of their evolution and democratic capitalism, they were all bad," said r. Gopalakrishnan, an Executive Director of Tata Sons, the Tata Group holding company. "We are only 20 years in our trip."

Few believe there will be a rapid solution to the long-standing problem of corruption of the India - past scandals, after all, have come and gone without leading to a period of change. Critics say New Delhi has not demonstrated the necessary leadership to eradicate corruption, and many believe the culture of the India of the corruption eradication will require better technology, better education and better management of government serviceswhich will take years to effect.

Even if stricter anti-corruption legislation to get passed, the law alone is quite rarely in a place like the India.

Company lawyer Nishith Desai said laws against the corruption of the India must not only be strengthened - they need to be applied.

"Without the application of the Act, entitled has no meaning," Desai said.

Most of the Act, some argue that eradicate corruption requires leadership - a solid leader who can take on the powerful families and politicians already deemed untouchable, said Robert Klitgaard, a professor at Claremont Graduate University, California.

"Anyone who goes after corruption has to make it credible and go after the impunity", he said. "This means obtaining a few big fish and frying them.".

Five reasons to make a succession Plan (U.S. News & World Report)

Some people think that they do not have enough assets to make a succession plan. But the creation of a succession plan can be beneficial even for those without a significant nest egg. Here are five reasons estate planning can be advantageous not only your heirs, but you even.

[See the 10 best places for the rich pensioners].

Accidents happen. What will be your family do if something should happen to you? A properly thought about the plan estate has you covered. Start by selecting a life insurance plan that suits your family. Your spouse will feel more secure knowing that you have ensured that he or she is covered in case something happens to you.

Appoint someone you trust to take care of your well-being. Implement a medical power of attorney which means a person to make decisions of health in your name if you are unable to make these decisions on your own. If you expand an incapacitating medical need, you want to make sure that the person in charge of the decisions will realize your wishes.

[See 6 reasons to tone down your worries of Inflation].

Choose how to distribute your assets. No matter how much money you have, there may be assets, that you can pass to your heirs. A succession plan will allow you to share grant until your assets exactly according to your wishes. Take care to select who gets your home and investment. Without a succession plan, your possessions can not go to the person you want to go.

Your heirs of potentially difficult for alternative situations. Money fighting among members of the family is probably one of the worst battles that may occur. There are situations where any splitting everything also still may seem unfair. If your estate plan is carried out in accordance with your wishes, there is less chance that gets what the decision will fall on your heirs. A succession plan could also help keep more money in the family because there is less legal fees.

[See Last Minute 8 ways to stretch your nest egg].

Take inventory of your possessions. Drawing up the balance of your assets can also help plan your retirement. When you plan your estate, it forces you to reflect on how to maximize the value of everything you have, which is necessary for your estate plan and retirement. To make a succession plan can help you achieve these two major objectives at the same time.

David ning runs MoneyNing, a site of personal finance to help others to change their habits for a better financial future. He suggests that each to register for an online savings account get more of our hard earned money.

Offer 4 absent things of your financial assistance (Motley Fool)

Graduation season is here, and the same scene is playing out across the country: High-school seniors line up to accept their diplomas and shuffle away to put in face time with the family before sneaking off to celebrate graduation with their pals. At the same time, pride-filled parents dab away tears of joy that turn to panic-y thoughts during the final measures of "pomp and circumstance": Our child got into college; now how the heck are we going to pay for it?

Luckily, there's some relief waiting in the mailbox. Mixed in with the pile of "happy graduation" cards are financial aid offers - letters outlining who is willing to pay how much and for what to educate your offspring.

In simpler terms, the financial aid package answers the question: "How much are we on the hook to pay for college?" The answer, however, isn't as straightforward as the question. As you wade through the offers, here's a rundown of what you'll see and, even more importantly, what you won't see spelled out.

Here's what's spelled out in your financial aid offer
Most financial aid packages contain a mix of money from different sources:

Free money: This is how schools entice the most attractive students to attend their institutions. College or state government grants and merit scholarships are typically based solely on a student's merit (not financial need) and usually do not have to be repaid. Federal Pell Grants, on the other hand, are based on financial need. Obviously, the best financial aid is the kind you or your kid doesn't need to repay. But most families can't cover the costs of college with free money alone.

Work-study money: Students earn their keep — and a paycheck from the school and subsidized by the federal government - by working a campus job. Eligibility for work-study money is based on financial need.

Federal loans: Although all loans have to be repaid, the terms can vary greatly:

A Perkins Loan is made through the school. Interest on a Perkins does not start to increased until after graduation.Stafford loans - subsidized (based on financial need) or unsubsidized - are administered through the federal government. Subsidized Stafford loans have two things going for them: A lower interest rate than the unsubsidized variety, and they don't start accruing while the student is in school. Unsubsidized Stafford loans start accruing interest right away. Although, like the subsidized loan, payment can be deferred until after graduation.Revise, there are more Loans for parents, designed to help cover costs that scholarships and other aid and loans don't pick up. Interest rates on most loans are usually higher than other types of federal loans.

What they don't say in the financial aid offers
The envelopes may be thick and the documents really wordy, but there's a lot that goes unsaid in financial aid packages. For example:

1. "This is not really our final offer."
The aid package is based on what you filled out on the FAFSA (Free Application for Federal Student Aid) form. Mistakes on that form will carry over into the aid offer, so look to see if there were errors, and contact the school's financial aid office to appeal.

Other times to appeal:

Your family financial situation has changed (job loss, medical expenses, etc.) since you filled out the application.Even if there has been no. change, if there exists a particular economic hardship that couldn't be expressed on the FAFSA, let the school know in writing.

On the flip side, if there is part of the offer that isn't right for you or is less appealing (e.g., loans with higher interest rates), you are free to decline parts of the package.

2 "100% coverage doesn't really mean 100% coverage."
Using the school's average costs is a fine place to start to figure out what your child's higher learnin' is going to cost. goal averages are averages. And this is one area where you don't want to be surprised by an above-average tab after the first semester.

The cost of college isn't just tuition and room and board. Books can add thousands of dollars to your tab. Depending on the student's major, extras like lab fees, software, and other supplies can also really add up. And these costs — including tuition - will likely increase during the oven-plus years your child is in school.

Then there's the college's location. Let's assume that your child will come home occasionally to do laundry. That simply require a quick cross-town will commute, or will you have to pay for planes, trains, and bus fare? Tools like CollegeBoard.com's financial aid awards calculator can help you compare the costliest college costs.

3. "It's just your standard student loan." "Only a lot more expensive."
See how the basics of your loans (balance, interest rate, loan term, minimum required payment) stack up with this loan comparison calculator from Finaid.org. The true cost of a loan is in the details the APR (fixed or variable?), fees (processing and servicing), repayment terms, etc. Specifically look out for:

Loans disguised as a free ride: Sometimes the fact that part of the aid is actually a loan is not clearly spelled out. Monthly payment smoke and mirrors: There are a lot of ways to frame a loan to make it look more attractive. (It's similar to the loan sleight-of-hand used at car dealerships when they ask, "How much do you want to spend each month on a car payment?") Of course, monthly payments on a 20-year loan are going to be significantly lower than a loan with a repayment term of 10 years. But over the long haul, you'll pay more because interest is accruing for an additional decade.Conditions of aid. For example, is it based on the student's GPA? What happens if Jr. has a bad semester? How is the money disbursed? Are the terms of the loan based on a parent's credit history? The student's?

4. "Actually, we may be able to cough up more money."
Besides appealing the package because of financial circumstances, you can also ask a school if perhaps there's some extra money back in the stockroom for your student. Search FinAid.org for specific scholarships, grants, loans or other aid you (or the school) might have overlooked and spell them out in your appeal. (But remember, the aid package can be affected by any scholarship money or other outside grants that the student has been awarded.) If a school is particularly interested in wooing your child, they may be willing to dig for extra aid.

Ask questions!
If something isn't spelled out in a financial aid award package, ask! Go to the school's website or contact the financial aid office for answers. FastWeb.com suggests asking the financial aid office these 15 questions to clear fully arm yourself with the information you need to pay for school. After all, it's your money - and lots of it - on the line.

These Stocks are most of the low rates (Motley Fool)

Long rates remained stubbornly low despite all indicated that they would have to increase in the future. Now, once more, experts are anticipating the beginning of the end of the smart and low - rate environment businesses are taking advantage of low rates until they disappear.

An important meeting
The Federal Reserve has met yesterday and today for its scheduled meeting set the monetary policy. For years, the Fed has kept the lowest possible interest rate, and add more fuel to the pompe monetary stimulus of its quantitative relaxation programs.

But, increasingly, the signs are pointing to a possible end to this super-accommodative stance. Internal discord in the Fed is that some members would prefer to see the last series of quantitative easing end sooner than later. The dollar probed new lows against most currencies keys, such as the competing economies now see investors as the increase in rates at a faster rate than the United States, which makes investing in assets denominated in euro more attractive than wordings of the pressures and euroet area of exchange rates. Although investors were willing to accept negative real returns guaranteed on indexed on the inflation of Treasury bonds recently, and will not likely last forever - especially if inflation continues to steam.

five companies do the right thing
With that background, several companies have made new bond offerings this week in the hope of the rate lock down until the Fed later takes the punch bowl. Among them:

Morgan Stanley (NYSE: MS - News), who yesterday offered 4.5 billion of debts.At & T (NYSE: T - News) announced a debt of $ 3 billion offering, with five titles planned and 10 years to help it manage its 59 billion of debt.Even in the world of bas-credit obligations rotten, sanmina-sci (Nasdaq: SANM - News) and felcor Lodging (NYSE: FCH - News) has done great works of the debt.

In addition, Bloomberg reported that loan companies such as blackstone Group (NYSE: BX - News) have saved hundreds of millions of dollars that their subsidiary private companies has refinanced their debt at much lower rates in the first quarter.

Following the trend
Of course, these companies are enjoying the benefits of lower rates first. Last summer, rate falling to rates historically low, several large corporate borrowers rushes to lock a cheap financing.

For many companies, it is a matter of survival to raise capital. While many companies are huge amounts of cash sitting on their balance sheets, others are not in a stronger position financially. Still less poor accounting firms are willing to let their competitors of rich cash to walk above making strategic acquisitions or other purchases of goods, they must be able to join the tender when redemption opportunities. Staging now by just logical low rate lock.

What goes down must go...
In the meantime, if rates rise quickly enough, they can finally investors to buy these bonds of issuers. As long as you hold a bond to maturity, you will not see any capital loss, but the opportunity cost to lock your money which proves to be a low rate is a clear disadvantage. Also, if you invest in iShares iBoxx Investment Grade Corporate (NYSE: LQD - News) or American Barclays High Yield (NYSE: JNK - News), higher rates generally bring reductions in prices for the ETF shares and the mutual funds - of losses that you necessarily retrieveSince the funds often buy and sell bonds before maturity.

At the same time, rising rates are not all bad. Savers were punished by the position of low Fed rates, but if the rates on CDs and other productive investment income go up, then these investors will get at least a little bit of relief.

Even if the Fed signals today that higher rates will come, signs suggest that he Act probably quickly. Accordingly, you may some time before having to worry about the impact of rates higher on your finances. However, doing so now some planning could help prevent a much more painful result later.

Discover the basics of la financial planning with our 13 steps to investing foolishly. You will get on the track of a large financial plan in a short time.

Contributor Fool Dan Caplinger tries to make the most of every opportunity. It is not owner of the shares of the companies mentioned in this article. AT & T is a selection of Motley Fool inside value. Try our services Foolish newsletter free of charge for 30 days. Us Fools can not all hold the same views, but we believe that treat a wide range of ideas makes us better investors. Policy on the disclosure of the idiot gives you the most.

Most waterproof Pharma Pipeline (Motley Fool)

From the look of Friday in some of the worst drug pipelines, I felt that it would be only prudent to deliver a blow of eye in possibly the strongest pipeline as the rock in the business. I know that some of you will look at this choice with disdain or perhaps place an asterisk next to the company, but the teva Pharmaceutical (Nasdaq: TEVA - News) is really in an own class.

Teva Pharmaceutical is a generic Vulture - waiting in the corner to feast of patents out large pharmaceutical companies. The company has approximately 1,250 drug in its portfolio and countless others waiting for FDA approval. This is not to say that Teva brings its own drugs on the market, because it has developed Copaxone for the treatment of the sclerosis and Azilect for Parkinson's disease. But the main objective of the company is at the corner of the market for generic drugs in the world, and so far, he did exactly what that.

Since the purchase of Barr Laboratories, three years ago, income has exploded. The company reported a shade over 11 billion in revenues in 2008, and current projections call for the company Rake in more than 20 billion dollars in sales in 2012. Although most of the competitions of Teva is private, Teva probably brings more each year ranbaxy International, Novartis' (NYSE: NVS - News) division of drugs generic sandoz Internationaland products pharmaceutical Watson (NYSE: WPI - News) combined!

Teva is commercial within 8 Advanced times earnings, which makes it in the same territory "cheap" as eli lilly (NYSE: LLY - News) and AstraZeneca (NYSE: AZN - News). However, as I pointed out the last week, the two companies are scheduled to potentially lose a large piece of their revenue stream of patent expirations over the next four years.

Teva, a on the other hand, Copaxone, which represents for $ 3.3 billion in annual sales, under patent until 2014. Even a worst case scenario which sees several competitors after 2014 is not a potential disaster for Teva, which has literally thousands of generic applications currently pending approval.

Teva is a monster which produced 3.43 billion of $ in cash free flow in the 12 month end and pays a dividend approaching slowly 2%. Investors hammered the stock last week after its experimental drug Laquinimod takes place behind biogen idec(Nasdaq: BIIB - News) multiple sclerosis drug BG-12. Yet again, disappointing but not dirty news.

With the stock of more than 25% from its high of 52 weeks on some news temporarily disappointing, I feel that Teva deserves a second look to shareholders because this pipeline is also waterproof to fluctuations as it gets. Find a pipeline that can grow at a rate in double digits with minimal risk is simply too good to pass.

Would pass on Teva at these levels or is the stock of its weight in generic drugs? Express your opinion in the comments section below and add Teva Pharmaceutical and your own custom stock portfolio to my watchlist.

Contributor Fool Sean Williams has no material interest in all the companies mentioned in this article. He would like to remind you not to forget our friends in the Japan that could always use a helping hand. You can follow him on the selections under the name of the TMFUltraLong screen. Teva Pharmaceutical and Novartis are Motley Fool Global Gains peaks. The fool is the owner of the shares of Teva Pharmaceutical. Try our services Foolish newsletter free of charge for 30 days. Us Fools can not all hold the same views, but we believe that treat a wide range of ideas makes us better investors. The Motley Fool has a policy of disclosure which is always and never generic.

30 Year fixed mortgage rate fell to 4,78 PCT. (AP)

NEW YORK - fixed mortgage rates dipped this week, with the rate of the loan of 30 years staying less than 5% and the 15-year loans falling below 4 per cent.

Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4,78% of 4.80% the previous week. It struck a minimum of 40 years of 4.17% in November.

The average rate on the fixed mortgage slipped to 3.97% 4.02% in 15 years. She reached 3.57% in November, the level low on records dating back to 1991.

Mortgage rates tend to follow the performance on the ticket of 10 years of the Treasury Board, which fell earlier this week on the low manufacturing activity, Philadelphia, Dallas and Richmond, said Frank Nothaft, Chief Economist of Freddie.

Despite low rates, housing remains in the doldrums. High unemployment and tight lending standards that prevent people buying houses. A record number of foreclosures forcing low real estate prices, leaving potential buyers worried that prices have not bottomed out yet.

Four builders softer sales in the latest quarter. Loss of PulteGroup Inc. is dug in the first three months of the year on a decline of 17% of sales. Its new net orders for houses bordered to less than one percent. The Ryland Group Inc., M / I Homes Inc. and Meritage Homes Corp. all the reported decline to two digits of the new home, a sign of future demand commands.

More Americans did sign contracts to buy homes last month, the National Association of Realtors reported Thursday. But the increase was not enough for sales to a level economists consider healthy.

To calculate the average mortgage rates, Freddie Mac collects rates lenders across the country on Monday to Wednesday of each week. Rates fluctuate often significantly, even within a single day.

The average rate for a five-year rate mortgage increased from 3.61% to 3.51 percent. The loan of five years has hit to 3.25% last month, the lowest rate on records dating back to January 2005.

The average rate on a variable rate loan - one year fell to 3.15% of 3.16%. Which marked the lowest level for the rate on the arm of 1 year in the last year.

The rates do not include the cost of the add-on, called points. A point is equal to 1% of the total amount of loan. The fee for the 30-year fixed average ready and ready fixed 15 years in the survey of Freddie Mac was 0.7 point. The average fee for the five-year arm and the arm of 1 year was 0.6 of a point.