Wisely Choices

You shouldn't worry too much about bad credit finance options, because there are several financing options available regardless of your credit history… some of them charge higher interest rates or require some additional security, but in the end may be just what you're looking for.

Vehicle financing

If you're looking for a bad credit finance for a new or used vehicle, your best option is most likely going to be to visit a finance company as opposed to a traditional bank.

Some finance companies are more likely to offer bad credit finance options for vehicles than others, and the financing will usually depend upon the type of vehicle being financed, where the vehicle is being purchased from, and what sort of insurance and driving record you have.

Other factors that will be taken into consideration include your annual and monthly income, any cosigners that you might have for the loan, and any recommendations or referrals that you might have.

Home financing

Finding someone to offer you a bad credit finance for a house or other real estate can sometimes be tricky, but generally real estate shouldn't be too difficult to finance.

Major factors in getting a mortgage lender to approve you for bad credit finance options include your income, any insurance that you will purchase for the house or real estate, the amount of a down payment that you're willing to offer, and any references of former landlords that you can offer.

Mortgage lenders for bad credit finance loans can be found online, at finance companies, and at some real estate and property management services.

Other financing

Should you be seeking bad credit finance options for other items (such as collectibles or electronics), you might find your search to be a little more difficult.
By: Jas

Finance, Credit, Investments - Economical Categories. Modern Interpretation



Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.
V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

In the manuals of the political economy we meet with the following definitions of finances:

“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.

“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.

As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.

In every discussed position there are:

1) expression of essence and phenomenon in the definition of finances;

2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.

3) Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.

If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.

“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.

“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person”. “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place”.

These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.

For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.

Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.

N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.

N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.

Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.

This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.

In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.

We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.

Following scientists give slightly different definitions of credit:

“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.

Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.

Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.

Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:

· Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;

· The loaning of money may bear no interest;

· Any person may take part in it.

With the difference with loan, credit, which is somehow a private occasion of the loan, represents:

· One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

· It may not bear no interest (if the assignment doesn’t foresee something);

· In it creditor is not any person, but a credit organization (at the first place, banks).

So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.

Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:

a) Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);

b) Its opportune returning;

c) Getting percentage rate from the borrower for using the sources under his/her disposal.

The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).

From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.

From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.

From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.

From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.

Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.

Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.

In the discussing context we consider:

1) wide and narrow understanding of economical category of the finances;

2) discussing finances in narrow understanding under general traditional meaning;

3) discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.

Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.

We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.

Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.

The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.

Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.

Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.

Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.

We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.

A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):

- economical development according to the key directions to the concentration;

- providing high rates of economical growth;

- raising an economical effectiveness, which is expressed:

a) by growing the throw off of the production and national income for every lost Ruble;

b) by fulfilling the branch structure of the investments;

c) by improving their technological structure;

d) by optimization of their further production structure.

Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments - the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.

Except the termini “investments”, there are two more termini related with the investment. They are shown below.

“Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.

“Investment commodity, capital goods – a capital.”

In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves): a) creating new ones; b) widening; c) reconstruction; d) renewing. Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.

You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.

They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.

“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.

Human capital investment is “a specific kind of investments, mostly in education and health protection”.

“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).

“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”

In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:

- less then 6 months – quick compensative;

- from 6 months up to the year and a half – middle termed compensative;

- more then the year and a half – long termed compensative.

We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.

We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.

What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?

There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph, even if it has a title investment, as an economical category, there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only - definition”.

But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.

Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.

Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.

In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, - a part of income, which, in this case, is not used for usage.

Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.

As we’ve mentioned above, not long ago, in the well-known Soviet literature the concepts of “the placement of funds” and “investments” were accepted to be the synonyms and concerned to be investment of sources for further production of the main funds and formation of the turnover funds. We meet with such understanding of the concept of “investment” (here, they separate three types of the investment expenses: investments in the basic capital of investments, investments in the house building and investments in the reserves) in the modern economical publications and it is mostly used on the macro level during a statistical analyze of economical processes. In this concrete occasion investment is the category of reserve.

According to the aspect of flow the investments may be discussed in the process of analyzing industrial activity, when it is necessary to learn the variety of the economical relations related with the investments’ further production and formation, sources, objects and subjects, that is on the micro level.

Main distinguishing criteria of different methods of approach towards the concept of “investment” the aspect of prolonging of measuring this showing. Is it possible or not to measure the investment showing separate from the term factor (the norm of gathering, the volume of capital property, the reserves of production and so on). If it is possible, then it is the category of reserve, and if it is not, then it is measured in the section of time and belongs to the category of flow.

Thus, investment, as an economical category, is quite consuming concept. It concerns the elements defining the regularities of function and regulation of the investment domain, privately:

First, resources and values put into the industrial activity. Here, investments may be realized in the following ways:

1. mobile and real estates (buildings, constructions, furniture and other material values);

2. cash sources, purposeful bank accounts, credits, shares and other long-termed securities;

3. owners rights according to the author’s rights, licenses, Now-How, experience and other intellectual values;

4. the rights for using land and other natural resources, also other owners rights.

Notwithstanding any forms, investments are results of capital gathering. Leading investments – regularity of gathering defines its volume and dynamics and, generally, whole investment activity.

Second, the incomes ruling volume and dynamics of the resource investment. Herewith, we must underline the circumstance, that the process of getting profit, the regularity of its creation, isn’t a constant of the concept “investment”. The factors of production (also the conditions of exploitation of capital values) and selling (market conjuncture), also the process of capital gathering is the leading and important condition only for the investment formation. Though, we underline again, that the process of getting and distributing the income is a significant component of the investment activity.

The transformation of investments makes the basis for the investment activity, which concern the following circles: resources – investment (expense) – capital property – income. The practice of realization such circles of the investments transformation is exactly the investment activity (investing). The investment activity, except the investments itself, concern motivation and stimulation of the capital gathering, relations of capital gathering and ruling, also, totality of the defined level of profitability on the capital and the goals of capital growth.

According to the mentioned above, in the definitions of the investment as economical category sometimes the needed exactness and clearness is not felt, some categories of the wealth are represented tightly enough. For example, real prosperity is bounded only by material estimation. This leads us to the unvalued investment resources in the era of transformation industrial society into the investment one; also to the recognition of yet uninvolved valuable scientific researches in the production, securities turned into speculation objects, and unreal property in the consistence of one and the same parts; to there equalization. On the basis of the made analyses, we can cite a wide definition of the investments together with the leading categories.

Investment resources – are values, invested into this or that project in this or that kind for the purpose of getting profit beginning with material ones, finished with cash.

Kinds of the prosperity are equal to the kinds of the investment resources and is divided into real and cash, consequently into financial resources.

Real investment resources concern all kinds:

- natural resources;

- labour resources;

- material resources, the usage of which is possible in the economical development (buildings, constructions, vehicles and furniture, transport and communication means and so on;

- investment resources (in the widest understanding, that is from scientific-research and experimental-construction works, till the education potential of the society and till all kinds of gathering useful information, written about every possible, that is typing and electronic bearer).

Cash, consequently financial resources concern every cash means for usage in this way in definite conditions or directed in the sort of investments.

Cash means (resources) turn into the financial resources in the case of structuring of funds of purposeful destination foreseen for investments of this or that kind.

After defining investment resources we can make wide definition of the investments as economical category.

Investments – are the placements of real, financial and intellectual resources into the projects, the fulfillment of which leads us to getting the increases from real wealth, in the material and informational forms. It is followed by a cash (financial) prosperity or its increases (at the expenses of the distribution of the cash means).

As an economical category, investments express economical relations, which are created in the ways of using and formation of the investment resources between the participants of the investment process for the purpose of improving and widening of the enterprise.
By: lamara qoqiauri

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Many fortunes have been made by investing in the DOW 30 stocks. For more background on stock indexes in general, see our Stock Market Secrets Revealed, simple steps to consistent profits.
By: Wendy Guillen

One of the best ways of generating a passive stream of income is by trading on the stock market. The allure and mystique of stock investing keeps many new investors from taking the plunge. This is unfortunate. Many people start a small investment businesses that start building wealth instantly. There is no real trick. There is no secrets. It is just a matter of mathematics. If you can follow patterns, are artistic, or are good at organizing then you should be able to follow the patterns and make money investing. Yes, there are pitfalls the uninitiated will fall in. And yes, those who do not follow the proven formulas, and do their homework, will end up losing money. But, this does not need to be the case. The Investor The word investing means ‘managing your resources so you can preserve your buying power and generate income. One you decide to ‘work as an investor, and you realize that it is a job as opposed to a hobby, then youll find yourself far ahead of the pack. The first step is to sit down with a blank piece of paper and define your goals. Be as critical as you can. Write down where you are now, including your debts. Calculate how much money you spend in a year on interest. Take a good look. If the average American paid down their credit card and overdraft debts they could generate more than $5000 a year in saved income. Next, ask yourself where you want to be in 10 and 20 years. Each of these charts should be on their own page. Do not try to combine them. The trick is to do this when you are not under pressure or stressed. Now, create a 10 and 20 year projection of the ‘lowest stage you want to be. This is the bare minimum lifestyle you want to be. Once you have this you can calculate the maximum and the minimum you need to earn each year. Most people reach this stage and quit. The amount looks impossible. They may need an extra $20 000 a year, or more to reach their goals. But, remember that investing builds like a snowball. For argument sake, lets say the new investor may start with $5000 and turn it into $8000 in the first year. But they will earn $12000 in the second year. That will turn into $20 000, $30 000, $50 000. Within ten years the investor may have a half million dollar portfolio that generates far more than they ever dreamed. Most new investors skip this step. It has nothing to do with investing. They want to start trading ‘right now. This is a mistake. The charts above will give you an idea of the risk level you need to take. Each time you make a purchase you will stop and ask yourself ‘is a vacation the best long-term investment for my money. They may decide to drive their car one more year before trading it in. The investor might decide to avoid luxuries for two or three years to ‘build their portfolio. This exercise has another benefit. It will teach the mindset followed by stock brokers and help new investors choose stocks like a pro. The Investment Broker The next step is to determine what type of investments fit your goals. High risk investments can earn money fast, but it can also lose money. How long will it take you to recover the loss? Some investors are good with investing for 5 - 10 years and patiently waiting to sell. Others cannot handle the suspense. They want to see the ‘fruits of their labors grow almost weekly. The risk and recovery period will play a significant roll in the stocks chosen. Todays investors are also starting to take a social and environmental look at their investments. Once you have a good idea which types of stocks you want, it is time to find a broker. The cost should be the first consideration. The type of trading should be the second. The Strategy There are a few good strategies out there. They are not secrets. You do not need to pay a guru $3000 and join their secret group to learn how to invest. These strategies are followed by everyone from ‘floor traders to the hobby investor playing from their computer. Once you have a goal, a good broker, and a strategy, you can start investing without fear.
By: swapnil

Every investor has his or her own strategy, style and risk tolerance. Obviously no one investment will be appropriate for everyone. Have you ever considered that certain investments may be more or less suitable for your portfolio based on your age? Below is an overview to help you identify investment opportunities according to your stage in life.

Risk

When we talk about investments and consider the age factor, it all boils down to risk. We've all heard the old cliché about greater risk bringing greater rewards. On the other hand, it can also result in greater loss. So as we define which types of investments are appropriate at each stage of the human life cycle, we do it within the framework of risk level involved.

Ages 18-35

Ah, to be young! Early-life investors have one tremendous weapon against the downside of risk - time. People in this age group can and should invest is speculative stocks and other high-risk (and possibly high-reward) investment. The reasoning is that if the high-risk stocks result in loss, the investor has plenty of time in which to make up for that loss.

Ages 36 - 55

As an investor enters the early-midlife stage, he or she must start building a strong portfolio base. In order to do so, a widely recommended strategy is to start adding more growth-oriented stocks to your mix of speculative investments. The percentage of growth stocks to risky stocks will depend greatly on the individual's comfort with risk as well as his or her investment history and experience.

Ages 56 - 65

The later midlife stage naturally produces greater risk intolerance. This age group of investors should be focused on growth and income investment opportunities more than high-risk speculative stocks. The strategy here is to protect and grow a solid portfolio. Investors who have done well in the past and are comfortable with risk may still choose to engage in speculative opportunities, especially if they have keen instincts.

Ages 65 and Up

Investment opportunities that are most appropriate for this age group include income driven stocks and safe investments that will generate interest that the individual can live off. Most people spend a lifetime building up a nest egg. Though retirement is seen by many as the time to finally enjoy the rewards of a lifetime of investment, it is also important to secure some regular, ongoing income by way of interest and/or dividends.

Diversification

No matter what age group you fall into, you must know that the only way to grow a portfolio while minimizing risk and volatility is to diversify. Spreading your assets among various different types of investments will balance your portfolio and minimize downside. Some of the asset classes you should include are stocks, bonds and short-term investments. You should also aim to diversify your investments within each asset class. By doing so, you minimize risk further because you are less likely to take a big hit when a single investment performs poorly.
By: Mark Etinger

Ever since the Wall Street started tumbling and the American economic crisis came out in the open in September 2008, there have been effects around the world. This disaster and meltdown was not restricted to this country alone; the repercussions are being felt across the globe.

It is aptly termed as a global recession.

The American Economy and the World Economy

Volatility and uncertainty are widespread at this time in the financial markets.

The growth rate of the world’s economy has slowed down.

China has been posting double-digit growth rates for the last four years. However, the growth rate has fallen to 9.0 percent in this quarter, according to the National Bureau of Statistics. This fall is primarily attributed to the unstable international economic climate.

Similar reports are coming from Japan, the second-biggest economy in the world. The Bank of Japan is Japan’s central bank. It’s Governor, Masaaki Shirakawa, has predicted stagnancy in economic growth of the country as the result of fallout of the economic recession in countries across the world.

With the American economy, development across different states of America, its lending to other developing countries and the overall state of affairs in the United States has a direct effect on the economic situation of other major countries of the world.

From current U.S.A. data, new home sales in the United States fell to their lowest level since the recession in 1991.

The Start of the 2008 Crisis

The present financial crisis in the U.S.A. had its beginnings in the highly acclaimed and popular sub-prime US home loans. These high-risk loans were packaged as derivatives or complex investment instruments and sold to banks and investors across the world.

The crunch began when people defaulted on these loans. Repayment delays and defaults in paying back loans started a grim chain of events in motion.

The worst-hit businesses were the lending banks. They became cash-strapped. Inter-banks loans alone could no longer ensure the smooth functioning of the world financial economy. It became clear that not all banks could survive this situation which could have led to bank failures across the world.

This caused world governments to pump in as much as three trillion dollars, in addition to huge cash infusions, into these affected banks.

ING, one of the largest banks in the world, reported a loss of around 675 million dollars in the current quarter. The Netherlands then announced a 13.4-billion-dollar bailout for ING.

Similar scenes occurred when South Korea offered of over hundred billion dollars in guarantees to meet offshore debts of their domestic banks. Britain’s Finance Minister, Alistair Darling, put up plans for boosting public spending to overcome the negative growth rate of the British economy over the last two quarters.

However, the overall sentiment was not all depressing.

The announcement by US President George W. Bush and the European leaders to hold various summits to address this worst world crisis since the Great Depression has brought some cheer into investors and markets alike.

The first summit is to be held soon after US presidential elections on November 4. The summit will primarily address reforms to set the international financial system right.

The most urgent need of the hour is an extensive overhaul of the system while preserving the traditional foundations of democratic capitalism such as free enterprise, free markets, free enterprise and free trade.

Critical Appraisal

The ongoing global financial crisis has many similarities to the Great Depression of the twenties. Major changes like bank failures, the worsening credit crunch, rushed mergers of banks and financial institutions, sinking stock markets and some financial giants tumbling cause similar sentiments to those which were common during that Depression.

However, the major difference is that there is no great change in day-to-day life of the common person. The Great Depression pushed millions of families into extreme poverty.

Today, while a significant number suffer severe hardship, most people are still able to purchase goods, ATMs are working, and the scale of job losses is not as massive at this point.

Some experts say that this indicates the current crisis to be more of a financial correction and subsequent panic, rather than a full economic meltdown.

This has still caused extensive damage to Wall Street institutions. But, so far, the repercussions have not been felt as deeply as during the Great Depression.

History has been a great teacher. Politicians, bankers and others at Federal Reserve, Treasury and elsewhere are well aware of how all this could translate and bring changes in the economic scene. They are trying their best to soften as much of the depressive effects and reduce the number and effects of business closures and stresses.

Although the world economy is witnessing immense uncertainty, there are certain safeguards within the economy as an aftermath of the Great Depression which are helping.

Unemployment rates were as high as 24.9% in 1933. The current rate is 6.1%. It may go up to 7% or 8% which has severe effects on those directly affected but is much less than during the Great Depression.

Most banks presently have Federal deposit insurance. Most investors do not have a risk of losing all their money. Foreclosure problems are restricted to subprime mortgages alone.

Presently about one-third of all homeowners have a clear and free title. The present Federal Reserve is not on the gold standard.

Interest rates can be decreased to increase liquidity.

The current tax structures are not entirely progressive. There are automatic stabilizers within the system.

The impact of a dollar decline in Gross Domestic Product may be offset by tax decreases and automatic government spending increases.

There are some safety nets put into place after the lessons that were learned from the Great Depression.

These include the Securities and Exchange Commission to regulate stock markets and protect investors, unemployment insurance, deposit insurance and various social security measures.

All these help to ensure greater flexibility in financial markets.

This may help the world economy to recover faster and reduce the speed and extent of negative events in the markets across the world.

The appraisal shows that there is definitely a recession but not all are convinced that we have, or may experience, a depression.

Many feel that the world economy will bounce back after two or three quarters and things will slowly start looking up.
By: Craig Maugham

Turn on the evening news and all you seem to hear and see these days is bad news. In terms of economic conditions, the United States as well as the rest of the world haven't seen such an economic downturn in decades. Problems with the world economy stem from corrupt bank officials, crooked, scandalous politicians, growing unemployment rates, unrest over energy concerns, and world peace or a lack thereof. Certainly there are other reasons contributing to the world's economic struggle and it appears we won't see any kind of total resolution and financial utopia soon. Holidays have become totally commercialized. Christmas is the holiday that first comes to mind when it comes to spending money and Halloween actually happens to be the second most commercially successful holiday on the annual roster.

Christmas and Halloween in the same sentence? With regards to spending your hard-earned dollars is it very possible to speak of them together. Christmas, a religious holiday, has obviously evolved tremendously since its inception. Halloween has experienced very similar changes. At Christmas, we buy gifts for family and friends, at Halloween we treat strangers, mostly children, to free candy and goodies. At Christmas we decorate our homes with beautiful religious decorations as well as with many other holiday-themed items. At Halloween we do the same for our homes, only we dazzle and delight the neighborhood with creppy, crawly decor. At Christmas we spend a little extra for some special clothing, maybe an outfit we wouldn't normally wear except on special occasions, but at Halloween we buy costumes so family and friends might not even recognize us. The two holidays have one thing in common however, and that is spending money. Both Christmas and Halloween can be costly annual events to consumers.

Comparing Christmas and Halloween during a bad economy raises many questions. Can the average household afford to spend as much as they did last year? Do we really need more decorations? Can we eliminate some gifts? With tighter budgets taking hold everywhere, Halloween appears to be the first holiday to be affected. Christmas, by far the largest commercial holiday of the year, encompasses family gatherings and religious celebrations. It is a time of the year that everyone can enjoy regardless of religious background. It is a complete holiday season with generations of traditions and family get-togethers. Halloween however, is a holiday of fun mostly geared toward children and younger adults. A spooky night of scary decor and costumes. Children sing songs, eat candy, and investigate local haunted houses and seasonal attractions. Adults also take time to enjoy parties dressed in costumes, masks, and makeup. Obviously, the budget for Halloween has much more room for adjustment.

Halloween costumes can be store-bought or home-made. A great costume really doesn't need to cost much, and we've all got at least some creativity inside. Decorations don't always have to be manufactured in a factory, some of the scariest decor on public display each year is also home-made. Annual budgets for households celebrating Halloween can easily be manipulated without compromising the holiday itself. The problem is that retailers of Halloween goodies, tricks, treats, scary decor, and costumes may feel the pinch when the Halloween season comes to a close. A struggling economy won't shut down Halloween, but I think it's safe to say it may not flourish commercially as it has in the recent past.
By: Chet Val

How powerful is politics in business? The connection between the two is often hard to explain, but somehow they are closely connected. Did you ever happen to lose a job or a promotion in favor of a person who hadn’t worked harder than you, or made more significant contributions that you? Was it that person’s character that got him/her the job, the fact that he/she knew everyone around there, or could it be that you simply did not understand the politics going on around that business?

When we hear the word ‘politics’, we naturally think of politicians, political parties, political strategies, and so forth. But have you ever considered the term ‘politics’ from a business point of view? When it comes to politics in business, the former means the difference between failure and success in the latter. And, more often than not, politics can define one’s personal career. You can enjoy benefits or suffer penalties as a result of the way politics influences every business. If you happen to be among the most appreciated employees, decisions may go your way, but if you are ‘invisible’ to your bosses or they have nothing but ill feelings for you, some penalties may be coming your way.

When it comes to business decisions or work environments, we often hear expressions such as ‘it was nothing but politics’ or ‘that place is very political’. What do these expressions mean? And how can you be part of the game, and know how to play your politics? When you have managed to build a strong relationship with your customers, you understand the business thoroughly, and you are respected throughout the organization, but your superiors still think that you’re not doing well enough, this could be a clear example of people using politics to drive their own personal agenda.

It’s only fair to say that there’s no business without politics, and that its level of sophistication depends on the size of the organization. It’s understandable that the complexity of politics is proportional with the size of the company, because, after all, politics means power, and the more players are involved in the game, the more there is at stake.

Like everywhere else, we can speak of bad politics and good politics in business. Good politics refer to building strong networks at all the levels of that company or organization, spending time with employees from all levels, having a solid understanding of the keys to the success of the organization, and so forth. Good politics in business is about sharing information and encouraging other people to do the same thing. Bad politics refers to exactly the opposite. In the end it all comes down to driving your own agenda, as mentioned before. However, deft leadership should not be confused with bad politics in business. The two are very different.

Unfortunately, it seems that bad politics has got its share of businesses, and we see more of that than of good politics, because there are more bad politicians than there are good, and the former still continue to make the rule. But, in the end, it is up to you how you play the game.
By: Groshan Fabiola

Driving Strategies
The cheapest and easiest way to improve your fuel economy is to change how you drive your existing car.




1.Air conditioning. As a general rule, if you are driving under 40 miles per hour (MPH), it is more fuel efficient to turn off the air conditioner and roll down the windows. Above 40 MPH, however, the drag on your car created by the open windows causes you to use more gas, so turning on the air will actually improve your fuel economy.




2.Acceleration. When accelerating, do so gradually. Stomping the gas pedal at every traffic light or stop sign causes your engine to suck fuel to meet the heavy load you are putting on it. A more gradual approach can significantly improve fuel economy.




3.Deceleration. Let off the gas well before a stop sign or traffic light and allow yourself to coast to a stop while gently applying the brake. Accelerating all the way to the stop and then slamming on the brakes not only wastes gas, it uses up your brake pads more quickly.




4.Speed. For every ten miles per hour you decelerate, you can save up to 5 miles per gallon (MPG). So if the speed limit is 65 MPH and you drive 55, you can increase your MPG by 5 miles.






Car Maintenance
In addition to improving your driving strategies, use the following car maintenance tips to maximize your fuel economy:




1.Tire inflation. Make sure you keep your tires properly inflated at all times. This not only lengthens the life of the tire, it will help your fuel economy. By and large, the standard inflation for most car tires is 35 pounds per square inch (PSI). Some mechanics may recommend inflating your tires to 30 PSI to improve riding comfort, which is true, but with gas prices the way they are the best thing to do is maintain proper inflation. Please make sure you check with either your tire dealer or the tire owner's manual for proper inflation instructions.




2.Fuel grade. Mountain West states (New Mexico, Colorado, Montana, etc.) offer 85 octane fuel, whereas most other states offer only 87 octane and up. Check your owner's manual, since some models have a minimum octane requirement. Using a lower octane fuel than what your vehicle has been designed for drastically reduces fuel economy. Also, it does not improve your gas mileage to use a higher octane fuel than the minimum requirement for your car.




3.Alignment. Most cars need an alignment every three to five years, although your mechanic will recommend you do it more often than that. A simple test of your alignment is to briefly release the steering wheel while cruising at least 55 MPH on a straight stretch of highway. Please make sure there is no oncoming traffic and that it is a calm day! If your car veers immediately to the left or right, have your mechanic check the alignment. Alignment problems affect your fuel economy and wear your tires down more quickly.




4.Tire rotation and balance. Have your tires rotated every 5,000 miles. This not only improves their life span but also causes them to wear evenly, meaning improved fuel economy for you since they ride more smoothly. Your tires should be balanced when they are first installed, and in general they should not need another balancing. Regularly check for the wheel weights mounted on the rim of each tire on your vehicle. These will be oblong metal pieces clipped to the rim, one per tire. If you don't see one on your tire, ask your mechanic to balance the tires when he rotates them. Most tire dealers that sell you your new tires will rotate and balance those tires for free.




5.Tune ups. Check your owner's manual for the recommended life span of your vehicle's spark plugs, plug wires, and coils. In general, spark plugs should be changed every 55,000 - 75,000 miles and plug wires every 100,000 - 120,000 miles. If your engine idles very rough, or cuts out easily, have your mechanic check the coils. Also make sure to change out your vehicle's air and fuel filters regularly. All of these parts affect your vehicle's fuel economy.






Buying A New Car
When considering purchasing a new car, remember that the miles per gallon estimates posted on new cars are always very optimistic. Those estimates are generated by operating the car in perfect driving conditions, as in 55 MPH on a windless day at sea level on flat ground with the windows rolled up and the air conditioner and radio off. Typically your actual miles per gallon will be two to five gallons less than the estimate.

Go smaller! Technology has improved to the point where many smaller vehicles have high safety ratings and perform very well in adverse driving conditions. Remember that if you spend a little more on a smaller car with posi-traction as opposed to a bigger lunk with four-wheel drive, savings will be realized in improved fuel economy down the road. And you don't have to put the thing in four-wheel drive, it will do so itself!

Go hybrid if you can. Some very important factors to remember: hybrid and electric car technology is skyrocketing right now, so the vehicles that come out in five to ten years will show enormous improvements over the ones available today. If you have a lot of disposable income and buy a new car every three to five years anyway, go buy a hybrid today. If you are not that lucky, follow the tips above to maintain your current vehicle and tough it out until the car companies can bring to market all the technology in development right now.
By: Greg McGuire

Can Tax Cuts Help Improve the American Economy?

In this paper, I intend to pursue a discussion which fundamentally affirms the relative benefits of Senator Barack Obama's plan to increase taxes, in view of the telling need to rescue the American economy, against the disadvantages of Senator John McCain's proposal to push for tax reductions. I intend to take cue from the manner by which these two senators have capitalized on the current state of the American economy to proffer their respective views on the economy. Surely, the American people are a witness to the epic battle between Senators Barack Obama and John McCain, especially in respect to the contrasting stance they took on thorny issue of tax levies; i.e., while Senator Obama has staunchly supported the concept of keeping the American economy afloat through a tax increase scheme, McCain has, on the other hand, espoused the more populist tax-reduction approach. Through this brief paper, I intend to prove that Senator Obama's proposal to relatively increase taxes is what the American society needs right now, so as to restore the people's confidence in the state of the economy.

I must admit that I am hardly surprised at all to see that Senator McCain's proposal for tax cuts has been gleefully welcomed by a majority of the Americans, who feel that they are to become the direct beneficiaries of such a program. As far as McCain himself is concerned, he believes that by lowering taxes, he would be able to stimulate the economic trends of the country. In an article by a political reporter named Abdon Pallasch, she reports that according to Douglas Holz-Eakin, adviser to the McCain camp, the latter's proposed tax policy is essentially a "job-first plan that keeps small businesses in the game" (SunTimes). But what McCain's tax reduction scheme unfortunately undermines is no less than the wellbeing of the already battered American economy. I have reasons to believe McCain's tax-cut scheme would end up benefiting the rich enterprises with large sum of money inasmuch as tax cuts would give them more money to invest more on than place their assets on commodity consumption and/or providing services. There is only a need to show why and how.

In order to explain why tax cuts would most probably not yield considerable benefits for the American economy, I find it appropriate to cite the principles which enable economist to measure the economic growth of a given country. Under normal circumstances, a country's economy is measured by rate of its Gross Domestic Product - "the goods and services produced and consumed in the private, public, domestic and international sectors of the economy" (Frumkin 114). And what determines the real expansion of GDP, according to The World Book Encyclopedia, can be summed in the following: private consumption, investment expenditures, government purchases and total value of exports. Put in other words, personal consumption and expenditures - i.e., for food, clothing, cars and household appliances - contribute directly to a given economy. Second, the expenditures of business enterprises, specifically when they spend for buildings, machineries and tools, also keep the economy robust. Third, the government's public spending relative to education, healthcare or social services is also crucial. And last, the summary cost of a country's export is likewise constitutive of real GDP growth and value (WBE 382).

I feel the need to further underscore the fact that financial investments - i.e., those investments placed in bonds, stocks or trust funds - by big businesses do not translate to real GDP growth rate and value. This is because they do not actually fall into the category of goods or services produced by a country. This is where I believe tax cut proposals fall short of stimulating a given economy. Since tax cuts proposals yield greater returns for big business than they do for average American families, then it is highly likely that these tax benefits shall be translated to financial investments, which in turn would leave the GDP growth as is. The academic entry from The World Book Encyclopedia is very crystal about the fact that "consumption" is a direct determinant of GDP growth. Without it, there can be no driving force to get the economy back in shape from a serious slump. In fact, according to Kogan Richard - a critic of tax-reduction schemes - since "the economy expands so much as a result of tax cuts that it produces the same level of revenue as it would have without the tax cuts" (Kogan), then there is no point at going through the risky business of tax cuts that can leave the economy scathed from yet another crisis. And if tax cuts would not translate to real GDP growth, then we have all the more reasons to believe that the converse holds true - i.e., that increasing taxes can in fact stimulate the American economy; specifically, a relative increase in tax cuts can provide greater stimulus not only for private consumption, but even more so for public spending.

To this end, it would be insightful to look at the wisdom of Senator Obama's economic roadmap. On the one hand, raising taxes may not look rosy for average Americans; but it certainly would give big corporations more reasons to spend for projects that may qualify them for tax incentives. This usually happens when they contribute a part of their revenues to funding certain projects, say construction of roads and schools, which would benefit the people in the long run. In the process, they could have these expenses lined up for tax exemptions. The point here is that increasing taxes would encourage, if not force big businesses to spend for goods and services. When they are spared from taxes, they would tend to keep their resources, and have them re-diverted to non-measurable financial investments. On the other hand, increasing taxes would also stimulate public spending - i.e., those types of spending entered into by the government on behalf of the people. This is because the continued inflow of tax levies would ensure that the greater American public would benefit from the government's provision of basic services such as education, healthcare, and social services, among many notable others.

Now, since it would appear that Obama's tax increase would benefit the American economy by way of stimulating large-scale private and public spending, I wish to therefore propose that, in order that the plan may not hurt average Americans, the government under the leadership of Barack Obama must implement a discriminate tax increase scheme. This means those big enterprises, as well as those who belong to the upper classes of the American society, are the ones to be levied with more taxes in the next few years. This is certainly far from being unfair. Instead, it would ensure that those who are capable of spending for goods and services are given welcome avenues to jumpstart the growth of the GDP.

For such reasons, I wish to briefly conclude that Obama's tax plan - which is to increase taxes for the rich, and keep them the same for the rest - is the most viable solution for our battered economy right now. With a significant increase in taxation, the government can inspire large-scale spending so as to keep the economy afloat. Conversely, I strongly disagree in McCain's tax cuts, as his proposal cannot promise to stimulate private or public spending on goods and services. In the final analysis, I find it imperative to remind the ever passionate Senator McCain of the fact that taxes constitute the backbone of the great American economy.
By: Darren Ng

I no longer live in a world with a collapsing economy. I am creating a new one.

This Christmas our family decided to give non-material gifts to the adults in our family.

The week before the big day, I sat down at my computer and wrote letters to everyone in my family.

I have a big family and by the time I was done, I had worked fourteen hours crafting the words that would truly express why I love the people I love, who they are for me and why I find them special.

When I was done, I found a new and unexpected peace. This struck me as strange at first because I am a man who acknowledges those he loves. After some thought, I realized I had never spent that much time thinking about the people I care about in my entire life. I saw my newfound peace had always been available to me. My obsession with my "agenda" in life had merely obscured it.

I had enrolled my family in a "new kind of gift giving" in advance. When we gathered to celebrate it was like no Christmas in our past. My family is a large, intimate and loving group. We have had many wonderful times together in the past, but by removing ourselves from commercial culture and expressing our love directly instead of by purchasing (let’s be honest) unwanted gifts, we discovered a new and profound intimacy.

The experience changed me and helped me create a new conversation I had been crafting, a conversation designed to be shared.

The Myth of the Collapsing Global Economy:

Falling down is not always a bad thing. Waterfalls do it with abandon and are one of the most beautiful phenomena on earth.

Like almost everyone on the planet, I wasted a lot of energy in the Fall of 2008 locked in fear about the financial markets and how their collapse would impact me, my family, my businesses and my life. Every day the news reports seemed to add to my internal experience of failure and helplessness.

But I found a way out of that morass. I realized in early December that the "collapsing global economy" is just a story; a repetitive, debilitating conversation that lives in fear and insufficiency. It is a "created reality" like all other realities.

I am not saying it is a myth without power. That disturbing drama has its impact on the real world. Self-destructive conversations have consequences not only for individuals, but also for nations and economic systems. People are hurting and afraid.

But though it effects are real, the sad and pitiable tale we are telling about the global economy is also a self-fulfilling prophesy. At its core is a commonly held bad attitude, an anxiety-addicted belief in scarcity.

At our house, our finances are stretched. We have had to give up things we care about…but really, we are just fine. We are healthy. Our children and grandchildren are well and happy. We are not starving. The sun rises every morning. Most of us in this country have what I often refer to as "rich people’s problems."

Billions of people in the world – and some here in the U. S. - really live on the edge of survival. They would laugh at our self-pity. They face much worse every day and have dealt with it their entire lives.

So I am no longer going to play that game. On Christmas day I made my stand. I will no longer meekly engage in that economic melodrama like a sheep being led to slaughter. I choose not to live like I am powerless. Living in fear, buying the spin so eagerly promoted by Fox and CNN is not putting money in my pocket, supporting my family, making me more effective or enhancing my life in any way.

To the contrary, it has exactly the opposite effect.

A New Conversation:

In 2009 I am creating a conversation that is more powerful, more fulfilling and more workable. I am creating hope and abundance. I am creating a world in which anything is possible, a world in which people all over this planet make the impossible possible every day. I am creating a life for me and my family in the new paradigm I see building all around me.

You may think I am a pie in the sky idealist, but I argue I am a pragmatist. Think about it. How is that negative story working for you? How do you feel when you wake up in the morning? How do you feel after you finish watching the news? Is something good happening in your life because you are sure things are bad? I doubt it. Why don’t you give a new story a try?

The tale I am telling is that the changes going on in our world are the collapse of a tired old way of being and the genesis of a new one that will transform our lives for the better. I am creating a conversation about a new "bottom up" economy in which all are included, one already being built all over the planet by the young and the visionary.

I am creating a system of exchange and value that recognizes our interdependence and endlessly innovative. I am building an economy of infinite possibility, of sufficiency and abundance…an economy that works for everyone.

The conversation I am having is that the old is falling away and the new is born. Winter must come before the flowers of Spring can bloom. I am telling the story of a butterfly emerging from it chrysalis, its wings unfolding…a story of the glory of flight.

The tale I am creating is not one of soft-hearted idealism. It lives in the material, in the brains and words of human beings. It is a story of hard science, corporate and political realities, a pragmatic evolution forged in technology and human cultural evolution that has been growing for many years. It is a new interpretation of reality that is available to everyone all the time. Real people can act on it in their lives at any moment. It is a conversation that makes things work where they do not, like all new technologies that have value.

We are going home, home to our better selves, home to new relationships, new systems of behavior, new technologies and new societal and economic structures. Given the state of the world we have had in the past, that is a good thing.

But before we can move forward, we have to see the debilitating conversation that prevails around us for what it is. We must turn negativity into possibility. We must make our stands for a world that works and act upon them. We must quiet the cruel wind of fear that fills the tattered sails of the sinking ship of excess, failure, scarcity, corruption, partisanship, self-interest and greed that has plagued our country and our world.

Sounds too big and too hard? It’s not. All we have to do is change the subject. All we have to do is notice the "glass half full" rather than the "glass half empty" and share what we see with those we meet. After all, positive interpretations are no less real than negative ones. There is ample evidence for both and I would assert that positivism is more practical and effective.

You Create Your Own Reality

Perhaps you are convinced the world really is going to Hell in a handbasket and there is nothing you can do about it. Well think about this.

Throughout you life, neurons and other nerve tissues in your brain grow in response to your environment. The process is called neurogenesis. New synapses and whole new neurons are actually being added into the circuitry of your brain in response to the world around you. Metaphorically, they grow a lot like muscle tissue. If you use your muscles, they grow and get stronger. If you sit on the couch all day and watch TV, they atrophy.

Something (roughly) similar happens in your brain. Everything you think, feel and experience is a result how your brain responds to your experience and grows new neural tissues and connections to other neurons.

The more often a particular neural pathway is reinforced by environmental cues, the stronger it gets and the more embedded in your memory. So the behavior, attitudes and values with which you approach life – and the nature of your relationships with others – are built into your nervous system. They are not just ideas or attitudes. They are aspects of your physiology.

How you see the world and how the world sees you is built into your brain. But because your brain is constantly changing and growing, over time you can change that hard wiring simply by altering your thoughts, actions or your environment. Attitudes and values are not casual things. They are physical and the source of your everyday experience of life.

That means your words have power. Speaking is an act of creation. Over time, the way you describe the world creates your world. If you want a "better world," all you have to do is "cast your vote" each day for the world that is already working.

Ever notice who is always around when your life doesn’t work? You are. You can blame it on your circumstances if you want to, but all that does is make it persist. You can blame others, but all that does is make you suffer. Maybe you should consider an alternative.

I invite you to join me in a new conversation. We can create it together in the days and months to come…and before you know it, a new and vibrant economy will emerge.

Transformation Begins at Home

To transform the global economy we must begin by transforming our personal economies. After all, most things that are important begin at home.

That includes the current economic crisis, which began in a cascade of foreclosures and falling real estate values.

In the body of our built environment, the home is like a single cell. If you think of all the buildings, power grids, public works and transportation systems on our planet, all the things we have built in order to maintain our complex societies, our homes are the most basic unit in the "body" of human society.

Like a cell membrane, a home allows nutrients into our vulnerable inner worlds and keeps toxins - like nosy neighbors - out. Like a cell, our homes contain thermostats and other features that maintain homeostasis, protecting us from the slings and arrows of outrageous weather.
Our homes store our financial energy like the fat on our bodies. For most of us, our homes are our largest investments. Recently we have been forced to "go on a diet" and some of us lost our assets.

Homes are where we most often reproduce and subsequently nurture our young. They are powerful expressions of our identities - as Claire Cooper Marcus pointed out in House as a Mirror of the Self. A well appointed home is an extension of our bodies. It is, as physiologist J. Scott Turner suggests in The Extended Organism, an "external organ of physiology."

Imagine for a moment if the built infrastructure that supports our societies suddenly disappeared. The result would be the same for us as it would be for a colony of termites or a nest of bees...a sudden and devastating die off.

Theorists have long argued about the traits that have made Homo Sapiens so successful. The use of tools, opposable thumbs, the evolution of language and the highly complex social structures we create have all had their day as the seminal first cause...but the most visible evidence of mankind's assent to dominance is our built environment.
From caves to mud huts to castles and skyscrapers, the homes we have built and the public works we have erected to sustain them, are the proof of the efficacy of this survival mechanism.

We and our homes are engaged in an ancient and profoundly interdependent relationship. Like any other animal we evolve in response to our environment, and increasingly our environment is of our own making.

Natural selection and epigenetic gene expression occur primarily in response to our most highly frequented environments and the home is the most intimate environment of man. We build them and they build us back. We are enmeshed in and altered by our relationships with them.

Your own personal definition of home - whether your current habitation meets your ideal or not - likely includes emotional ingredients like comfort, safety, rejuvenation, peace, relaxation and the privacy to escape from the perceived expectations of others.
Despite all the mischief perpetrated by stock traders, hedge funds managers, sub-prime lenders and incompetent government regulators - the stars of the story of manipulation and greed that currently batters us daily - the truth is that those bad actors are mere symptoms of the greed and self indulgence within all of us.

In truth, you and I are the building blocks of the global economy.

The Economy is an "Emergent" Phenomenon

Like our societies, the global economy is a complex system that adapts to its environment. All such systems of relationship are made up of what systems scientists call "agents."

Just as water molecules are the main ingredient of oceans - and homes are the most basic form in our built environment - individuals and families are the most basic ingredients of our economic and political systems.

Corporations, countries and financial markets are all made of people. What we have just seen in the global economy is an emotional and psychological "tidal wave" of anxiety.

A tidal wave is an "emergent property" of a group of water molecules. It occurs when a "society" of such molecules responds to a disruption in its environment. The same is true for a hurricane or a tornado. There is nothing in a tidal wave except sea water. It has no distinct material ingredients of its own and could not exist unless every single salt water molecule within it contained the properties that allow a massive wave to form.

The same is true about the relationship between human beings and the global economy

In a world such as I describe, the successes and failures of an economy, a country or a culture emerge from the characteristics of the individuals within it. Particularly in a democratic society, leaders arise from the shared realities of the people.

Working Together Responsibly

So only you and I have the power to transform our economy. Barack Obama cannot fix the problem. All of us - consumers, bankers, stockholders, the wealthy, the middle class, the poor, our international partners, academics and economists, hedge fund managers, members of Congress, the teen working at the fast food franchise and the guy on the automobile assembly line approaching retirement - will all have to work together.

It is up to us. Every individual, each family, each small business, each multi-national corporation and each government is an economy unto itself. If we are going to learn anything from this troubling experience, it is that each of us must take responsibility for our own relationship with money. We must face this reality because it is the only truly workable long term solution to our troubles. It is also moral and upright.


The media parrot and stoke our anxiety because that is what makes financial sense in a world where information is tied to profit. So we have to change the conversation ourselves. These facts mean we must give up the "one size fits all" stereotypes we use to fix blame without ignoring the realities of human nature.

We are profoundly social and collaborate with one another instinctively. Human beings are also deeply emotional. We look to those around us to assess how we should react to the world. If our neighbors are afraid, fear spreads like a virus. The same is true of optimism and courage.

People must first see the possibility of a positive change before they can strive towards it. To accomplish that in government, we must learn to distinguish the good public servant from the bad. If we want responsible corporate behavior we must reward those corporations who are responsible and give back and distinguish them in our conversations from those who are exploitative and predatory. If we want our President to be successful, we must be balance our demands for change with some sense of our own responsibility in the matter.

We must face the realities of a global economic system and understand the interdependence inherent in our global economy. "Foreigners" are not stealing our wealth. The Chinese, Indians, Mexicans, Taiwanese and Brazilians aren't stealing our jobs. The global economy is the result of our efforts in the developed world, often imposed against the wishes of the citizens or even the leaders of those nations.

We in the West are hoist on our own petard. The impersonal realities of the marketplace are redistributing our wealth to those who compete most effectively. This occurs in the capitalistic system of value we in the West created.

We - the rich and powerful - fuel that redistribution with our endless desire for more toys, more experiences, more consumption and more status. The desperate cry of the old order - "spend, spend and spend" - is the pusher trying to entice the addict. We need to go "cold turkey" and re-examine our personal and cultural values.

And there is no turning back. This trial we face is not temporary. It is the new reality. Turning our southern border into an Iron Curtain won't save us. Isolation and protectionism are just ways to hide under our beds and ultimately impossible to achieve in an age of open borders, international trade and monetary systems and the Internet.

Tamping down rampant consumerism does not mean our economy cannot be vibrant and diverse. It only means that we must balance our needs for profit with a vision for an economy that works for all classes, all peoples and our planet as a whole.

Changing the Conversation

Again, all we have to do is change the conversation....and the rest will follow. The only real difference we can make is in our own lives and is expressed one person at a time, one family at a time. Cooperation enables us to collectively transform our systems of value. We must work together because such actions are the only solutions that will protect our descendants and the only true road to peace. We live on a planet with fixed resources but unlimited possibilities and the only workable path forward is to begin creating a world that works for everyone.

You may not care whether the "poor people" in the developing world eat or not, but you do care about the survival of your own children.

You may not like it that human society has reached the point that your survival is dependent on the survival of the impoverished masses of Africa, Asia and South America, but it is. You may pine for the good old days when we could prop up our lifestyles on the back of the "third world" but now the "third world" holds our bank notes.

That time is gone. You may not care about the state of the global environment; or that terrorism, extremist ideologies, pollution, global warming and the cascading extinction of species in stressed ecosystems around the planet are inextricably linked to economic inequalities.

But you will care when the first nuclear weapon goes off in a major western city, or the first deadly virus is released in your neighborhood by a disaffected extremist.

This is not just an economic downturn. It is a global economy in the process of transformation. We stand on the threshold of a new world order. This change will either be the beginning of a new and fairer global economic and political order; or we will see more violence, privation, destruction of the environment, all ultimately leading to the slow death of Western culture as we know it.

An analysis of user patterns on the Internet makes it clear what is to come. In developed countries, over 70% of the population is currently connected to the Internet, yet they account for only about 18% of all people online. In the rest of the world, less than 17% of the population is connected and that is changing at a rate in excess of 300% per year.

You do the numbers. We in the West cannot live in our "own little worlds" any longer. Oceans and massive weapons systems cannot protect us. Small bands of extremists have fought the most powerful military on earth to a draw. The long feared day has arrived and we only have two choices. The first and best is to take the lead in creating a world that works for all. The darker path is to withdraw into fortresses of isolationism and self interest, a choice that means our children and grandchildren will inherit a world much less hopeful than the one we knew as children.

I choose the former. My family too has been hurt by this economic downturn. We have had to give up many things we care about in the face of it. But those are just things. We are all still eating, laughing and loving one another. Many on this planet do not have that opportunity. I choose to take this experience as an profound opportunity, a necessary and beneficial adjustment to a changing world that offers new found hope and opportunity for everyone.

What will you do? Will you let fear guide you? Will you make a stand for what is right according to every moral and religious tradition on earth? Will you choose what is workable, pragmatic and honest - or will you choose to hide your head in the sand?

Will you stand with the dying husk of a world built on illusion, hollow consumption and self-interest or will you stand for our children?

One way or another, what happens in your life and our world is up to you.

It may seem impossible to make any real difference. It may seem too overwhelming to even contemplate, but truthfully you do not have to know what to do or how to do it to make a powerful commitment.

All you have to do is pick yourself up, realize you have the power to control your words...and change the conversation.
By: Christopher K. Travis