Wisely Choices

The Dow Jones is the main USA index.

Is one of the largest business and news companies in the world by United States dollar value of its listed companies securities (such as banknotes, bonds and debentures).

It is very easy to confuse Dow Jones Stock Exchange (NYSE) with the Dow Jones Industrial Average (DJIA). DJIA, it was created by the editor of the Wall Street Journal named Charles Dow in 1896.

DJIA, also referred to as the Dow Jones, the Dow 30, or simply as the Dow; is one of several stock market indices.

It consists of 30 stocks, it tracks companies from several sectors, including financial services, technology, retail and entertainment. We are talking about companies like Coca Cola, Intel, Cisco, MacDonald...

You can find current market news on Yahoo! Finance; here you can get free tabular data on the Dow's daily. The price chart, which includes the open, close, high, low and volume, is simply downloaded into an Excel spreadsheet format. You will manage the market and your money with Yahoo! Finance.

In these difficult financial times, many people are in need of a second income. Is very important to learn how to follow the market's price action and understand the signals it gives. People look to make money trading on the Stock Exchange, looking for ways to use their extra capital more effectively.

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

Do you have the mindset necessary to become a billionaire?

One of the things that set billionaires apart is where many people see only a problem; the billionaire mindset will identify an opportunity and have the courage to act.

In Australia, the 2008 BRW Rich 200 List identified 38 people as billionaires. The fortunes of these people come from diverse business interests including mining, property, shopping centres, technology, finance, retailing, textiles and clothing, media (television newspapers, magazines) hotels, gambling, liquid ammonia production, cardboard cartons, transport and health care.

Some of the advice from these billionaires for creating and keeping their fortunes is to remain married, work for you, spend wisely, invest in shares and property and gain work experience overseas.

For people with an interest in astrology you will be interested to learn that six of the 38 billionaires on the list were Aquarians, more than any other star sign, with total wealth of around $12 billion. For mere millionaires Leo is the dominant star sign followed by Sagittarius with Taurus being the least successful.

Billionaire iron ore miner Andrew Forrest, Australia's richest person, faced and overcame a range of setbacks before he became successful as the CEO of a company with a market capitalisation of only $3 million at start up. In 2003 when China's ruling party stated it wanted to quadruple the country's economy in the next 15 years, he identified an opportunity and punted on the demand for iron ore exploding and became a billionaire in the process. As with many other ideas that went on to create billionaires, Australian institutions initially refused to back the company.

Many readers will have lived in a Meriton apartment at some stage, the creation of billionaire Harry Triguboff, who immigrated to Australia from China as a 14-year old with his Russian parents. Triguboff attributes a large slice of his success to building in inner-city locations. "Why would you want to go anywhere but a few good areas?" he asks.

Probably every single person in Australia has spent some time at a Westfield shopping centre, the brainchild of billionaire Fank Lowy who arrived in Australia in 1952 at the age of 21 with only seven years of formal education and no material possessions after suffering the ravages of war in German-occupied Hungary.

Lowy is regarded as Australia's most successful immigrant and attributes part of his success to having a secure family base. His success story is well known from a delicatessen in Blacktown in what was then Sydney's outer-west, then buying surrounding farmland and creating housing estates and then modeling another builder by building a shopping centre in 1959. Westfield floated on the stock exchange in 1960 and today Westfield has more than 100 shopping centres in Australia and the U.S. Financial engineering has been an important part of Lowy's success and he also admits to his intuition being his driver. "If I have a bad feeling about something, it has to go away before I can progress." Technology is important to Lowy and he was one of the first to acquire a fax machine in the early 1980's. To maximize the use of his time Lowy always travels with a laptop and his BlackBerry on his corporate jet.

U.S. billionaire Warren Buffett, the 'Sage of Omaha', is generally considered to be the world's most successful investor. His investment vehicle, Berkshire Hathaway, is legendary. In the last 40 years, Buffett has increased the book value of the company by 286,865 per cent. Buffett has made some brilliant moves in his career, such as turning a $1 billion investment in Wells Fargo into $4 billion; making 500% profits on a massive investment in Geico and - in one of his best known and most talked about plays - turning $1 billion into $8 billion with Coca-Cola. Buffett is famous for droll quotes such as "I got interested (in business) when I was seven or thereabouts. I wasted my time before that. Buy businesses that an idiot could run, because one day one will. We really want to buy from someone who doesn't want to sell. Investors should be fearful when others are greedy and greedy when others are fearful."

According to respected U.S. business magazine, Forbes, while there are numerous business school courses, self-help books and magazine articles devoted to analysing a billionaire's investment strategy or entrepreneurial skills, few, if any, pay close attention to their personality traits. Forbes claims it has been observing billionaires for more than 20 years and says it has detected very pronounced similarities among the majority of billionaires which can roughly be categorised as: A. Master of the Universe; B. All Business; C. Sports Fan; D. Geek; E. Old Money.

It seems there is no common model to emulate and become a billionaire when comparing the success stories of billionaire's world wide - every billionaire has had a unique route to success. Some had to face terrible tragedies and hardship, which would have destroyed many other human beings. Others did not have these hurdles to overcome but all of them had to work really hard. All of them had to integrate aspects of themselves, which could be called the 'dark side' or 'the shadow' as psychologist Carl Gustav Jung called it, into their personality and function convincingly among other human beings. The greatest effort people invest in order to become successful is with their own selves.

Self-management is the most difficult part of management skills needed to become a billionaire. Along with this skill for self-management, there are however, four additional common factors in all billionaire life stories. They all had a burning desire to be successful, and they relentlessly pursued their goals without losing faith in themselves.

Secondly, each one of them had an inner conviction. They saw themselves as successful in their mind's eye and did not give up in spite of all difficulties. This ability to first visualise success and maintain this vision seems to be a key component for success in all fields.

Thirdly, they all took major risks in thinking out of the box and acting consistently. Lastly, they all understood the value of networking and engaging other gifted people.

In Australia the road to mega-riches is paved in rust-red iron ore. The 10 richest investors in Australia's red-hot mining sector boast a combined net worth exceeding $15 billion, according to a magazine survey. The second-largest category for wealthy mining investors was coal, which is one of Australia's top two exports, along with iron ore.

While Australia may be a great place to move from being poor to being middle class, places like India and China will be the best places in the world to come up with transformative business ideas that can catapult people into billionaire status. Early in the 21st century, technology and the Internet fueled much of the wealth to create new billionaires. Recently in the US finance created 27 fortunes, real estate was the source of 16 and food and beverages created 12.

However, a good trend is that worldwide most billionaires are still self-made. That means people coming from humble beginnings around the world have the economic freedom to leap into the billionaires' club in a single generation.

You don't have to come up with the next Windows or Google or Facebook to be a billionaire. You can also do it being a supplier of potatoes to McDonald's as one man did in the U.S. Although Google is a lot more exciting to write about and learn about, you can also come up with a better business model for providing cola companies with sweetener or figure out how to become a dominant supplier of asphalt in Victoria. Don't think that the road to riches is hidden solely in these old business models.

I can do it. The first million may be the hardest. But the simple fact is Google founders Larry Page and Sergey Brin - did not have any more hours in their day than you, or the ability to shoot laser beams with their eyes, or help from alien beings. They made their wealth in a single lifetime using the same 24-hour days you have. If you want to do it, and become a billionaire there is no reason why you can't.

Some final advice for those wishing to achieve billionaire status. At some stage every billionaire has had to add more value in order to create wealth. One way to do that is by developing your financial education skills. These skills are. The ability to think creatively and solve problems. The ability to communicate more effectively. The ability to market an idea or concept and bring that idea to reality and commercial viability. The ability to negotiate.

Jamie McIntyre, the founder of 21st Century Education, is setting big goals for himself and last year he set a goal to become a billionaire by the time he is forty. That's in 10 years in case you were wondering.

It is not that becoming a billionaire for material means or lifestyle is what made Jamie set himself this challenge, but more so that he knows that money can be a powerful tool to serve and he knows the influence that being a billionaire can bring to creating positive change in this country.

For Jamie setting this goal came about when he personally met a billionaire some 18 months ago. He was asked by the billionaire how long it would take to become a billionaire using his current wealth strategy.
As Jamie had never seriously considered that as a goal his response was at least 30 or more years if ever. The billionaire asked Jamie "why not in 3 years?"

If the guy wasn't already a billionaire then Jamie would have said you're "on drugs or deluded" but the fact that this guy had become a self made billionaire within less than 10 years made Jamie take him seriously. And that day a seed was planted.

Since then Jamie has had several billionaires come into his life where he has personally had the chance to sit down with them for personal chats including one very famous one, Sir Richard Branson of Virgin fame as well as an Australian who just became one of our latest billionaires in the space of a few short years.

Jamie was recently invited to meet and speak alongside another famous billionaire - Donald Trump - to share what it takes to develop the Mindset of a Millionaire.

Jamie McIntyre is renowned for his ability to present things in down to earth simplistic language so the average person can understand and implement with ease, but until now has been reluctant to teach others the actual mechanics and strategies to become a billionaire that he has learnt firsthand from meeting billionaires as he thought it too advanced for the average person to be able to replicate and apply any lessons from.

But recently this has changed as he now has figured out how an average person could actually replicate the same strategy to make a lot of money.

Of course for most people, not a billion dollars and for many not even a million dollars but certainly for many several hundred thousand dollars in assets up to several million with virtually no outlay.

Already one of his 21st Century Homestudy Members has used the exact same strategy many billionaires use to make $27 million dollars. Another business partner of Jamie's used the same strategies to make $60 million dollars - all within the space of a few years.
By: Lou Harty

The most difficult homes to sell are those in the luxury home market.

Why is that?

Let's look at what goes on in the mind of a luxury home owner who wants/needs to sell their property. This may actually apply to a home in any price range but as you recall, we are going to focus on the luxury home market in particular today.

Typically, a savvy luxury home owner will go back to the real estate agent who helped purchase the home. Another common practice is to do a Google search of nearby realty firms and decide on the best realtor to sell their home using various criteria. Some reasons a person may choose a realtor is because that person has the most sold listings or they received a flyer in the mail or because they liked the realtor's smile. Another way to choose a realtor is using personal connections, such as a relative, a classmate or a friend.

For whatever reason, when choosing ABC Company and XYZ real estate agent, the process is usually the same.

- Decide on a Real Estate Agent or Realty Company
- Sign a contract with the Real Estate Company to represent you
- The Agent suggests a price based on comparable homes in the area
- A listing price is negotiated and decided upon
- The Agent lists the property on the MLS

So what is "the MLS"?

MLS stands for Multiple Listing Service. Basically, it is the main listing source that pools all member real estate companies' available inventory or list of luxury homes that are registered with them so that everyone can see what is available on the market at any given time.

What are the advantages of having an MLS listing?

- Ease in finding the majority of luxury homes that are for sale right now
- Comparing luxury homes presently on the market without difficulty
- Listings are contracted for a specified amount of time
- Accessible only through a certified member of the Board of Realtors
who has a fiduciary duty to represent you and protect your interests

Real Estate Companies Specialize in Selling Homes at Market Value.

With the centralized pool of listings on the MLS, real estate companies are able to establish and check on the value of a piece of real estate in any given area. Determining value is crucial to selling a property. Without a tool to measure its value, it becomes difficult to know the true worth of a luxury home.

Another thing to remember when determining the value of a luxury home is of course, the condition of the luxury home. A newly constructed luxury home is more desirable than a remodeled luxury home, which in turn is more saleable than a fixer upper. Keeping your luxury home well-maintained enables you to ask top dollar for the home.

There is only one catch to the retail market of luxury homes and that is you can list your luxury home for whatever price you want to but it is only worth what someone is willing to pay for it, in other words, market value.

The real estate professional uses many tools to sell your luxury home. Some are:

- informs his clients and fellow realtors of your listing to see if there may be a potential buyer
- puts a For Sale sign out in front of the property
- lists it on the MLS
- advertises it in newspapers or in magazines
- holds open house events
- more sophisticated companies have marketing campaigns in place to give more exposure to their listings that the seller more often than not will have to pay upfront.

Real estate professionals more often than not, cater to owner-occupant buyers.

Once a realtor is decided on, an agreement is reached on length of listing and the luxury home is appraised, the luxury house is put on the market and the roller coaster ride of when-will-my-house-sell begins.

The 3 types of Buyers

From a business perspective, the luxury home is considered a commodity for which there are buyers. Identifying your end buyer will dramatically increase your chances of selling and/or selling quickly.

- Owner occupant's 1st,2nd, 3rd + home
- Buy-and-hold investor's rental unit
o entry level investor
o modest investor
o sophisticated investor
- Niche investors
o Short sales
o Foreclosures
o Rehabbing
o Wholesaling

Determining which end buyer you want to target will determine the price and how quickly you may be able to sell the home. As with anything else, there are those who are better than others in getting the job done.

The median home market has many more investors to turn to than the luxury home residential market. These investors may have ads or signs stating, "We buy homes." "We take over payments."

Real estate investors are, as a whole, people trying to help others out of a difficult situation and trying to make a profit in the process. These types of businesses are NOT non-profit companies so they expect to make some monetary gain from the transaction. After all, investors are not a charity operation and are not going to make your problem luxury home their problem luxury home. They make investments of their money and time to do transactions that they specialize in and expect to make a profit for their talents.

Investors are specialists in their field just as real estate agents, doctors or lawyers are specialists in their respective fields. They help people out of circumstances that could potentially become worse.

What about the Luxury Homes owners?

Waiting for an owner occupant is a great choice if you can afford to wait for the right buyer to come along for your luxury home. Listing it with a Real Estate professional is the most effective way in selling a luxury home "retail". In the luxury home market, the average time it takes for the "right" buyer to come along is from 1 to 5 years. The more the luxury home costs, typically, the longer the wait. The 1-3 Million price point of luxury homes has heavy competition and there are better options when comparing what is available entirely and not just in a particular neighborhood.

Since investors who typically do business at the 2M-200M price points or at retail prices are few and far between, what problems would a typical luxury home owner-seller face?

- $12k or $50k monthly house payment are typical for a luxury home. Who can you turn to? How do you solve your financial situation? A part time job at Wal-Mart will not cover this kind of expense.
- Sometimes, when upgrading to a new home, you may have found the perfect house to move into but you may still be stuck with the home that you grew out of. You still have to keep up payments on that luxury house because 1031 exchanges aren't always as smooth as they could be. In addition, remember you have a limited amount of time to do that exchange in.
- What if your key to financial stability is through the sale of your multi-million dollar home? Who do you turn to for guidance and confidentiality?
- Do you need to relocate because of business or personal reasons and must sell your property quickly?
- Divorce or health problems place an urgency to liquidate assests

So what is a luxury home owner to do in the event that holding costs are too high and keeping the property means essentially losing money with each day that goes by?

Luxury home investors

There are companies that specializes in the acquisition of luxury homes and commercial properties all over the world? A company that closes the transaction quickly and uses CASH in all transactions? No waiting for approvals from the bank, which may not even come through especially in today's lending environment.

How can you meet investors who specialize in luxury homes and who purchase luxury homes at a fair price? Investors who have an established list of prequalified clients wanting to buy luxury homes at a fair price can re-sell those acquired luxury homes. That is a scenario which would work for all parties involved.

These investors are not in the business of stealing luxury homes. They solve problems and make their money on the sheer volume of luxury homes that are bought and sold. It is the investor that has his or her own buyers' list that will get business done quickly and efficiently.

Business much easier and quicker

Investors typically have a database of buyers that do business with them exclusively due to the relationships that have been built and the value that is gained by buying through them exclusively. The clients entrust investors in this industry who do business honestly, ethically, with integrity and also guarantee good value. They have access to an unlimited amount of cash to complete transactions. Usually what ends up happening is the need to buy more houses to keep up with the demand.

As with any business, the cost of doing business prevents a wholesaler from buying at retail value of the luxury home. If a miscalculated purchase occurs the outcome is not being able to make any profit or worse yet paying money which would put one out of business rather quickly, and be the laughing stock of the industry. Here are some examples of the overhead and costs involved in running a real estate investment business:
- Cost of cash (8-18%)
- Closing costs on the buy and the sell
- Marketing costs
- Insurance
- Prepping a home
- Travel costs
- Inspectors
- Other miscellaneous costs

If an agreement of price is reached.........

That is what you will get. Cash in your hands for your luxury home, the exact amount that is agreed upon in order to acquire your home at closing. Closing on the date of your choice is a relief to know and to use the title company of your choice. Wholesalers take the anxiety out of selling your home. This is an all around WIN-WIN-WIN situation and this is the only business we do. It is that simple.

If you want to sell your luxury home, wholesalers want to buy your luxury home................. NOW
By: Ryoko Hoyt

Located on the southern coast of Persian or Arabian Gulf, Dubai is the 2nd largest of the seven emirates that constitute United Arab Emirates. Dubai has a population of 1.35 million inhabitants of which majority consist of expatriates. Dubai has the biggest population among other cities of UAE. Major parts of Dubai consist of rolling sand dunes. During the last few decades, Dubai has experienced a hasty development in every field of life. Twenty years back and you would find Dubai, a city inhabited by itinerant Bedouin roving across with their flocks and herds. Today, Dubai has become one of the most modern cities in the world. With the continued boom in industry sectors such as tourism industry and Dubai Property industry, Dubai has fast become the center of attraction for millions of people and businessman around the globe.

To some extent, Dubai is little different from rest of six Emirates of UAE. Unlike other Emirates, revenues from oil products contribute only 6% of the Gross Domestic Products of Dubai. The major contributors in its GDP are the tourism sector and the real estate sector. Later has gain a significant importance in the economical growth of Dubai. Today Dubai proudly holds some of the tallest skyscrapers in the world.

With nonpareil facilities and lifestyle on offer in Dubai, many people are planning to make Dubai as their second home. Some are even planning to relocate their. This has resulted in an increase in the property demand in Dubai. The increase in the demand of residential Real Estate UAE has forced the hike in price for properties in Dubai. With the announcement of new laws for property in Dubai, Dubai has able to magnetize many property investors around the globe. According to AME Info (leading press release website about Middle East), a massive investment of USD 4 billion has been committed in the Dubai property market since the passing of new laws for property in Dubai.

Dubai Investment Fund has planned to broaden the horizons of property investment across the following three branches of Dubai property market.

• Commercial Property in Dubai

• Industrial Property in Dubai

• Residential Property in Dubai

DIF has aimed about 15 to 20% annual growth in the investment funds for Dubai property sector. One of the major developments in UAE Economy market has been the announcement of new Dubai Freehold Property Zones. Expatriates can own property in Dubai in these zones either on permanent basis or on the basis of 99 years lease. This factor has significantly intensified the Dubai property market. All of a sudden, Dubai property market converted from an average local market into a full of activity international market. With matchless lifestyle Dubai has now become the heaven for millions of people in quest of a trendy and out of this world lifestyle.

The Dubai property prices have shown a significant upward trend during the last few years. Dubai property market has seen a 40% increase in the rental price against the property for rent in Dubai during the first six months of 2005. The price of property for sale in Dubai has also seen an increase between 20 to 50% during 2006. According to many real estate experts, this is the best time to invest in Dubai property market as prices are set to see more heights during the upcoming years with ever increasing property demands. Many investors are turning to invest in Dubai property market to take home their share of benefits that Dubai property market has on offer for its investors. There is a lot of profit on offer in Dubai property market if you can play your cards well. All one needs is the careful survey of Dubai property market.
By: Sim Whatley

Fear and emotion are the rule every day in the global financial markets. We have seen shock and awe financial bailout plans, the overnight consolidation of many troubled financial services giants, and a liquidity crisis that impacts markets across the globe.

In Germany, the collapse of the rescue plan for Hypo Real Estate may mean a disaster in that country similar to the recent bankruptcy of Lehman Brothers in the United States. Also, consider that in the Netherlands, Ireland, and Greece, bank rescue has become the order of the day while Iceland is in the middle of an economic meltdown.

Recently, South Korea urged banks to sell foreign assets to raise dollars and promised to use its currency reserves to shield lenders from the financial crisis engulfing the United States and Europe. Meanwhile, National Australia Bank continues to lose value due to worldwide concern about the resilience of the financial system and China's economy will not escape an economic slowdown if its exports are hit by this widening world recession.

The United Kingdom has just announced the details of a £50bn rescue package for its banking system. The bailout includes a proposal to use taxpayers' money to invest in banks. This plan was two weeks behind the bailout plan in the United States and financial stocks in the United Kingdom crashed due to the plans delay.

The truth is that bad mortgage loans have been bundled and sold to banks in every country in the world. So, nobody is immune from this mortgage crisis and economic contraction in this age of globalization. It is a global reality that international leaders do not seem to understand.

The problem is that this is the first deep recession in an increasingly global economy. So, the actions of each country need global coordination. Indeed, there is a real need to attack this economic crisis with international unity and cooperation. A unilateral approach to the crisis will not be effective and will make this downturn last much longer.

Already, the dubious result of handling a global economic recession without coordination can be seen in Germany and Ireland. Ireland announced that it would insure bank savings while Germany (Angela Merkel) decided it would not. The next day, with money pouring out of Germany toward safer harbors, the country then decides to reverse itself and insure bank deposits.

Of course, the European Union has criticized these unilateral moves by Ireland, Germany, Denmark and others to guarantee bank deposits. The real question is what were these countries suppose to do? Should they wait for a run on their banks and slide into the economic abyss? The European Union should have acted more quickly and with better leadership in this global economy. There also should have been much better coordination from Europe with the actions of the Treasury in the United States as well.

In America, the Dow Jones Industrial Average is down about 40% from its all-time high. Since the financial markets have now lost more value than the average bear market of 28%, it is safe to assume that the country is in the middle of a deep recession or maybe something even worse.

However, as global markets continue in a free fall, and well known financial pundits tell the average investor to get out of the financial market since it may fall by another twenty percent, it is important to understand that the country is not going to go bankrupt.

The problem is that in the near term it may not feel that way on Main Street in America. The unemployment rate could increase to around eight percent, and many good people will lose their jobs. Inflation will eventually escalate and many small businesses will close for good. Meanwhile, a lack of spending on non-discretionary items this holiday season will make for many long, bleak days in the retail industry.

However, it should be understood that economic recession cycles are a normal part of living in a world of inexact balances between supply and demand. This may well be a deep recession, but remember the words of John Rockefeller after the stock market crash of 1929. He said; "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again."

It took awhile but he was right then and his words will prove to be correct about this current financial crisis once again. It's a deep recession in an increasingly global economy and international economic cooperation is the best formula to bring it to an end.
By: James William Smith

Let's face it. Community colleges don't get the respect they deserve: They're short in comparison to the tall ivy league colleges; they won't ever make prom king or queen; and a community college will never be able to fit into its skinny jeans. So why should you still consider a community college first?

* For starters, community colleges are cheaper. Local taxpayers partly fund them, so students can get a cost-effective education, a higher paying job and contribute back into the community.

* Many community colleges have "rolling admissions." What does that mean? That means you can be admitted and register during any semester. They even take last-minute admissions, assuming your paperwork is in order.

* Many community colleges also offer remedial courses like pre-algebra, English writing and grammar if a potential student has been out of school for a long time, or who didn't make the honor roll in high school. Many universities and four-year public or private colleges don't offer remedial courses.

* Didn't take the SAT or ACT? No problem! You don't need them to get into most community colleges. Their standards aren't as rigorous as private or ivy-league colleges because most of them have an open-door policy. As long as you can produce a high-school diploma or GED, you're in.

* If you're an older student, you'll be in good company because many older adults attend community colleges because of their flexible schedules like night and weekend classes.

* Smaller class sizes are a plus at most community colleges. Each student can get the attention that he or she deserves.

* Community colleges are convenient. Most people have them near their homes, so they are easy to get to and are very accessible.

* The educational quality at a community college is comparable to a private college or university. Professors have to meet certain standards to become professors in the first place. In fact, some professors are professionals themselves, still in the business of their craft, and teach part-time.

* As an incentive, many community colleges have daycare facilities on the premises for students with children because many students are commuter students; they live at home and not in the dorms.

* Community colleges have a variety of degree offerings, not just a few obscure majors that no one has ever heard of. They have to keep up with the times, adding and eliminating skills to prepare students for the workplace.

* Sports are available at some community colleges too, so they can work on team spirit. Athletic teams--football or basketball--and even Olympic-size swimming pools, like at the community college I went to, are at these colleges.

If you're still skittish about going to a community college first, don't be. Many successful people start out at such colleges. Also, if you decide to transfer to a four-year college afterwards, the name of the college where you received your bachelor's degree will be reflected on your diploma.

Granted, a community college might not have the bells and whistles of the ivy's, but ask yourself, 'What am I really paying for?'
By: Brie Hart