Tuesday, January 18, 2011

Wow, just 79.99% interest?

The 2010 list of some of the worst credit cards has some unbelievable offenders. Taking your first born child would be a deal compared to these terms from these credit card companies.

* First Premier MasterCard with "an astonishing 79.99 percent A.P.R." (cited for having the highest interest rate).

* the Applied Bank card offered no grace period, meaning that interest begins accruing on your purchase the moment you swipe your card.

However, the PenFed Visa which offers 5% cash back on gas purchases is a good option if you rack up lots of miles driving.

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Hmmm, do you think this is a sign of a booming global economy? Shipowners are now paying shippers to use their ships.

"Shipowners facing a lack of business in the Pacific Ocean covered more of their customers’ costs to get their vessels to the Atlantic.

Costs on the C11 journey for shipments to Europe from Asia fell to minus $1,046 a day today from $958 on Jan. 14, according to the Baltic Exchange in London."

So the average cost per day is now a NEGATIVE $1,046/ship. In effect, you make $1,000 by renting a ship from Asia to Europe. I imagine Goldman will soon corner the market in ship rentals :)

When coupled with other shipping charts that show traditional shipping rates falling to their lowest levels since February 2009 this has some concerned that the global inventory restocking might be coming to an end.

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News:

1) Jobs taking a leave from Apple - The timing of the announcement is not a coincidence in my opinion. Apple's earnings come out tonight and they clearly hope another 25 million people buying iCrap will offset the market's concerns about losing Mr. Jobs.

2) Citi missed expectations but the financial media seems to be taking the other angle. The headlines are "Citi reports an annual profit". The entire banking industry is still on shaky ground in my opinion and banks are recording profits by reducing their loss reserves while the number of people behind on their mortgages continues to grow. Sounds shockingly similar to stories from 2008, right? This will end well, I'm sure.

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Quote of the day:

“The economy remains on government-assisted life support, and the government has been very successful in creating the illusion of economic prosperity. It is doing this to buy time and help preserve social stability as the adjustment towards housing deflation, consumer deleveraging, and chronic unemployment takes its toll on the growth rate in organic final demand.”
-David Rosenberg

Cheers!

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