Americans Drive Cycle of Auto Debt

Financial advisers ponder meaning of 'competence'

(NEWSER) - The first sign of Arthur Packel's Alzheimer's was the call from the homeowner's association asking for unpaid fees. As his mind began its long slide, it turns out, the first thing he did was simply stop paying bills. When his wife tried to pick up the slack, she found much of their money gone. And despite a forensic accountant's efforts, “It just disappeared,” Renee Packel tells the New York Times . More»

Companies paying debt with debt have Fed worried

(NEWSER) - The government's efforts to boost lending, to beat the recession, are inadvertently stimulating a return to wildly risky loans that look sound only if you're wearing rose-colored-glasses. Companies are returning to credit-bubble practices, worrying analysts, including those at the Fed. In one instrument, a "covenant lite" loan, credit is given with virtually no restrictions. Another, the “Pik toggle,” allows debt to repaid with—you got it—more debt. More»

Don't make the same mistakes as Nicolas Cage and Annie Leibovitz

(NEWSER) - Celebrities really are just like us: During these financially stressful times, they’re suffering, too. On Huffington Post, Manisha Thakor points out the takeaway from four high-profile meltdowns.

• NBA Player Antoine Walker: Squandered away his $110 million fortune by age 33. The lesson? If you have a variable income, don’t spend based on peak earnings—spend based on average earnings.

Hotel-casino-condo-shopping behemoth brings 12K jobs, optimism to battered state

(NEWSER) - A gigantic addition to the Las Vegas Strip is a one-stop stimulus package for a city and state walloped by the recession and an $8.5 billion bet that happy days are near again. With 12,000 jobs, the CityCenter project—a kaleidoscope of condominiums, boutique hotels, shopping, and, of course, gambling—is the “single biggest hiring opportunity in the history of the US,” a rep tells Time, and with Nevada’s 13.2% unemployment, its December opening can’t come soon enough. More»

(NEWSER) - American banks will pull in $38.5 billion in overdraft fees this year, a record sum that's largely coming from pockets of the poorest and most indebted consumers. According to the Financial Times, banks hiked fees on overdrafts and credit cards as the financial crisis took hold; this year's take will be double that reported in 2000. Some 90% of overdraft revenues come from just 10% of checking account holders, many of whom have low credit scores. More»