Minnesota finishes Islamic law compliant mortgages

In Minnesota, mortgages targeted to increase home ownership have been ended. Pawlenty ended the program upon learning that the program was compliant with Sharia law. The loan program only provided three mortgages between being set up by the Minnesota state housing agency and getting shut down by the governor. The mortgage program offered Shairia compliant loans that did not charge interest. Pawlenty cited constitutional religious protections when shutting down this program. Resource for this article – Sharia-compliant mortgage program in Minnesota ends by MoneyBlogNewz.

Minnesota avoiding paying interest

In early 2010, Minnesota’s state housing agency partnered with the African Development Center to create a loan program targeted toward low- to moderate-income individuals who follow Sharia law. Called “Islamic mortgages” or “Sharia mortgages,” these loans helped the borrower keep away from paying interest, which is against their religious law. The borrower would pay the state for the home at a higher rate than the state would buy the home. Payments are the exact same as a 30-year fixed mortgage would show. Still, there is no interest being paid on them. Another program that was meant to increase minority home ownership in Minnesota was the large program this came from.

Sharia loans are ridiculous according to governor Pawlenty

The Sharia loan program was one Governor Pawlenty found out about. He ordered that it stop immediately. This decision had several asking questions. Pawlenty's spokesperson said:

“This program was independently set up by the Minnesota state housing agency and did not make any mention of Sharia Law on its face, but was later described as accommodating it,” he wrote in an email. “As soon as Gov. Pawlenty became aware of the issue, he personally ordered it shut it down. The United States should be governed by the U.S. Constitution, not religious laws.”

A government decision on how tax dollars are spent comes only from the government. That is its right. The Sharia-compliant financial products aren't outlawed by the governor in this. There can't be state programs that support this. He doesn't think it is right.

Sharia law in accordance with a judge

Disputes can legally be settled with Sharia law for Muslims. This was what a Florida judge ruled in the courtroom. This decision has raised concern for several lawmakers. Several states are considering legislation that would ban the use of Sharia law; some commentators are calling the recognition of this religious law tantamount to “silent jihad” against the U.S.. The reality is, however, that the U.S. recognizes Christian, Jewish, Sharia and other religious laws as long as the laws don’t violate standing state and federal law. Sharia, along with other religious law, is not against the Constitution when it comes to obeying it. As long as the religion isn't being imposed on someone, it is fine. Pawlenty himself said, "The Constitution was designed to protect individuals of faith from government, not to protect government from individuals of faith." In the case of the Sharia-compliant mortgages, seems like that Pawlenty does not want his state taxp! ayer dollars used to offer home ownership to religiously compliant Islamic residents.

Citations

Swamp Land

swampland.blogs.time.com/2011/03/25/is-there-a-double-standard-in-tim-pawlentys-disavowal-of-sharia-compliant-mortgages/

Minnesota Public Radio

minnesota.publicradio.org/display/web/2009/02/28/islamicfinancing/?refid=0

Colorado short term installment loans bill HB 11-1290 up for debate

Payday loan lenders and the Colorado economy as a whole felt the pain when Colorado HB 10-1351 passed, in accordance with state Rep. Liston. In response to the controversial legislation, Colorado legislators have introduced HB 11-1290, which would fill the gap created when pay day loans were banned by requiring a full payment of origination fees up front, rather than allowing for a pro-rated amount should the client pay off their installment loan early. Article resource – Colorado short term installment loans bill HB 11-1290 up for debate by MoneyBlogNewz.

Getting Colorado House Bill 11-1290 to the committee

Introduced Friday on the floor of the legislature, Colorado House Bill 11-1290 might be debated as early as this week, reports the Colorado Statesman. The lender can make up to $75 on a maximum of $500 loaned after an short term installment loan origination fee of $20 for every $100 loaned up to $300 and $15 for every $100 loaned after that. In addition, a monthly maintenance of $7.50 per month per $100 and a finance charge of 45 percent can be charged according to Colorado law.

Loan providers suggest the full origination fee that HB 11-1290 supports is needed to continue business while Colorado loan providers cannot any longer do two-week payday advance loans.

HB 11-1290 sponsors predominantly voted against HB 10-1351

The legislation has 10 co-sponsors in the House, including Rep. Sue Schafer, D-Wheat Ridge, who voted "no" on HB 10-1351, also as Rep. Ed Casso, D-Commerce City, who favored HB 10-1351. U.S. Senate sponsors contain other anti-HB-1351 legislators for instance Sen. Mary Hodge, D-Brighton, and Sen. Lois Tochtrop, D-Adams County.

Said it is a technical correction

There are many Colorado supporters of House Bill 11-1290. They say that last year's HB 10-1351 is being corrected technically with the bill and origination fees. Rich Jones of the Bell Policy Center disagree:

"It’s an incentive for the lenders to get customers to pay off their loans early and then take out more loans," Jones told the Statesman Friday.

Articles cited

DORA

dora.state.co.us/Financial-Services/pdf_forms/Revised HB10-1351_2.pdf

State Bill Info

statebillinfo.com/bills/bills/11/1290_01.pdf

Colorado Statesman

coloradostatesman.com/content/992687-payday-lender-bill-being-fast-tracked-through-house

‘Steering Colorado’s economy back on course’

youtube.com/watch?v=3mHOl-S6F1s

Shortly, SSDI will go bankrupt

By 2005, the Social Security Disability Insurance (SSDI) fund was cashing checks its tax body couldn’t money. As almost half a million individuals went on Social Security past year, an obvious financial issue arises. This has led experts to predict that Social Security Disability Insurance will exhaust surplus funds in 4 to 7 years, states the Wall Street Journal.

Paying out $22 billion more than it makes with Social Security

By 2015, projections indicate that Social Security will spend $153 billion in benefits and other costs. That’s $22 billion more than it is expected to take in, underscoring a problem that many Americans will shortly face. It is expected that Medicare will last until 2029. The Social Security retirement fund is anticipated to go much longer to 2040. Government auditors explain that change has to happen. This is the only way that SSDI can be able to last more than seven years.

Social Security: Drowning in applicants

The Social Security program got more applicants than normal with the recession. There has been a huge increase in the last decade of the number of people getting Social Security. This number increased to 10.2 million individuals from 6.6 million. The Social Security Disability Insurance funds are needed by a lot of states and territories that the United States owns. In the last 10 years, there has been an 85 percent increase in Texas enrollment while, at the same time, New Hampshire has had a 69 percent growth. As a percentage of total population, West Virginia receives more Social Security Disability Insurance money than anywhere else.

Health troubles linked to manual labor are believed to be the cause, a common theme among states where agriculture and manufacturing are vital. Social Security is needed quite a bit in United States territories such as Puerto Rico considering military bases and factories keep closing. The highest joblessness is generally reported in these states also. Puerto Rico politics are another issue. There’s a lot of corruption.

Only allowed Social Security Disability Insurance if a doctor states so

Social Security and Medicare are both age-based programs. SSDI, on the other hand, is about medical opinion over other things. Local medical officials don't have any reasons to stop enrollment since somebody else pays for it. Government benefits are given with SSDI benefits although they are around $1,064 a month on average in 2009. Working class individuals end up picking up the tab. About $300,000 per person in these benefits with the additional programs are paid out to regular Social Security Disability Insurance patients, according to Massachusetts Institute of Technology's SSDI expert David Autor.

Is possible to have higher taxes?

In the short term, the only way Congress can save Social Security Disability Insurance without tax increases is to fold it to the main Social Security fund. Retirees would lose benefits pretty easily since the retirement fund would be lost. Nancy Altman is in the Social Security Works activist group. She claims something has to be done about this.

“This is a program of crucial importance to every working American and his or her family,” she said.

Citations

ssdi, social security, social security disability insurance, social security bankrupt

Where will Social Security Disability be in 4 years?

In 2005, the Social Security Disability Insurance fund began to dish out more money than it was bringing in via tax receipts. Considering that nearly half a million new Social Security recipients went on the dole last year, the impending issue is magnified. According to the Wall Street Journal, Social Security Disability Insurance will be empty in 7 years or fewer. Source of article – Social Security Disability Insurance may go dry in 4 years by MoneyBlogNewz.

Social Security will spend $22 billion more than it makes

There’s a $153 billion projection for Social Security on benefits and costs. This will hit by 2015. There will be a $22 billion deficit from what is being taken in. Americans are going to have to deal with this issue. It is expected that Medicare will last until 2029. The Social Security retirement fund is expected to go much longer to 2040. Government auditors explain that change has to happen. This is the only way that Social Security Disability Insurance will be able to last more than seven years.

Number of applications Social Security has

Due to the recession, more individuals have wanted Social Security. They have been applying like crazy. There has been a huge increase in the last decade of the number of individuals getting Social Security. This number increased to 10.2 million individuals from 6.6 million. The SSDI funds are needed by lots of states and territories that the United States owns. In the last 10 years, there has been an 85 percent increase in Texas enrollment while, at the same time, New Hampshire has had a 69 percent growth. Measuring the amount of Social Security Disability Insurance a state gets is done with the percentage of total population that has it. In this way, West Virginia gets more SSDI than any other state.

Health problems related to manual labor are believed to be the trigger, a common theme among states where agriculture and manufacturing are vital. United States territories like Puerto Rico heavily depend upon Social Security, considering the rash of factory and military base closures in recent years. Not coincidentally, such states also tend to have the highest unemployment numbers. There are lots of problems with political corruption in Puerto Rico too.

SSDI what a doctor decides

Unlike age-based programs like Medicare and Social Security retirement benefits, Social Security Disability Insurance is closely tied to medical opinion. Local medical officials do not have any reasons to stop enrollment since somebody else pays for it. In 2009, payments were around $1,064 in Social Security Disability Insurance benefits although they can be modest. David Autor works at the MA Institute of Technology as an SSDI expert. He said that regular SSDI benefits to one person can add up to about $300,000 over a lifetime.

Should we expect higher taxes shortly

Without increasing taxes, Congress could help Social Security Disability Insurance for a short time. The Social Security fund would have to be used for this. Retirees would lose benefits fairly quickly since the retirement fund would be lost. Nancy Altman is in the Social Security Works activist group. She states something has to be done about this.

“This is a program of crucial importance to every working American and his or her family,” she said.

Citations

Social Security Online

ssa.gov/disability/

Wall Street Journal

online.wsj.com/article/SB10001424052748703752404576178570674769318.html

Milton Friedman on Social Security: Save your money

youtube.com/watch?v=rCdgv7n9xCY

Social Security Online

ssa.gov/disability/

Wall Street Journal

online.wsj.com/article/SB10001424052748703752404576178570674769318.html

Milton Friedman on Social Security: Save your money

youtube.com/watch?v=rCdgv7n9xCY

Fewer people using credit cards but still borrowing money

Increasing quantities of individuals are borrowing money, however more people are getting personal loans instead of using credit cards. The Federal Reserve recently published data on consumer borrowing for the month of January. Borrowing increased by several billion dollars for that month, however people were mostly using non-revolving sources of credit. The report also covered use of credit cards. People are paying off their credit card debt in droves.

Consumer borrowing occurring more often leaving to higher debt amounts

Americans are borrowing cash from loan providers again, and it is reflected in the recently released report by the Federal Reserve detailing economic activity from Jan. of 2011, in accordance with Business Week. The January debt increase came from sources for instance auto loans and personal loans that are non-revolving credit sources. The revolving lines for instance credit cards weren’t the reason for this. Non-revolving debt increased by $9.26 billion, however consumer debts increased overall by an estimated $5 billion, in the fourth straight month of increasing numbers of individuals going to lenders for credit. For the sixth straight month, auto lending went up. This is what led experts to believe the increase came from auto sales, reports MSNBC.

Using credit cards less likely

Credit card use has been plummeting for some time, as the amount of debt held by Americans on credit cards declined by $4.25 billion. For the first time since Dec. 2008, charge card debt has increased in December 2010 although it went down 28 of the last 29 months. Credit card charge-offs, or debts written off by charge card businesses, declined to 7.45 percent for January 2010. Delinquencies and charge-offs have been declining for the past five consecutive months. A Dec. shopping spree was done though which credit cards seemed to be used for, although that was paid by Consumers quickly. There have been increases in charge card interest rates noted. Banks and businesses have not been able to add fees and change interest whenever they want causing them to have high interest rates and fees to start with.

More debt taken out by students

There was a $24.9 billion increase in student loans from the federal government in January 2011 as part of the non-revolving debts increase. Faster or later the students will have to borrow from private investors instead of from the government. This is because federal budget cuts will decrease capital available more than likely. The federal spending budget recently submitted by the House of Representatives cut more than $5 billion from the Pell Grant program, according to the Christian Science Monitor, though the Pell Grant program is expected to run a $20 billion deficit starting next year. When it comes to investments, a lot of people still consider college educations one of the most essential. Still, college costs have gone up a ton in past years.

Articles cited

Business Week

businessweek.com/news/2011-03-07/consumer-credit-in-u-s-increased-5-01-billion-in-january.html

MSNBC

msnbc.msn.com/id/41954342/ns/business-consumer_news/

Christian Science Monitor

csmonitor.com/USA/Education/2011/0225/Washington-trims-Pell-Grants-How-will-students-pay-fall-tuition

The 4 basics of leasing out your space

The rental market is becoming huge. Renting out any extra living space you already have is one way to make money. In fact, many people do help meet their mortgage payments by doing this. If you’re going to rent out space, you should take a few steps to protect your sanity. Source for this article – The four basics of renting out your space by MoneyBlogNewz.

1-Think about your market

Make sure you research before renting out any space. Take a look at places comparable to yours on Craigslist, online services and newspaper ads. Look at other places to see what is offered in leasing contracts. Decide how much money you have to bring in. Then, you can decide what your rental price is.

2-Make sure you understand the laws

States and cities usually have laws. These landlord/tenant laws have to be followed. Make sure you know the laws, even if it is only for one room with your house. Most areas have at least one landlord association that offers information on the fundamentals of the law. Landlord/tenant law can dictate everything from what you need to provide as part of your rental to how much notice you have to give before entering the rented area.

3-What about credit scores?

There aren't always people that have great credit. Sometimes credit is an issue. Your job as a landlord means deciding what is required for potential renters. This could contain a credit check sometimes. When looking at a credit history, it will show the history of someone's spending. This involves bill paying. You’ll end up paying between $75 and $100 whenever you run a credit rating though. A credit check is not required to rent your place out. Still, you might want to do it just to make sure the renters can pay for the place. It can be easier just to call references and check employment history.

4-Take a look at the documents with deposits and leases

Make sure you’ve the right documents to rent the place out. Both of you are protected well when documents is there. It can help prove residency and is good documentation. You can find standard rental agreements for state online or through landlord’s associations; read through the agreement carefully and make edits as you see necessary. Being the renter's friend does not mean anything. Make sure you nevertheless get a deposit. If something goes wrong — regardless how good of a friend your renter is — cleaning up after a renter moves out can be costly, and a deposit can pay for that.

Make sure the price of your place is right when considering the renter's finances and documents, even if it’s just one single room. It is very easy to get just a little bit of extra money inside your pocket every month if you do all the work.

Much more carry-on baggage means major costs for Transportation Security Administration

In accordance with the WA Post, airline passengers who do not like how much luggage check-in fees have ballooned are increasing the number carry-on baggage that must be inspected. The costs for inspecting the additional carry-ons are forcing the Transportation Security Administration to flex its spending budget to the max, which will eventually mean that taxpayers might be footing the bill. In accordance with Homeland Security Secretary Napolitano, the influx of carry-on baggage is costing approximately $ 260 million per year.

More carry-on luggage demands much more safety

So long as carry-on baggage fits an airline’s parameters, travelers have the right to bring it aboard. Sen. Mary Landrieu is the Senate Appropriations subcommittee chairwoman. Napolitano said to her that nothing comes free:

“When you have to pay to check a bag, it increases carry-on luggage, and that means there is more to inspect at the gate and so forth for passengers to get on planes,” she said.

Absorbing costs is important for the TSA to continue to function. Deciding who will cover the carry-on baggage costs is important right now. It will either be the airlines or United States working class individuals. Putting higher airport safety fees on airline tickets was a suggestion Napolitano had for Sen. Landrieu. Simply adding $5 to $10 a ticket would significantly help pay for the Transportation Security Administration. Napolitano states that $600 million a year would be added this way.

Decision from Congress on airport security fees hasn't come through yet

It is not new to put on an airport safety fee. Everyone has dealt with them. Annually it is proposed. It first started in 2002. However, Congress has not approved the airline ticket cost increase. The first profitable year since 2007 for the airline industry was reported due to fewer flights, higher ticket prices and other charges. Government estimates place 2011 airline profits at $5 billion and $5.6 billion in 2012. Perhaps Congress doesn’t want to push its luck with much more fees.

Luggage policies for economy air carriers

Check the baggage policies of your airline. You will want to know this before you get to the gate. It is really essential to know what is free and what costs money. Make sure you keep up with this. Generally wheelchairs will not count towards luggage and are free. Certain airlines allow children’s strollers for free without counting as part of the baggage allowance. Most don't allow extremely heavy baggage. This counts anything over 100 pounds. Most economy air carriers have these baggage policies:

• Southwest- Two checked bags up to 50 pounds each are free. Extra and oversized luggage ranges from $25 to much more than $100.
• JetBlue- One bag weighing 50 pounds or less might be checked for free. The second checked bag costs $50. Up to a 40-pound carry-on luggage piece is also free. One can be checked for free. Excess or oversized pieces run $50 to $100.
• Virgin America- First checked bag costs $25 and may weigh up to 70 pounds. Subsequent check-ins up to 50 pounds is $25. Excess and oversized bags run $10 to $50 each.

Articles cited

About.com Air Travel

airtravel.about.com/od/whatyoucancantpack/a/stuff2.htm

Washington Post

washingtonpost.com/wp-dyn/content/article/2011/03/03/AR2011030305679.html?wprss=rss_print/asection

Cenk Uygur vs. Ana Kasperian on carry-on luggage

youtube.com/watch?v=vrM2eOnheo0

Gasoline prices unlikely influenced by using United States oil reserve

The U.S. strategic oil reserve is being eyed by some members of Congress as a remedy to increasing gas and oil prices. The United States has an abundance of oil and gasoline on hand apart from the strategic reserve, yet some lawmakers think an additional infusion of supply will lower prices. Gas costs haven’t risen high enough yet to tap the reserve, according to the administration, which contends that such a move would send further panic through international oil markets.

The reason Congress would like this/span>

The largest oil reserve in the world is the United States strategic petroleum reserve. About 727 million barrels of oil are in there. Nationwide, the average price of a gallon of gas has risen 28 cents in the past 10 days. Selling a part of the strategic oil reserve was suggested by Senator Jeff Bingaman, D-N.M., as the chairman of the Senate Energy and Natural Resources Committee. He said this would help keep oil costs stabilized. Other politicians are saying that in addition to tempering upward pressure on gas prices, selling some of the strategic oil reserve would raise billions of dollars for deficit reduction and help fund programs to reduce United States oil consumption, such as tax breaks for electric vehicles and hybrids.

United States not running low on oil/span>

The Obama administration objects to tapping the U.S. strategic petroleum reserve as a response to the current spike in gas and oil costs, even though its 2012 spending budget proposal calls for selling $500 million worth of oil from the reserve to fund certain programs. What the administration believes is that, when the U.S. is not at all running short on oil, it would send a panic that is false to customers. A major oil storage facility in OK that supplies the interior U.S. has record inventories. From Canada, the United States is getting gasoline while North Dakota is beginning to produce. The U.S. Energy Information Administration reports that there is an abundance of oil in the crude oil inventories. It has reached 346.4 million barrels. U.S. gasoline inventories are at 9.86 billion gallons. Both inventories are at above-average levels for this time of year.

Solving the oil and gas price problem/span>

The Obama administration is making a good decision, oil industry analysts suggest. It would make individuals driving up the gasoline prices more fearful while doing nothing else to oil and gasoline prices. The supply of oil is not the problem, many suggest. They think a shortage of surplice production capacity is the issue everybody is facing. Continuing troubles in the Middle East will be the issue. The surplus oil production will stop. Without a surplus oil production capacity, there are many issues. The real troubles with oil price would begin. The oil markets will be better if the capacity to produce oil settles instead of attempting to temporarily stop the problem.

Information from/span>

New York Times

nytimes.com/2011/03/04/business/energy-environment/04oil.html?_r=1

Foreign Policy

oilandglory.foreignpolicy.com/posts/2011/03/04/the_weekly_wrap_march_4_2011

UPI

upi.com/Business_News/2011/03/03/Crude-oil-supplies-fall-slightly/UPI-22221299189942/