anonymous said:

As an escort, instead of creating a fake business account could you just have a safe and keep the money (as you're paid in cash) in your house? Or deposit half into your regular savings account and keep the rest at home?

Okay, well I’m assuming a few things about you as I’m answering this. I will explain an alternative at the end. So I’m going to assume that you have no other job and escorting is your primary source of income. I will also assume that you are a mid-range escort (most mid-range escorts earn between $5000-20,000 a month depending on a variety of factors).

So could you keep your money in a safe in your house? Yes. However, unless you have a wall safe or a safe so heavy that it would require a team to lift it out, then it’s not really safe. So safety is a concern because when money is in the bank, it’s insured by the FDIC up to whatever dollar amount that bank is insured for. When your money is sitting at home, it can be stolen, get lost in a fire, whatever.

On top of that, if you are making so much that you cannot legitimately spend it monthly, that cash is ultimately useless to you in a safe at home. So by all means, pay for whatever you can in cash. However, you can only buy a car with $10,000 cash down payment or a house with the same cash down payment. Otherwise, it automatically flags the IRS. You cannot invest cash. I suppose you could try to buy gold or art, but you are gambling that those things will rise in value over time.

Now on to scenario two, depositing half. Okay, if you have no other income and even if you deposited half of your monthly income (we’ll stay conservative here and say $2500), it’s still going to be a whole lot of trouble. You could claim it’s a gift up until $14000. That’ll only last you a few months until you break that limit. $30,000 in cash in a year in one person’s account, when they have no other income, looks awfully shady. Besides, you shouldn’t deposit it in a savings account because you have to pay tax on the interest and you will actually lose money over time.

So let’s say you are working a regular job and you escort on the side. Then yes, you could probably get away with depositing some money in your personal account, but probably not more than $1000-1500 a month. So all in all, you’re almost forced to start an LLC. This is the exact dilemma I faced. My cash was doing nothing for me because I couldn’t invest it, I couldn’t spend it unless it was on small items.

Banking || Draven & Luke

With his new job, Luke was earning a lot more than he had been when he’d been working as a trainer in the Tower. He’d had a search online, and spoken to some of his teammates about it. They’d said it was probably best to move to a bigger bank.

So he’d found a bank. He decided to just get a taxi to it, and was now parked up outside the entrance. Luke paid the driver and got out, standing on the curb. He never dressed up smart, but he had a suit on with a button up shirt today. Luke figured that he’d be more likely accepted if he dressed smart.

Walking in, he looked around. Luke found himself hoping he’d run into someone he knew, perhaps a teammate. Not seeing anybody, he started towards the front desk. It was probably a good place to start.

The Disgrace Of Sacrificing A Generation


Would you like to know how bankrupt our societies are? Financially AND morally? Before you say yes, please do acknowledge that you too ar eparty to the bankruptcy. Even if you have means, or you have no debt, or you’re under 25, you’re still letting it happen. And you may have tons of reasons or excuses for that, but you’re still letting it happen.

Our financial and moral bankruptcy shows – arguably – nowhere better than in the way we treat our children. A favorite theme of mine is that any parent you ask will swear to God and cross and hope to die that they love their kids to death, but the facts say otherwise. We only love them as far as the tips of our noses, or as far as the curb. That means you too.

While we swear on our mother’s graves that we love them so much, we leave them with a world that lost half of its wildlife species in 40 years, that can expect to make coastal areas around the globe uninhabitable during their lifetimes, and a world that is so mired in debt just so we can hang on to our dreams of oversized homes and cars and gadgets that all there will be left for them are nightmares.

But I always wanted what was best for them! Yeah, well, you always chose to not pay too much attention, too, and instead elected to work that job you hate and keep up with the Joneses and tell yourself there was nothing you could do about it anyway other than a yearly donation to some socially accepted charity in bed with corporations (you didn’t know? well, did you try to find out?)

You elected leaders that promised to let you keep what you had, and provide more of the same on top. You voted for the people who promised you growth, but you never questioned that promise. You never wondered, sitting in your home, the size of which would only 100 years ago have put aristocracy to shame, what would be the price to pay for your riches.

And you certainly never asked yourself if perhaps it would be your own children who were going to pay that price. Well, ‘Ich hab es nicht gewüsst’ has not been a valid defense since the Nuremberg trials, in case you were going for that.

The fact of the matter is, we can continue our lifestyles, best as we can, because we are able to make our children pay for it. We allow ourselves to continue to kill more species, at home but mostly abroad, because we never get in touch with any of those species anyway. Other than mosquitoes, which we swat. We can drive our 3 cars per family because we only see the ice melt in the Arctic on TV.

And we allow ourselves, and our governments, to get deeper into debt everyday, because we’ve been told that without – ever – more debt we would all die, that debt is the lifeblood of our very existence. We don’t understand what it means that our governments increase their debt levels by trillions every year, and we choose not to find out.

That’s a matter for the next generation; we’re good with our oversized flatscreens and coal powered central heating and all of that stuff. We are better off than the generation of our parents, and isn’t life always supposed to be like that?

Which brings us back to your kids. Because no, life is not supposed to be like that. Not every generation can be better off than the one before. In fact, you are the last one for whom that is true. It’s been a short blip in human history, let alone in the earth’s history, and now it’s over. And you must figure out what you’re going to do, knowing that not doing anything will make your sons and daughters futures even bleaker than they already are.

Europe Sacrifices a Generation With 17-Year Unemployment Impasse

Seventeen years after their first jobs summit European Union leaders are divided on how to create employment and a fifth of young people are still out of work. At a meeting in Milan today Italian Prime Minister Matteo Renzi plans to tout the new labor laws he’s pushing through. French President Francois Hollande will argue for more spending, a proposal German Chancellor Angela Merkel intends to reject. Britain’s prime minister David Cameron isn’t coming.

Their lack of progress may increase the frustration of ECB President Mario Draghi’s calling on the politicians to do their bit now and loosen the continent’s rigid labor markets even if that means facing the ire of protected workers. “An entire generation is being sacrificed in countries such as Spain,” economist Ludovic Subran said. “That has a real impact on productivity in the long run.”

How someone can talk about “a real impact on productivity” in the face of millions of lost and broken lives is completely beyond me. You have to be really dense to do that. And they pay people like that actual salaries.

When EU leaders met in Luxembourg in November 1997, the soon-to-be-born euro zone’s unemployment rate was about 11%. Jean-Claude Juncker, then prime minister of the host country, now president designate of the European Commission, promised a mix of free-market solutions and government plans would mean a “new start” for young people. Today the jobless rate is 11.5%. The Milan summit will focus on youth unemployment, which afflicts 21.6% of people under 25 across Europe, according to Eurostat. Even this number is almost identical to 1997, when it stood at 21.7%.

Average European youth unemployment numbers may not have changed much since 1997, which is bad enough, but plenty numbers did change. The young people of Greece, Spain, Italy and Portugal were not nearly as poorly off 17 years ago as they are today. That’s what the eurozone project has accomplished.

The leaders “need to discuss meaningful job creation,” Subran said. “It’s about avoiding the neither-nor situation of people being out of both work and school. This means providing jobs in the short term and training to improve skills and employability in the long term.” In February 2013, the EU allotted €6 billion ($7.6 billion) for youth-employment initiatives between 2014 and 2020, with the bulk of the spending in the first two years.

The centerpiece of the initiative is a “Youth Guarantee” that anyone under 25 should have either a job, apprenticeship, or training program within four months of leaving formal education or becoming unemployed. The initiative focuses on regions with over 25% youth unemployment, which is the whole of Spain, Greece, and Portugal, all but the north-east of Italy, about half of France, and a few regions of eastern Germany.

Lofty words. But nothing has come of them in many years, and nothing will. Politicians vie for the votes and campaign donations of the parents, not the children. Until the children are the majority block, but by then present day leaders will be gone.

Germany is opposed to discussing new spending until already allotted sums have been spent. Instead, Merkel’s government has stressed liberalization of labor markets as the best path to create jobs. France and Italy argue they are already taking steps to loosen their labor markets and those efforts won’t work without a background of growth.

Italy’s proposed rules, opposed by some lawmakers from Renzi’s Democratic Party, aim at making firing easier while providing a new system of income support for those who lose their job. European employment did improve after 1997, with the unemployment rate bottoming between 2007 and 2008 at 7%, and 15.7% for young people, as a credit bubble boosted growth in Spain and Greece.

It ballooned during the subsequent financial crisis. “I’m worried how the euro zone has detached itself from the rest of the world economy,” French Prime Minister Manuel Valls told business leaders in London Oct. 6. “If there is no strategy to support growth at the eurozone, we will be in even greater trouble.”

The only solutions in the minds of the leadership are reforms (make it easier to get rid of the older people and let the young do their jobs at half the price) and growth. Both of which have failed for all those years, but that’s all folks so they press for more of the same. Who cares about the young until they can unseat you?

The present leadership selects for a future in which they – and theirs – will still be the leadership. It’s only natural. Any victims made along the way there are seen as necessary collateral damage. Reforms and growth. Reforms being break down what generations of workers have built up in rights. Fighting squalid working conditions and miserable low pay. Think about that what you like.

But growth? What if there is no growth? Hey, even the IMF just said growth won’t return to levels of old. And then called for more reforms. But what lives will your children have if growth is gone, and what are you prepared to for them is it is? How are you going to soften the blow for them? How much are you willing to sacrifice for your children lest they be sacrificed by society?

One last thing: it seems obvious that we teach our kids the wrong skills. Or there wouldn’t be so many unemployed or in low-paying jobs. So if we want our kids to get a job, what should change in our education systems? Now, I must be honest with you, I’ve found our education so bad ever since I was even younger than I am now that I up and left.

I simply noticed that it was meant for people happy to be pawns in someone else’s game, and I knew that wasn’t me. Colleges and universities mold people into usable – not even useful – ‘things’, provided there is no independent thinking going on. Because that kills the entire set-up. It’s all been an utter disgrace for decades.

But this is not about me. The question is, what are we going to teach our kids? Well, with our present power structure, it will be a mere extension of what there is today. The overriding idea is that tomorrow will be like today, just with more of the same. That’s all we know, and all we have. And that’s what keeps our leaders happy too: a world in which they feel they can be safely settled into their comfy seats. Progress while sitting still. Don’t think I’m right? THink about it.

So would do you think the consensus would be when it comes to education? I think it would be having our kids be managers, lawyers, programmers, the same things that are ‘in’ today. More of the same, just more. But is that so wise if even the IMF says growth will never be the same it once was? What if things get really bad? What skills will they have that can help them through times like that?

Shouldn’t we perhaps teach our kids basic skills first, just in case? So they can grow and preserve food, build a home, repair machinery, that kind of thing? And only after that deal with the fancier stuff?

We have become utterly dependent on the ‘system’. Is it a good idea for our kids to be too? We lost our basic skills – or at least our parents did – at the exact same time that ‘growth’ became the magic word du jour. The idea was that we didn’t need them anymore, that other people would grow our food and take care of all the other basic necessities for us.

But what if that was just a temporary bubble, and it’s gone now? The data sure point to it. In that case, should we rush to move back our sons and daughters to the skillset our grandparents had?

And just in case you think this is all and only about Europe, this is a great portrait of America:

Nathaniel Popper:

JPMorgan Chase’s chief financial officer, Marianne Lake, took the stage at a financial conference on Tuesday under strict orders not to mention her company’s involvement in Apple’s new payment system.

But when Apple’s chief executive, Timothy D. Cook, at a news conference in California at the same time, finally brought up Apple Pay, one of Ms. Lake’s deputies in New York took a green apple out of her bag and put it on a table on the stage, signaling that Ms. Lake was free to discuss the service.

Subtle. In other tradecraft:

From the beginning, the project was top secret, with what one person involved called a “code name frenzy.” The card companies had code names for Apple and Apple for the card companies. At Visa, the code name was another consumer electronics company, chosen to avert attention from employees who were not involved. Visa soon had about a thousand people on the team.

Would love to know which other consumer electronics company was served up as the red herring.

All in all, pretty amazing how much pull Apple proved to have over another massive industry. That’s was being the most valuable company in world gets you, I suppose.

Watch on funnyordie.tumblr.com

Mobile Cash Deposit

A new “honor-system” app lets you deposit cash remotely by snapping a photo of it! (Please use responsibly.)

2

National Marine Bank
Gay Street and Water Street, Baltimore, Maryland
circa 1915
Hughes Company
8x10 inch glass negatives
Baltimore City Life Museum Collection
Maryland Historical Society
MC7071 A
MC7071 B

Google Maps Street View of the building today:


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Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.

Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence… both on the borrower as well as the property.

It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed. Duh.

Congress doesn’t agree. Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.

And we certainly can’t have that going on in the Land of the Free.

So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.

Curiously, this legislation reverses several provisions in the 1968 ‘Truth in Lending Act’.

It’s as if Congress is now anti- ‘Truth in Lending’ and pro- ‘whatever the hell gets the money on the street’.

And of course, all of this comes at a time when mortgage rates are still near their all-time lows.

You can borrow money to buy a home today at just 4%. That’s less than half the long-term average of 8.5%, and a fraction of the 16%+ people were stuck paying 30 years ago.

Isn’t paying 4% affordable enough? Nope. Not according to Congress.

So now they’re trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.

This comes at a pivotal time. US banks are only now just barely starting to recapitalize after the early days of the financial crisis.

They’ve unloaded their toxic assets to the US government and Federal Reserve.

They’ve borrowed money at essentially 0% from the Fed and loaned it to the Treasury Department at interest (the mother of all scams).

After six years of these freebies and taxpayer-funded bailouts, bank balance sheets are only now starting to clear up.

So what does Congress do? They propose a new law to screw up bank balance sheets all over again.

It’s idiocy on an epic scale… and it makes one wonder what team of monkeys is coming up with these ideas.

“Somehow I was expecting something … bigger,” said Moist, looking through the steel bars into the little room that held the gold. The metal, in open bags and boxes, gleamed dully in the torchlight.

“That is almost ten tons of gold,” said Bent reproachfully. “It does not have to look big.”

“But all the ingots and bags put together aren’t much bigger than the desks out there!”

“It is very heavy, Mr. Lipwig. It is the one true metal, pure and unsullied,” said Bent. His left eye twitched. “It is the metal that never fell from grace.”

“Really?” said Moist, checking that the door out of there was still open.

“And it is also the only basis of a sound financial system,” Mr. Bent went on, while the torchlight reflected from the bullion and gilded his face. “There is Value! There is Worth! Without the anchor of gold, all would be chaos.”

“Why?”

“Who would set the value of the dollar?”

“Our dollars are not pure gold, though, are they?”

“Aha, yes. Gold-colored, Mr. Lipwig,” said Bent. “Less gold than seawater. Gold-ish. We adulterated our own currency! Infamy! There can be no greater crime!” His eyes twitched again.

“Er … murder?” Moist ventured. Yep, the door was still open.

Mr. Bent waved a hand. “Murder only happens once,” he said, “but when the trust in gold breaks down, chaos rules. But it had to be done. The abominable coins are, admittedly, only goldish, but they are at least a solid token of true gold in the reserves. In their wretchedness, they nevertheless acknowledgethe primacy of gold and our independence from the machinations of government! […]”

“I read somewhere that the coins represent a promise to hand over a dollar’s worth of gold,” said Moist helpfully.

Mr. Bent steepled his hands in front of his face and turned his eyes upward, as though praying.

“In theory, yes,” he said after a few moments. “I would prefer to say that it is a tacit understanding that we will honor our promise to exchange it for a dollar’s worth of gold, provided we are not, in point of fact, asked to.”

“So … it’s not really a promise?”

“It certainly is, sir, in financial circles. It is, you see, about trust.”

“You mean, trust us, we’ve got a big expensive building?”

“You jest, Mr. Lipwig, but there may be a grain of truth there.”

~ Terry Pratchett, Making Money

Money.

We all like money, right? Money is relevant to our lives before school, during school and after school. Some of us that go to school never use some of the courses we NEED to take. Why isn’t there a course about how to save money? Or how to invest, or how to put into an RRSP? OR EVEN HOW TO PAY YOUR DAMN TAXES… (this hits home a little) Thank goodness I have parents who have worked for banks and are in the accounting business, but what if I didn’t?

Who would teach me how to do these things?

Now I still don’t know much about any of these things I have mentioned because I am still learning… But I write this to put a spark in your head to think about it! Ask questions! Saving and thinking about money crap is scary sometimes, but it doesn’t have to be.

What is your opinion on this? Would you be thankful to have these skills after high school graduation?

As we’ve reported for over 4 years, the Federal Reserve banks are private, not government agencies.

Indeed, the government admitted 86 years ago that the Fed banks are private. And the Fed has repeatedly reaffirmed this fact.

As Matt Stoller points out, they have just done so again … in the AIG trial. Specifically, government lawyers said:

Now, some of the documents … were not actually produced by the United States, they were produced by the Federal Reserve Bank of New York, which is a third party.

18 SOBERING FACTS ABOUT THE UNPRECEDENTED STUDENT LOAN DEBT CRISIS IN THE UNITED STATES

The student loan debt bubble in America is spiraling out of control, and it is financially crippling an entire generation of young Americans

The student loan debt bubble in America is spiraling out of control, and it is financially crippling an entire generation of young Americans.  At this point, the grand total of student loan debt in the United States has reached a staggering 1.2 trilliondollars, and an all-time record high 40 million Americans are currently paying off student loan debts.  Just when our young people should be planning on buying homes and starting families, they find themselves financially paralyzed by oppressive levels of debt.  What makes all of this even worse is that only some of our college graduates are able to get the “good jobs” that we promised them.  So with limited job prospects and suffocating levels of debt, this generation of young Americans is increasingly putting off major life commitments such as buying a home and getting married.  As a society, we really need to rethink how we are “educating” our young people, because what we are doing now is clearly not working.  The following are 18 sobering facts about the unprecedented student loan debt crisis in the United States…

#1 According to the Wall Street Journal, the class of 2014 is “the most indebted ever“…

As college graduates in the Class of 2014 prepare to shift their tassels and accept their diplomas, they leave school with one discouraging distinction: They’re the most indebted class ever.

The average Class of 2014 graduate with student-loan debt has to pay back some $33,000, according to an analysis of government data by Mark Kantrowitz, publisher at Edvisors, a group of web sites about planning and paying for college. Even after adjusting for inflation that’s nearly double the amount borrowers had to pay back 20 years ago.

#2 In 1994, less than half of all college graduates left school with student loan debt.  Today, it is over 70 percent.

#3 Approximately 15 percent of graduate and professional school students leave school with student loan debt balances in the six figures.

#4 At this point, student loan debt has hit a grand total of 1.2 trillion dollars in the United States.  That number has grown by about 84 percent just since 2008.

#5 According to the Pew Research Center, nearly four out of every ten U.S. households that are led by someone under the age of 40 is paying off student loan debt right now.

#6 The median net worth of young households that have student loan debt is 20 percent lower than the median net worth of young households that do not have any student loan debt and that are led by someone with only a high school education.

#7 Among college educated people, the median net worth of young households that do not have student loan debt is seven times higher than the median net worth of young households that do have student loan debt.

#8 In 2008, approximately 29 million Americans were paying off student loan debts.  Today, that number has ballooned to 40 million.

#9 Since 2005, student loan debt burdens have absolutely exploded while salaries for young college graduates have actually declined

The problem developing is that earnings and debt aren’t moving in the same direction. From 2005 to 2012, average student loan debt has jumped 35%, adjusting for inflation, while the median salary has actually dropped by 2.2%.

#10 According to CNN, 260,000 Americans with a college or professional degree made at or below the federal minimum wage last year.

#11 Even after accounting for inflation, the cost of college tuition increased by 275 percent between 1970 and 2013.

#12 Debt for law school students has risen dramatically over the past decade or so

J.D.s certainly don’t come cheap. It’s almost unheard of to attend law school without taking out significant loans. What’s more, the average debt load is mounting: in 2001-2002, JDs borrowed on average $46,500 at public law schools and $70,000 at private law schools; by 2011, those numbers rose to $75,700 and $125,000, respectively.

#13 Last year it was being reported that 34.9 percent of all student loan borrowers under the age of 30 are at least 90 days behind on their student loan payments.

#14 One survey found that 27 percent of those with student loan debt moved back in with their parents after college.

#15 Another survey found that 70 percent of all college graduates wish that they had spent more time preparing for the “real world” while they were still in school.

#16 Student loan debt is causing many young Americans to delay getting married.  The following is from a recent NBC News article

While there is no specific data on student debt-related delays to marriage, a recent study by the Pew Research Center shows that a record number of Americans have never married. The study found the median age at first marriage is now 27 for women and 29 for men. In 1960, the median age was 20 for women and 23 for men.

#17 Many Americans are not even using most of their student loan money to pay for college.  Instead, many are using much of that money to pay bills or stock the fridge

Take Ray Selent, a 30-year-old former retail clerk in Fort Lauderdale, Fla. He was unemployed in 2012 when he enrolled as a part-time student at Broward County’s community college. That allowed him to borrow thousands of dollars to pay rent to his mother, cover his cellphone bill and catch the occasional movie.

Tommie Matherne, a 32-year-old married father of five in Billings, Mont., has been going to school since 2010, when he realized the $10 an hour he was making as a mall security guard wasn’t covering his family’s expenses. He uses roughly $2,000 in student loans each year to stock his fridge and catch up on bills. His wife is a stay-at-home mother who also gets loans to take online courses.

We’ve been taking whatever we can for student loans every year, taking whatever we have left over and using it to stock up the freezer just so we have a couple extra months where we don’t have to worry about food,” says Mr. Matherne, who owes $51,600 in federal loans.

Some students end up going deeper into debt. Early last year, when Denna Merritt lost her long-term unemployment benefits, the 49-year-old Indianapolis woman enrolled part-time at the Art Institute of Pittsburgh’s online program, aiming for a degree in graphic design. She took out $15,000 in federal loans, $2,800 of which went to catch up on unpaid bills, including utilities, health-insurance premiums and cable.

“Obviously, it’s better not to use it that way if you can help it, because you’re just going to owe that much more later,” says Ms. Merritt, a former bookkeeper.

#18 Only 28 percent of Americans know that the U.S. government can garnish wages and withhold tax refunds if student loan debts are not repaid.

It should come as no surprise that the delinquency rate on student loan debt in this country is far higher than the delinquency rate on mortgages, auto loans and credit card debt.

This is a financial bubble that gets worse with each passing year, and if we continue on our current course it is going to end very, very badly.