Here is what a friend had to say about "Cash for Clunkers". Ignore all the gas savings and just look at how the car buyer got taken to the cleaners.
If you traded in a clunker worth $3500, you get $4500 off for an apparent "savings" of $1000. However, you have to pay taxes on the $4500 come April 15th (something that no auto dealer would tell you). If you are in the 30% tax bracket, you will pay $1350 on that $4500. So, rather than save $1000, you actually pay an extra $350 to the feds.
In addition, you traded in a car that was most likely paid for. Now you have 4 or 5 years of payments on a car that you did not need, that was costing you less to run than the payments that you will now be making. But wait, it gets even better: they also got ripped off by the dealer.
For example, every dealer in LA was selling the Ford Focus with all the goodies including A/C, auto transmission, power windows, etc for $12,500 the month before the "cash for clunkers" program started. When "cash for clunkers" came along, they stopped discounting them and instead sold them at the list price of $15,500.
So, you paid $3000 more than you would have the month before. (Honda, Toyota, and Kia played the same list price game that Ford and Chevy did). So lets do the final tally here: You traded in a car worth: $3500 You got a discount of: $4500 Net so far +$1000 But you have to pay: $1350 in taxes on the $4500 Net so far: -$350 And you paid: $3000 more than the car was selling for the month before Net -$3350 We could also add in the additional taxes (sales tax, state tax, etc.) on the extra $3000 that you paid for the car, along with the 5 years of interest on the car loan but lets just stop here.
Who actually made out on the deal? The feds collected taxes on the car along with taxes on the $4500 they "gave" the buyer. The car dealers made an extra $3000 or more on every car they sold along with the kickbacks from the manufacturers and the loan companies. The manufacturers got to dump lots of cars they could not give away the month before. And the poor consumer got saddled with even more debt that many cannot afford.
Congress convinced Joe consumer that he was getting $4500 in "free" money from the "government" when in fact Joe was giving away his $3500 car and paying an additional $3350 for the privilege.
When we look at all the numbers it looks as only a few reaped the benefits from the Cash for Clunkers program. We never really get anything for free!
Later...
Scott
http://www.fdipays.com/
Friday, October 2, 2009
Saturday, September 26, 2009
Whats new?
Time has been flying by and I can definitely tell from my blog entries! My Twitter posts are always current with my uncontrollable raves and rants... It hard keeping my views to myself and watching the politicians spend our taxpayer monies gives me a lot to rant about. Without freedom and capitalism we wouldn't have business, so don't take it personal if I rant about big government. We need business to make money!
As for FDI we are here and growing!!!
This is a exciting time with the global slowdown, people are looking for opportunity and FDI has something for everyone. So if you re looking for additional income or looking for personal and financial services check us out. In today's current financial turmoil FDI's Credit Trax, Equity Trax along with LifeLoc and Teledoc are services that will save you money, help eliminate debt and protect your good name.
Summer and Fall is always a busy time so updates are few...That's where the FUN come in.... some of that fun is shared on Twitter and some is just to much to share....
Until next time...
Scott
Sunday, August 9, 2009
Riding doesn't have to cost you a fortune!
Over the years motorcycle shop rates have been inching up, $80 per hour and up are very common. Everyone has the ability to learn so why not you!
Buying that new or used motorcycle is always fun but as you put on those miles it also needs proper maintenance. People mention paying $1oo or more to get a basic oil change. Dealers need to make money so they can provide us with their services, but it never hurts to learn the basics if you want to save.
Where do we start?
Start by purchasing a factory repair manual, then find a Mentor that is willing to show you the basics of maintaining your motorcycle. Most people with years of experience will guide you in the right direction plus we always enjoy sharing our knowledge.
Doing the simple fluid changes and minor adjustments can save you a pile of cash without jeopardizing the integrity of your motorcycle. Save all your receipts and don't forget to document the mileage. Learning the basics will allow you to be more safety conscious adding more satisfaction to your experience!
These steps will bring you years of enjoyable riding along with new friendships.
Ride safe,
Scott
www.fdipays.com
Buying that new or used motorcycle is always fun but as you put on those miles it also needs proper maintenance. People mention paying $1oo or more to get a basic oil change. Dealers need to make money so they can provide us with their services, but it never hurts to learn the basics if you want to save.
Where do we start?
Start by purchasing a factory repair manual, then find a Mentor that is willing to show you the basics of maintaining your motorcycle. Most people with years of experience will guide you in the right direction plus we always enjoy sharing our knowledge.
Doing the simple fluid changes and minor adjustments can save you a pile of cash without jeopardizing the integrity of your motorcycle. Save all your receipts and don't forget to document the mileage. Learning the basics will allow you to be more safety conscious adding more satisfaction to your experience!
These steps will bring you years of enjoyable riding along with new friendships.
Ride safe,
Scott
www.fdipays.com
Monday, August 3, 2009
Cash For Clunker!
Cash for Clunkers good or bad?
I'll admit owning a new vehicle is exciting, it gives you that warm fuzzy feeling and even turns the neighbors heads when you come rolling into the driveway.
But will it be worth it?
To some owning a new car is a sound decision, to others it can turn into a nightmare. The response to this program has been swift to say the least, but who will the winners really be?
So far the winners are the car manufactures & dealers for moving their inventory, the scrap iron industry for crushing your trade in and the banks for making money in finance charges!
Will you win?
My concerns are for the people that participated, will this new car become a blessing or a burden. Due to the unsettled economic times the last thing we need is a "mortgage mess" scenario inside the auto industry. If your future employment is secure and you didn't over buy you may be a winner too.
All these so called deals don't always have the end consumers interests at heart...I'm all for stimulating the economy but using credit to acquire more debt isn't always the answer and in more cases its the problems!
For everyone that received a new car, congratulations!
Later,
Scott
www.fdipays.com
I'll admit owning a new vehicle is exciting, it gives you that warm fuzzy feeling and even turns the neighbors heads when you come rolling into the driveway.
But will it be worth it?
To some owning a new car is a sound decision, to others it can turn into a nightmare. The response to this program has been swift to say the least, but who will the winners really be?
So far the winners are the car manufactures & dealers for moving their inventory, the scrap iron industry for crushing your trade in and the banks for making money in finance charges!
Will you win?
My concerns are for the people that participated, will this new car become a blessing or a burden. Due to the unsettled economic times the last thing we need is a "mortgage mess" scenario inside the auto industry. If your future employment is secure and you didn't over buy you may be a winner too.
All these so called deals don't always have the end consumers interests at heart...I'm all for stimulating the economy but using credit to acquire more debt isn't always the answer and in more cases its the problems!
For everyone that received a new car, congratulations!
Later,
Scott
www.fdipays.com
Thursday, July 16, 2009
Zer01 Wants To Turn Retailers Into Carriers
Buzzirk Mobile may face competition!
One important reminder to anyone that researches a Home Based business..Make sure the products are exclusive of at least limited
to purchase from the supplier!
Buzzirk Mobile was under the impression that they had exclusive rights to offer this service but things might be changing soon Zer01 Wants To Turn Retailers Into Carriers: "Las Vegas- Major retailers could be offering unlimited cellular VoIP and data..."
Keep a close eye on this story, it may never materialize but the intent is there. This technology is becoming extremely popular so having exclusive rights is always the best option.
Now for some recent news on this technology!
On July 4th, 2009 Financial Destination Inc announced that Kuba Farbiarz, the founder of GI Connect, creator of its proprietary technology and worldwide communication platform, has joined FDI for the pre-launch of FDI International coming in August!
Check back for more information soon.
Scott
www.fdirep.com/ses
One important reminder to anyone that researches a Home Based business..Make sure the products are exclusive of at least limited
to purchase from the supplier!
Buzzirk Mobile was under the impression that they had exclusive rights to offer this service but things might be changing soon Zer01 Wants To Turn Retailers Into Carriers: "Las Vegas- Major retailers could be offering unlimited cellular VoIP and data..."
Keep a close eye on this story, it may never materialize but the intent is there. This technology is becoming extremely popular so having exclusive rights is always the best option.
Now for some recent news on this technology!
On July 4th, 2009 Financial Destination Inc announced that Kuba Farbiarz, the founder of GI Connect, creator of its proprietary technology and worldwide communication platform, has joined FDI for the pre-launch of FDI International coming in August!
Check back for more information soon.
Scott
www.fdirep.com/ses
Friday, May 29, 2009
Additional fees with Credit Card reform?
Wow how the time passes!! Hopefully you have been following my updates on Twitter as I'm more of a 140 character person than a blogger..
It has been a busy spring starting with the flooding and then all the cool spring like weather. Finally I can tell summer is here as the gas prices have been going up and that is a sure sign of SUMMER, as for me riding a Harley sure does make a difference when it's time to fill the gas tank. Having fun and saving fuel, what a concept!
The biggest news in the financial world this past month was the Credit Card reform that the Senate passed. I have mixed emotions about this reform and I feel it will eventually hurt the average consumer with additional fees.
So here is my buyers beware...
Watch for additional Fees...
Now I hope that I am wrong on this idea
The Credit Card Companies want to make money, when they lose the ability to generate income they always find other alternatives for the shortfall. This is business but it is unfortunate our government has to create laws to govern the industry. I do feel if government wants to help, start educating the public about using credit and the cost of having debt.
My advice is watch your monthly statements, read any updated customer agreement. If you don't like the terms don't do the deal. Work on keeping that credit score in the best shape, this alone is a major cost savings. The fallout from the current credit crunch will be costly for anyone that has damaged their credit.
Don't forget FDI has some great services that helps restore those credit scores back to the best possible shape! Bad credit is big business and at your expense, become proactive and fight back..
Now its time to enjoy our nice weather!
Prosper and enjoy,
Scott
www.fdipays.com
It has been a busy spring starting with the flooding and then all the cool spring like weather. Finally I can tell summer is here as the gas prices have been going up and that is a sure sign of SUMMER, as for me riding a Harley sure does make a difference when it's time to fill the gas tank. Having fun and saving fuel, what a concept!
The biggest news in the financial world this past month was the Credit Card reform that the Senate passed. I have mixed emotions about this reform and I feel it will eventually hurt the average consumer with additional fees.
So here is my buyers beware...
Watch for additional Fees...
Now I hope that I am wrong on this idea
The Credit Card Companies want to make money, when they lose the ability to generate income they always find other alternatives for the shortfall. This is business but it is unfortunate our government has to create laws to govern the industry. I do feel if government wants to help, start educating the public about using credit and the cost of having debt.
My advice is watch your monthly statements, read any updated customer agreement. If you don't like the terms don't do the deal. Work on keeping that credit score in the best shape, this alone is a major cost savings. The fallout from the current credit crunch will be costly for anyone that has damaged their credit.
Don't forget FDI has some great services that helps restore those credit scores back to the best possible shape! Bad credit is big business and at your expense, become proactive and fight back..
Now its time to enjoy our nice weather!
Prosper and enjoy,
Scott
www.fdipays.com
Monday, April 27, 2009
My work in progress!
If you're visiting my blog you're probably wondering what you came across..
Am I right?
Well don't feel bad cause I share your pain too. This will be always be a work in progress and who knows what subject you will find.. OK I know I'm going against the traditional blog that stays on the same subject but HEY that's me!
I talk about Credit and Debt, very depressing subject but a must or it will eat you alive, we talk about marketing and making money too! OK the money part gets me excited cause money equals fun and FUN is where its all at...
So just bare with me and check back soon to see "what the hell was he thinking" or not..
Oh I forgot to mention that I'm passionate about Harley Davidson motorcycles!!! something to do about freedom on the road..:)
Check back later,
Scott
http://www.fdipays.com/
Am I right?
Well don't feel bad cause I share your pain too. This will be always be a work in progress and who knows what subject you will find.. OK I know I'm going against the traditional blog that stays on the same subject but HEY that's me!
I talk about Credit and Debt, very depressing subject but a must or it will eat you alive, we talk about marketing and making money too! OK the money part gets me excited cause money equals fun and FUN is where its all at...
So just bare with me and check back soon to see "what the hell was he thinking" or not..
Oh I forgot to mention that I'm passionate about Harley Davidson motorcycles!!! something to do about freedom on the road..:)
Check back later,
Scott
http://www.fdipays.com/
Does Social Networking have you confused?
Dealing with all the Social Media networks and Web 2.0 techniques you may find yourself in total confusion to say the least. I thought I should share a few of these tools that have made it all possible for me to keep up!
It was only few years ago when I first heard the term Web 2.0 or social media and started to dig a little deeper in this technology. I visited sites like YouTube, Myspace and Facebook but wasn't sure of how or why I needed to have my own profile until I discovered Mike Dillard and a simple training program called Building On A Budget. This was my introduction to Web 2.o!
Taking the information that I learned in the BOAB program I started exploring the correct way to build business relationships by using all the tools available. It's amazing what you can do with some information and the simplicity that comes with Twitter!
Twitter has been the simplest Social Networking tool by far. The concept is simple follow people and let them follow you back. Then you post updates about your current events, pictures, ideas you may have and finally you can share URL links about your business! Most people will follow you back and many will interact with you if you are genuine so don't throw your business proposal at them the first time or you lose!
Believe me on this one as I started marketing when ICQ was the big player, only if I would have known about Magnetic Sponsoring. Let me show you a few Twitter tools that can make your Social Networking experience more enjoyable.
Start adding some friends and please don't forget me..:) next post a few updates about your day good or bad, its that simple!
Now to the good stuff..
My recommendations to make your Twitter experience enjoyable for everyone!
TweetLater allows you to auto follow or unfollow people plus much more. Check their website out for all the details.
TwitPic is a service that allows you to upload photos and share them with your Twitter Followers. Followers love pictures! You can also post the pictures from your phone through email.
Twitter Karma is a great tool to manage your followers.
TwitterTise works great for scheduling tweets and tracking your URL links when you advertise your business.
Twittad allows you to monetize your Twitter background by sponsoring ads.. now your twitter account is more than fun!
This list will be more than enough to get your Twitter account rocking, if you're mobile like myself and use a Blackberry here are a few applications for Twitter.
UberTwitter is the application on my Storm. Still in the beta form but very stable.
TwitterBerry is also a favorite of mine...
Social networking is becoming a very important part of online and traditional business models, now is the time to jump aboard. Take the time and learn how to enrich your networking abilities and it's all free! If you have any questions direct message me on Twitter!
It was only few years ago when I first heard the term Web 2.0 or social media and started to dig a little deeper in this technology. I visited sites like YouTube, Myspace and Facebook but wasn't sure of how or why I needed to have my own profile until I discovered Mike Dillard and a simple training program called Building On A Budget. This was my introduction to Web 2.o!
Taking the information that I learned in the BOAB program I started exploring the correct way to build business relationships by using all the tools available. It's amazing what you can do with some information and the simplicity that comes with Twitter!
Twitter has been the simplest Social Networking tool by far. The concept is simple follow people and let them follow you back. Then you post updates about your current events, pictures, ideas you may have and finally you can share URL links about your business! Most people will follow you back and many will interact with you if you are genuine so don't throw your business proposal at them the first time or you lose!
Believe me on this one as I started marketing when ICQ was the big player, only if I would have known about Magnetic Sponsoring. Let me show you a few Twitter tools that can make your Social Networking experience more enjoyable.
Start adding some friends and please don't forget me..:) next post a few updates about your day good or bad, its that simple!
Now to the good stuff..
My recommendations to make your Twitter experience enjoyable for everyone!
TweetLater allows you to auto follow or unfollow people plus much more. Check their website out for all the details.
TwitPic is a service that allows you to upload photos and share them with your Twitter Followers. Followers love pictures! You can also post the pictures from your phone through email.
Twitter Karma is a great tool to manage your followers.
TwitterTise works great for scheduling tweets and tracking your URL links when you advertise your business.
Twittad allows you to monetize your Twitter background by sponsoring ads.. now your twitter account is more than fun!
This list will be more than enough to get your Twitter account rocking, if you're mobile like myself and use a Blackberry here are a few applications for Twitter.
UberTwitter is the application on my Storm. Still in the beta form but very stable.
TwitterBerry is also a favorite of mine...
Social networking is becoming a very important part of online and traditional business models, now is the time to jump aboard. Take the time and learn how to enrich your networking abilities and it's all free! If you have any questions direct message me on Twitter!
Happy networking,
Scott http://www.fdipays.com/
Thursday, April 23, 2009
Fdipay's research on Yoga!
Yoga has been increasingly utilized as a form of relaxation thus peaking my interest. In my research I have found many different techniques from different parts of the country. I researched Ancient Yoga and Minnesota Yoga, as close as I can tell the two techniques have some similarities, however the ability to prepare the mind and soul have a dramatic difference depending on the location.
Below are the illustrations from my research.
Ancient Yoga....
Minnesota Yoga....
Below are the illustrations from my research.
Ancient Yoga....
Minnesota Yoga....
The Minnesota class is full for this session.I'll get back to you when it opens up again!
Fdipays on the lighter side of life...
Scott
Participant or Bystander?
Yes, I agree that things aren't so rosie for many people in today's economy, but did they become a victim or did they participate? At this point it really doesn't matter, the damage is done for many, the best defense now is the ability to identify and understand.
The Truth.. Most problems could have been avoided by acting on one simple phrase "live on less than you make". I too get envious when I see people drive their new cars or hear them talk about their vacations and buying the latest and greatest electronic items! Who wouldn't want all this stuff.. Never focus on what you don't have, instead be grateful for what you do have.
I can't speak for everyone but some of these individuals are living paycheck to paycheck, some are even going into foreclosure on their homes. Sadly enough a few people have made the statement "they deserve it"! We all deserve the best and the best will come when we are good stewards of our finances. All the stories are the same with the outcome being the same too. The feelings these people are encountering are unhappiness, stress and hopelessness, all wondering how they will make it through these economically bad times. Was it worth it?
I'm in favor of nice homes, cars, motorcycles, vacations and the latest electronic items that make my live more enjoyable. I also have multiple source or income or MSI's in place to help fund my enjoyments. Having a financial plan is always a good start, however I'm never in favor of buying on credit when it could sacrifice the the financial future of your family or your health. Did you know that money problems are the leading cause of divorce in the USA? This is the difference between participating or standing on the sidelines and watching.
Wouldn't the outcome be different if people had no debt except maybe a mortgage? If they had saved 3 to 6 months of income for emergency's, thing would be a lot different. I know this can be accomplished even on a average income. It's not how much you make that is important, its how much you keep that counts. Someone once told me that money wasn't everything, try to tell that to the bank. If you want more stuff, you need to be open on new ways to generate income!
Todays economy will come to pass, but I guarantee the same situation will come again in our future. My only question to you ... What will you do different to change your financial outcome?
To your financial success,
Scott
www.fdipays.com
The Truth.. Most problems could have been avoided by acting on one simple phrase "live on less than you make". I too get envious when I see people drive their new cars or hear them talk about their vacations and buying the latest and greatest electronic items! Who wouldn't want all this stuff.. Never focus on what you don't have, instead be grateful for what you do have.
I can't speak for everyone but some of these individuals are living paycheck to paycheck, some are even going into foreclosure on their homes. Sadly enough a few people have made the statement "they deserve it"! We all deserve the best and the best will come when we are good stewards of our finances. All the stories are the same with the outcome being the same too. The feelings these people are encountering are unhappiness, stress and hopelessness, all wondering how they will make it through these economically bad times. Was it worth it?
I'm in favor of nice homes, cars, motorcycles, vacations and the latest electronic items that make my live more enjoyable. I also have multiple source or income or MSI's in place to help fund my enjoyments. Having a financial plan is always a good start, however I'm never in favor of buying on credit when it could sacrifice the the financial future of your family or your health. Did you know that money problems are the leading cause of divorce in the USA? This is the difference between participating or standing on the sidelines and watching.
Wouldn't the outcome be different if people had no debt except maybe a mortgage? If they had saved 3 to 6 months of income for emergency's, thing would be a lot different. I know this can be accomplished even on a average income. It's not how much you make that is important, its how much you keep that counts. Someone once told me that money wasn't everything, try to tell that to the bank. If you want more stuff, you need to be open on new ways to generate income!
Todays economy will come to pass, but I guarantee the same situation will come again in our future. My only question to you ... What will you do different to change your financial outcome?
To your financial success,
Scott
www.fdipays.com
Friday, April 17, 2009
BofA why me?
BofA why me?
Yesterday I received a letter in the mail from Bank of America. Now it wasn't thanking me for being great customer over the years or thanking me for my excellent ability to manage my credit. This letter indeed was informing me that they reviewed my account and lowered my available credit by 50%...
I don't want to mention the first words that came out of my mouth but to say the least I was not a happy camper. Why did BofA punish me?
It's hard not taking these things personal but it's the actions from a few that makes us pay a price. Using the power of Twitter I found @BofA_help and posted my disappointments. David contacted me through that Twitter account and asked me to send him my phone number so I did..don't worry I have LifeLock!
David called, we had a great conversation about how this credit mess is effecting customers like myself. The good news it it was only effecting about 10% of BofA customers, the bad news it BofA has a boat load of customers! I know I wouldn't have used the available credit that BofA had issued but it was the idea that they took it away that upset me. Why do good customers get punished? Well in my simple explanation you can't get blood from a turnip!
My hat goes off to David, having to deal with all the issues that arose from the current economy can't be fun.
Technology today can trigger alerts when your credit card is used for online purchases or if charges go over a given predetermined target. So why did this mess catch the financial institutions with their pants down? Was it greed or just sloppy management?
Unfortunately we all will pay the price for this credit mess. A very successful friend told me the secret to financial success is "Spend less than you make".. simple but effective!
Whats in your wallet?
Scott
www.fdipays.com
Yesterday I received a letter in the mail from Bank of America. Now it wasn't thanking me for being great customer over the years or thanking me for my excellent ability to manage my credit. This letter indeed was informing me that they reviewed my account and lowered my available credit by 50%...
I don't want to mention the first words that came out of my mouth but to say the least I was not a happy camper. Why did BofA punish me?
It's hard not taking these things personal but it's the actions from a few that makes us pay a price. Using the power of Twitter I found @BofA_help and posted my disappointments. David contacted me through that Twitter account and asked me to send him my phone number so I did..don't worry I have LifeLock!
David called, we had a great conversation about how this credit mess is effecting customers like myself. The good news it it was only effecting about 10% of BofA customers, the bad news it BofA has a boat load of customers! I know I wouldn't have used the available credit that BofA had issued but it was the idea that they took it away that upset me. Why do good customers get punished? Well in my simple explanation you can't get blood from a turnip!
My hat goes off to David, having to deal with all the issues that arose from the current economy can't be fun.
Technology today can trigger alerts when your credit card is used for online purchases or if charges go over a given predetermined target. So why did this mess catch the financial institutions with their pants down? Was it greed or just sloppy management?
Unfortunately we all will pay the price for this credit mess. A very successful friend told me the secret to financial success is "Spend less than you make".. simple but effective!
Whats in your wallet?
Scott
www.fdipays.com
Saturday, April 11, 2009
Identity theft on Easter!
Scott Sebenaler
ssebenaler@yahoo.com
701-306-0004
www.fdipays.com
Thursday, April 9, 2009
Best explanation of the financial mess we are in!
This came from a friend of mine so don't give me the credit for this information, I know we all can relate to this explanation..
Enjoy the read....Derivative markets .... an understandable explanation
Heidi is the proprietor of a bar in Detroit. In order to increase sales, she decides to allow her loyal customers- most of whom are unemployed alcoholics - to drink now but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).
Word gets around about Heidi's drink now pay later marketing strategy, and as a result increasing numbers of customers flood into Heidi's bar and soon she has the largest sale volume for any bar in Detroit. By providing her customers' freedom from immediate payment demands, Heidi gets no resistance when she substantially increases her prices for wine and beer, the most consumed beverages. Her sales volume increases massively.
A young and dynamic vice-president at the local bank recognizes these customer debts as valuable future assets and increases Heidi's borrowing limit.
He sees no reason for undue concern since he has the debts of the alcoholics as collateral. At the bank's corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then traded on security markets worldwide. Naïve investors don't really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics. Despite this, their prices continuously climb, and the securities become the top-selling items for some of the nation's leading brokerage houses.
One day, although the bond prices are still climbing, a risk manager at the bank (subsequently fired due to his negativity), decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi's bar. Heidi demands payment from her alcoholic patrons, but being unemployed they cannot pay back their drinking debts. Therefore, Heidi cannot fulfill her loan obligations and she claims bankruptcy. DRINKBOND and ALKIBOND drop in price by 90%. PUKEBOND performs better, stabilizing in price after dropping by 80%. The decreased bond asset value destroys the bank's liquidity and prevents it from issuing new loans.
The suppliers of Heidi's bar, having granted her generous payment extensions and having invested in the securities, are faced with writing off her debt and losing over 80% on her bonds. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 50 workers.
The bank and brokerage houses are saved by the Government following dramatic round-the-clock negotiations by leaders from both political parties. The funds required for this bailout are obtained by a tax levied on employed middle-class non-drinkers.
Finally an explanation that is understandable. And everyone lives happily ever after ! ! ! ! !
Scott Sebenaler
www.fdipays.com
Enjoy the read....Derivative markets .... an understandable explanation
Heidi is the proprietor of a bar in Detroit. In order to increase sales, she decides to allow her loyal customers- most of whom are unemployed alcoholics - to drink now but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).
Word gets around about Heidi's drink now pay later marketing strategy, and as a result increasing numbers of customers flood into Heidi's bar and soon she has the largest sale volume for any bar in Detroit. By providing her customers' freedom from immediate payment demands, Heidi gets no resistance when she substantially increases her prices for wine and beer, the most consumed beverages. Her sales volume increases massively.
A young and dynamic vice-president at the local bank recognizes these customer debts as valuable future assets and increases Heidi's borrowing limit.
He sees no reason for undue concern since he has the debts of the alcoholics as collateral. At the bank's corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then traded on security markets worldwide. Naïve investors don't really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics. Despite this, their prices continuously climb, and the securities become the top-selling items for some of the nation's leading brokerage houses.
One day, although the bond prices are still climbing, a risk manager at the bank (subsequently fired due to his negativity), decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi's bar. Heidi demands payment from her alcoholic patrons, but being unemployed they cannot pay back their drinking debts. Therefore, Heidi cannot fulfill her loan obligations and she claims bankruptcy. DRINKBOND and ALKIBOND drop in price by 90%. PUKEBOND performs better, stabilizing in price after dropping by 80%. The decreased bond asset value destroys the bank's liquidity and prevents it from issuing new loans.
The suppliers of Heidi's bar, having granted her generous payment extensions and having invested in the securities, are faced with writing off her debt and losing over 80% on her bonds. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 50 workers.
The bank and brokerage houses are saved by the Government following dramatic round-the-clock negotiations by leaders from both political parties. The funds required for this bailout are obtained by a tax levied on employed middle-class non-drinkers.
Finally an explanation that is understandable. And everyone lives happily ever after ! ! ! ! !
Scott Sebenaler
www.fdipays.com
Monday, April 6, 2009
Winter, when is it enough!
Scott Sebenaler
ssebenaler@yahoo.com
701-306-0004
www.fdipays.com
Sunday, April 5, 2009
The Red River reached 40.8 feet...What next?
We witnessed history when the Red River reached 40.8 feet...
It's not over yet, the National Weather Service predicts a 75% chance the second crest will reach 41 feet and a 25% chance of going to 43 feet in mid April. Here is some photos showing what elements people are dealing with. Special thanks to our friends Kim & Ruth for these pictures.
The start of the spring melt....
Water keeps rising....
Reaching it's peak....
Almost to the bottom of the I94 bridge deck....
The fight didn't stop behind their home, the river came up the street to the front of the house....
Water is starting to move in!
It's not over yet, the National Weather Service predicts a 75% chance the second crest will reach 41 feet and a 25% chance of going to 43 feet in mid April. Here is some photos showing what elements people are dealing with. Special thanks to our friends Kim & Ruth for these pictures.
The start of the spring melt....
Water keeps rising....
Reaching it's peak....
Almost to the bottom of the I94 bridge deck....
The fight didn't stop behind their home, the river came up the street to the front of the house....
Bus loads of students helped place sandbags before the river over came the neighborhood.
This is what the street looked like before the crest..
Bus loads arrive!
Water is starting to move in!
Water on both sides of the house!
To this point the damages have been controlled but some have lost their homes. To anyone that has lost their home the damages are great. We are still wining the fight and everyone is preparing to do whatever it takes to save the Fargo/Moorhead community!
Check back with us later or follow me on Twitter too!
Scott
Tuesday, March 31, 2009
So much to a early spring
Snow is still coming down and last report was nearing 7". This winter will not go away anytime soon!
Scott Sebenaler
ssebenaler@yahoo.com
701-306-0004
www.fdipays.com
Scott Sebenaler
ssebenaler@yahoo.com
701-306-0004
www.fdipays.com
Tuesday, March 17, 2009
Sounds from the outdoors, Be Grateful today!
Finally the warmer weather is arriving and I'm starting to hear the outdoor sounds that I've truly missed. I opened my office window and immediately heard the sound of a Harley going down the road then the birds chirping away in the trees and the sound of the wind chimes in the background! Sometimes we take this for granted and honestly by the end of summer I may not appreciate it as much as I should.
So how can we be more grateful?
Sometimes the simple things in life are the ones we take for granted so this is where my Gratitude rock comes to play. A few years ago a dear friend named Jenna "age 9" at the time wanted a rock tumbler, so her parents granted her the wish. Donna and myself requested that she make us Gratitude rocks. So here is how mine turned out!
Every morning I put my Gratitude rock in my pocket and think about everything that I am grateful for in my life. Today I'm grateful for my hearing and my ability to see the birds chirping in the trees and a wonderful life with awesome people surrounding me!
We all have things to be grateful for... What about you?
Wishing you the best,
Scott
Wednesday, March 11, 2009
Will Spring ever come?
As I sit in my home office, I look at the calender and it reminds me that Spring is only 8 days away! That sounds great but then I look out my window it looks like the first day of winter! The last couple days we received 9 inches of new snow and had steady winds of 35 MPH with gusts over 50 MPH... Like the old saying goes "A Pictures is worth a thousand words" So here we go
This was my driveway!
I dug out my winter clothes grabbed the snow shovel and snowblower and got to work. I just about finished when my snowblower decided it also had enough of winter. I finished using the shovel then loaded the snow blower into the truck for a quick spin to the repair shop. My shout out goes to our FDI Concierge service for connecting me to the repair shop! The 2008-2009 winter is almost over!
My Backyard overlooking the Golf Course.
This is the sidewalk leading to the front door!
I dug out my winter clothes grabbed the snow shovel and snowblower and got to work. I just about finished when my snowblower decided it also had enough of winter. I finished using the shovel then loaded the snow blower into the truck for a quick spin to the repair shop. My shout out goes to our FDI Concierge service for connecting me to the repair shop! The 2008-2009 winter is almost over!
I will welcome spring knowing that better weather is coming my way. Winter does have some advantages, it always gives me more time indoors catching up on everything I neglect all summer long!
Check back soon and say a prayer for a slow warm up to prevent spring floods in the Red River Valley..
Untill next time,
Scott
Friday, March 6, 2009
FDI is EXCITED to welcome Anthony Robbins to the FDI Nation!
To most entrepreneurs and business people, Anthony Robbins really needs no introduction. He has become known as THE authority on bringing out the best in business people, athletes, celebrities, and world leaders. An expert in the psychology of leadership, negotiations, organization turn-around, and a world renowned philanthropist, he has impacted over 50 million people, in over 100 countries around the world – described as one of the world’s top 50 business intellectuals, a guru, celebrity, humanitarian, and just an outstanding person.
In Anthony’s 30 year career, he has been happy to mentor, teach, and coach, but never found the right fit to associate his name and powerful message to any company; that is, until NOW! FDI is THE FIRST and THE ONLY marketing company that Anthony Robbins has chosen to affiliate himself with! This not only grants YOU, the FDI VIP a “behind the scenes” pass, but affords you discounts on Anthony’s books, CD’s, DVD’s, and seminars at a substantial “WOW” discount.
There is no doubt that Anthony Robbins can spot a champion, he has 30 years experience in doing just that. Suffice it to say, the entire FDI Nation just got bigger, louder, more confident, and more able to take our message to everyone that is ready to build an extraordinary life!
To Learn more visit us at Financial Destination Inc
To your success,
Scott Sebenaler
701-306-0004
fdipays@gmail.com
www.fdipays.com
In Anthony’s 30 year career, he has been happy to mentor, teach, and coach, but never found the right fit to associate his name and powerful message to any company; that is, until NOW! FDI is THE FIRST and THE ONLY marketing company that Anthony Robbins has chosen to affiliate himself with! This not only grants YOU, the FDI VIP a “behind the scenes” pass, but affords you discounts on Anthony’s books, CD’s, DVD’s, and seminars at a substantial “WOW” discount.
There is no doubt that Anthony Robbins can spot a champion, he has 30 years experience in doing just that. Suffice it to say, the entire FDI Nation just got bigger, louder, more confident, and more able to take our message to everyone that is ready to build an extraordinary life!
To Learn more visit us at Financial Destination Inc
To your success,
Scott Sebenaler
701-306-0004
fdipays@gmail.com
www.fdipays.com
Wednesday, January 28, 2009
Friday, January 9, 2009
Do you have monkeys in your life?
Do you have monkeys in your life?
I found this study to be very interesting....
Scenario: A group of monkeys were locked in a room with a pole in the center. Some luscious, ripe bananas were placed on the top of the pole. When a monkey would begin to climb the pole, the experimenters would knock him off with a blast of water from a fire hose. Each time a monkey would climb, off he would go, until all the monkeys had been knocked off repeatedly, thus learning that the climb was hopeless. The experimenters then observed that the other primates would pull down any monkey trying to climb. They replaced a single monkey with one who didn’t know the system. As soon as the new guy tried to climb, the others would pull him down and punish him for trying. One by one, each monkey was replaced and the scene repeated until there were no monkeys left in the room that had experienced the fire hose. Still, none of the new guys were allowed to climb. The other monkeys pulled them down. Not one monkey in the room knew why, but none were allowed to get the bananas. Story from The Total Money Makeover by Dave Ramsey Pg. 19-20
Just like monkeys, we too have been taught not to take unnecessary risks. Have you tried something new only to find out you had absolutely no support from your friends and family? Can you start to see the similarities between monkeys and the people that surround you?
The monkey’s actions are based on FEAR! What is fear, the acronym for fear is false evidence appearing real. We get most of our advice based on fear and not fact! The fact is most of the monkeys would have enjoyed a feast of bananas! Due to the failed efforts of a few, everyone was denied the attempt to enjoy success.
When you’re trying something new, remember the monkeys! Don’t take offence if you encounter resistance from the people you care about; they are only trying to protect you from the unknown. You’re more successful to try and fail than to not try at all. Now that your awareness has increased, this doesn’t give you the green light to jump at every opportunity that comes your way! Find the smartest monkeys to mastermind your ideas and don’t pass up the bananas without a fight.
To your success.....
Scott
www.fdipays.com
I found this study to be very interesting....
Scenario: A group of monkeys were locked in a room with a pole in the center. Some luscious, ripe bananas were placed on the top of the pole. When a monkey would begin to climb the pole, the experimenters would knock him off with a blast of water from a fire hose. Each time a monkey would climb, off he would go, until all the monkeys had been knocked off repeatedly, thus learning that the climb was hopeless. The experimenters then observed that the other primates would pull down any monkey trying to climb. They replaced a single monkey with one who didn’t know the system. As soon as the new guy tried to climb, the others would pull him down and punish him for trying. One by one, each monkey was replaced and the scene repeated until there were no monkeys left in the room that had experienced the fire hose. Still, none of the new guys were allowed to climb. The other monkeys pulled them down. Not one monkey in the room knew why, but none were allowed to get the bananas. Story from The Total Money Makeover by Dave Ramsey Pg. 19-20
Just like monkeys, we too have been taught not to take unnecessary risks. Have you tried something new only to find out you had absolutely no support from your friends and family? Can you start to see the similarities between monkeys and the people that surround you?
The monkey’s actions are based on FEAR! What is fear, the acronym for fear is false evidence appearing real. We get most of our advice based on fear and not fact! The fact is most of the monkeys would have enjoyed a feast of bananas! Due to the failed efforts of a few, everyone was denied the attempt to enjoy success.
When you’re trying something new, remember the monkeys! Don’t take offence if you encounter resistance from the people you care about; they are only trying to protect you from the unknown. You’re more successful to try and fail than to not try at all. Now that your awareness has increased, this doesn’t give you the green light to jump at every opportunity that comes your way! Find the smartest monkeys to mastermind your ideas and don’t pass up the bananas without a fight.
To your success.....
Scott
www.fdipays.com
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