October 6, 2008 By Tisha Kulak
Melamine is a chemical used to make fertilizers and plastic and it is being blamed for the deaths of four 
babies and the root cause of over 50,000 cases of illness in children in China. However, new reports have found melamine-infected candy on store shelves in the United States, particularly in the states of California and Connecticut.
In early September, officials in China found evidence of the chemical in powdered infant formula, which caused the deaths of the infants. After further investigation, melamine has shown up in other merchandise, including milk products. Last year, prior to the September incidents, pet food was quickly pulled from store shelves all over the country after melamine was found by the Food and Drug Administration. Many pets became seriously ill and many died after eating the tainted food.
Product Being Recalled
The candy that has been subsequently recalled by the US distributor is called White Rabbit Creamy Candy. It is sold in packages of 8 and 16 ounces and is available in flavors such as Red Bean, Coffee, Mango, Strawberry, Lychee, Corn, and Assorted. The package contains a logo with the words “White Rabbit” and a picture of one. The US distributor noted that the candy was distributed in several states, including New York, California, Georgia, Oregon, Hawaii, Illinois, Texas, Washington, and Minnesota.
While the United States has removed the White Rabbit candy from the stores, other countries have also been faced with a melamine-tainted product crisis. Several products exported from China have tested positive for melamine but none of those products have been distributed to the United States. In Britain, the makers of Cadbury chocolate candies recalled 11 Chinese-made chocolates due to contamination concerns. However, in the US, Cadbury chocolates’ is manufactured by the Hershey Company, which does not purchase milk products or other ingredients from China. Hershey ensure that their products are safe and not related to the British Cadbury recall.
When ingested, melamine can cause stones in the kidneys and lead to complete failure in the kidneys. Officials in the US have not been notified of any illnesses linked to the tainted candy and the FDA pointed out that infant formula in the US is safe as formula companies have not been importing Chinese-made ingredients for the purpose of manufacturing powdered or liquid formulas.
Posted in miscellaneous, personal behavior, shopping 
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October 5, 2008 By Debbie Dragon
U.S. Census data shows that there are more than 8.3 million single moms in the country, and only 15% of 
them have college degrees. Due to the low percentage of college degrees among single moms, only 28 percent of working single moms earn more than $40,000 per year. If you consider the schedule of a single mom - and really, any mom for that matter, it’s no wonder why they haven’t been able to find time to earn a degree.
Thankfully, there are more options for working moms today then there ever was. Online universities and online degree programs through traditional universities makes it possible for people who are confined by too-hectic schedules to take courses and eventually, earn their degree. Most courses allow students to access course work, instructor lectures and notes at any time it’s convenient for them; evenings after the children are tucked away into bed, during their work lunch hour, or on weekends. Instead of meeting a study group, online students often meet in online chat rooms or converse through email.
Online enrollment in colleges has shown an increase annually by about 10%, while traditional enrollment in higher education has only increased 1.5% annually according to a report by Sloan Consortium in 2007. Also, according to a Zogby study, four out of five employers/business leaders look favorably on online degrees - considering them as valuable as a traditional degree, if not more so. Top companies are recognizing that to obtain a degree online, it takes more self direction and discipline than a traditional degree.
Online degree programs are perfect for the busy, working mother (single or otherwise!) As a group, they tend to be more motivated and can handle the discipline necessary to succeed in their programs because they realize having a degree will open the door to benefits and opportunities they wouldn’t otherwise have. Raises, promotions, leaving a dead-end, low-income job behind and moving into higher paying industries becomes more possible with a degree to back you up.
A large concern for many moms is the inability to come up with the money to pay for education. Most work to pay their bills and put food on the table, and provide for their children’s needs and there just isn’t enough left over to pay for college. That’s where eLearners.com comes in. They’ve partnered with five online schools and together they provide more than $2 million in full scholarships to both single and married working moms through the Project Working Mom: Putting Education to Work campaign. You can apply for a scholarship on the website, www.projectworkingmom.com, and while you are there - take the time to apply to a number of other scholarship programs and financial aid options.
Posted in business, careers, children, education, family, income, jobs, lifestyle, making money, parenting, personal finance perspectives, work No Comments »
October 3, 2008 By Tisha Kulak
Wachovia Bank customers may not know how close they came to not having a banking institution. Last week, Wachovia Bank was running but with strong concerns that the bank would not be open for this week. Before any deals were being worked out, Wachovia did not have a source of liquidity and under those circumstances, the banks could not have opened their doors for business. Wachovia Bank has been working on a merger prior to the most recent events. Over the weekend, the Federal Deposit Insurance Corporation, otherwise known as the FDIC, put pressure on the bank to make a deal.
Close To Collapse from Withdrawals
The urgency became apparent after the executives at Wachovia realized that after the failure of Washington mutual, many of the larger corporate clients made an unusual number of withdrawals on their account. The majority of the withdrawal came from account containing more than $100,000. This severally paralyzed Wachovia’s access to operating capital.
Several Deals on the Table
Wachovia was approached by Citigroup, who offered a deal with assistance from the FDIC. The original agreement involved Citigroup purchasing Wachovia’s operations and the majority of the assets. The FDIC planned to aid the sale. The wheels were set in motion but never fulfilled. Wachovia has since changed tactics and made the agreement to be acquired by Wells Fargo. One of the main reasons this current action was taken was due to the ability of Wells Fargo to seal the deal without the help of the federal government. Wachovia reportedly is pleased with the arrangements because without the involvement of the government, Wachovia Bank can stay primarily intact and taxpayers would not have to help pick up the tab.
The official bid was approved by the Wachovia Board on Thursday evening and must still be cleared by the shareholders of the bank. Wells Fargo does anticipate that government regulators will approve the deal and everything will be completed before 2009.
Posted in banking, banks, borrowing, business No Comments »
September 30, 2008 By Debbie Dragon
As our economy continues to nose dive, it’s never been a better time to put away the credit cards and change from the “spend, spend, spend” attitude this generation has adapted to one of “pay off and save”. It’s probably not the best idea to sit back and try to ride-out the current market downswing - here are some tips for changing your lifestyle and becoming more frugal. (The good news is adapting these changes now will result in larger pay-offs later, when the economy is a little better and your debt has been paid off)
Don’t Take Money Out of Your 401K Account Early! A large number of people are taking money from their 401K accounts because they’re “losing” money in them. While you may be watching the numbers go down, the market will recover eventually. Taking money out early results in high penalty fees as well as having to pay income tax on that money at tax time. If you really don’t trust your 401K account will recover before it’s time for you to retire - you should at least be considering moving the money into another approved investment that won’t cost you the early withdrawal penalty - just keep in mind, if your employer matches your contributions, you will miss out on that “free money”.
Save Money the Old Fashioned Way. Even though things are tight, you want to continue to save money. Banks are insured by the government up to a certain amount (typically $100,000). If you aren’t confident in the stock market or other investments at this time, take the safe route and save money in a traditional bank or even in a jar at home (but you give up even the small percentage you could be earning in a traditional bank; or the 3-4% you could earn on your money with an online bank). Just be sure to be setting money aside.
Reduce Your Living Expenses. Use less water, turn the heat down, buy groceries on sale, cut back on your entertainment expenses. Skip things you don’t really need and apply that money to paying off debt or savings. Now is the time to reduce expenses so the money you’re earning can be put to better use and go further. Avoid using credit cards at all costs, and concentrate on learning to live within your means.
Work Hard to Eliminate Debt. Whether you are concerned you may lose your job or have faith in your job security, it’s a good time to establish a plan to getting out of debt - once and for all! Try the Pyramid or snowball method to get out of debt. If your credit is good, consolidating with a loan may be a good option for you.
It’s never in anyone’s best interest to panic, but with all that’s happening in the financial world it’s a good idea to take some action and put yourself in the best possible financial position.
Posted in budgeting, credit cards, entertainment, financial plans, financial problems, investing, jobs, lifestyle, miscellaneous, money, personal finance 1 Comment »
September 30, 2008 By Tisha Kulak
Motor vehicle accidents are the leading cause of injury related deaths for kids under the age of 2 and the leading cause of death for kids between ages 2 and 14. Keeping kids safe is a parent’s priority. It goes without saying that you can never replace a child and the costs and emotional trauma of dealing with an injured child is astronomical.
When it comes to automobile safety, prevention is key. Here are several tips to child-proof your vehicle and ensure that you are driving your kids as safely as possible.
Flip the Child Locks
Vehicle doors have special child safety locks that should be engaged at all times to prevent a child from opening the door intentionally or accidentally when the vehicle is moving and also when it is stationary. Keeping the locks in place prevents children for falling out of the car while driving and doesn’t allow the kids to hop out in a busy parking lot without adult supervision.
Use Child Safety Seats Properly
More information and regulations have become available in regard to child car seats. Each different styles of chair is made to meet the requirements based on the child’s weight, height, and age. Having a seat is not enough - it is most important that the chair is properly installed in the car. Follow the instructions that came with the chair and even take it one step further by having the car seat inspected by a certified specialist which can be found at SeatCheck.org
Stay in the Back
Kids under the age of 12 should always sit in the back of the vehicle and be seated away from front and passenger side airbags. In the event of deployment, an airbag can seriously injure or kill a child.
Keep Loose Items Contained
Many people fail to consider the damage a flying object can do to a child in the event of a collision. We often don’t think twice about throwing our purse or briefcase in the front of back seat. However, in the event of a crash, those loose items can easily move around and hurt passengers in the car. Provide a young child with soft toys to play with during the drive. Hard plastic or wooden toys can be thrown during play and cause injury to the driver, other passengers, or the vehicle itself.
Keep Vehicle Doors and Trunk Locked at All Times
A vehicle doesn’t have to be moving to be deadly to a child. There have been many incidents in the news involving small children climbing in the truck of a car and getting trapped. An unlocked car can seem like an instant playground to kids but one wrong move and a car can easily be set in motion, risking the lives of many people.
Posted in autos, children, emergencies, family, lifestyle No Comments »
September 26, 2008 By Debbie Dragon
NutriSystem is the diet program you see advertised on television all the time - they ship you three meals and a snack for each day of the program, and you lose weight. I’ve considered it a few times - mainly for the convenience- all the meals are pre portioned, some are frozen, others require that you add milk or water, or fresh fruit to prepare. The cost has always deterred me from getting on board, but I decided to take a closer look to see if maybe it would actually end up saving MONEY as well as pounds!
The NutriSystem Advanced program features over 120 menu selections. Slightly different menu’s exist depending on the program you select: Women’s, Women’s Silver (for older women’s needs) Men’s, Men’s Silver, Vegetarian and the Diabetic program.
NutriSystem Advanced features meals that have low glycemic index carbohydrates, the “right” amounts of protein and fiber, and are low in fat. You eat 5 small meals/snacks per day to keep hunger cravings from causing you to overeat and ruin your progress. It’s a 5-day Flexible program, meaning you eat Nutrisystem meals for 5 days and you eat your own selections the other 2 days.
You get 28 days of food with the auto-delivery program, as well as two or three free weeks (depending on the promotion you sign up with. For the purposes of this article we’ll go with the two weeks free).
When they say a free week, they mean 5 days of food. So you end up getting 38 days worth of food, for the price of $199 (plus shipping, however when I filled out the form to find out how much shipping costs, I was given free shipping under the current promotion).
38 Days of Food for $199 = $5.24 per day.
I’m pretty sure I currently eat more than $5.24 worth of food in a day, especially given the price of groceries. Even if I need to add milk, fresh fruit and veggies to some of the meals, I’m certain my price for food per day is going to be less using NutriSystem than it is trying to buy and prepare healthy meals myself.
Not to mention the convenience factor of not having to measure and weigh for proper portion sizes - which is difficult for most of us.
At first, I wondered why I would want to order the food through NutriSystem, rather than just grabbing frozen SmartOnes or Lean Cuisine meals at the local grocery store - but even if I ate those three meals a day and buy them on sale - you’re looking at about $8 minimum per day and the variety is a lot less than what you have to choose from with NutriSystem.
I’m pretty sure I wouldn’t want to do NutriSystem or any prepared food program for very long - but for 2 or 3 months to jump start weight loss, save money, and with a high level of convenience- it’s looking like a viable option.
Posted in budgeting, food, health, lifestyle, miscellaneous, saving money 1 Comment »
September 26, 2008 By Tisha Kulak
The economy in America is in a tailspin right now and so many people are left feeling dizzy and confused 
about what to do just to survive. Some of the biggest concerns arising are from homeowners who are afraid of losing their homes because they can no longer afford to live in them or pay the monthly bills.
Many homeowners will consider selling to get out from under their mounting debt; however, with the slump in the housing market, selling may be the last thing you want to do to keep your head above water. Financially strapped families will simply not be able to afford to sell their homes. Some may consider moving out of their homes and renting their place to make some money but along with renting comes a long list of considerations as well as financial changes in insurance and local zoning laws. Renting may end up costing more money than you would be making as a landlord. Plus, the added responsibilities of keeping tenants pleased with repairs and maintenance is both draining and time consuming.
So what other options do homeowners have when it comes to keeping up with the bills and keeping their homes?
Consider a boarder. A boarder is someone who essentially rents space in your home. If you have an extra bedroom or a finished basement, you may be able to find someone to pay you rent for the living space as well as make contributions towards shared expenses, such as food and utilities.
Because there are so many people losing their own homes, finding a boarder may not be as complicated as you think. Apartments and other rentals will not be able to meet up with the demands and plenty of folks will be actively looking for a place to live. If you are considering taking on a boarder, the first rule of thumb is a concern for safety. It probably isn’t the wisest move to openly advertise a room for rent to strangers. Instead, start asking friends and family that you trust for referrals to help spread the word. It is likely there is someone in your own community that you are comfortable with to share your home.
Before agreeing to meet with any perspective boarders, sit down with your figures and see how much you need to recoup in boarder fees. Keep in mind you are not renting the entire house to a person so do not expect a boarder to pay hundreds of dollars for one room and the use of a kitchen. After a price has been established, write out a list of do’s and don’t for a new tenant. Starting out with a solid foundation and clear expectations of a new living arrangement will be beneficial to both parties. Never assume everyone else lives the way you do.
When interviewing potential boarders, do not shy away from asking for information. In this day and age, conducting criminal background or credit checks is common and can help weed out problem boarders. If you have a few people to select from, a simple questionnaire to address certain issues such as pets, overnight guests, work hours, and smoking may be helpful in the decision-making process. If the potential boarder is already a close friend, have a frank discussion about expectations because living together can damage even the best friendships.
If you have contemplated taking in a boarder but are not able to find a boarder on your own, it may be worth your while to research the Homesharing Program through St Ambrose, which is a nationwide program developed to aid people interested in taking in a boarder. The agency will conduct background checks, drug and alcohol histories and other research on potential boarders. They will also ensure that homeowners aren’t headed towards foreclosure.
Taking on a boarder means a lot of life changes and new responsibilities. If you are interested in getting the extra financial support by renting out some of your living space, make sure you have considered all of your feelings about privacy, conflicts, and space sharing before making the final decision.
Posted in budgeting, debt, environment, financial problems, lifestyle, mortgages, real estate, renting, saving money No Comments »
September 25, 2008 By Tisha Kulak
No doubt internet scammers are on the prowl at all times, working to gain access to your private account 
information. But due to the recent crisis in the finances world and insurance industry, consumers need to be ever more vigilant about protecting their identities.
“Phishing” is a type of fraud in which emails are used to procure information from consumers. Emails are set up to look exactly like a bank, retailer, or other company that does business with consumers. The emails can be sent to anyone and in the event it hits the right target, a scam artist can get just about any bit of information they seek. The emails mimic other emails a customer might receive from a company they trust and without noticing subtle differences the consumer may fall for the scam and reply to an email with their social security numbers, personal password information, and other confidential account information. With all of the chaos on Wall Street recently, scammers are using the opportunity to impersonate some of the struggling companies and prey further on their customers.
So what can you do to protect yourself from such an email scam? There are a number of steps to take to ensure you are not being taken for a ride.
1. Check Certifications
Because many reputable companies have been used in phishing scams, many of them have begun using more advanced security systems when it comes to email correspondence. They will use CertifiedEmail, which physically shows a blue ribbon envelope in each email to assure customers the message is legitimate. Of course most companies will tell you straight out that they will NEVER ask for personal or confidential information via email.
2. Remain Doubtful
Because most companies will not ask for sensitive information via email, it is best to remain skeptical of anyone asking for any information from you. Scammers are good and can often trick unsuspecting customers into believing they “must act now or else…”. If you ever feel concerned about email communication, do not hesitate to contact the company by phone directly and explain the situation. DO NOT use any phone numbers provided in a suspicious email to confirm identity. Get phone numbers directly from your bank statement, back of your credit card, or from the phone book.
3. Never Open an Attachment
If you do not know the sender of an email that has an attachment, never open anything. A reputable company will never send you an attachment as they can be hazardous to your computer system and they are extremely insecure.
4. Never Click a Direct Link
Phishing emails are notorious for including a link for convenience. Links can wreak havoc on your computer because they often will take you to a site where additional personal information can be gathered or where viruses can be launched. If you are not sure of the legitimacy of the sender, type the address to the business yourself into the web browser.
5. Bring in the Law
There are many organizations and law enforcement agencies that work to stop such malicious attacks on consumers. If you receive an email that you suspect is phishing for information, forward the email to reportphishing@antiphishing.org and help protect other innocent people from becoming a victim of fraud.
For more consumer information about email fraud, visit Anti-Phishing Working Group.
Posted in fraud, identity theft, personal behavior, personal finance perspectives 2 Comments »
September 24, 2008 By Debbie Dragon
Is there anyone not familiar with Tom Cruise and the 1983 movie, Risky Business? I was only 3 when it 
came out, and yet I’m well aware of the movie… and the (what was considered at the time) ”risky” dance moves. The articles in this carnival have nothing to do with Tom Cruise or the movie - but they are all about Risk: investment risks, health risks, insurance risks, bankruptcy risks, and mortgage risks. Enjoy!
Investment Risks
Aussie blogger John Ray, host of Greenie Watch, thinks that a lot of Wall Street’s recent problems are due to “garbage in, garbage out.”
Praveen helps us out with Fannie Mae: Followup to Five Stock Picking Ideas posted atMy Simple Trading System .
Silicon Valley Blogger takes a look at The Brand New World Of Peer To Peer Lending on The Digerati Life. She gives us a discussion of peer-to-peer lending and the issues of risk involved with this new lending system.
Silicon Valley Blogger also gives us suggestions for what to do during times of high risk: Best Places For Your Money When The Stock Market Tanks posted at The Digerati Life.
Leon Gettler talks about Volatility rules over at Sox First. The recent volatility is a sign of things to come for investors and points to the risks ahead. Volatility is significantly greater in down markets than boom markets. The reason? Traders, like gamblers, chase losses. If they’ve lost lots of money, it’s tempting to make big bets to try and get it back.
Dan Blum, writing at the Security and Risk Management Blog, weighs in with some risk management lessons we should be learning from the market meltdown.
Raymond wants to know Is My FDIC Insured Checking Or Savings Account Safe If My Bank Fails? with his blog post at Money Blue Book.
Ironman presents Moral Hazard 101 posted at Political Calculations. He asks the questions, “How seriously should a typical American take all the latest market meltdown news? And who should really be concerned about the risk they’ve taken on in recent years?”
Sun wants us to know More Disturbing Facts on Banks. You can read them at The Sun’s Financial Diary.
Debt Freedom Fighter presents Discover Debt Freedom!.
Money Answer Guy wonders Which High yield Savings Account Should I Get? At The Money Answer Guy .
Health Risks
On the health front, Breast Cancer Blog has some startling and helpful news on how young women can reduce their risk of developing that dreaded disease.
Jason Shafrin talks about Age Inflation at Healthcare Economist. The Healthcare Economist examines the possibility of indexing entitlement program eligibility to life expectancy.
Save Money tells us how to Get FREE Gift Cards from Blue Cross Blue Shield at How I Save Money.net .
David Williams says if you Teach a man to fish, you kill off the next generation of women posted at Health Business Blog. He says, “In Kenya, young women risk their lives to help their relatives get access to fresh fish.”
Insurance Risks
Tisha Tolar here at American Consumer News wonders Is Life Insurance for Kids a Waste of Your Money?
Henry Stern, LUTCF, CBC has Some Thoughts on AIG on his blog, InsureBlog. Risk and insurance go hand in hand, right? InsureBlog’s Henry Stern thinks that the government’s “bailout” of AIG bodes ill for the future of risk management and insurance.
Livingalmostlarge wonders about Health Care Reform? at LivingAlmostLarge. Where are we moving for health insurance as a country?
Bankruptcy Risks
Bankruptcy Access presents File Chapter 7 Bankruptcy posted at
BankruptcyAccess.com. Find out about Chapter 7 bankruptcy and how to file if you need to.
Ace Elliott wants to help your credit with his post, Bankruptcy - The Last Resort at Care on Credit. Learn about the types of bankruptcy you can file for, the process, and some alternatives to bankruptcy.
Mortgage Risks
Dave Peeples wants to know Who Says it’s a Good Time to Buy Short Sales? posted at ShortSaleblogger.com. He says, “everyone says that now is the time to be buying real estate. Is anyone actually buying now?”
Joe Manausa presents The Sign Is Up - Is Your Home Sold? over at Tallahassee Real Estate Blog. During the booming real estate market of 2004-2006, it seemed all a homeowner had to do to sell a home was put a sign in the yard and then start evaluating offers. This is not so much the case anymore, we are back to a “normal” real estate market, where buyers are drawn to value.”
Joshua Dorkin knows when to hold ‘em… Gambling at the Foreclosure Auction: High Stakes on Real Estate Investing For Real .
That concludes this edition. Submit your blog article to the next edition of
cavalcade of risk:
Submit your blog article to the next edition of cavalcade of risk using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Posted in blog carnivals 3 Comments »
September 24, 2008 By Tisha Kulak
There may not be one right answer to that question. For many people, it seems to depend on how bad you 
actually need a computer. However, for others, patience is a virtue.
There are several companies now on the market that advertise financing deals to those consumers with part or current credit problems. Blue Hippo, Financing Alternatives, and Tronix Country are a few of the more widely-known companies that allow consumers with bad or no credit to finance a computer system using a small, monthly payment system.
The Downside
That system, however, is not always what it appears to be. Consumers are led to believe that such small payments each month will provide them with a computer comparable to competitive computer retailers but in actuality most of the computers sold through these programs are of lower quality and at a much higher cost - sometimes up to a $1,000 difference in price. Many programs require customers to make some initial weekly deposits for a certain time period before the computer system is even shipped. Customers will often find that an automatic debit is required in order to qualify for the program.
While the program may seem ideal to those who see no other options, there can also be plenty of drawbacks. Besides the lower quality of computer equipment and the long repayment terms, there is also the risk of investing a lot of money into something you never receive, as was the case with Blue Hippo, who in February 2008 paid a $5 million dollar settlement brought on by the Federal Trade Commission, to consumers who claim they were victims of fraud by the company for having paid the required money but received nothing in return. Consumers also did not receive refunds in such circumstances.
Consider Cash
Many consumers with poor credit are led to believe these programs are the only alternative for purchasing a computer system so some people are doubtful they can do this on their own without financing. But the reality is, consumers do not have to make bi-weekly payments to any place other than their own savings account in order to afford a quality computer system. Since using financing programs does not result in the immediate possession of a computer, there is not much difference than in waiting for one while saving the cash. One of the financing companies even offer reliable advice on its website: “For people who have sufficient cash or can obtain financing from other means in order to make a purchase outright, our program is most likely not for you.” Essentially such financing companies’ feel the rates they offer consumers “tend to be lower than a rent-to-own option”.
Additionally, consumers with bad credit will never be refused a computer when paying in cash. There are plenty of places to purchase a quality computer at reasonable prices, without relying on a financing company and it could save you hundreds (or even a thousand) dollars. If you insist on getting your new computer now, just use one of the many low rate cards of credit that are sitting in your wallet. Retail stores such as Best Buy and Walmart have begun offering great deals on current computers and by choosing to pay in cash, the computer is yours free and clear without racking up additional debt in the process .
Posted in debt, electornics, financial problems, lending 1 Comment »
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