ATT and Apple release new low cost IPhone 3G

In a press release yesterday, Apple and ATT have renewed their exclusive partnership which includes lowering the initial cost of the Iphone.  The next generation Iphone will start at $199 for the 8GB model with a two you contract with ATT.  ATT will offer plans starting at $30 per month for voice plus $39.99 per month for data.  While the phone is less, it appears the new plans are $10 per month more than the current available plans.

The Iphone is scheduled to be released July 11.  I anticipate a large demand given the new business features and lower device cost.

Unlike the older model iphone, the new version will be have applications to integrate to corporate email and intranets.  This will open the door for corporations to begin using the iphone as a business device and not just a cool toy.

On a side note, to the Apple stock investors who are concerned the lower price will hurt shareholder value, Jobs had this to say ”We’ve done very well for shareholders over the past decade [and] ask them to trust us – maybe we know what we’re doing.” 

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I have been busy with other projects and have not had time to post new information here.  There are many topics I want to hit upon, but want to make sure I have the proper information for you and that takes time.  I have recieved a lot of good feedback and will once again start to post new material.  Thanks for reading and hopefully you will find something that helps you.

Good Friday!

As we go into this Easter Weekend I was driving home and noticed all the road rage out there. If you are traveling anywhere this weekend I am sure you will see what I mean.

With that said, I thought up a little quiz so that you can check for yourself if you are a causing heart burn and turmoil to your fellow drivers!

Here you go:

A. When driving in the left lane of the freeway you are:

1. Passing other drivers.
2. Staying away from everyone merging onto the freeway in the right lane.
3. Driving the exact same speed as the person one lane over so that you can admire there beautiful car detailing.

B. When one lane of the freeway is going away by merging into the other lanes and you are driving in that lane you:

1. Plan ahead and get over at the speed of the new lane when there is sufficient space before cars before the end of the lane.
2. Plan ahead and get over to the next lane driving 20MPH less than all traffic.
3. Smile at all the fools in the other lane as you increase speed to double the moving traffic and merge into the next lane only after you have reached the final two feet of the lane of which you are traveling.

C. You are leaving the office early but have to finish up a call, so you:

1. Use your blue tooth device with your mobile phone and finish your call.
2. Use you mobile phone with one hand and use the other to drive.
3. User one hand for your mobile phone with your laptop on your lap and checking your files with the other hand all while steering with your left knee.

D. You are approaching an accident on one of the lanes on the freeway you:

1. Slow down to a safe speed and pass the accident.
2. Slow down to a safe speed and make sure to slow down even more so that you can get a good look at the crushed cars.
3. Completely stop when you reach the accident, roll down the window, pull out your mobile phone and take a picture to send to your friends.

E. A cop is approaching from behind you:

1. Stop speeding but maintain the speed limit.
2. Slow down below the speed limit in case the officers radar is not reading correctly.
3. Slam on your brakes, drop your speed to at least 15mph below the speed limit, and move into the fast lane.

That’s it, for each answer you selected, simply add the number next to the response.

5 points you cause no road rage.
5-10 points, ok not perfect maybe some one called you name in the next car over.
10-14 points, you got some angry folks after you.
15 points, you cause 90% of all the road rage in the US. I would advise you not to leave your car with out protection.

Happy Easter Weekend. Lots of traffic out there, be patient and allow for extra time and most importantly, don’t let the road rage get the best of you!

Who is really at fault?  The housing pull-back (or as others refer to it “crash”) has had a substantial impact on the financial health of this country.  Most news and TV correspondence have painted this as the end of the world.  I agree it is a bad situation, but not one that is a surprise or the end of the world.

While I don’t like seeing a decrease in the housing sector, it is necessary for a healthy market to have pull backs.  This pull back is larger than others only because housing was artificially inflated by high demand as a result of low interest rates and easy to obtain loans.  How can one complain that the market is in a dive bomb when it was substantially over inflated in the first place based largely on demand from individuals that could not afford the house they bought?  Really is this a surprise?  A simple calculation can tell you that a family making under 70K per year can not afford a 500K house no matter how good their credit is with little down, but with the loan products out there they were able to buy one.  Or how about the real-estate investor who bought 3-5 units that were break even on a 5 year or less ARM.  I hope these people had reserves to account for the change in payment after the initial period.  Even to this day, I hear advertisements for investment properties that “cash flow $500 per month for the first year with only 10% down!”.  Yeah right.  What happens after year one?  Negative cash flow of $1,000?  These are crap loans designed to lure people into an investment that don’t understand all the details.  If you buy investment property on a variable loan, you are just asking for a bad situation.

I read several articles that blamed mortgage brokers.  I don’t really understand this argument.  Yes there are many unscrupulous ones, but in most cases, as a consumer you can compare rates from any bank, online service, or other mortgage broker to make sure you are not getting a bad deal.  You also have the ability to read the papers you are signing.  For this reason, I can not lay blame on the mortgage brokers, even if they did practice bad lending policies.

I believe that a majority of the problems start at the banks themselves.  Lowering lending standards, allowing no documentation loans, and allowing ARMs to families that could barely afford the lower introductory rates.  There was almost no checks and balances.  It did not matter how bad your debt to income looked as long as your income could support the low fixed interest only payment (in some cases income did not even matter).

However, they should not bear all the responsibility.  The buyer should take responsibility as well.  If you do not understand the loan, if you have not shopped around, if you have not read all the terms, and if you have not taken the time to figure out what happens at every point in your loan’s life, you should not have signed the papers.  To many buyers were under the illusion that housing prices would stay level or increase in value every year which would always allow them to refinance their loan after the fixed period ended.  This is absurd.  It may continue for a long time, but what if?  The problem today is that we have reached that what if and buyers can not refi a house that is upside down in value.  I hate to say it, but unfortunately this frenzy made a lot of people money that probably did not need it and bankrupted a lot of honest people trying to provide a decent life for their family.

This mess is causing a lot of pain right now, but on the positive side, it is bringing housing back in line with where it should be.  Double digit gains year over year are not sustainable and are unhealthy in any market.  While there may not be an easy or immediate solution, housing over the long term will come back.  Buying a house may or may not be a good idea now, but with low interest rates and a 20% haircut off most markets it may not be a bad idea to begin a new strategy.

If you are looking for a new loan, here are a few tips to take into consideration:

1.    Always read everything!  I don’t care if it takes two entire days, read it, understand it, and if you don’t ask questions.  The terms are not always set in stone and can often be modified if you find something that is unreasonable.

2.    Pick the right loan for the right reason!  Don’t pick the interest only because that is what you can afford.  If that is the case, then the house is to expensive for you.  Picking a lower interest ARM is really only good for one thing, lowering your principle loan balance faster than a traditional loan can.  However, it is a gamble because you do not know what interest rates are going to do.  If you take this strategy take the time to model out how the reduction in principle offsets the increase in interest.  With some reasonable assumptions, you should be able to figure out a good break even point depending on what you anticipate interest to be.  If you don’t know how to model out a payment schedule, find someone that knows how or look at some of my previous posts.

3.  Shop around!  There are a wealth of sites and places you can go to apply for loans.  If you are using a broker, call a different one and see if they can meet or beat the current loan offer you have.  The more bids you get out, the easier time you will have finding out what a fair loan is based on your situation.

4.  Be smart and check BBB and consumer reports!  If using a broker, take the time to research for any negative comments.  Odds are, you will find some and see what the complaints were.  Depending on what you find, you can ask how the broker how they resolved the issue or not do business at all with them.

5.  Know your facts!  That is, know you credit score, know what you can afford, know your back up plan if things get tough, and most importantly know your habits.  If you can not stick to a budget don’t get a house that requires a loan that will put you in a situation that requires tight money management.  A nice big house is great, but if you don’t have any flexibility for travel, entertainment, or living, what is the point of having the nice house?

These are just a few tips, but I hope that you find them useful on your next home purchase.

What are your thoughts on the current housing problems?  Who is at fault?  What is a good solution?  Should the tax payers bail people out?  Should the CEOs with big bonuses pay? 

Where has personal responsibility gone? It seems that now, more than ever, no one can accept personal responsibility and society seems to embrace this with both arms open. It is not only gone, but seems to be tainted as if you should wash your mouth out for even uttering the words.

The evidence is present in almost all aspects of our lives. Health, education, politics, workplace, etc. It is easier to say “it is _____ fault” instead of admitting we messed up.

I truly believe that one factor that feeds this mentality is the abuse of our legal system. We have become un-phased by million dollar lawsuits and see them as not only commonplace, but deserving.

It is always the weak individual against the evil corporation, evil empire, evil employer, or the abusing government. For some reason, we feel it is fair to award a victim more money then they would ever earn in their life for something like spilling coffee on their lap or getting their ass slapped. Even our children begin to accept the notion that there is no personal responsibility when all they see on the news are law suits and their freedoms at school go away becuase little Samy’s injury was the School’s fault even though they saw Samy sliding head first down the slide.

Here are just a few cases to support this idea:

Case 1:

For those living in Los Angeles, CA, we have an individual named Tennie Pierce that was employed by the Los Angeles fire department. He was just awarded $1.43 million by the city council in a discrimination case against LAFD . This was after he was originally awarded a $2.7M settlement that was reversed by the city soon after pictures surfaced of him participating in similar events that he was filling the case about.

The lawsuit claims that his fellow firefighters were involved in a prank where they fed him dog food by mixing it in with spaghetti. Because of the prank, he claimed racial discrimination and hired the services of Genie Harrison (who by the way represents LAFD firewomen in similar cases).

It should also be known that Tennie Pierce’s nickname was big dog and the prank was followed by an incident where Tennie repeatedly yelled “feed the big dog” after winning a volleyball match. (see more on Tennie Pierce case ).

The prank was not right, but it most certainly was not racial discrimination. How come he deserves $1.43 million? We have all been subject to pranks, name calling, and disagreements. So do we all deserve $1.43 million for a pain and suffering. This lawsuit is about one person making money and a law firm going after deep pockets by taking a subject most people are sympathetic to. That’s it folks.

Case 2:

Imagine this, you and two other friends give a party. You provide the entertainment, food, drinks, etc. A friend that was invited brings a guest and upon arriving to the home the guest trips down some stairs that are part of the house that lead from the entry to the main family room. The guest gets up, brushes it off and goes on with the evening. A week later you receive papers for a lawsuit. You and the two friends have been sued for a sprained ankle and pain and suffering: amount $150K.

Well, this one is real and happened to a friend of mine. I can’t name the Plantiffs as much as I want to, but the guest basically tripped down the stairs and had a mild sprained ankle. I believe the doctor bills were minimal, and the majority of the lawsuit was for pain and suffering.

The stairs were part of the original house design (a tract not custom) and not modified in anyway. The insurance policy for this type of liability was $150K (how odd that it matches exactly the policy limit). The case did not go to court because the insurance company did not want to defend it. Named in the suit was the three parties that gave the party and the entertainment (casino nights). The legal defense of casino nights was able to get the lawsuit dropped, but they still had to defend themselves.

Everyday people trip, fall, or simply roll their ankles. Most get up and leave it alone, why does someone have the right to sue over their stupidity. Even though the insurance company paid, the friend had to spend many hours in depositions, submit builder plans of the house, take pictures, meet with insurance adjusters, and ended up losing the friendship of the other two defendants. All because an idiot tripped and felt it was someone else’s fault.

Case 3:

Well this is not really a case, but perhaps an opportunity I missed! I was walking to lunch past a construction zone by Chevron and some sidewalk work by DWP. I was not paying attention and tripped on a rock and fell. Feeling stupid I got up and limped back to work. The next day I go down the same path but now there are three signs and a person with a broom on standby. I almost felt like I was going to get escorted across. Now thinking back, DWP, Chevron, and the city of Los Angeles. Three entities with very deep pockets, wow could have got at least $2M.

Notice how I say missed opportunity. That is how it is thought about today. Anytime you get your feelings hurt, have a hard time, hurt yourself, or simply do not perform, if you can connect you problem to deep pockets you have an opportunity. Doesn’t anyone think this is wrong?

Case 4 Most expensive Terms on Google are dominated by attorneys and litigators:

Ever look at the most expensive keyword related terms? All these terms have over $40 per click search costs. For those not familiar with this, when you see sponsored Google ads after doing searches for any of the terms below, the advertiser has to pay $40 of more if you click on the ad. Pretty steep rate, but when you consider they are bringing in millions in settlements, $40 per click is nothing. I clicked on one ad for mesothelioma lawyer and on their site they advertised $10,594,300 in client settlements so far (after attorney fees). One firm.

Mesothelioma
Personal injury lawyer Michigan
Personal injury attorney
car accident attorney los angeles
personal injury lawyers los angeles
mesothelioma Texas
automobile accident lawyers
Philadelphia personal injury lawyer
las Vegas car accident attorney
accident at work

There are just so many examples. It has become perfectly acceptable for people not taking responsibility for their actions. More importantly, if there stupidity or ignorance is connected to deep pockets, they are allowed to profit from it. These lawsuits don’t solve problems, the cause higher taxes, higher insurance rates, higher health care rates, higher food costs, less freedom, lower wages, and lower morality.

When you are happily clapping your hands that someone was just awarded $_millions from some large evil corporation, just remember you are paying for that settlement one way or another. Do you still want to clap now?

These huge settlements and lawsuits need to stop, please contact your congressmen, state senators, and any other regulatory person and encourage them to push for change. The more annoying we are the better we can force change.

Lastly, TAKE RESPONSIBILITY FOR YOUR ACTIONS. You might actually improve you life if you understand that what you do paves your way!