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Monthly Archives: April 2017

Cash to Pay Bills

The availability of free government grant money is nothing new. These programs have been around for a long time, but they were much harder to find and apply for. Because these grant programs are not advertised and there is generally very poor education about their existence, most people did not know how to obtain this money. But now the accessibility that the Internet has provided has allowed grant writing companies to digitize this information and make it readily available.

Now when you join these grant writing programs you can access the database and see the hundreds of grants that you can apply and qualify for. You no longer have to go to City Hall to stand in line and inquire about the free money that is available. A simple click of the mouse will show you the available funding programs, how much is available, and what the eligibility requirements are. Find the grants that will help you pay off your bills and submit your application. As long as you are at least 18 years old you can apply for as many free government grants as you like.

Info of Bank Fraud Defense

Bank fraud includes a variety of criminal activities and the charges that may be made against an individual vary. Making up a false identity may be a successful way of hiding or obtaining money, but it is also easily identified by a bank’s security team. Check fraud, embezzlement of funds, and forging someone else’s signature can lead to bank fraud accusations. Bribing bank employees or others to commit this offenses is a serious form of fraud.

If an individual participates in fraud and is convicted of the offense, they could face harsh consequences. Years of fines or jail time may be given to the offender. However, not all people that are looking at these charges are guilty or deserve the sentences.

If innocent of fraud accusations, a criminal defense attorney can greatly aid in the ability to prove the innocence of an individual. Even if the crime was committed, often times the circumstances can be misread by the courts leading to unfair sentencing.

About Discounted Cash Flow

The purpose of the Discounted Cash Flow (DCF) method is to find the sum of the future cash flow of the business and discount it back to a present value. I use the F Wall Street method of valuing a business along with some tweaks here and there to suit my tastes.

The advantage of this method is that it requires the investor to think about the stock as a business and analyse its cash flow rather than earnings. The first and foremost reason a business exists is to make money where money = cash, not earnings. Since cash is what a business needs in order to maintain and grow its operations, it’s only right to consider the possibility of its future cash growth rather than earnings growth.

The disadvantage is that a DCF is not suitable for start ups, growth companies or capital intensive companies where the cash flow cannot be accurately determined. The error of prediction and assumptions must also be dealt with in the DCF, which we cover with margin of safety.

I’ll go through the many assumptions to consider with a DCF. (If you are considering using the spreadsheets found on this site, please don’t just follow it blindly.)

Bad Money Chasing

The reasons for the credit crunch, though, are far more numerous just people falling behind on their mortgages. Money is created primarily through the issuance of credit in the forms of mortgages, credit cards, business loans, and so on. Banks are able to create this money out of thin air, based on how much other money they have on deposit which has also been created out of nothing.

As long as loans are being paid back over time, this money creation scheme can continue for long periods of time. But the problem comes in when the principal for loans are created but not the interest. Banks make money from collecting interest, but they only create the principal amount of the loans.

This leaves the entire economy with a vast shortfall between the money created through debt and the money needed to pay back the interest on all of this debt. People who take out loans are forced to compete with each other to obtain as much money as they can in order to pay back the interest on the money they have previously borrowed but which had never been created.

The results of such a system are easy to predict: some homeowners will be able to gather enough money through production and pay off their debts in full. Others, though, may engage in successive cycles of borrowing, refinancing their homes and taking out new loans to pay back old interest but never coming out ahead.

Eventually, some people who borrow money will find that they have not gathered enough of principal money from other borrowers and they will have no choice but to default on their debt. Defaults are eventually written off by banks or the loans are discharged through bankruptcy proceedings, but the debts are eventually destroyed.

Banks, of course, plan for a certain amount of their loans to go bad or their borrowers to fall into bankruptcy. It is a necessary cost of creating principal out of thin air but never issuing enough money for all of the interest to be paid back. These loans, which the bank counts as assets because they were expecting to be paid back, are simply written off and the money is counted as destroyed.