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California's Legislature approved tax increases and spending cuts needed to close a record $42 billion budget deficit, ending a political deadlock that gripped the Capitol for almost six days.
The revenue proposal would raise the state sales-tax rate to 8.25 percent from 7.25 percent and boost vehicle license fees to 1.15 percent from 0.65 percent of the value of an automobile. The package doesn't include a gasoline tax increase that was included in previous versions.
It also adds 0.25 percentage points to all personal income tax brackets for two years. A resident currently taxed at 8 percent will face an 8.25 percent levy.
While the tax increases ended the crisis facing the state, they drew fire from many Republicans, who said they would hurt residents who are already reeling from the worst recession since the 1930s.
The revenue proposal would raise the state sales-tax rate to 8.25 percent from 7.25 percent and boost vehicle license fees to 1.15 percent from 0.65 percent of the value of an automobile. The package doesn't include a gasoline tax increase that was included in previous versions.
It also adds 0.25 percentage points to all personal income tax brackets for two years. A resident currently taxed at 8 percent will face an 8.25 percent levy.
While the tax increases ended the crisis facing the state, they drew fire from many Republicans, who said they would hurt residents who are already reeling from the worst recession since the 1930s.
- Bloomberg
Bank of America Corp. is retiring one of the most toxic names in U.S. banking, hoping to put some distance between itself and the tarnished reputation of its Countrywide Financial mortgage unit.
Starting April 27, the mortgage unit will be rebranded as Bank of America Home Loans, said Barbara Desoer, the executive in charge of the business.
Starting April 27, the mortgage unit will be rebranded as Bank of America Home Loans, said Barbara Desoer, the executive in charge of the business.
- Wall Street Journal
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A Distortion in the Gold Market Could Make You 200% This Year
By Dan Ferris Thursday, February 19, 2009 A Distortion in the Gold Market Could Make You 200% This Year -
The World's Most Important Commodity
By Tom Dyson Wednesday, February 18, 2009 The World's Most Important Commodity -
If You Want to Buy Gold, Check This Indicator First
By Tom Dyson Tuesday, February 17, 2009 If You Want to Buy Gold, Check This Indicator First -
What I Read Every Day... Now It's All in One Place!
By Dr. Steve Sjuggerud Saturday, February 14, 2009 What I Read Every Day... Now It's All in One Place! -
The Best, Safe Investment of 2009 Pays 19% Interest
By Dr. Steve Sjuggerud Friday, February 13, 2009 The Best, Safe Investment of 2009 Pays 19% Interest
How to Buy Gold Now... with a Proven Track Record
By Dr. Steve SjuggerudFriday, February 20, 2009
In June 2002, I showed my subscribers a little-known way to buy gold for $250 an ounce... That was $70 off the market price at that time. (Boy, I wish we could buy like that again!) We made about 80% in two years.
For my next gold trade, in June 2003, I recommended readers buy gold coins. But I didn't want to buy bullion coins like Krugerrands. I wanted to buy something with a little rarity... That way, you have two ways to make money: if gold goes up and if the "premium" over melt value goes up.
Honestly, I was a little embarrassed to bring up the idea to my subscribers... Back then, gold was thought of as loony, not to mention gold coins. My readers probably thought I lost my mind. Thankfully, we got it exactly right. Both the price of gold and the rarity premium rose...
I recommended 100-year-old Saint Gaudens coins. They contain roughly an ounce of gold. You can buy them graded, authenticated, and encapsulated in plastic. My readers bought coins graded "MS63" – that's rare but not ultra-rare – for $490 per coin. Today, they're selling for $1,765 and we still hold them. That's a 260% gain and counting.
Then, in July 2005, I told subscribers to my high-end letter about three gold stocks. One of those three stocks was Seabridge Gold. Shares of Seabridge are up over 500% since I first recommended them. We sold half for more than 1,000% and we're holding the rest.
Here in 2009, gold is catching on. What's the right way to play it? Let's size it up the same way we did for the three trades above...
What's the lowest-risk, highest-reward way to play gold now?
This is exactly the moment that you can make a fortune by buying coins even rarer than the Saint Gaudens I recommended in 2003... that means coins grade MS64, MS65, or better. These ultra-rare coins can go up fivefold, sevenfold, even 12-fold in a gold bull market.
Since bottoming in 2001, these rare coins are only up about 100%, according to PCGS (the Professional Coin Grading Service). In other words, ultra-rare gold coins have risen less than the price of gold... so far.
But I expect that will change very soon... The chart shows how crazy prices can get during gold bull markets.
I recommend you start looking into rarer gold coins – ones costing at least twice the price of gold – if you want to have the potential to make huge returns with limited downside risk. As you can see from the chart, your upside potential is ridiculously high. But even if the price of gold falls, people won't sell 'em, so your downside is low.
Remember, gold has increased in value faster than these coins. So their "premium" to the price of gold has actually shrunk. Now, higher-end gold coins are at their lowest premium to their meltdown values in the recorded history of the grading services (which go back to 1986).
If you're looking to own gold, you have a lot of choices... gold bullion, gold ETFs, gold stocks...
But when I size up the upside potential versus the downside risk, I want to own the ultra-rare gold coins.
Good investing,
Steve
Editor's note: Steve Sjuggerud is a regular contributor to DailyWealth, a free investment newsletter focused on the world's best contrarian opportunities. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments.
Sign up today to read more investment ideas from Steve Sjuggerud.
For my next gold trade, in June 2003, I recommended readers buy gold coins. But I didn't want to buy bullion coins like Krugerrands. I wanted to buy something with a little rarity... That way, you have two ways to make money: if gold goes up and if the "premium" over melt value goes up.
Honestly, I was a little embarrassed to bring up the idea to my subscribers... Back then, gold was thought of as loony, not to mention gold coins. My readers probably thought I lost my mind. Thankfully, we got it exactly right. Both the price of gold and the rarity premium rose...
I recommended 100-year-old Saint Gaudens coins. They contain roughly an ounce of gold. You can buy them graded, authenticated, and encapsulated in plastic. My readers bought coins graded "MS63" – that's rare but not ultra-rare – for $490 per coin. Today, they're selling for $1,765 and we still hold them. That's a 260% gain and counting.
Then, in July 2005, I told subscribers to my high-end letter about three gold stocks. One of those three stocks was Seabridge Gold. Shares of Seabridge are up over 500% since I first recommended them. We sold half for more than 1,000% and we're holding the rest.
Here in 2009, gold is catching on. What's the right way to play it? Let's size it up the same way we did for the three trades above...
What's the lowest-risk, highest-reward way to play gold now?
This is exactly the moment that you can make a fortune by buying coins even rarer than the Saint Gaudens I recommended in 2003... that means coins grade MS64, MS65, or better. These ultra-rare coins can go up fivefold, sevenfold, even 12-fold in a gold bull market.
Since bottoming in 2001, these rare coins are only up about 100%, according to PCGS (the Professional Coin Grading Service). In other words, ultra-rare gold coins have risen less than the price of gold... so far.
But I expect that will change very soon... The chart shows how crazy prices can get during gold bull markets.
I recommend you start looking into rarer gold coins – ones costing at least twice the price of gold – if you want to have the potential to make huge returns with limited downside risk. As you can see from the chart, your upside potential is ridiculously high. But even if the price of gold falls, people won't sell 'em, so your downside is low.
Remember, gold has increased in value faster than these coins. So their "premium" to the price of gold has actually shrunk. Now, higher-end gold coins are at their lowest premium to their meltdown values in the recorded history of the grading services (which go back to 1986).
If you're looking to own gold, you have a lot of choices... gold bullion, gold ETFs, gold stocks...
But when I size up the upside potential versus the downside risk, I want to own the ultra-rare gold coins.
Good investing,
Steve
Editor's note: Steve Sjuggerud is a regular contributor to DailyWealth, a free investment newsletter focused on the world's best contrarian opportunities. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments.
Sign up today to read more investment ideas from Steve Sjuggerud.
THIS IS NOT GOOD NEWS FOR AMERICA
It's time for an update on one of the most important charts in the world right now... the iShares Financial Fund (IYF).
This ETF is made up of the biggest names in American finance. Goldman Sachs, Bank of America, Wells Faro, American Express, and JPMorgan are all large holdings. The action in this fund tells us more about the economy in one second than hours of political speeches and CNBC rants ever could.
This week, the IYF punched through $30 per share. Giant credit-card companies American Express and Capital One are plunging right now. Bank of America and Citigroup both sell for less than $5 a share.
We're optimists here at DailyWealth. After all, American stocks, bonds, and GDP have been in one of history's strongest long-term uptrends. But right now, the market is saying there is a real problem with the "guts" of our financial system. Loans aren't being paid back. Assets folks thought were worth $100,000 a few years ago are selling for $30,000. And the government's attempt to "do something" hasn't even budged the downtrend you see below. This fund needs to rise above $35 and stay there before anyone can say, "the worst is behind us."
This ETF is made up of the biggest names in American finance. Goldman Sachs, Bank of America, Wells Faro, American Express, and JPMorgan are all large holdings. The action in this fund tells us more about the economy in one second than hours of political speeches and CNBC rants ever could.
This week, the IYF punched through $30 per share. Giant credit-card companies American Express and Capital One are plunging right now. Bank of America and Citigroup both sell for less than $5 a share.
We're optimists here at DailyWealth. After all, American stocks, bonds, and GDP have been in one of history's strongest long-term uptrends. But right now, the market is saying there is a real problem with the "guts" of our financial system. Loans aren't being paid back. Assets folks thought were worth $100,000 a few years ago are selling for $30,000. And the government's attempt to "do something" hasn't even budged the downtrend you see below. This fund needs to rise above $35 and stay there before anyone can say, "the worst is behind us."