China Ranks #72 Amongst All The  Corrupt Nations

Corruption costs China as much as $86 billion a year and poses one of the most serious threats to the nation’s economic and political stability, the Carnegie Endowment for International Peace said. Bribery, kickbacks and theft account for about 10% of government spending and transactions, even though the state has more than 1,200 laws and directives against corruption.

China, the world’s fastest growing major economy, ranks No. 72 in Berlin-based Transparency International’s 2007 Corruption Perception Index of 180 countries. The government in Beijing had 27 billion yuan ($3.6 billion) of unexplained spending last year, the National Audit Office said in a statement last month. Chinese President Hu Jintao has fired several top officials, including Shanghai Party Chief Chen Liangyu, as part of an anti- corruption drive and has set up an agency to tackle graft.

Corruption is concentrated in areas with extensive state involvement, such as infrastructure projects, real estate, government procurement and financial services.  The direct costs of corruption could be as much as $86 billion a year, or 3% of gross domestic product, based on the conservative assumption that 10% of the land lease revenues, fixed investments and government spending is stolen or misused.

The Power of Hormones 

SAC Capital is a powerful $10 billion hedge fund run by superstar trader Steven A. Cohen, one of Wall Street’s most prolific players who regularly takes home $500 million a year. What’s their secret? Telling their traders to swallow female hormones to trade better. It was alleged that one of Cohen’s top bosses at SAC chided traders for being too aggressive - and that they must use a soft feminine touch to score in their trading pitches.

One junior trader claimed that the boss, Ping Jiang, a key producer at the big hedge fund, demanded that the young trader take female hormone pills to help erase his aggressive male ways so he could be more effeminate in his trading style. Eventually, the hormones caused the junior trader, Andrew Tong, to start wearing dresses, avoid his wife’s touches altogether and allegedly begin a sexual relationship with his boss, the trader claims. Tong said that when he was instructed by Jiang to start taking an unspecified dosage of the pills to improve his trading.  Tong had to search the illegal black market to find his hormone pills.

The method apparently worked for Jiang, who’s listed by Trader Monthly magazine as one of Wall Street’s top 100 traders, with estimated income of $100 million a year.

 Only 25 And Morally Damaged For Life

Desperate to find a husband who makes at least $500,000 a year, a hungry 25-year-old has removed her craigslist ad off the Internet after causing quite a stir. She’s sparked a flurry of debate from cyberspace to Wall Street about her sanity and scruples. Craigslist officials said the ad is legitimate and that she got 40 responses before removing it. I know the length is a bit much, but you have to read the entire thing…

What am I doing wrong? Okay, I’m tired of beating around the bush. I’m a beautiful (spectacularly beautiful) 25 year old girl. I’m articulate and classy. I’m not from New York. I’m looking to get married to a guy who makes at least half a million a year. I know how that sounds, but keep in mind that a million a year is middle class in New York City, so I don’t think I’m overreaching at all.Are there any guys who make 500K or more on this board? Any wives? Could you send me some tips? I dated a business man who makes average around 200 - 250. But that’s where I seem to hit a roadblock. 250,000 won’t get me to central park west. I know a woman in my yoga class who was married to an investment banker and lives in Tribeca, and she’s not as pretty as I am, nor is she a great genius. So what is she doing right? How do I get to her level?Here are my questions specifically:

A Response That Could Not Be Put Any Better:   I read your posting with great interest and have thought meaningfully about your dilemma. I offer the following analysis of your predicament. Firstly, I’m not wasting your time, I qualify as a guy who fits your bill; that is I make more than $500K per year. That said here’s how I
see it.Your offer, from the prospective of a guy like me, is plain and simple a crappy business deal. Here’s why. Cutting through all the B.S., what you suggest is a simple trade: you bring your looks to the party and I bring my money. Fine, simple. But here’s the rub, your looks will fade and my money will likely continue into perpetuity…in fact, it is very likely
that my income increases but it is an absolute certainty that you won’t be getting any more beautiful!So, in economic terms you are a depreciating asset and I am an earning asset. Not only are you a depreciating asset, your depreciation accelerates! Let me explain, you’re 25 now and will likely stay pretty hot for the next 5 years, but less so each year. Then the fade begins in earnest. By 35 stick a fork in you!

Warren Buffett’s advice to students: avoid credit cards.

Last year, representatives of Bank of America sat down to negotiate a deal that would guarantee the company access to the home addresses, phone numbers and e-mail addresses of University of Iowa students and parents. They didn’t deal directly with school officials. Instead, they talked to representatives of the school’s privately run alumni organization. The two eventually signed a confidential credit card marketing agreement in which the bank agreed to pay the alumni association an undisclosed amount of money. The alumni granted Bank of America access to publicly owned databases of information on students, parents and fans who attend football and basketball games.

The alumni associations say that because they are private, nonprofit corporations, they’re not subjected to public-disclosure laws that would otherwise force them to reveal their contracts with Bank of America.The alumni associations say that because they are private, nonprofit corporations, they’re not subjected to public-disclosure laws that would otherwise force them to reveal their contracts with Bank of America. With the associations acting as a conduit between public schools and Bank of America, the money that changes hands as the banks gain exclusive access to a campus remains largely hidden from view. For example, a memo of understanding between the U of I and its alumni association states that in connection with the credit card program the school “may, from time to time, disclose to the association” both public information and unspecified “non-public information.” It goes on to say that the university must provide, if asked, updated addresses and phone numbers of students and parents for use in Bank of America’s credit card marketing program. The U of I’s current contract with Bank of America calls for the athletics department to give the bank access to its electronic e-mail list.

The Register also reports that the University itself benefits from the Bank of America relationship through donations from the Alumni association, including $20,000 annually to help pay for “credit card education and counseling for students.” How sweet!

For the ADA Seal of Approval to Appear on their Gum

The American Dental Association said Tuesday it has awarded its seal of acceptance to Wrigley sugar-free gums Orbit, Extra and Eclipse — based on studies funded at least partially by the maker of Wrigley gums, Chicago-based Wm. Wrigley Jr. Co. It’s the first time the ADA has allowed its seal to appear on gum after clearing it for thousands of other products since 1930. The seal currently appears on various toothpaste, dental floss and oral rinse products. Now gum? Shouldn’t they test other products before before issuing such a seal on only Wrigley? Why not Trident.

 Studies confirms those three gums have been shown to help prevent cavities, reduce plaque acid and strengthen teeth. Studies submitted by Wrigley showed that chewing those gum products for 20 minutes three times a day after meals increases saliva production. Saliva, the ADA said, helps neutralize and wash away plaque acid and bathes the teeth in minerals such as calcium, phosphate and fluoride, which are known to strengthen tooth enamel and help prevent cavities. Yay!

Wrigley’s gums were singled out among other sugar-free gums because the company approached the studies that focused solely on its products. However, Wrigley paid $36,000 to submit its evaluation material — $12,000 per product. ADA also said Wrigley spends $35,000 to $45,000 in exhibit booth space at its annual meeting, advertising in its publications and on other sponsorships. It also pays $25,000 to help sponsor an ADA health screening program. AHA! Gaining the seal nevertheless is a marketing coup for Wrigley, which kicked off a print and online publicity campaign Tuesday and said it would target dental professionals in particular.

Each of these have very appalling stories. Make sure to read them.

1. You’re Paying Too Much. If you have a good driving record, the odds are you can a better deal on auto insurance. After years of 5% rate increases, most major companies are either leveling out their prices or even rolling back rates. Why? Profits are on the upswing, and more significantly, accident rates are going down. Make an effort to shop for a new policy every year.

2. Forget Your Driving Record. We Want Your Credit Rating. A lot of factors are used to determine your premiums, including your driving record, age, the type of car you drive, marital status and, most important, your address. But increasingly, companies are using your credit history as an indicator of how likely you are to file a claim. You could have a spotless driving record, but maybe your business failed, or you have an error in your credit report. That would make you unavailable for preferred insurance, and you’d pay a lot more in premiums. Only twelve states now have laws that limit the use of credit scores in auto insurance.

3. We’re Pocketing Your Deductible. Most states give insurance companies up to 6 months to go after the money owed by another company. After that, they’re required to either give you the deductible or let you go after the other company on your own. If they win only a partial settlement, a whole new set of rules kicks in. Usually, the winnings are split between you and your insurer. In 1996 State Farm paid out a $22 million settlement in Texas for failing to refund deductibles. That case set off a chain of 22 additional settlements by major insurers for the same offense, including Geico, Allstate, Prudential, Liberty Mutual and Nationwide.

4. We Can Dump You On A Whim. The first 30 to 60 days after signing up for insurance is called the “binding period,” and during that time the insurance companies can cancel your policy for just about any reason, often without explaining why. If you want to find out why your policy wasn’t renewed, good luck. Insurance companies aren’t required to divulge specific details. Even more common is “nonrenewable,” when you’re simply cut off after your policy expires. What happens if you get nonrenewed? You’ll find yourself banished to the dreaded high-risk category of auto insurance, along with drunk drivers and Corvette-driving teenagers.

5. We’ll Stiff You If Your Car Is Totaled… Your collision policy entitles you to fair market value for your totaled car’s worth, but the amount you actually get could leave you feeling ripped off. Until the mid-1990s, insurers determined car values by averaging the prices in the National Market Reports Automobile Red Book and the National Automobile Dealers Association’s Official Used Car Guide. Now companies like CCC Information Services in Chicago control the market and the prices they give out are almost always lower than the book values. CCC looks at cars for sale in your area in similar condition, along with local ads, to determine values. There’s no guarantee that your insurer will pay you even CCC’s figure.
What can you do to protect yourself? When your insurer hands you a CCC report, it usually lists the actual cars the company used for comparison. Jot down the vehicle identification numbers to make sure they actually exist and that there are no mistakes.

6. …And Even If It Isn’t. Ever hear of “diminished value“? The insurance companies are betting you haven’t. Even if your car is repaired after an accident, there could be flaws in the repair process. Either way, your car’s bound to be worth less in the resale market, and your insurance company is obligated to pay you the difference. By just raising the issue of diminished value before the car is repaired, consumers can get a much better deal. If your car has lost some of its value, you can file a supplemental claim to recover the difference. While insurance companies may try to fight you on it, diminished-value claims have been paid out in every state and by every major insurance company.

7. You Need A Lawyer. Insurance companies don’t like to deal with lawyers, but few go to the lengths that Allstate does. Since 1993 the company has been sending brochures to its customers who’ve been in accidents, advising them that they don’t need a lawyer. Allstate even tells this to people insured by other companies after they’ve been in an accident with an Allstate customer. Fourteen states have complained about the brochures. The company claims it’s a freedom of speech issue and still sends the brochures out in every state but Connecticut and Massachusetts.

8. Our Body Shops Work For Us, Not You. Most insurers have a list of body shops that they prefer to use through what’s called a “direct-repair program.” It’s similar to managed care, in that you can take your car elsewhere but your insurance company might not pay the full cost of repairs if you do. The catch is that these direct-repair body shops get on the list by keeping their costs low — sometimes spending less time on repairs, using cheaper parts and overlooking damages that only an expert could spot. State Farm’s Service First program even includes a gag clause that prevents shop owners from talking to customers about their cars until they’ve cleared it with State Farm first. And because the companies hold so much clout, many shops can’t stay in business unless they stay on those preferred lists.

9. We Make Money By Sitting On Your Claims. The average claim takes nine months to settle. It’s not entirely the industry’s fault, since most experts say you shouldn’t accept a final settlement until your doctor has cleared you of all possible injuries. That process can take months. But insurance companies are in no rush to write checks. The typical auto-insurance business model is to break even on premiums — that is, to pay out about the same amount that the firm takes in — but profit from investing the money while the company holds it.

10. We Own Your State Insurance Commission. The insurance industry is regulated at the state level, unlike banking and securities, even though many of the 1,500 insurance companies do business in more than one state. The result is a patchwork of often under budgeted state agencies, each trying to control its own small corner of a multibillion-dollar industry. In Florida, California and 10 other states, the insurance commissioners are elected officials, making them willing and often eager recipients of campaign donations from the companies they’re supposed to be regulating. In the remaining states, the position is a political plum, appointed by the government. No wonder so many former commissioners (and 9 of the last 11 heads of the National Association of Insurance Commissioners, the central organizing body) left for private-sector insurance jobs.

After reading each story, here is my conclusion after reading this article: Do not buy from Allstate. You’re Not In Good Hands.

Some Stores Can Make As Much As 500% Interest

Payday loans. They’re either a quick cash solution when money’s tight, or a business that preys on the poor. Here’s what three employees in the industry had to say:

• Bill Harrod was a payday loan manager for 10 months and says he was trained to target a specific community. Bill Harrod, Former Payday Loan Manager: “My company was deliberately targeting minority people for a continuous loan process that they would never, ever get out of.”
• Cameron Blakely, Former Payday Loan Store Manager: “Our borrowers were like indentured servants. They work, they work, but each payday we claimed a piece of their paycheck. Every paycheck.”
• Mike Donovan, Former Payday Loan District Manager: “The average Check ‘n Go customer in Washington, D.C. is continuously in debt to the company for over a year. We train our sales staff to keep customers dependent. The repeat borrower is vital to our business model.”

Lobster Dinners and The Finest Cookies

An internal Justice audit, released Friday, showed the Justice Department spent nearly $7 million to plan, host or send employees to ten conferences over the last two years. This included paying $4 per meatball at one lavish dinner and spreading an average of $25 worth of snacks around to each participant at a movie-themed party. More than $13,000 was spent on cookies and brownies for 1,542 people who attended a four-day “Weed and Seed” conference in August 2005

And a “networking” session replete with butterfly shrimp, coconut lobster skewers and Swedish meatballs at a Community Oriented Policing Services conference in July 2006 cost more than $60,000. The report, which looked at the 10 priciest Justice Department conferences between October 2004 and September 2006, was ordered by the Senate Appropriations Committee. It also found that three-quarters of the employees who attended the conferences demanded daily reimbursement for the cost of meals while traveling. The most expensive conference on the list was a $1.4 million meeting, in Denver in May 2006, to discuss Project Safe Neighborhood. Ironically, the cheapest meeting on Fine’s list was the only one held overseas: $181,648 to send FBI agents to a conference in Cambodia in March 2006. For more info about the audit.

History Repeating Itself

Homeowners whose loan rates are soaring may want to head for the exits. Many of them may find no way out.  If they sell their home or refinance, they will face a penalty of thousands of dollars for paying off their loans early. According to the Center for Responsible Lending, these exit fees, called prepayment penalties, were added to more than two-thirds of the adjustable-rate loans. Those loans initially carry a very low interest rate, known as a teaser because it is below the market rate and rises sharply over time. The lenders say the trade-off is the only way to offer low monthly payments initially because otherwise borrowers would flee when rates adjust upward and make the loan a losing deal. The fees usually equal several months’ interest, and they decline over a few years before disappearing altogether.

Homeowners often think they can keep up with their rising payments or that they will simply refinance later, but the penalties can dash that hope. State governments, regulators and members of Congress are considering whether to rein in prepayment penalties. Senator Christopher J. Dodd, Democrat of Connecticut, said this week that he would introduce legislation to eliminate the penalties and make other changes in home lending practices. When interest rates were high in the 1970s, states took steps to protect consumers from onerous prepayment penalties. Such fees generally disappeared from standard loans. In the late 1990s, though, subprime loans to people with weak credit blossomed, and with those loans came a resurgence in prepayment penalties. A number of states limit the penalties, but only state-regulated banks are generally subject to those restrictions; mortgage companies and national banks are not. Experts say that many borrowers do not really understand the implications of prepayment penalties (if they are aware they have them at all) and fall prey to sophisticated marketing.

In a 2002 lawsuit by the Association of Community Organizations for Reform Now (Acorn) on behalf of a group of borrowers against Household Finance, Acorn said that lenders referred to the practice as “closing the back door” by making it too costly for borrowers to get out of loans with rising rates. The art of finding borrowers was carefully honed, according to the lawsuit. Among the techniques was sending a check and telling recipients they could have access to a small loan by cashing it. Those who did went on a hot list of prospects in a strategy referred to as target practice, according to the suit.

 A study by the Center for Responsible Lending shows that borrowers in minority neighborhoods received a disproportionate share of loans with prepayment penalties. The Pew Hispanic Center reported in 2002 that African-American families had a median net worth of just under $6,000. Hispanic families had nearly $8,000.  For white Americans, the median net worth was $88,651.

It is possible to win a legal battle while still being destroyed by the process

Judge Roy “Fancy Pants” Pearson, who sued a DC-area dry cleaner for $54 million dollars after they botched a $10.50 alteration, may well find that his job is on the line. City sources said a marathon meeting of the Commission on Selection and Tenure of Administrative Law Judges ended late Monday with agreement to meet again next week to finalize wording of a letter explaining the panel’s doubts about granting Pearson a 10-year term on the bench. Pearson’s initial term expired at the end of April, at the height of his legal battle against the Chung family, owners of Custom Cleaners on Bladensburg Road NE. Those better be some really nice pants. Pearson broke down in tears during an explanation about his frustration after losing his pants, and a short recess had to be declared.

The panel’s discussion about Pearson’s future has focused on what role a judge’s behavior outside the courtroom should play in assessing his qualifications. Was Pearson’s extraordinary zeal in pursuing the case against the Chungs so embarrassing that it amounts to evidence of poor judicial temperament? The sad part is the Chungs may not be able to recover their legal fees if he is out of a job…. I guess he never saves and that’s why he prompted such an expesive lawsuit (60,000,000)? Hopefully he’ll have a long career ahead of him which requires him to ask “do you want fries with that?”.

Here are six tell-tale conversation flags that indicate you’re dealing with a telephonic scam artist:

1. Promising that you can win money, make money, or borrow money easily
2. Demanding that you act immediately or else miss out on this great opportunity
3. Refusing to send written information prior to your purchase or donation
4. Trying to scare you into buying something
5. Insisting you wire money or a courier will come by to pick up your payment
6. Refusing to stop calling after you ask them to stop.

The best defense against telemarketing fraud? Just hang up. It’s not rude.
Know a senior citizen who can’t hang up? Show them this article. 

When Will This Mess End

Health insurance premiums paid by workers and their employers rose an average of 6.1% this year, outpacing inflation and pay increases and taking a bigger chunk out of families’ budgets, according to a new survey. That’s the lowest growth rate since 1999, when premiums rose 5.3% and cost an average of $2,196 for individuals and $5,791 for families. Premiums for employer-sponsored health insurance for the average family topped $12,000 — with employees picking up about one-fourth of that cost.

Insurance costs probably will rise again next year, according to the survey released today by the Kaiser Family Foundation, a health care research organization that annually tracks the cost of health insurance. Many of the more than 3,000 companies surveyed said they planned to make significant changes to their health plans and benefits. Since 2001, the cost of premiums has gone up 78%, far outpacing a 19% increase in wages and 17% jump in inflation.

Why ? Why? Why? Health insurance companies continue to see higher profits, but premiums keep going up because costs rise each year. And much of that is because, through the years, the health care system produces more tests, procedures and products that can treat more people, and all of that costs more money. Don’t have insurance? Work for a large company. The larger a business, the greater the chance it offers health insurance. Though premiums may be similar for smaller and larger companies, smaller ones have higher deductibles and their administrative costs for plans may be higher because there are fewer employees over which to spread the costs.

They’ll Stop At Nothing

Phil Hughes is a homeless handy-man who’ll paint your house number on your curb for $5 and some turkey leftovers, says Mary Olsen, a homeowner who hires Hughes for occasional jobs. When Hughes got sick, Mary Olsen told him to put down her name as an emergency contact. “I didn’t want him to die and not know about it,” she said. Hughes spent 3 or 4 days in the hospital and the bill came to Mary Olsen’s house. It was for $42,000.

Here’s a homeless man who doesn’t have a penny to his name and he has this enormous hospital bill. How’s he going to pay it? A collection agency began hounding her with phone calls looking for Hughes, especially on early Saturday mornings. She told them Hughes did not live there, was homeless and could not afford to pay. Her pleas made no difference: The calls continued daily for a couple of weeks. Finally, Mary threated the debt collectors with media exposure to get the calls to stop. Perhaps he can pay in leftover turkey.

Dam Those Illegal Loans

African-Americans and Latinos are much more likely to be sold high-cost home loans than white households in San Diego and around the nation, according to a study released by the Association of Community Organizations for Reform Now, or ACORN. The Foreclosure Exposure results for San Diego:

• 31% of home-refinance loans made to African-Americans in 2006 were high cost.
• 25% of such loans to Latinos were high cost.
• 13% of home-refinance loans made to whites had unfavorably high interest rates.

The study found that African-Americans within the county were 2.4 times more likely to receive high-cost refinance loans than whites. “America’s lower-income and minority communities receive a disproportionate number of subprime loans and are therefore most exposed to experience default and foreclosure,” the study found. They should do a study on percentage of women are getting high-interest loans than men. Stupidity and greed go cross racial boundaries.