You also can get loans in Muslim countries, although they work differently. People who want to buy a car without paying cash go to a bank and write a series of postdated checks, to be cashed once a month until the debt is fully paid. A similar system is employed for apartment rentals.

In Dubai, if you don’t have enough cash in your account to cover the check in any given month, watch out: The bank can get a warrant for your arrest, and you can be jailed, Rhode said. Those in default also can have their passports seized, preventing them from leaving the country.

Something I thought about during the homeowner bailouts was that we should require some sort of community service from those who are receiving taxpayer help. There is a lot of trash to pick up and graffiti that needs to be painted over. There are also lots of neighborhoods that need cleaning up. Radical? Yes. I’m sure my thoughts will bother some people.

AWESOME!

I had been debating with myself as to which phone I was going to get next. I had narrowed my choice down to either a BlackBerry or an iPhone. My wife got an iPhone 3Gs during the summer and I played around with it enough to know that I didn’t want one for myself. My wife loves her iPhone but I don’t like typing on a flat screen and don’t think I would ever get used to it.

So, I knew I was going to get a BlackBerry—I just didn’t know which one. The Bold at $300 seemed expensive so that was a knock against it. The Curve 8900 was interesting but I didn’t like the new, smaller keyboard. The keys felt too close together.

I was undecided until AT&T started offering $100 rebate on the Bold. Of course, when companies start offering rebates it’s because they are trying to clear out inventory for something new. In this case, it’s the Bold 9700. The only difference that matters to me between the Bold 9000 & 9700 is the improved camera on the 9700, which goes from a 2.0 megapixel to a 3.2 megapixel. But, I can live with the camera on the 9000.

The Bold feels like a better quality phone than the Curve. It is a bit bigger than the Curve, which is something I thought would bother me but so far I haven’t noticed much. I LOVE the Bold’s keyboard. The keys are sized right for my thumbs and the keyboard has a nice feel to it. The Curve 8310 had a clicky feel whereas the Bold has a softer feel.

The internet browser on the Bold is much better than the Curve’s (though still not nearly as good as the iPhone’s Safari browser). Yes, it’s still a cellphone browser, but it is a lot faster and easier to use then the browser I used on the Curve. The Bold is a 3G phone and offers wi-fi. The Curve was on the Edge platform and did not have wi-fi.

The Bold’s contacts feature is nice because it adds both the birthday and anniversary field—something the Curve didn’t offer.

The texting feature is improved in that when I go to start a new text, there is a “to:” field where I can begin typing the recipient’s name. The curve used to make me go to the contacts and type in the name in order to start a new text message. The Bold also separates text messages from emails, which is different. I’m not sure if I can change the settings so that all messages go to the same folder. I don’t mind them being separated.

The ONLY thing that I don’t like about the Bold is the fact the closure on the belt holster covers up the indicator light, which means I have to lift the holster cover in order to see if the light is blinking. Not a big deal but it is an inconvenience.

Bottom Line…

If you like the Curve, you’ll LOVE the Bold.

My question is:

Are people REALLY this dumb or are they just trying to get on the Jay Leno Show?

Something about that number just seems strange.

From the article:

Colorado voters approved an adjustable minimum wage in 2006. Supporters of that amendment said they did not intend for wages to fall, but the provision allowing it to fall was crucial to its passage. They have pointed out employers of the estimated 50,000 to 70,000 Coloradans making minimum wage are free to leave wages flat.

Did you see that…”supporters did not intend for wages to fall…” Things never happen the way we think they are going to happen.

I have never counted myself among the Dave Ramsey fans. Sure, his advice is better than racking up lots of debt and not saving for the future. But, he also generalizes and has a one-size-fits-all approach to the advice he offers his listeners.

What bugs me most is the math behind his assumptions.

For example…

On page 3 of the above-mentioned workbook, is this:

“The American Dream

Imagine if…
A 30-year old couple made $48,000 a year and saved 15% ($7,200 per year or $600 per month) in a 401(k) at 12% growth.

At 70 years old, they will have…
$7,058,863.50 in the 401(k)”

How did Dave arrive at that number? Here’s the math:

That’s a lot of money!

But, how would this look in the real world? I summarized Dave’s information into the following graphic and used 2009″s numbers from the IRS to calculate income taxes.

For my example, I assumed that this couple does not have children. If that were the case, it would probably be possible for them to sock away $7,200 per year. Their budget would be tight unless they economized.

Then comes my next question:

WHERE ARE THEY GOING TO GET A 12% RATE OF RETURN FOR 40 YEARS?

Seriously, WHO assumes a 12% rate of return for 40 years? Later on in the book, Dave stresses diversification. There’s not a properly diversified portfolio on earth that is going to average a 12% rate of return on a consistent basis. The ONLY way you’re going to get that kind of return is to invest ALL YOUR MONEY in small cap stocks, which are highly volatile.

I think the word “imagine” was the proper word to use for his scenario because the only way he’s going to get those numbers is with IMAGINATION!

To bring us back to REALITY, I reran Dave’s numbers using a much more conservative .77% monthly rate of return, which happens to be the geometric average return for the S&P going back to 1926. Take a wild guess at what the 401(k)’s expected value becomes with that number?

And that number’s even somewhat inflated because it assumes 100% of the money is invested in the S&P for all 40 years.

And…

Neither of those numbers include inflation, which would eat up at least half of those accounts.

So why does Dave use such a high number for an assumed rate of return? I would have to say it’s to give people hope (a false sense of hope, but hope nonetheless). When people look at those numbers, they go, “WOW! I can do that? I had no idea!” I will admit, that those numbers are eye-popping.

But,…

Thoughts?

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“I pride myself on knowing how to tip and on being a generous tipper. But a recent encounter left me reeling.

“I got a massage from a chain that offered a $35 special rate. It was a good massage, so I’d planned to tip 20% of the usual $49 cost. That is, until I hit the checkout counter and saw a sign informing me that the minimum tip was $10 and a really good tip was $20.

“My brain froze. I wanted the masseuse to know I had appreciated her work. I put a second $10 in the tip envelope. But as soon as I hit the street, I was ticked.

“Because I knew I’d been had. The massage was good, but the provider did not deserve a 41% tip.”

I’m with Liz.

I have written lots about tipping. I operate under the principle that tipping should be voluntary and should be generous if the service warrants it. I HATE having a “tip” added automatically to my bill because upon doing so, it ceases to be a tip.

This wouldn’t be a problem though if everyone would tip appropriately.

Anyway, interesting article.