Fred Wilson, whom many consider to be one of the most prolific venture capitalists ever, had a very interesting article on his blog recently. www.AVC.com

Basically he makes the case that this tumultuous economic state is going to provide some great opportunities for private equity firms and foreign buyers.

Companies like Apple, Google, Microsoft and Dell are have market caps that are now at incredibly low levels when you account for how much cash they have on hand.

Apple specifically has more than $20 billion cash and short term investments on hand. Their market cap as of today is 78 Billion. Deduct the $20 billion in cash and you have a company that’s trading at 6X cash flow. For a company that is continually gaining market share in the personal computer market, dominating the MP3 (which is actually often called iPod regardless if the audio device is one or not) player market and has just sold more than 10 million iPhone is less than a year the price seems like it’s a huge opportunity for a long term buy.

Even institutional blue chips are trading at value buy levels. Wal-Mart is trading at 10x cash flow, Comcast 6x and AT&T 4x cash flow. I know that the last thing on any American’s mind is probably about pouring money into the marketplace, but in reality things will come back to a normal level. I don’t think that these companies are at rock bottom yet. However fundamentally people will still have the same basic needs. Food, clothing, shelter, transportation, communication and entertainment. We’re going to have to tighten the belt drastically, and companies selling overpriced luxuries that many Americans indulge in (Starbucks) on a daily basis are going to feel it the most. But we will carry on, the financial crisis is serious but it’s not at a point where we can’t turn things around.

We should hope that American financial institutions will look to heavily invest in these great companies who are essentially on sale at a great discount. There’s no doubt that foreign companies will want to acquire undervalued properties and gain large positions if they cannot acquire a business outright. I’d prefer private equity investors to gobble up some of the cogs in the Fortune 500. In the 80’s the Japanese were buying up anything and everything that they could. Real-estate, large equity positions in companies and other investment vehicles. When their market took a major nose dive they were trying to unload as quickly as possible. Once we’re able to recover from our own economic crisis it’s important that in the event that another country enters into a major recession we don’t have a flood of debt or equity investments hitting the market all at once

A lot of people are concerned about our seemingly worsening economy. Millions of Americans jobs are at risk and having money to pay basic bills is the number one priority. One thing is for certain, in a down economy the rich, middle class and the poor can find ways to make money. It just comes down to one basic thing; you’ve got to hustle. It’s a fact (and part of what makes this country so great) that individuals who put themselves into something 100% are far more likely to succeed than someone who doesn’t.

When it comes down to putting food on the family (as our dear President would say) you’ve got to get creative about finding new career opportunities. Maybe you have to work harder than you ever have in your life. It might mean taking on two jobs, working crazy hours or working for far less than you’re worth. Unfortunately in this economy good jobs (with or without job security) are rare and the competition is fierce. We’re a free market society and those principals certainly extend to the job market.

It is simply supply VS demand. So how do you take advantage of this? Simple, make yourself (you, your talents) a scarce resource. Now if you’re an engineer that doesn’t mean you should go on a killing spree eliminating the competition. That will only lead to a temp job doing laundry on Death Row. What you really need to do is make yourself a valuable resource who can be a great utility player.

In sports teams are always looking for great talent. However in evaluating what their best choice might be for choosing a draft pick many things are taken into consideration. It’s not just what the biggest need (player position) is at the moment, meaning what job needs to be filled.  If your team needs a starting pitcher, a catcher, a first baseman and a third baseman you better think things through before blowing your number #1 pick on the top rated pitcher.

Wouldn’t you be better off trading that #1 pick for the 6th and 12th pick hedging your bet? Now while it’s not exactly the same, the principals around this theory are. If I have the opportunity to hire an employee at one position who I think will excel wouldn’t I be even more inclined to hire an employee who I think can excel at one position and be an asset (or even excel) at another position. Maybe employee #2 can help some of my other employees in other departments with some issues (outside of their main job description) that might arise.

So what does this all mean? Simple just make yourself as useful to a company as possible. If there were skills and jobs you performed well previously in your career (even if you weren’t so crazy about them) make sure you present that to any prospective employer. To get back to the sports analogy, I’d much rather draft a player who can play first base, third base and catcher than a short-stop. That way if something happens to one of my other players I know I’ve got this “Utility Player” who can make the quick move to that position.

So how do you become a “Utility Player”? Only you know the answer to that. You know your skill set, only you know your interests and passions. What is going to make you stand out? What would make you want to hire you over someone else?

We can stick our heads in the sand and hope that the sky clears and the good times come back tomorrow. Unfortunately the truth is that we’re probably in for a bumpy ride for the next few years. So only those willing to make that true sacrifice are going to succeed in these dismal economic times.

You know what to do. Get ready to get your hands dirty, you’ve got to want it, you’ve got to work hard, you’ve got to be a player.

Online solutions for non profit credit card consolidation

There are options like non profit credit card consolidation online and through regular services also which help in eliminating all credit card debts. All of these services have one common goal; to essentially save a consumer money.

Online credit card consolidation

There are various companies which provide online non profit credit card consolidation so that debts can be settled and the consumer can get good credit rating. These companies function through online modes and the entire process from application to the settlement of debts is done online. Contacts are made through email and personally when required. These non profit companies check the credentials of the clients like their home addresses, employment status and other verifications and then begin the process of consolidation.

Benefits of online consolidation of credit cards through non profit companies

The online option of settlement of debts and credits is a very useful option. This process is much faster than the regular consolidation companies. The verification of the company and comparison of the services offered can be done in minutes and that too in the comfort of the house or office. There are more options to choose from and the time taken for the same is very less. Moreover these non profit credit card consolidation companies also give the benefit of free services like credit counselling which helps in better management of debts. There is no fees charged for the service and the users in dire strait can avail these services to get out of debts. Consolidation of debts against the credit cards is done with the same benefits like low interest rates and monthly repayment options.

Other non profit options for settling credit card debts

Apart from the non profit credit card consolidation there are also options like credit counsellors who help in negotiating with the banks and the service providers. There are expert negotiators who settle debts for their clients and also help in reducing the amount of the debts. Through these negotiations the debts on credit cards can be reduced to almost 50% in many cases. The reduction is done because of many debtors become defaulters and don’t pay any amount of their debts. In such cases the banks have little options left except legal battles. Hence with negotiations they have the chance of getting back a good amount of their money.

Selecting an online service

While selecting an online service for non profit credit card consolidation comparison and research on the companies is required. The services should be non profit with no hidden charges in their terms and conditions. Accreditations are also a vital factor while selecting online credit card consolidation options. It is common for these services (even though they are a non-profit) to have some minimal monthly service fee. If they didn’t charge something they wouldn’t be able to afford to continue the service. In most cases the fees are minimal. Any company that asks for a service fee that seem either too high or too low should be scrutinized carefully.

Refinance options and debt to income ratio explained

The calculation of the debt to income ratio helps in getting the exact monthly debt amount and better management of debts and finances for repaying the same.

Calculating the debt to income ratio

The calculation of the ratio is done through the comparison of the amount of the debt, which does not include the mortgage payments, and other monthly costs to the gross income. In many cases the ratio can be calculated on a per month basis. If the monthly gross income of a debtor is 2500$ and the 500$ is given for the debt payment then the debt to income ratio is 20%. This ratio helps to compare the debt liabilities as per the income and the total debts and payments owed along with the monthly gross income.

The other additional costs associated with living are calculated into these ratios even if it’s not disclosed. 

Figuring out the debt-to-income ratio

For figuring out the ratio, the gross monthly income should be calculated first. The gross monthly income should be the amount prior to all the tax deductions. If a debtor is paid every alternative week then the take home money should be multiplied by 26. The result should then be divided by 12 which will show the monthly take home payment of the consumer. For those with inconsistent incomes should get the average calculation of their monthly income by dividing the net income of the previous year by 12.

What should be included in the debt to income ratio?

While calculating the debt to income ratio the income which comes from alimony and child support should be included. An average of bonuses, tips, commissions and other similar options should also be included. The earnings which come from dividends and interest on the same are also a part of this calculation. Income from other sources like government benefits should also be used in this calculation. That includes income from investments, stocks, bonds, options, 401k or the sale of an asset. However many companies will not ask you to disclose all investment or additional sources of income if they do not exceed a certain amount, typically $500 or less.

The payments of monthly debts

The monthly debt payments can be calculated by adding the minimum monthly income and the payments for all the loans like car and home loans, medical bills and credit accounts. The mortgage payment should not be included. The monthly debt payment should then be divided by the monthly take home payment so that the debt to income ratio can be generated. The ratio percentage of the same can be availed by dividing the total monthly debt payments and the total monthly take home.

Acceptable debt to income ratio

The lower this ratio is, the better the financial position of the debtor. Generally a ratio of 16 to 19 percent is considered decent. The debtors, with a ratio of 20% or higher, need to check and control their credits. The debt payment becomes less over time and so does the interest rate.

Unemployed student loan consolidation is an option which can be availed only by the students who are unemployed or are studying. This helps students to settle their previous debts. There are restrictions and conditions that apply to loans of these types.

 About unemployed students loan consolidation plans

Students can apply for loan consolidation after they finish studying so that they can clear off all their previous debts which were taken for their education. This consolidation of loans for educational purposes, taken by students, is known as student loan consolidation. Here the unemployed students can apply for a loan consolidation where the various debts are consolidated into one single loan of low interest rates. This option is also easily available for the students who are suffering from poor credit scores.

Benefits of unemployed student loan consolidation plans

The unemployed students can consolidate all their debts, which had been availed for higher studies, into a single loan. These loans are provided to students at very low interest rates. There is generally no additional fee taken for the same. The loan helps the students to get rid of the stress and pressure of paying back multiple loans. The student has to pay one monthly repayment to the new lender. The lender then takes care of distributing the money to all the other creditors. The students can focus on getting jobs rather than getting anxious about paying back multiple debts. Stress incurred from financial hardships (caused by student loans) can be a huge burden for a student and in many cases create a situation that causes the students grades to slip.

Secured and unsecured student loan consolidation

There are mainly two options available for the unemployed student loan consolidations which are secured and unsecured debts. The secured loan requires collateral to be sanctioned while the unsecured loan does not need one. The unsecured loans have higher interest rates but low loan amounts while the secured loans have lower interest rates and higher amounts of money. The collateral in the secured loans can be property or car unlike the strict restrictions in the regular secured loans. But the benefit of the unsecured loan is that it is risk free and the student will not have to give up the collateral, against which the loan was taken, if the repayment is not made on time. The credit history of the students is also taken into account when the loans are being consolidated but there are plenty of options for the students with bad credit history also. This trend will most likely change with a worsening economic state. Regardless if the student is studying in the US or abroad the loans that are being used for private education loans should be treated the same.

How to obtain a student debt consolidation loan

Students can easily apply for loan consolidation benefits from various kinds of online sources or other options also. The best way to find a consolidation loan is to compare the prices and the rates which are being offered by the different companies. This way the students can avail a better deal and start off to a debt free life. Many companies also offer other debt management options and budgeting plans. These can be highly useful tools for better managing ones financial life.

The stress free option of student loan consolidation

Students are out of college and get worried about paying back their educational loans. This leads to a lot of stress for them and getting frantic about paying back these loans.

With the new financial crisis our country is currently in, private loans (or additional loans issued to grads or new students) are going to begin to dry up. Student loans are usually a safe investment for financial institutions, however the interest rates (which are usually low) make them a less attractive investment vehicle compared to convertible debt.

The moment a course of a student is finished and they are out of college; their first worry is the repayment of their educational or student loan. The students are anxious to get jobs and try to clear off their loans. These student loans are like the other loans which may have an adverse affect on their future, if not paid on time. A record of poor credit can reflect badly on their future loans also. Hence the student loan consolidation proves to be an ideal way out. The main advantage of the same is the lower rate of interest.

Federal loans and private loans

The Federal loans have lots of advantages as compared to the private loans when it comes to consolidating the student loan. The loans provided by the Federal agencies are tax deductible. But the private loans by banks and other institutions are not given this benefit. When a student wants to opt for the student loan consolidation they are always suggested not to merge the Federal loans with the private loans. Instead it is suggested to consolidate them separately. The federal loans should be consolidated when the interest rates are low. The duration of the loan can also be fixed and can range from 10 years to 30 years. This again depends on the amount of the loan.

Problems if loans are not consolidated

If the student loan consolidation is not regarded as an option or the loans are not consolidated then the students have to be under the constant pressure of loan repayment. First of all there is the risk of getting poor credit history.  Then there are the aspects like not being able to get other comforts like getting loans for cars or using credit cards freely, and various other options. But by consolidating the loans the stress of different repayments and high interest problems can be avoided. The consumers just have to take care of one monthly payment and that too at very low interest rates.

Best time for student loan consolidation

The ideal time for consolidating the loans is during the 6 month grace period which the students are given after their graduation. At this time the fixed interest rate for the consolidation of the student loan apply the in-school rate of interest for their estimate, and this amount is very low. Students can also apply for the same when they are giving their monthly payments. Many companies don’t offer student loan consolidation services however they usually do offer other debt services that in many cases a student should investigate as to their ideal application and usefulness.

Johan and Tim both had the same amount of no decisions this season with 11.
However one important difference, Johan had 4 no decisions where the Mets actually came back to win after he pitched at least 6 innings and gave up two runs or less. Tim Lincecum had two similar games.

Tim Lincecum had one shutout this season. Johan Santana had two. The last of which was on a key deciding game for the Mets to make the wild-card (second to last game) on three days of rest for Santana. Essentially he had to risk injuring his arm to try to will the Mets into the playoffs. I think we know how that ended.

The overall record for Johan Santana for this season was:
W-L: 16-7
ERA: 2.53
K: 206
WHIP: 1.15
IP: 243

The overall record for Tim Lincecum for this season was:
W-L: 18-5
ERA: 2.62
K: 265
WHIP: 1.17
IP: 227

The one statistic I think places my CY Young vote (If I had one to give) to Santana is this; Licecum had five games where he pitched six or more innings, giving up three runs or less and not getting a win, but rather a no decision or a loss.

Johan Santana pitched 11 games like this.

So if we split (really) these games giving Lincecum two and half and Santana 5 and a half additional wins their overall records would be;
Lincecum 20.5-5 (21-5)
Santana 21.5-7 (22-7)

Imagine if these guys got the run support that Brandon Webb got this season. Imagine if they only had five no decisions on the year. Either one of these guys pitching on a team that can hit the ball and not blow games could come the closest to winning 30 games.

I think Lincecum is the most dominant pitcher in baseball when his stuff is on.
There’s no doubt based on his performances to date Lincecum will win a few Cy Young awards of his own. Hopefully he’ll either end up on a better team or the San Francisco Giants (their winning percentage is under .400 when he isn’t pitching) will get a heck of a lot better and soon. That being said for overall best pitching performance this season my vote goes to Johan Santana.

We’re big sports fans here at CreativePayment.com – This is a little off topic, but I’m really passionate about two things; money and baseball.