Oil 5 Unusual Sales Taxes You Need To Avoid

Oil 5 Unusual Sales Taxes You Need To Avoid With the economy still struggling, states are getting fairly crafty with how they charge consumers via sales taxes. It's no secret that dubious, yet all-too enforceable government laws have been with us since the dawn of the civilized world. In ancient Egypt, the pharaohs taxed cooking oil – of course, the main seller of cooking oil was the pharaoh. During the first century AD, the Roman empire taxed urine – a popular source of ammonia for common tasks like tanning hides and cleaning clothes. Then at the height of the Dark Ages (an era in European history notorious for its poor hygiene), some European governments taxed the sale of soap! Unfortunately, onerous and unusual state taxes are still very much with us. What are some of the biggest offenders – and are they active in your state? Here's our top five: Food Packaging Tax States like Colorado have a weird definition of what constitutes food packaging. In using the term 'essential' in its tax language for such commodities, Colorado finds itself in the strange position of taxing paper cup lids and napkins, but not paper cups or fast-food French fry containers. Hot Air Balloon Tax If you're in Kansas and in the mood to take a ride in a hot air balloon, beware of the state government's 'amusement' tax. State regulation makes balloon rides taxable. But there is a caveat – only balloon rides that are tied, or tethered to the ground, are considered taxable. So, if you want to avoid paying taxes when taking a balloon ride over Topeka, make sure to leave the rope at home! Careful on That Bagel New York State has an interesting way of handling bagels – and taxes on buying bagels. If you want to eat a bagel tax-free, don't have the deli counter 'prepare' it for you (i.e., add cream cheese or cut the bagel in two pieces). Prepare that bagel yourself, and you don't have to pay a tax on it. Wet Fuse In West Virginia, celebrating the Fourth of July – or any celebration where fireworks are used, can lighten your wallet. The state has a special tax – on top of its 6% sales tax – on things like ladyfingers and sparklers. Fruit Cakes California has gone bananas over the purchase of fruit by consumers. If you buy an apple from a regular retailer, you're in good shape, as the purchase is tax-exempt. If you buy fruit from a vending machine – and who hasn't done that – you'll pay an additional 33% on the amount of the purchase. Maybe the most egregious case of over-taxation on a state level comes from Pennsylvania, where the commonwealth actually taxes the use of air (on carwash vacuum cleaners). The Bottom Line The above taxes certainly aren't the only taxes on statewide level, but they are surely among the most unique. This site has a more complete list of sales taxes in all 50 states: http://retirementliving.com/RLtaxes.html .

Earn Europe downgrade fears make Treasurys a hot buy

Earn Investors are snapping up Treasurys and ditching European debt after news reports that France's credit rating could be downgraded on Friday. Several news outlets, citing unnamed sources, said Standard & Poor's was about to cut the credit rating of France and other European countries. In another fretful sign, U.S. exports to Europe plunged nearly 6 percent in November. Traders dumped higher-risk investments such as stocks and debt issued by European nations, causing borrowing costs for Italy and others to rise. If Italy risks defaulting on its debts, the crisis throughout Europe would worsen dramatically. The price of the 10-year Treasury note leaped 66 cents per $100 invested, pushing its yield down to 1.86 percent at 11 a.m. Eastern time. The yield peaked at 1.94 percent earlier Friday.

Earn 5 Unusual Sales Taxes You Need To Avoid

Earn 5 Unusual Sales Taxes You Need To Avoid With the economy still struggling, states are getting fairly crafty with how they charge consumers via sales taxes. It's no secret that dubious, yet all-too enforceable government laws have been with us since the dawn of the civilized world. In ancient Egypt, the pharaohs taxed cooking oil – of course, the main seller of cooking oil was the pharaoh. During the first century AD, the Roman empire taxed urine – a popular source of ammonia for common tasks like tanning hides and cleaning clothes. Then at the height of the Dark Ages (an era in European history notorious for its poor hygiene), some European governments taxed the sale of soap! Unfortunately, onerous and unusual state taxes are still very much with us. What are some of the biggest offenders – and are they active in your state? Here's our top five: Food Packaging Tax States like Colorado have a weird definition of what constitutes food packaging. In using the term 'essential' in its tax language for such commodities, Colorado finds itself in the strange position of taxing paper cup lids and napkins, but not paper cups or fast-food French fry containers. Hot Air Balloon Tax If you're in Kansas and in the mood to take a ride in a hot air balloon, beware of the state government's 'amusement' tax. State regulation makes balloon rides taxable. But there is a caveat – only balloon rides that are tied, or tethered to the ground, are considered taxable. So, if you want to avoid paying taxes when taking a balloon ride over Topeka, make sure to leave the rope at home! Careful on That Bagel New York State has an interesting way of handling bagels – and taxes on buying bagels. If you want to eat a bagel tax-free, don't have the deli counter 'prepare' it for you (i.e., add cream cheese or cut the bagel in two pieces). Prepare that bagel yourself, and you don't have to pay a tax on it. Wet Fuse In West Virginia, celebrating the Fourth of July – or any celebration where fireworks are used, can lighten your wallet. The state has a special tax – on top of its 6% sales tax – on things like ladyfingers and sparklers. Fruit Cakes California has gone bananas over the purchase of fruit by consumers. If you buy an apple from a regular retailer, you're in good shape, as the purchase is tax-exempt. If you buy fruit from a vending machine – and who hasn't done that – you'll pay an additional 33% on the amount of the purchase. Maybe the most egregious case of over-taxation on a state level comes from Pennsylvania, where the commonwealth actually taxes the use of air (on carwash vacuum cleaners). The Bottom Line The above taxes certainly aren't the only taxes on statewide level, but they are surely among the most unique. This site has a more complete list of sales taxes in all 50 states: http://retirementliving.com/RLtaxes.html .

Forex Gold & Copper Trends Are Still Higher: Holmes

Forex If you told me yesterday that the largest bank in the U.S. was going to report lackluster earnings results, and Standard & Poor's was going to take its credit rating clever to Europe, but the markets would largely shrug it off - I probably would have politely told said 'you're crazy!' Welcome to reality; it all happened today. And the little market that could clearly thinks it can still test higher levels and isn't going to let some silly headlines derail it. While JP Morgan (JPM), the big banks (^BKX), and the Euro are getting whacked today, it doesn't change the strategy of money managers like Frank Holmes, the CEO & CIO of US Global Investors, who says the crisis du jour has no bearing on the long term opportunities. 'I am a big believer that you buy gold on down days,' this transplanted Torontonian tells us from his new home in Texas. He believes this year could be 'one of those odd years' that the dollar and commodity prices rise together. And much as Holmes likes gold, he loves the gold miners (GDX) even more, largely because they got sold off alongside other stocks last year while the precious metal they produce rose 10%. 'I think the really big opportunity right now is gold stocks,' he says pointing to their relative price compared to spot gold, as well as their historically low price-to-book ratios, and in some cases dividend yields too. Among the names he likes and owns now are Yamana (AUY), RandGold Resources (GOLD), and lesser-known Franco Nevada (FNV) --which Holmes says pays a monthly dividend. As for the metal itself, Holmes is unmoved by the most recent developments and has had no change in his belief that 'anytime you have inflation running at 3% and you're getting 0.1% in a money market fund, it's always better to own gold.' He is similarly undaunted and unchanged in his conviction about copper and belief that China will successfully engineer a soft landing. He's staying long copper because of the country's plans to build 24,000 miles of high speed rail, and he likes the recent uptick in the JP Morgan Global Purchasing Managers Index, which signaled expansion for the first time in almost a year. 'I think copper will go higher,' he states. 'Just like oil can easily have supply restricted, you have seen copper restricted.' Related Quotes: JPM 35.92 -0.93 -2.52% ^BKX 43.44 -0.17 -0.39% XLF 13.81 -0.11 -0.75% EURUSD=X 1.268 -0.0029 -0.23% FXE 126.33 -1.43 -1.12% ^STOXX50E 2,338.01 -7.84 -0.33% FEZ 29.06 -0.57 -1.92% GCF12.CMX 1,632.40 -14.90 (-0.90%) GLD 159.26 -1.12 -0.70% IAU 15.97 -0.11 -0.68% GDX 54.05 -0.67 -1.22% AUY 15.68 -0.12 -0.76% GOLD 108.83 -2.03 -1.83% FNV 39.90 -0.40 -0.99% FXI 36.74 -0.10 -0.27% HGF12.CMX 3.597 -0.05 (-1.29%) COPX 13.91 -0.12 -0.86% CU 31.45 -0.33 -1.04%

Signals Student Loan Crisis Looms: FICO Risk Survey

Signals Daily Ticker Despite recent headlines cheering positive trends in the economy, there is still much to be concerned about, according to FICO's new quarterly survey of bank risk professionals. More than two-thirds of risk managers are seriously concerned about the debt loads held by students in the country. 67% of respondents believe delinquencies of student loans will rise, up a considerable 19% from the previous survey. 'They are worried about the amount of student loans that are out there and the ability of those students to repay them,' says Mark Greene, CEO of FICO, which provides credit scores used by both consumers and creditors and is widely considered the industry standard. With tuition prices on the rise each and every year, it is no surprise that the total amount borrowed is also on the upswing. The student who graduated in the class of 2009 had an average of $24,000 in student loans. But that's just the average. Some students are accountable for sums totaling $100,000. (See: The Economic Agony of Today's Twenty-Somethings) The Federal Reserve reported last year that student debt has actually surpassed credit card debt and predicts the total amount owed has topped $1 trillion. Greene's advice to students is: 'Be careful what you borrow.' 'Clearly education has a great return on investment so there is no suggestion you should avoid taking out loans, but be careful what you are getting into,' he says. 'Manage your student loans as carefully as you would your mortgage, your credit card or something else.' Other problem areas listed in the survey include credit card debt and mortgage debt. Credit card debt increased 8.5% to $5.6 billion in November from October, the biggest gain since March 2008. 45% of risk managers surveyed expect credit card delinquencies to rise while 21% expect a decline. And 54% of respondents believe credit card balances will rise. Those figures are more pessimistic than the previous quarter. As for mortgage debt, 47% of risk managers predict mortgage delinquencies will rise while 13% expect to see a decrease. 'If you are looking for risk managers to declare that we've turned the corner, they are not declaring that yet,' says Greene. Do you think the economy is improving or still has a long way to go? More from The Daily Ticker: Forget Harvard and a 4-Year Degree, You Can Make More as a Plumber in the Long Run, Says Prof. Kotlikoff Brain Drain: Most College Students Learn Next to Nothing, New Study Says Jame's Altucher's 8 Alternatives to College Related Quotes: ^GSPC 1,292.18 -0.30 -0.02% BAC 6.76 -0.11 -1.60% C 31.36 +0.09 +0.29% GS 98.96 -0.80 -0.80% JPM 36.44 -0.22 -0.60% WFC 29.54 -0.08 -0.29% PNC 61.51 +0.21 +0.34% FAZ 31.80 +0.23 +0.72% FAS 75.30 -0.53 -0.70% XLF 13.83 -0.04 -0.26% ^DJI 12,432.54 -16.91 -0.14% DFS 26.16 +0.30 +1.16% V 100.99 +1.88 +1.90% MA 342.76 +1.29 +0.38% MS 16.92 -0.18 -1.05%

Signals BlackRock to Buy ETF firm Claymore

Signals BlackRock to Buy ETF firm Claymore RELATED QUOTES Symbol Price Change FII 17.45 +0.08 BLK 184.09 +0.22 BlackRock Inc. (NYSE:BLK - News) has agreed to buy Claymore Canada from Guggenheim Partners LLC. The announcement came out yesterday and it was said that both parties have entered into a definitive agreement in this context. With this deal, BlackRock would be able to expand its exchange-traded fund (AMEX:ETF - News) business in Canada. Claymore is based in Toronto and acts as an independent Canadian subsidiary of Guggenheim Funds Services Group, a subsidiary of Guggenheim Partners, LLC. BlackRock, the leading asset manager in the world, currently manages $3.3 trillion in assets worldwide. The deal will result in addition of 34 ETFs and two closed-end funds, representing C$7.0 billion in asset under management. As of December 31, 2011, BlackRock offered 48 ETFs in Canada under the iShares brand, representing C$29.0 billion in assets under management. The deal, which is subject to regulatory approvals and customary closing conditions, is likely to be accomplished by the end of the first quarter of 2012. The deal, whose terms are still undisclosed, is expected to be neutral-to-modestly accretive to BlackRock's 2012 earnings. We believe that the acquisition of Claymore will provide BlackRock with competitive edge to grab market share in the Canadian ETF market and hence, is a strategic fit for the company. BlackRock currently retains a Zacks #3 Rank, which translates into a short-term 'Hold' rating. Among its peers Federated Investors Inc. (NYSE:FII - News) also shares the same Zacks rank. Zacks Investment Research

Oil Consumer Comfort Highest in Six Months

Oil Consumer Comfort Highest in Six Months Consumer confidence in the U.S. last week reached the highest level since July as the improving job market helped allay pessimism. The Bloomberg Consumer Comfort Index was minus 44.7 in the period ended Jan. 8 from minus 44.8 the prior week. As recently as October, the index registered its lowest readings since the 2007-2009 recession, making 2011 the second-worst year in 25 years of data. It's since increased in four of the past five weeks. 'Considering where it's been, the trend is a welcome one,' Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement. 'Sentiment is hardly on a predictable path, given factors including the uncertainty of the 2012 presidential election, volatility in global markets and economic question marks from Europe to China.' Less unemployment and growing payrolls may be lifting consumers' moods, providing the spark for increases in consumer spending, which accounts for about 70 percent of the economy. Nonetheless, gasoline prices that are once again rising and wage gains that fail to keep pace with inflation may be obstacles to greater improvement in confidence. Other reports today showed retail sales rose less than forecast in December and claims for jobless benefits climbed more than projected in the first week of the year. Retail Sales Purchases increased 0.1 percent last month after a 0.4 percent advance in November that was more than initially reported, Commerce Department figures showed. Economists forecast a 0.3 percent December rise, according to the median estimate in a Bloomberg News survey. Purchases excluding automobiles fell 0.2 percent, the first decline since May 2010. The number of applications for unemployment benefits climbed by 24,000 to 399,000 in the week ended Jan. 7, Labor Department figures showed. The median forecast of 46 economists in a Bloomberg survey projected 375,000. Stocks rose as sales of government securities in Spain and Italy eased concern the countries would struggle to finance their debts. The Standard & Poor's 500 Index climbed 0.1 percent to 1,293.76 at 9:40 a.m. in New York. The comfort survey's gauge of Americans' views of the current state of the economy rose to minus 82.1 last week from minus 82.9 in the prior period. The buying climate index held at minus 49.4, and the measure of personal finances decreased to minus 2.6 from minus 2.2. The gain in the cumulative Bloomberg index last week was within the survey's three-point margin of error. More Jobs Better employment opportunities are probably holding up confidence. Payrolls increased by 200,000 in December, and the jobless rate dropped to 8.5 percent, the lowest since February 2009, a Labor Department report showed last week. Employers added 1.64 million workers in 2011, surpassing the prior year's 940,000 advance and the biggest gain since 2006. Sentiment has been improving among lower-income Americans. The index for those earning less than $15,000 per year increased to the highest level since October, and those making up to $24,999 were the most optimistic since February. The ebbing of pessimism was also evident among older households. The measure of confidence among those older than 65 rose to minus 39.9, the best reading since April. Brighter moods may help drive consumer spending in 2012 following the holiday shopping season. 'Extremely Pleased' 'We are extremely pleased with our December sales results as we significantly exceeded our expectations,' Sherry Lang, a spokeswoman for TJX Cos. said in Jan. 5 conference call. Sales at the Framingham, Massachusetts-based retailer increased 8 percent last month. 'Further, we entered January with very lean inventories and the flexibility to ship fresh merchandise at great values to our stores.' The gain in the Bloomberg index parallels improvement in other surveys. The Conference Board's confidence gauge increased in December to the highest level since April. That same month the Thomson Reuters/University of Michigan index of consumer confidence rose to the highest level since June. Nonetheless, rising gasoline prices may constrain sentiment. The cost of a regular gallon of fuel at the pump climbed to $3.38 yesterday, up 5.5 percent from a 10-month low reached on Dec. 20, according to data from AAA, the nation's largest auto group. 'While the recent trend in consumer confidence is encouraging, risks remain,' said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. 'The recent rise in gasoline prices is likely to act as a restraint on improving consumer confidence in January.' Annual Averages Bloomberg's comfort index, which began in December 1985, averaged minus 46.8 for all of last year, second only to 2009's minus 47.9 as the worst year on record. The gauge averaged minus 45.7 for 2010. The Consumer Comfort Index is based on responses to telephone interviews with a random sample of 1,000 consumers 18 years old and over. Each week, 250 respondents are asked for their views on the economy, personal finances and buying climate; the percentage of negative responses for each measure is subtracted from the share of positive views. The results are then summed and divided by three. The most recent reading is based on the average of responses over the previous four weeks. The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative. Field work for the index is done by SSRS/Social Science Research Solutions in Media, Pennsylvania. To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Oil Netflix shares rise on investor optimism

Oil NEW YORK (AP) -- Shares of Netflix Inc. rose Friday on expectations that its shares will get a boost from the upcoming release of its fourth-quarter results. THE SPARK: Netflix shares have risen more than 40 percent in just the past week, prompting investors to wonder just how high they can go. But B. Riley & Co. backed its 'Buy' rating for Los Gatos, Calif.-based Netflix, saying that investors should hold on to their shares until after the company's fourth-quarter conference call on Jan. 25, when it's expected to update its outlook for the year. THE BIG PICTURE: Netflix shares took a beating and subscribers fled after the company said in July that it would increase U.S. prices by as much as 60 percent. Things only got worse two months later when Netflix said it would spin off its DVD-by-mail rental service into a separate website called Qwikster. It scrapped that idea in October. Since peaking in mid-July, Netflix shares have lost about 70 percent of their value. THE ANALYSIS: Analysts for B. Riley noted that Netflix shares are rapidly approaching the firm's $100 price target and said the company will probably post quarterly losses through at least the first half of the year. But they also said that Netflix's customer base appears to be stabilizing, which should reassure investors that the company is holding its own against the competition. 'We continue to believe that Netflix offers consumers the greatest content variety versus price relationship of the various choices,' the analysts wrote in a note to investors. 'And with the surprisingly positive announcement early last week that Netflix streamed more than 2 billion hours of movie and TV show content in the fourth quarter, we believe this is more likely to be the case than not.' In addition, the company should eventually get a boost from the expansion of its steaming services into new international markets. THE SHARES: Up $2.32, or 2.5 percent, to $94.47 in afternoon trading.

Earn Is the Euro Decoupling From U.S. Stocks?

Earn Is the Euro Decoupling From U.S. Stocks? Companies: EUR/USD S&P 500 NASDAQ Composite RELATED QUOTES Symbol Price Change EURUSD=X 1.2832 +0.0123 ^GSPC 1,291.87 -0.61 ^IXIC 2,715.73 +4.97 ^DJI 12,432.35 -17.10 FXE 127.78 +1.22 For much of the last 15 years the S&P 500 and euro (the EU currency) have been moving in the same direction. Since its May 4, 2011 high (the euro topped two days after U.S. stocks) the euro has tumbled 15%. Worse yet, the euro has been falling over the past few weeks even though the S&P has remained stable. Will the S&P soon catch up with the euro, or is the euro about to decouple its positive correlation with U.S. equities? Euro Problems Euro problems are the reason for the bad euro season. U.S. stocks got to enjoy the Santa Claus Rally while the euro was stuck with debt concerns that include: - Eurozone governments need to refinance more than $1.3 trillion in debt in 2012. - Yields on Italian bonds crept up about 7% again (above 7% yields send Greece into a tailspin). - Standard & Poor's is expected to strip France of its AAA rating as early as this month. - Spain's banks need to raise an extra $65 billion to cover bad property loans. - In February, Italy needs to sell more debt than could be covered even if investors used all the proceeds of maturing securities to buy the bonds. Euro Hope Things are so bad for the euro (EURUSD=X), they are good. So it seems at least. The chart below shows the euro holdings of the 'smart' and 'dumb' money published by the Commodity Futures Trading Commission. The first gray graph shows total non-reportable short positions. Non-reportable are small traders considered the dumb money. The second gray graph shows reportable commercial short positions. Commercial traders are the 'pros' that actually provide a commodity or instrument and are considered the smart money. The data shows that non-reportable short positions are pretty high right now (data as of Tuesday) while commercial traders have closed nearly all their short positions. Based on COT sentiment data, the euro should be close to a bottom, at least a temporary one. Cause for U.S. Stock Rally? But wouldn't a rising euro translate into rising U.S. stocks? Under normal circumstances, yes it would. A look at the chart below shows that a rising euro usually correlates with a rising S&P 500. The red boxes highlight periods of falling euro and rising S&P (such as lately). The green box identifies a period of time when a rising euro (NYSEArca: FXE - News) coincided with falling (even rapidly falling) U.S. stock prices. This happened from October 2007 - July 2008. Putting Odds in Your Favor It's no secret that I declared the rally from the October lows to be a counter trend rally. Back on October 2, I stated via the ETF Profit Strategy updated that: 'I don't think October will 'kill' this bear market, but it should spur a powerful counter trend rally. Towards the end of this rally Wall Street may applaud the Fed for launching Operation Twist and QE3 may be considered unnecessary. This kind of positive environment would be fertile soil for the next bear market leg (Q1 or Q2 2012). From a technical point of view this counter trend rally should end somewhere around 1,275 - 1,300.' To identify high-probability trade setups, I like to see technicals, sentiment, and seasonality point in the same direction, such as they did in early October. From a seasonal perspective, October has the reputation of a 'bear market killer.' Sentiment polls showed the most bearish readings in over a year and the VIX (Chicago Options: ^VIX) was close to the 2010 high. At the same time, the S&P had reached rock bottom support. Based on the weight of evidence, the October 2 ETF Profit Strategy update also predicted that: 'The ideal market bottom would see the S&P dip below 1,088 intraday followed by a strong recovery and a close above 1,088.' On October 4, the S&P briefly dipped below 1,088 and closed the day at 1,124. A massive counter trend rally was born that day. The Next Setup? Seasonality is once again turning bearish (or at the very least less bullish). Since 2002, the S&P reached a January top followed by a drop greater than 8% five (out of ten) times. 51.1% of all investment advisors and newsletter-writing colleagues (polled by II) are bullish on stocks (the highest reading since May 3) while only 17% of individual investors (polled by AAII) are bearish, the second lowest reading in six years. From a technical point of view, the S&P (SNP: ^GSPC - News) is about to reach a daunting resistance cluster comprised of Fibonacci levels and various long and short-term trend lines. The Dow (DJI: ^DJI - News) is about to encounter two trend lines that go back nearly five years. The resistance clusters for the Nasdaq (Nasdaq: ^IXIC - News), Russell 2000 (NYSEArca: IJR - News), and financials (NYSEArca: XLF - News) are not as glaring but they're there. The only thing that doesn't quite fit into the equation is the euro's sentiment data illustrated above. Nevertheless, the weight of evidence suggests that a turnaround for stocks, and possibly another significant market top, may be just around the corner. The high probability strategy is to short U.S. stocks as soon as the resistance cluster is reached or support is broken. The ETF Profit Strategy Newsletter identifies the target of this rally along with a short, mid and long-term outlook and the corresponding ETF profit strategies.

Oil Rate on 30-year mortgage drops to record 3.89 pct.

Oil

Newly built luxury townhomes are offered for sale in Woodland Hills, Calif. Tuesday, Jan. 10, 2012. Fixed mortgage rates hit yet another record low on the second week of the new year. But the cheap rates are expected to do little to boost the depressed housing market. (AP Photo/Damian Dovarganes) Newly built luxury townhomes are offered for sale in Woodland Hills, Calif. Tuesday, Jan. 10, 2012. Fixed mortgage rates hit yet another record low on the second week of the new year. But the cheap rates are expected to do little to boost the depressed housing market. (AP Photo/Damian Dovarganes) WASHINGTON (AP) -- Fixed mortgage rates fell once again to a record low, offering a great opportunity for those who can afford to buy or refinance homes. But few are able to take advantage of the historic rates. Freddie Mac said Thursday the average rate on the 30-year fixed mortgage fell to 3.89 percent. That's below the previous record of 3.91 percent reached three weeks ago. Records for mortgage rates date back to the 1950s. The average on the 15-year fixed mortgage ticked down to 3.16 percent. That's down from a record 3.21 percent three weeks ago. Mortgage rates are lower because they track the yield on the 10-year Treasury note, which fell below 2 percent. They could fall even lower this year if the Fed launches another round of bond purchases, as some economists expect. [Click here to check home loan rates in your area.] Average fixed mortgage rates hovered around 4 percent at the end of 2011. Yet many Americans either can't take advantage of the rates or have already done so. High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don't want to sink money into a home that they fear could lose value over the next few years. Mortgage applications have fallen slightly on a seasonally adjusted basis over the past four weeks, according to the Mortgage Bankers Association. Frank Nothaft, Freddie Mac's chief economist, said that until hiring picks up and unemployment drops significantly, the impact of lower mortgage rates will remain muted. Previously occupied homes are selling just slightly ahead of 2010's dismal pace. New-home sales in 2011 will likely be the worst year on records going back half a century. Builders hope that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose in December to its highest level in more than a year. But so far, they have had little impact on the depressed housing market. To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fee for the 30-year loan fell to 0.7 from 0.8; the average on the 15-year fixed mortgage was unchanged at 0.8. For the five-year adjustable loan, the average rate declined to 2.82 percent from 2.86 percent. The average on the one-year adjustable loan fell to 2.76 percent from 2.80 percent. The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.

Oil Gold & Copper Trends Are Still Higher: Holmes

Oil If you told me yesterday that the largest bank in the U.S. was going to report lackluster earnings results, and Standard & Poor's was going to take its credit rating clever to Europe, but the markets would largely shrug it off - I probably would have politely told said 'you're crazy!' Welcome to reality; it all happened today. And the little market that could clearly thinks it can still test higher levels and isn't going to let some silly headlines derail it. While JP Morgan (JPM), the big banks (^BKX), and the Euro are getting whacked today, it doesn't change the strategy of money managers like Frank Holmes, the CEO & CIO of US Global Investors, who says the crisis du jour has no bearing on the long term opportunities. 'I am a big believer that you buy gold on down days,' this transplanted Torontonian tells us from his new home in Texas. He believes this year could be 'one of those odd years' that the dollar and commodity prices rise together. And much as Holmes likes gold, he loves the gold miners (GDX) even more, largely because they got sold off alongside other stocks last year while the precious metal they produce rose 10%. 'I think the really big opportunity right now is gold stocks,' he says pointing to their relative price compared to spot gold, as well as their historically low price-to-book ratios, and in some cases dividend yields too. Among the names he likes and owns now are Yamana (AUY), RandGold Resources (GOLD), and lesser-known Franco Nevada (FNV) --which Holmes says pays a monthly dividend. As for the metal itself, Holmes is unmoved by the most recent developments and has had no change in his belief that 'anytime you have inflation running at 3% and you're getting 0.1% in a money market fund, it's always better to own gold.' He is similarly undaunted and unchanged in his conviction about copper and belief that China will successfully engineer a soft landing. He's staying long copper because of the country's plans to build 24,000 miles of high speed rail, and he likes the recent uptick in the JP Morgan Global Purchasing Managers Index, which signaled expansion for the first time in almost a year. 'I think copper will go higher,' he states. 'Just like oil can easily have supply restricted, you have seen copper restricted.' Related Quotes: JPM 35.92 -0.93 -2.52% ^BKX 43.44 -0.17 -0.39% XLF 13.81 -0.11 -0.75% EURUSD=X 1.268 -0.0029 -0.23% FXE 126.33 -1.43 -1.12% ^STOXX50E 2,338.01 -7.84 -0.33% FEZ 29.06 -0.57 -1.92% GCF12.CMX 1,632.40 -14.90 (-0.90%) GLD 159.26 -1.12 -0.70% IAU 15.97 -0.11 -0.68% GDX 54.05 -0.67 -1.22% AUY 15.68 -0.12 -0.76% GOLD 108.83 -2.03 -1.83% FNV 39.90 -0.40 -0.99% FXI 36.74 -0.10 -0.27% HGF12.CMX 3.597 -0.05 (-1.29%) COPX 13.91 -0.12 -0.86% CU 31.45 -0.33 -1.04%

Forex Student Loan Crisis Looms: FICO Risk Survey

Forex Daily Ticker Despite recent headlines cheering positive trends in the economy, there is still much to be concerned about, according to FICO's new quarterly survey of bank risk professionals. More than two-thirds of risk managers are seriously concerned about the debt loads held by students in the country. 67% of respondents believe delinquencies of student loans will rise, up a considerable 19% from the previous survey. 'They are worried about the amount of student loans that are out there and the ability of those students to repay them,' says Mark Greene, CEO of FICO, which provides credit scores used by both consumers and creditors and is widely considered the industry standard. With tuition prices on the rise each and every year, it is no surprise that the total amount borrowed is also on the upswing. The student who graduated in the class of 2009 had an average of $24,000 in student loans. But that's just the average. Some students are accountable for sums totaling $100,000. (See: The Economic Agony of Today's Twenty-Somethings) The Federal Reserve reported last year that student debt has actually surpassed credit card debt and predicts the total amount owed has topped $1 trillion. Greene's advice to students is: 'Be careful what you borrow.' 'Clearly education has a great return on investment so there is no suggestion you should avoid taking out loans, but be careful what you are getting into,' he says. 'Manage your student loans as carefully as you would your mortgage, your credit card or something else.' Other problem areas listed in the survey include credit card debt and mortgage debt. Credit card debt increased 8.5% to $5.6 billion in November from October, the biggest gain since March 2008. 45% of risk managers surveyed expect credit card delinquencies to rise while 21% expect a decline. And 54% of respondents believe credit card balances will rise. Those figures are more pessimistic than the previous quarter. As for mortgage debt, 47% of risk managers predict mortgage delinquencies will rise while 13% expect to see a decrease. 'If you are looking for risk managers to declare that we've turned the corner, they are not declaring that yet,' says Greene. Do you think the economy is improving or still has a long way to go? More from The Daily Ticker: Forget Harvard and a 4-Year Degree, You Can Make More as a Plumber in the Long Run, Says Prof. Kotlikoff Brain Drain: Most College Students Learn Next to Nothing, New Study Says Jame's Altucher's 8 Alternatives to College Related Quotes: ^GSPC 1,292.18 -0.30 -0.02% BAC 6.76 -0.11 -1.60% C 31.36 +0.09 +0.29% GS 98.96 -0.80 -0.80% JPM 36.44 -0.22 -0.60% WFC 29.54 -0.08 -0.29% PNC 61.51 +0.21 +0.34% FAZ 31.80 +0.23 +0.72% FAS 75.30 -0.53 -0.70% XLF 13.83 -0.04 -0.26% ^DJI 12,432.54 -16.91 -0.14% DFS 26.16 +0.30 +1.16% V 100.99 +1.88 +1.90% MA 342.76 +1.29 +0.38% MS 16.92 -0.18 -1.05%