THIS IS MY 115TH BLOG ON UNDERSTANDING MONEY
TOOLS
In this blog we are going to address three varied topics;
technology hacking in today’s world, interest rate hikes effect on investing
and the American travesty of companies hiring HB-1 foreign workers replacing US
citizens.
Let’s start with technology and hacking. I am not a techie but want to address
how bad hacking has become for every citizen, not just branches of the
government. It is outrageous and
will get worse, there is no such thing as privacy. Shortly after I signed up for Facebook my contact list was
hacked and stolen. I am going to
concisely inform of my latest scenario of how I was hacked. Most of you already are familiar. My Microsoft Office annual subscription
was due. I paid the amount in
person at the local retail store and returned home to install it on the “up to
5 computers”. As I entered
Microsoft’s website exactly as instructed an unfamiliar screen popped up with
Microsoft’s logo and information asking for my personal information. Then, as happened to me before, another
screen popped up stating that installation could not be accomplished and to
call an 800 number. I did, and of course a nice English speaking man most
likely from India came on line identifying himself from Microsoft and willing
to help if I turned my computer over to him. Last time I did this, similar things occurred and I was told
my computer had a virus. It cost me about $100 to find out I did not have a
virus on the computer and I was scammed. This was similar, I disconnected. Finally, through a true Microsoft 800
number I reached a tech person. He assisted, same thing happened on my computer
and he asked me to close out my screen as I was hacked. The true Microsoft tech person informed
me that 1/3 of the time when you go to a Microsoft site you may be hacked and
the company can’t keep up with the criminals…..great! Be aware if you aren’t already. Same goes for getting phone numbers from sources like
Google. The first few phone
numbers may be phony, as it is when a person wants Microsoft’s local number or
800 number. Google knows these are phony but these scam artists are paying
Google more than honest companies.
A friend in the tech industry gave me some advice:
- Use
Ad Blocker.
- Disconnect
your phone “locator” except when using it.
- Turn
off the phone whenever possible.
- Don’t
leave your computer connected to sites, servers or emails for long periods.
- Again,
turn off the computer whenever not using.
- Remove
phone apps that aren’t needed.
Let’s head now into what has happened in the last week or so
and implications. Janet Yellen and
the Feds raised interest rates another 1/4% (25 basis points) and likely to
raise rates more this year. This
will affect interest rates on credit and car and home loans; short term credit
more so than long term loans. This
should have had a negative impact on markets as it will slow the economy and
hurt exports because of a stronger dollar. Just the opposite happened; stocks further rose and bonds
held steady. Go figure, as no one
can. The Trump effect?!
The effect on bond markets should have been negative and
were not. What is the norm for
exchange traded bond funds (ETF’s)?
Down. With the rising of
interest rates “open end” bond funds would be advisable versus “closed end”. We have discussed this in past
blogs. With open end bond funds
the funds will use new money to continue buying bonds with higher yield. The
NAV should rise (Net Asset Value of fund).
With the announcement of higher interest rates, the
government came out with the statement that they were going to alter the way
credit scores were calculated with the end result being your credit score going
up. This will enable more people
to continue buying things, like cars, even though higher interest rates may
have normally shut them out of markets.
Not good. All we are doing is taking the average American more into
debt. For instance, the already enormous debt of people with car loans (over $1
trillion) will go even higher.
Let’s quickly touch upon HB-1 worker visas. 60 Minutes on March 19, 2017 had an
excellent segment addressed to this topic. We have discussed this along with Globalization in prior
blogs. I only wished more
Americans would have watched 60 Minutes and that reality would set in as to
what the big companies are doing and why.
We are forcing our current American workers to train foreign workers so
they can be hired for significantly lower wages, then laying off our American
workers many who are 45 years and older.
These workers are being threatened that if they don’t go along with this
training they will lose their pensions.
These workers will most likely never be let back into the US work world,
and have to settle for part time jobs at minimum wage. Horrible that our country and
politicians would permit this to happen!
Permit me to briefly comment on our new proposed health care
bill; should not happen. We should
have a good national health care reforming and adding to the existing “Obama
Care”. Any health care proposal
should stand on it’s own credibility rather than being intermingled with tax
reform and lower tax rates. I
believe it is impossible to reform health care without bringing these 4
essential ingredients together in compromise, they are:
- Hospitals
- Insurance
carries
- Doctors
- Drug
companies, with competitive bidding
Oh well, the US government debt going higher, people’s debt
going higher, more Americans out of the work place, and less health care. When is the balloon going to bust?
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