Yeah, as many readers of ClintSays know, we are big fans of the cheesy Cash4Gold commercials. We’ve noticed that recently an uptick in the number of commercials they are running this Christmas Season. However, we regret to report that our favorite characters have been replaced with less “freakish” actors.

See the new video here:

Clintsays readers can see the original classic here.

Good bye crazy old lady and black widow who hocked her wedding band from her first “mar-wage.”

ANYWAY, gold prices remain strong and a reliable source of funds for those looking for a quick infusion of cash. With the Fed’s decision to drop rates to near zero, gold prices should increase as the dollar drops in value.

Primary care physicians and short term personal loans are two things American society can’t afford to lose. In order to keep the populace healthy in body, people must have access to proper health care. If they are to stay healthy in budget, particularly when emergency situations threaten to burst their budget bubble, short-term loans should remain available. Yet when it comes to doctors, that’s exactly what might be happening soon if what the latest Physicians’ Foundation survey is true.

The Physicians’ Foundation is an organization whose purpose is to “advance the work of practicing physicians and to improve the quality of health care for all Americans.” Their commitments are to the safety of patients, doctor education and quality improvement of the physician’s practice.
The survey points to doctors’ great frustration

An overwhelming majority of primary care physicians who responded to the survey - 78 percent - believe that there is already a dangerous shortage of family physicians. As the population grows, the ratio of doctor to patient will likely be stretched to the breaking point. By 2050, it is predicted that 392 million people will be living in North America, so you can see how dire a physician shortage would be.

In much the same way, if government - in concert with banks and credit unions - manage to find a way to eliminate the consumer’s freedom to choose what kind of small-scale emergency financing best suits them - frequently products like cash advance loans - these customers will be driven to less desirable alternatives. Moreover, as studies like this one by Dartmouth College Assistant Economics Professor Jonathan Zinman indicate, consumers’ economic well-being has been impaired once payday installment services are capped and removed from their communities.
Why are doctors upset?

The news gets worse. Nearly half of the primary physicians who responded to the survey (49 percent), which is more than 150,000 of the total number of practicing doctors who replied, said that they plan to either stop practicing altogether or reduce their number of patients significantly over the next three years.

Why? The Physicians’ Foundation discovered that such issues as increased time dealing with non-clinical paperwork, difficulty obtaining reimbursement and heavy government regulations have all been significant contributors. Physicians say these issues keep them from the most satisfying aspect of their job: patient relationships.

Sandra Johnson, a board member of the Physicians’ Foundation, points the finger squarely at HMOs and government red tape:

The thing we heard over and over again from the physicians was that they’re unhappy they can’t spend more time with their patients, which is why they went into primary care in the first place.

Don’t let government red tape hinder your right to choose

If you don’t want to lose your family care physician, write your state representative and demand that they fight big HMOs and put medical choices back in the hands of the people. When it comes to your economic choices and the right to select short term payday advances, you should keep in touch with your elected officials in a similar manner. Don’t let anyone take away the freedoms you’ve been guaranteed as an American in the U.S. Constitution.

This story illustrates the nervousness investors have regarding the value of currency and investments in general. Thanks to Jon Crudele and the New York Post for this story. It’s Clint’s opinion that investors should look at investing in silver instead of gold at this time due to silvers, lower price and strong intrinsic value.

-TS

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THERE’S a worldwide run on gold coins.

Even as the price of the precious metal itself comes under pressure along with commodities like oil and copper, people around the world are demanding so many of the valuable coins that government mints are having difficulty filling orders.

A spokesperson for the US Mint tells me that gold coins in this country, for the past month, “are being allocated because of an increased demand.”

And the price that the government charges coin dealers has recently been increased by as much as 10 percent for a 10-ounce coin.

Robert Mish, a coin dealer in Menlo Park, Calif., says customers who want to purchase 200 gold coins often have to wait up to two weeks. Six months ago, he said, a purchase that size could have been filled immediately.

Someone who recently tried to purchase 100 one-ounce American Eagle gold coins in the New York City-area was turned away, even though he’d uneventfully made purchases before through the same dealer.

And even when gold coins are available, dealers report that customers are paying a bigger premium than they would have just a few months ago.

Previously, American Eagle coins were going for 5 percent over the market price of gold on the Commodity Exchange (Comex). Now the premium can be anywhere from 10 percent to 15 percent, even though the US Mint raised its price to dealers by just 3 percent for an ounce coin.

In one sense, the attraction for gold coins isn’t surprising. Since ancient times, gold has been considered the safest investment to hold in times of uncertainty.

With fears of future inflation rising and concern about the value of paper currency and government-debt increasing with each new recovery plan announced in Washington and in foreign capitals, the desire to hold gold grows.

That part makes perfect sense. But there’s another more puzzling aspect to the recent gold rush.

Even as the demand for gold coins such as the Canadian Maple Leaf or the Krugerrand of South Africa has grown, the market price of the precious metal itself is off its highs.

In early October, the price of an ounce of gold on the spot market was about $930 an ounce. With the commodities bubble bursting in recent months, gold declined into the upper $600 range. Spot gold closed yesterday at $739.90, down $2.60.

Bill Murphy, chairman of the Gold Anti-Trust Action Committee, says the price of spot gold is even more perplexing given the demand for coins and the fact that central banks in Europe have stopped selling gold into the open market.

“Gold should be moving up,” Murphy says. “How could there be such a dichotomy between the historic high premium for coins all over the world and the low Comex price?”

The Motley Fool published an interesting article about the largest payday lender in the United States. No, not Advance America, CashNetUSA, or Check-N-Go. It’s Well Fargo. Thats right, the bank you probably use for checking or a mortgage is in the business of payday lending. If you are disappointed by the fact that you can’t get a cash advance loan through Well Fargo take heart. US Bank, a major competitor of Wells also offer their own payday advance product. Chances are if you need a short-term loan a bank or even your local credit union (yes, they are in the business too, just Google the term “CU on Payday.”)

The Fool points out that the fees charged by these two large bank and a dozens of fee-funded credit unions are often as high as your local payday lender. Cash advance lenders suggest, and a number of studies by universities and accounting firms have shown, that the high fees charged by payday lenders is justified. However, to say the risks to depository institutions and private lenders are the same is untrue. Credit unions and banks have a leg up on the short-term lenders and on their borrowers. When a borrower utilizes their credit union or bank for a short-term or payday advance the credit union ensures the borrower has direct deposit. With direct deposit, the risk to the bank or credit union is minimal. The fees charged by the credit union or bank don’t appear to be justified. The profit margin for depository institutions on these loans is large, and in light of the ongoing credit crunch, they are a bright spot in an otherwise dismal lending landscape.

It is little wonder that some of the loudest critics of payday lenders are banks and credit unions. Could it be that payday advance lenders offering personal loans are an unwelcome competitor to banks and credit unions? As criticism of cash advance lenders has increased in the last few years interested parties should be suspicious of credit unions and banks who claim that short-term lenders are hurting consumers. If that is the case, then what are these depository institutions doing by offering the same loan products?

There is not a better television commercial out there today that describes the times in which we live. Yes, it’s the Cash4Gold.com spot.

Two major items of note:

1) The old lady by the lake saying, “I had no idea my gold jewelry was worth so much!” is priceless.
2) The dark haired lady saying, “I turned in my wedding band from my first ‘marrwidge’ and got money the very next day.” This lady is creepy, like a black widow.

Anyway, enjoy a laugh at the expense of our friends at cash4gold.com.

There must be better ways of getting money than this. What say you good readers of Clint Says? Are credit cards, cash advance loans, payday advances, pawning, or home equity lines of credit better choices than this?

-Tom Selleck

Here is the story from our friends as USA Today:

“Caught in the financial typhoon, American Express is seeking a safe harbor by becoming a bank holding company. The Federal Reserve approved AmEx’s request today, bypassing the normal 30-day waiting period to become a commercial bank.

Last week AmEx reported a 24% drop in quarterly profits, and last month it announced plans to cut 7,000 jobs, or nearly 10% of its workforce.”

Pay me, PLEASE!!!

American Express is in need of assistance because its users, primarily business and small businesses have increasingly defaulted or missed monthly payments. However, in a public statement, American Express, CEO Kenneth Chenault, stated the following:

“Given the continued volatility in the financial markets we want to be best-positioned to take advantage of the various programs the federal government has introduced or may introduce to support U.S. financial institutions.”

Given the rise in the number defaults in the housing market and its ripple effect on other credit markets, taxpayers and consumers should be somewhat leery of American Express when it states that it is moving to become a bank to simply “take advantage of various programs the federal government has introduced…”

As last week’s news about layoffs at American Express are combined with their move to garner taxpayer money, consumers and borrowers should be cautious of what American Express and other credit card lenders may do to remain solvent. Rate increases, fee assessments, and credit limit reductions are all in the works and more fees may be heading consumers’ way. Borrowers who utilize these cards may want to look to other forms of short-term credit to avoid the all but certain upcoming surprises from card issuers (i.e you pay more to utilize their plastic product).

-Tom Selleck

Here is another interesting example of the continuing credit crunch caused by looming “progressive” federal legislation. In light of American Express laying of 7,000 employees I thought the posting of this article is timely.

-TS

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The US House and Senate aren’t expected to vote on credit card regulations until early next year. The Fed’s rules, currently being reviewed by the industry, could take effect around that same time. But lenders seem to be preparing for the worst-case scenario: an outright ban on some practices.

To get ahead of rules that would hamper their ability to reprice accounts, for example, many firms are jacking up interest rates. A survey of major issuers by consumer advocacy group Consumer Action found that 37% of firms have raised rates across the board, even for borrowers with relatively pristine credit records.

“In anticipation of a federal crackdown, credit card companies are scouring their portfolios and tightening credit,” says Tower Group’s Moroney.

Even consumers like Michael Polemeni, who miss only a single payment, can find themselves in the crosshairs of credit-card companies. The independent computer specialist relied heavily on his credit cards for child support payments and business expenses. He has recently sought out cash advance loans as well.

Polemeni generally made more than the minimum payment each month, carrying a $2,000-or-so balance. But in July he missed a payment, and Providian, owned by Washington Mutual, jacked up his rate from 9% to 30%. “I was shocked because I am a very good customer,” say Polemeni, who paid off the full balance immediately. WaMu didn’t return calls for comment.

Not everyone will be able to pay down their debts like Polemeni. And that leads to a vicious cycle: As credit-card companies raise rates, more consumers fall behind on their payments, which then hurts the issuers. Says Innovest’s Larkin: “We are going to see the banks massively hit.

There have been some recent stories listed on Bankrate regarding Credit Card issuers (and the banks that fund them) reducing credit limits and increasing APRs on consumers due to the lack of liquidity and the increased risk involved in today’s consumer credit market. Some borrowers are even finding their accounts canceled by the credit card providers as well. Below are a couple of testimonials as found on several websites:

-TS

90 % REDUCTION
I received a Macy’s Visa back in 2005 that I didn’t even recall applying for. The credit limit was $5,000. Nevertheless, I didn’t use it until this year. I had planned a trip to Disney in Florida and wanted to use it then. I called to activate it and found out that my limit was reduced to $500. How drastic was that?!
– Patricia S.

THIS IS THE THANKS I GET?
My wife and I have faithfully paid our credit card payment every month for the last five years. Last week we received a notice from our bank that they were reducing our limit by half and that we would need to reduce our balance in 90 days or face over the limit charges. We’ve never been late on a payment and am ticked off that we may face losing our credit cards because others have been stupid with the way the utilized their credit cards. Because it will be difficult to make ends meet through the end of the year, we may need to utilize another credit card’s cash advance line or even use a title loan. This is the great service we should expect from our bank after five years of banking with them.

-Jason W.

BRUISED CREDIT SCORE
I am 49 years old and have been employed since 1993, when I graduated from law school. My wife and I have lived in the same home since 2000. Neither my wife nor I have any late payments on any obligation we have had over the last 10 years or more. We do, however, have a good deal of credit card debt, very nearly all of it at 4.99 percent interest or less. Our annual household income is over $90,000 and our total monthly debt payments, including my student loans, our credit cards and our mortgage, is about $2,400. My wife’s credit score was about 720 and mine about 690.

A few months ago, Bank of America advised rather abruptly that it was cutting our cards’ credit lines by a total of about $30,000. This increased our credit utilization ratio rather dramatically, and it has begun affecting our credit scores. My wife’s score has dropped by more than 50 points and mine by an even greater amount. In turn, I believe other credit issuers will begin cutting our credit limits. We just received notice from American Express, for example, that my wife’s card limit through them will be cut by over $5,000. No doubt actions such as this will further depress our credit scores.

As a consequence of their actions, my wife and I are seriously considering severing our relationships with Bank of America and American Express. Although this sounds like the proverbial cutting off of one’s nose to spite one’s face, I don’t know what else to do to express my displeasure with these companies other than discontinuing their opportunities to profit from my patronage.
– Doug H.