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Although most of the analysts think that their prices are almost certain to go to zero, investors are still trading common shares of Fannie Mae, Freddie Mac and American International Group Inc. by the billions.

The government owns the majority of all three, and they are losing huge sums of money. The Securities and Exchange Commission and other regulators don’t have the authority to end the trading of stocks in such companies that are technically alive, until the government takes them off life support.

Shares of the two mortgage giants, and the insurer have been swept up in financial stocks. The investors have been trading their shares at extraordinarily high volumes, regardless of analysts’ warnings that they’re destined to lose their money.

According to Bose George, an analyst with the investment bank Keefe, Bruyette & Woods Inc., people have done well by trading them in the short term, but when it gets to the end of the road, these stocks are going to be worth zero.

George said that some of the activity involves day traders aiming to profit from short-term price swings, but inexperienced investors might have the misimpression that the companies may recover or be rescued.

The government has continued to support the companies with billions of taxpayer money, saying that they still play a crucial role in the financial system.

Fannie and Freddie works by buying loans from banks and selling them to investors. They have taken around $96 billion out of a potential $400 billion in aid from the Treasury Department.

Officials predict that AIG’s failure would be disastrous for the financial markets. Treasury and the Federal Reserve have spent about $175 billion on AIG and AIG-related securities. The company also has access to $28 billion from the $700 billion financial industry bailout.

There are mainly two reasons why the stocks still remain in circulation. The first reason is that they’ve violated no rules on the New York Stock Exchange, where they are traded. And the second one is that no regulator has the power to halt their trading without evidence securities laws are being violated.

Representatives of Fannie, the SEC, AIG, FINRA and the NYSE declined to comment on the issue. Spokeswomen for Treasury, which owns most of AIG, and the Federal Housing Finance Agency, which holds Fannie and Freddie in conservatorship, also did not have any comments.…

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The recent recession has taught everyone to spend cautiously, monitoring ones habits and following a tightened budget. Raised gas prices, enormous mortgage bills, ever-accumulating credit card debt, and many other factors have all contributed to make us better spenders. However, even all this may not be enough when it comes to getting rid of debt.

The first thing everyone tries, when fighting off debt, is to cut off extra expenses and tighten up the budget. But after doing that, fewer choices remain. One of those choices that can improve our lives is to get a second job.

Increase Income to Fight Debt
Debt accumulates when we spend more than we earn. In order to reduce debt, we cut back on our spending. And when there is nothing left to reduce from our spending, then it is obvious that we need to increase the income in order to survive.

Combine Careful Budgeting With Secondary Employment
Many of us find ourselves in challenging situations, where we simply don’t have the money to get by, no matter how we budget. However, by combining careful budgeting and secondary employment, we can reduce the amount of stress and contribute to our overall well-being.

It is very difficult for many people to tackle two jobs. Most of the Americans, although well aware of the situation, are helpless, as there is simply nothing they can do to try and fit a second job into the meager 24 hours allotted to them in a day. This is especially true for parents who have children to worry about.

Get A Help Hand
But fortunately, there are ways in which you can fit in a second job into your life easily. One can practice freelancing in order to compensate for what they lack. It is also possible to ask help from neighbors, close friends, and family to contribute a little in order to help you balance your jobs.

Although it may be very difficult and hectic for you to get a job, especially when the economy is down, but it will certainly help you to smooth things out, even after the economy gets back on track.…

Debt collection and the statute of limitations

The statute of limitations is the total time period that a creditor has, with respect to debt collection, to file a lawsuit for a delinquent debt.

But it is also possible that once the statute of limitations expires, a consumer may still be slapped with a lawsuit.

past due photoA consumer may have a lawsuit dismissed, once the statute of limitations runs its course, on its basis. But it is most likely that the collection process won’t stop by writing a letter to the collection agency regarding the statute of limitations.

It is important to understand that the statute of limitations is intended for lawsuits only, and you should be prepared to expect successive attempts by debt collectors, even after this time period passes.

Older the debt, less likely it is to be collected
The creditor and the debt collection agencies can contact you, legally, at this point. Their efforts may be less intense, as the debts are out of the statute period, and thus less valuable to debt collectors. Most of the times, the older the debt, the less likely it is to be collected.

Lawsuits will be pursued for large debts only
Mostly, a lawsuit will be pursued only if the amount of debt is very large. In case a creditor does file a lawsuit, and it goes beyond the statute of limitations, the consumer must file a response with the court explaining the expiration of the statute of limitations and lawsuit should be dismissed.

But do note that there are variations to the statute of limitations, according to different states and collection types. The appropriate state is determined by the place of residence when the delinquency originally occurred.

The supposed “resetting” of the statute of limitations, which happens when an unpaid debt is paid, confuses many people. Most of the people think that when you make a payment, it resets the clock, and the statute of limitations would then begin again from the time of the payment. This is not true.

Starting from the date of the first delinquency, the statute of limitations expires at a fixed time, regardless of whether the account was paid off or not. Tax liens and federal student loans do not have a statute of limitations, and are due until ultimately paid off.

This was just an overview about the statute of limitations, but it should help you to understand the basic concept and its effects.…