None of us are perfect when it comes down to bad habits, but some are worse than others; not understanding your debt or finances is one of them. Kicking these bad habits into touch means that you can look towards becoming debt free: 1: Too many credit cards – Did you know that there are more credit cards than people in the UK? According to APACs, at the end of 2007 there were 73m credit and charge cards compared with around 60 million people. Having too many credit cards means that you have the potential to get into too much debt. Although introductory offers many tempt you in, it is important that you take control of your credit card debt. Start by paying off the highest APR cards means that you can look forward to becoming debt free in a much quicker time. 2: Spending more than you earn – Spending more than you earn by living beyond your means is a financial habit which you need to nip in the bud right now. This is the quickest way to get into debt, especially if you regularly have to relay on your credit card the week before pay day. 3: Missing credit card payments – Always make sure that you meet your credit card, store card or catalogue payments as they fall due. Missing these payments not only means that you will have to pay late fees but any missed payments will also show on your credit file, which could make it more difficult to get accepted for credit in the future. 4: Losing touch of your finances – Being unaware of how much cash you have in the bank to how much debt you have outstanding means that you have lost touch with your finances, which will make it harder to become debt free. Checking your credit report is a good way to see your own credit history. 5: Not seeking debt help when you need it – Sadly debt problems will not sort themselves out, and if you are missing credit card, store card or even mortgage payments then you need to seek help as soon as possible. Debt Free may be able to offer you one of our debt solutions which could help you to control your debts by reducing the amount that you need to pay to your unsecured creditors. Getting help about your debts mean that, if you qualify, you could look forward to becoming debt free in 60 months with an IVA.

Financial Statements Introduction: Financial statements generally take the form of records of the financial performance of a business. They provide information about the profitability and general financial health of the organisation. A company’s financial records usually consist of: * Income Statement * Balance Sheet * Cash Flow Statement An income statement, also called a Profit and Loss Statement, shows how a company’s sales or revenue translate into profit (net income) over a specific period (normally one year). It’s a record of how much a company has earned, what expenses it has paid and the resulting profit or loss. A balance sheet, also known as a statement of financial position, is a summary of what an entity is worth at a particular point in time. It summarizes what a business owns (its assets), what it owes (its liabilities) and its net worth (its equity or capital). While the income statement is a summary over a period of time (usually a year), the balance sheet is a summary at just one point in time. The balance sheet is a “snapshot” of a company’s health A cash flow statement is a summary of a company’s ingoing and outgoing money over a specific period (normally one year). It is such a valuable report because it shows the cashflow strength of a business unlike the income statement which contain non-cash items. The Importance of Financial Statements: Financial statements are crucial instruments used by a company’s management and investors for analysis and decision-making. They pore over the numbers and create every ratio imaginable in an effort to create the most accurate financial story possible. Without financial statements knowledgeable management and investment simply wouldn’t be possible. The Importance of Personal Financial Statements: Everybody knows that company’s product financial reports, but it is not as widely known that you can produce your own personal financial statements. Your own income statement and balance sheet which tells you your own financial performance, just like a company’s financial statements. Company management know that it would be impossible to run a company without financial reports giving them information about their financial strength, productivity, goal setting and so on. Is it any less logical that you need your own personal financial reports to know how well you are performing financially, just like a company’s management? Your financial statement will tell you your financial strength. They will tell you whether you fall into the poor, middle class or wealthy class. Current statements can be compared to prior statements to create a trend, a story, over time. You can also use your financial statements for scenario analysis, such as looking at he impact of an investment on your financial position or the impact of interest rates rising. Your Personal Income Statement: Income statements following the following structure: Income – expenses – taxes = net income (also called net profit). Rather than simply listing your incomes and expenses by item it is useful to categorise them in a way that will help you know whether you have the income and expense profile of a poor, middle class or wealthy person. The Internal Revenue Service (IRS) in the U. S. classifies all income and loss items into three categories: active, passive and portfolio. In brief, active income is income from your salary, wages, fees, commissions, and sole proprietorship business. Passive income is income that’s received, usually regularly, by an individual who doesn’t materially participate such as rental from real estate, royalties from patents and license agreements, and businesses you own. Portfolio income is investment income from paper investments such as stocks, bonds, mutual funds in the form of interest received or dividends or capital gains (or losses) from their sale. Similarly, expenses that are associated with your active income are active expenses, and so forth for your passive and portfolio expenses against your passive and portfolio income. Your active income is generally not tax deductible while your passive and portfolio expenses are tax deductible. Thus we refer to active income as bad expenses and passive and portfolio expenses as good expenses. Income Statement: Income (Realised) - Active - Passive - Portfolio Expenses Deductible expenses - Passive - Portfolio Non-deductible expenses Net Income Your Personal Balance Sheets: Balance sheets follow the following structure: Assets = Liabilities + Equity or Equity (or net worth) = Assets – Liabilities. Just like your personal income statement it is useful to categorise your personal balance sheet in a way that will help you know if you have the assets and debt profile of the poor, middle class or wealthy person. Assets and liabilities can be split into good and bad assets or liabilities. Good assets are investments. In short, they put money in your bank account. Good liabilities refer to debt that is used to buy good assets, which makes the debt expense (interest payments) tax deductible. Bad assets refer to anything else. They take money out of your bank account. They cost you money to own them. Bad liabilities, is debt that is used to buy bad assets, which makes the debt expense not tax deductible. Just like your personal income statement, your good assets and good liabilities can be categorised as passive or portfolio based. There is no active assets or liabilities because the income is from your wage and thus there is no asset or liability. Balance Sheet: Assets Good assets - Passive - Portfolio Bad assets Liabilities Good assets - Passive - Portfolio Bad assets Net Worth Poor, middle class and wealthy: The makeup of your income, expenses, assets and liabilities and how they interact tells a story-your financial story. By filling in your financial statement, you can tell which class you’re in and a great deal about where you are on your wealth journey. The poor, middle class and wealthy each have a different story, a different financial makeup, which is reflected in their financial statements. Each class’s financial statement is unique. You won’t have a poor- or middle class-looking financial statement and be wealthy. To become wealthy, you need to understand your financial statement and create a plan to change it so that it looks like that of a wealthy person. The poor earn only limited active income and no passive or portfolio income. They have little or no good assets or bad assets. The middle class earn primarily active income, and little in the way of passive or portfolio income. They have little in the way of good assets and loads of bad assets and thus have little good debt and loads of bad debt. In contrast the wealthy earn primarily passive and portfolio income and little in the way if active income. They have loads of good assets which provide the passive and portfolio income and few bad assets (compared to their wealth). The wealthy have loads of good debt (at least while they’re accumulating their wealth) and little or no bad debt (compared to their wealth). So what does your personal financial statement looks like? The poor, middle class, the wealthy or a combination?

  Massive reduction and liquid problems of credit raiting in banks (for the first time in (Northern Rock) in April and May 2007 and since 2005, the range of problems such as the results of slump in real estate, influence on devaluation bank assets and manifestation of bankruptive effect on a number of banks have reached crisis point by September 2008. Financial sector was considerably damaged by unprecedented growth of prices that significantly declined after eliciting financial crisis and credit restriction. In the structure of consumption, forced high cost made a negative influence on the broad masses of population’s savings and accordingly on the size of investments, also it caused the rise of cost price. therefore, demands decreased because of two factors. (second one wich was partially formed by the influence of the first one is connected to the reduction of corporations winning and the slump on their bonds). In 2007 for the purpose of reduction in the price of oil, concrete non-co-ordination experiment by the central banks of separate countries, in the usage of money credit regulation in currency rates, considering taxation balance sheet. On the background of multidimensional, different priorities and difficulties, the problems were mostly revealed in the difference of interest rates. The rise in oil price, must have firstly been reflected in the USA $ purchasing capacity, but in a number of countries, all over the world, oil import (reflected on money) when in deals, it is invested in USA $, it raised the demands on USA $ currency and conditioned the devaluation on Japanese yen, euro and pound sterling. For  the beginning of reduction in oil price, financial crisis had already been  from the USA, withal president election in the USA created an atmosphere for the better future changing. Currently, the countries all over the world, cut main interest rates and accordingly the difference among them is decreasing.     Securities market has significantly been damaged by the devaluation of assets of special companies, established by banks for the purpose of credit securitization. (SPV) assets include commercial debt obligations (CDO) namely, in this case, mostly mortgage credit obligations (CMO), that represent one of the varieties of obligations, provided jointly with active bond securities (ABS) and mortgage bond securities. This real pyramid, in which every following, next level securities were partially provided with lower level securities, but one of the providing means for MBS was corresponding real estate; Herewith, the partial price cut for real estate depreciate all kinds of securities. WHAT IS HAPPENING IN WALL-STREET? Together with banks, those who can’t cope with the loss counting caused by  subprime credits and giving bonuses to are blamed by the experts of financial centres for crisis, the offenders are so called “quants” in Wall Street and the world’s main financial centres. It is difficult to judge the point from only one side, current events are adequate to the saying “fish in troubled water”. On the one hand we can’t blame financial institute for aggressive crediting to maintain the market share, if it is prompted by positive expectation, but only in the case of legal-regulative normatives; just these regulations must not have given the opportunity to the banks and other financial subjects to behave so irresponsibly and indecorously towards the depositors and debtors’ funds (or it would be much more correct to say that, they shouldn’t have done it in this way). As the millionaire punters do, in the casinos of Monte Carlo. Existed frames of regulation (such as regulative normatives, namely, in the ratio of risk assets to the capital coefficients, liquid normatives of reserve demands, limits of open currency positions and others from the arguments of formal protection) do not or cannot correspond to the new methods of risk controlling, development of credit derivatives and expansion of out balance operations. Herewith, the bonus compensation, of employees, that is actively used as a repayment scheme by western financial institutes (obviously, we do not mean only brokerage houses). This increases the interest of agents in the growth of deals in size and also will rise the interest conflict, when operation offers the agent, the growth of bonus payments, but in reality it threatens the principal with potential loss. Now, let’s go back again with “quants” and their mathematical methods, that is somehow based on the exact science, but resembles sophistic resistances of high mathematics, that is e. g. connected to the correlation of two inspirational functions or to one and the same number, that is the result of again two functions correlation. It is paradoxic, but just such details made us move from the science, constructed on elementary basis to the most complicated and the most common concepts and dichotomy of time discreteness. (The last one is universally acknowledged in philosophy). It sounds again paradoxic, but wisdom is in simplicity and according to Georgian writer Ilia Chavchavadze, there are no small and big miracles. Sophistical models, that use multileveled and multivariational methods of analysis, often lose the focus and their usage in controlling assets and obligations, creates it self the new origin of risk. Besides, most of these models are far from elementary basis and correspondingly the results of analysis are difficult to be apprehended and sometimes even unessential. It must be said that, during the last several years, the programmes of financial management are available through the internet and the providers try to advertise their products by means of difficult multidimensional scheme annotation and incomplete promo versions; amongst, there are lots of facts of amateurish creativeness. Sometimes the part of  unqualified managers follow Uindly and use these computer systems with confidence. Besides incorrect decisions and problems, we mustn’t forget the problem of villanios and indecorous act of managers and generally the staff. It is important to consider the fact of misinforming the shareholders and markets by means of asymmetric information to get the desirable aim. Recently, this kind of incident happened to Societe Generalr after it revealed that, the management had executed a series of “elaborate, fictitious transactions” in 2008, in the hope of covering this problem from other accounts and after E 5 billion fraud that had lately been informed to stock exchange and shifted the blame on employee. The fact that the sums are so large, gives an indication of just how leveraged everything is today and how volatile equality positions are – conclusions are up to the reader. CAUSE AND EFFECTIVE ASPECTS OF CRISIS. And still, concretely, what is a main virus, that developed immunodeficite syndrome and collapsed all the economy and its vital financial system? Only separate aspects can be shown in connection with this problem and only on the basis of partially revealed diagnosis of symptoms. In accordance with, if what causes and effects of problems we connect to each-other and discuss more deeply. The rest of the aspects will be presented comperatively in a narrow sense or in other worlds, we can’t manage to reinstate the reality of cause and effective problems completely. So far, it is beyond human mind to imagine more than three-dimention complex sphere. It is theoretically proved and is implemented in the risk evaluation and computer models and system controlling. The irrelevant quality of unequal confidence of financial managers as well as ordinary people, towards the not-fully completed products of  cybernetics and also the most important post economic virtual illusions of the outgrowth of scientific-technological revolution simulational computer models of financial, or other risk taking portfolio management, radically changed the cognition of reality, attitude towards risk, future realizations and they turned into the main provocative factors in the ruling process of unnatural approaches of interrelations and scale-proportions. It is really difficult to define for the first time, what was the reason for sacrifing the functioning of billions of dollars worth securities – global financial crisis or general economic problems. The tendency of vector in these interactions will be manifested according to what problems will be discussed and at what level or in other words, the direction of this vector is changing in the dynamics of crisis development. The problems of credit raitings and liquidation in the bank-credit organizations were almost less before the crisis revealing, not because of the fact that credit risks were not increased, but they were simply shifted in outbalance accounts. The reason is one sided – as increased risk factor not to have been used in calculation of assets, according to the risks of regulation demands. Instead of risk hiding and debuting liabilities, for the purpose of attracting liquid money flows, the usage of security and credit derivatives are cursedly effective, though regulators’ reaction found out to be quite belated and mild. INFLUENCE OF PRICE ALTERATION ON REAL ESTATE? On the one hand eluding the restrictions, connected to the regulatory arbitration and 10-15 year-practiced prognoses, based on economic growth tendencies, pushed the credit managers into very bold credit expansion. At the initial stage, it caused consumer’s boom, growth of prices in dwelling and economy. At the background of increased activity, corporations were trying to increase the money flow and issue securities, bonds and other obligations; together with the appearance of new corporations and complicated securities, potential investors. (among them, there are a lot of unskilled people, who most of the time buy securities through internet, not only because of their real income, but according to their interest rate, without any serious risk-analysis). The bankruptcy grew the attractiveness of debt securities as much as it was possible, as if “financial balloon” would have been “inflated” towards credit organizations and torn away the most rapidly increasing credit sector of economy from the real one. Formation of “credit balloon” is connected with the housing and dwelling space boom. The price up growth, caused by increased accessibility of mortgage credit, could have been continued until changing the situation in the real estate market, although the limited immigration to the USA and the UK cut down demands of dwelling-spaces in these huge markets. The banks were interested in increasing the costs of real estate. It can be explained by the following conditiones: mortgage credits were provided with the flats on sale and accordingly their market price defines the existence of possible losses or their size of credits in the case of default by debtors, until the term expires or before default, suitable credit letter or security, steadied by it, as the cost of assets. Creditor’s interest, connected with the price growth of real estate is against the debtor and that is the most essential during the period of mortgage, price growing in funds flow increases the share of expenses: Debtor’s funds flow is the most important component of its solvency. Undisturbed up growth of price on real estate, accordingly a great number of debtors and reinforcement of  competition among credit organizations: motivation of cutting down the expenses of debtors’ credit analysis by banks, conditioned mortgaging credit insurance to be accented and in fact, this priority made debtors credit analysis into a minor importance question. Though it must be the first and uppermost source of covering the loans and according to the request of prudential law, mortgage as a means of covering loans must be used only in the extreme situations. Yet, this request is followed by banks, still, the important is not only loan repayment by debtors, instead of the results of credit analysis (especially, according to the corresponding funds-flow) but dependence on insurance while taking decision about credit, means that the possibilities of default indices are quite high. Rising by 2-3% in the real sector of economy, in the conditions of property differentiation growth, for the part of such outnumbered debtors credit covering has turned out impossible. The flats, had been moved in the property of banks, still returned back to the real estate markets. Because of increased deliveries and frequent defaults, the limit on distribution the mortgage credits, caused disastrous slump in real estate property prices. On its side it ment the decline in the maintenance of mortgage credits. Tendency of slump and deterioration of  assets quality, that also conditioned the aggravation of liquidity problem, (during this period, reduction of credit rating, quite scared the investors and hedge funds) made the banks minimize the new credit delivering process. Real estate delivery, was mostly realized by using the mortgage credits and without this, the recession of building sector has not been delayed. Conclusions on credit markets. . Let’s form everything in details and items. All the above mentioned and other problems as well and concretely the motives of credit crisis from the primary sources of financial crisis: 1.       While crediting, it wasn’t clear for the experts, if the pretender (afterwards-debtor) would manage to generate funds-flow for covering the mortgage. 2.       It was almost possible to cover the price of purchasable house by mortgage or in other words, debtor’s participation was minimal. 3.       Interest rate could be changed into many kinds of loans or increased distinctly, that wasn’t realized by everybody else. 4.       Very often, mortgage loan was used for other purposes by debtors in order to get ready money. 5.       Many credit officers and brokerage firms pushed potential debtors and helped them to create a false profile (mask) of solvency, with the object of getting bonus, commission etc. SUBPRIME MORTGAGE. SUBPRIME CREDITING . We have already talked about the question of debtor’s solvency in the section of cost economy and accent ensurance. We will also make remark that the analysis of debtors is quite complicated. The causing problems are the following: Rapid spread of network marketing, development of virtual economy, (when the payments and incomes, estimation of softwares are not fixed) also the difficulties in estimation of managing skills and the motive power of corporative relations of human capital conditioned and increased the frequency of inadequate decisions. Herewith, the banks, in comparison with their rivals were trying not to bother potential debtors infrequently at request of documentation. In accordance with the share of subprime mortgage of incomplete documentation increased from 25% (2000) to 43% (2007). Subprime crediting due to lack of savings, required the reduction of complicity demands on buying flats for  the low income debtors. The forecast for the price growth of flats, made subprime mortgage acceptable. Debtor’s participation  by using mortgage for buying the flat has reached 14% by 2000, although it has decreased to 4% since the following year and stopped at this level before revealing the crisis. This even turned into the important stimulator for the mentioned speculations. Considering the high crediting and ensuring, accepted by giving subprime credits and credit derivatives (we mean, already existed fluctuations in real estate markets in 2001 and the tendency of slump in commercial and housing sales since 2005, also, according to the increased risks, rised expenses of nonbalanced operations of risk controlling and the slump of securities steadied by assets, due to the reduction of credit rating) compensation of market risks was developed by banks under the condition of giving credits by variable rate. If it fluctuated between 10%-23% in prime mortgage, for subprime one, amplitude and its lower bound as well were more: 50%-70%. Generally, characteristic for RAPOC models, conseptional basis “profitableness according to the risk” is acceptable (in my opinion) on the level of crediting and in common, on the theoretical base level of investment, as the criterion of conferring priority to homogenous creditors, either for selecting one from investment project. But, it must be taken into consideration –how it will be guaranteed and how often it changes the corresponding risks of interest rate for different quantities. In case of large –sized loans, the growth of interest rate has a direct and complete influence on solvency of contragent itself. But in reality, as it seems for the people having less payment proficiency, interest demand was higher, than in the case of prime mortgage.   It must be said that, in case of business loans, in the form of providence (mortgage) because of the connection to the risks of the same businesses, a great share is applicable assets. The banks were manipulating into interest rates not so often as they were analyzing the business plans and financial conditions of firms maximally. Herewith, the possibility of diversification, according to business types is higher, especially in the standpoint of supply. That is why, credit crisis and default quantities were mostly manifested in connection with mortgage obligations. Easily obtained supply, that in any case was presented by real estate during the default case, moved to the property of banks and, after they were offered to the market, that influenced on the increased supply by slump and it was difficult for them to repay the default by means of mortgage realization. At the same time, because of the practice of so called “air” selling, part of incompleted flats had not been finished by the time of default. Because of price slump, construction boom first was changed to stagnation and afterwards the recession case was revealed. In the chart, is shown the dynamic of price indexes of dwelling-houses, according to the basic level in 2000. As it is clear from the chart the pick in 2005, prices have been declining distinctly, but the number of vacant dwelling houses are increasing. Due  to the diminution of new constructions, this growth is mostly continued at the expense of confiscated flats by debtors and creditors, that makes the chart bold.   Owing to credits “corruption” and intensification of liquidity problems, part of the banks stopped even giving other kinds of credits or made the conditions stricter. Many banks experienced the reorganization of problem protection difficulties in regulation norms, capital and coefficient of liquidity; part of the banks bankrupted. Since the beginning of crisis in the USA, until now, the number of commercial banks has decreased about from 7280 to 700. (It is put of sense to name the exact number, as the unity process between the banks and their bankruptcy are still in progress. It became necessary to expiate the huge grants-Fannie Mae and Ginnie Mae by the Federal Reserve systems. Broadening of broker’s loans is one of the most important surroundings. The share of so called “wholesale loans” in the total credit size widened from 60% segment in 2004 to 90% in 2007. It is natural that credit mediators (but only brokers not dealers) are less interested in guaranteeing credit refunds than banks.   Taking credit officer’s interest (credits were issued even to the clients of less-solvency) was caused by bonus wage payment scheme, according to the  issued credits, about what, we have already mentioned above. Competition made banks satisfy the borrowers’ interests in cash, connected to crediting; this fact and the reduction of debtor’s participation demands give the chance to borrowers to use credits aimlessly.   It caused the system mismanagement. (So the drawbacks of this system itself and inappropriate evaluation of its nature). 15 year old economic development, without any obstacles, made people think, that without rising the real sector of production, goods and services, enrichment were absolutely possible. Financial sector made a colossal, titanic oppress on the real sector of economy. Nowadays, only 2-3% of financial operations belong to real sector, but the rest of the funds work inside the finances. Current world economic financial crisis “from the great depression”, almost after 80 years, still confirms, that the self-flow economy develops not only within the bounds of maximal possibilities, – as it is drawn by Keens and other etatism representatives’’ (French. Etat. State) point of view, but it became the world’s highest pyramid of property differenciation, that now stands upside-down and oven one push, threatens with destruction. For the collapse of this pyramid, it was enough to break one of the connecting balance lines and such was the credit line, stretched between the building balance and banking giants, (here is not meant “credit line” defined especially from the view-point of economical terminology) that was “hung in the sky”. We will see, that construction of new houses was going on, according to the pyramid scheme, in the way that, the flats, in multistoried houses were sold, without even having the foundation under. Such interrelation, in the case of real situations is even necessary for the stimulation of economic growth, but while making prognosis, distinct kind of conservatism is necessary. Analysts admit, that the main reason of today’s crisis, are not the problems of the USA mortgage markets. Mortgage is connected to real economy, that on its side is an essential instrument of investment demands. Mortgage liabilities in the USA complies $12-13 billion, but in the world currency markets, the size of operations combine $2 billion in a day and from here, only 4-5% of operations are in real economy and the rest of it is speculative money. The scales of speculative operations were growing at a colossal speed -12-15% in a year. Money system, that made such an error, is impossible to exist long. It shakes the institute of private property. , that requires real, not virtual money. The first signs of crisis, as a rule, influence on banks, and only afterwards on the real sectors of economy, and after all, it moves to the financial sphere of the state and budget system. As the analysts say, today we are on the first stage of crisis. As it is known, annually $50 billion cost of goods and services are produced all over the world, just this sum of money is contradicted the securities of $1,5 quadrillion value; such as, state and private bonds, shares, bills and so on and so forth.   Central banks from the other countries, with assistance of world’s financial system, began milliards of dollars in flow. At the distinct stage, it helped the situation, but temporarily. According to some analysts, it is impossible to fill this $1,5 quadrillion cursed hole, and even the total money reserves of the USA and Euro-zone central banks won’t be enough, moreover, pseudo-money, that is called securities can’t be transformed into cash. What should we do?! According to the analysts. In order the world not to be found at the edge of world catastrophe, they should work in two directives: Continue real economic crediting, even if only today’s existing level be maintained. The first direction is quite difficult, but necessary. Every day new information is born about “economic catastrophe” and the reason of it is credit freezing. Financial structures only want the cooperation with the cash-holders. Though, the crises destructed everybody’s capital. From the view-point of experts, one of the survival ways in economy is to involve as much capital as possible in the economy. The size of recapitalization should be spread more and more, and the state control should become stricter in order to male almost the nationalization of the significant part of financial system, but only temporarily. Afterwards, when the situation returns in its usual regime, again start its denationalization. Experts example of this is Switzerland, which after fighting against the crisis at the beginning of 1990, managed to return its shares again in bank. Because of the crisis, in a number of countries, complete or partial nationalization of took place. Lately, Great Britain put £50 billion (about £64 billion) on the recapitalization of Britain’s big banks. Great share, from this money -£37 billion is for the following banks: Royal Bank of Scotland HBOS and Lloyds TBS. In return for this, it is being planned to give shares from Royal Bank of Scotland and HBOS transfer control packet to the state. It is supposed that the temporary nationalization of banks will last more. As we’ve mentioned above, we are only at the initial stage of crisis, but economist’s forethoughts are realizing and after New Year, that will collapse many well-known banks, industries, laboratories, universities, and after all the people’s future. Somehow bank sphere, although temporarily sighed, but still real sectors of economy stayed without money. Banks don’t issue money any more. This terrible tendency will cause a huge problem not only for the real sectors of economy, but also for separate countries. Many countries live on the credits of financial institute and if the situation doesn’t change, a number of countries such as Pakistan, Argentina, Mexico, Hungary, the Ukraine ad others are against the danger of default. Furthermore, at the end of 2008, Iceland itself was at the edge of risk realization factor and the British Financial Institute were blamed for this. “Fighting” methods of against crisis. Different methods of treatment are used in different countries against economic crisis. In this or that sphere of economy, fighting against crisis, accordingly can devided into three models: I. When the total sums inflow in the financial field, or the very case, that America did. It put $2,3 billion on assisting banks, but for supporting the real economy-10 times less. Goverments of Canada, Ireland, The Netherlands and Sweden are also following this principle. Method can be considered as the second model, when the government refers all its efforts towards the real sectors of economy. Just this way Socialist China was chosen. Its authority made an investment in infrastructure, agriculture and social fields. According to the analysts at the company Merrill Lynch, just this was the reason that the Chinese market is still in the center of attention for investors. Some countries try to give the equel hand of assistance to financial sector as well as real economy. This model was only used, after the bad example of the USA. How many countries believe that only with the help of financial sphere, crisis would not be got over. Such countries are: Germany, France, Italy, Sweden and Japan.   The leaders of European Union, declared the assistance of $200 billion to member countries still in November. On 12 December, just this antirecessionary plan was proved in Brussels. According to the plan each member country will assign about 1,5% of money from their total income. € 30 billion from €200 billion will be assigned by investment bank. It is underlined in declaration, that according to the viewpoint of European Union countries, in the separate sectors of economy, taxation rates and extra value in taxations can be cut. According to the agreement, of European Union won’t let any big financial organizations be bankrupt. Because of maintaining the creditworthiness of banks the government plans to buy their shares. In short, for stimulating the economic growth, European Union will take deep co-ordinated measures. According to experts, the world’s leading state have already spent in all $9,4 billion for antirecessionary measures. Any kind of funds that will be used for the growth of economy is acceptable. Those expenses, which are used for social programmes and economic activities by states, it is possible to be a very heavy burden, bur the expenses, that will be assigned in the future because of today’s inactivity, will be much bigger burden, than the savings themselves.   Economic Doctor of Science Professor Lamara Qoqiauri

What is Financial Aid? Financial aid is monetary aid to help you pay for your college education. Aid is made available from grants, college scholarships, student loans, and part-time employment from federal, state, institutional, and private sources. The types and amounts of aid awarded are determined by financial need, available funds, student classification, academic performance, and sometimes the timeliness of application. What is the FAFSA?FAFSA stands for Free Application for Federal Student Aid. The FAFSA is the Federal Department of educationâ??s primary application for financial aid and is the gateway form to just about any other federal, state or private grants, college scholarships, student loans or college work study programs. The FAFSA form must be filled out each year between January 1 and March 10th (although some colleges have their own earlier deadlines) and can be completed online or by mail. Four to six weeks after you file the FAFSA (two to four weeks if you filed electronically), you will receive your Student Aid Report (SAR) which will contain a summary of the information you submitted on your FAFSA and presents your Expected Family contributions (EFC) which tells you the amount your family is expected to contribute towards your education. The amount of financial aid is then determined approximately by the tuition of your college subtracted by your EFC. If you do not receive the SAR within a reasonable amount of time, you can call the Federal Processor at 1-319-337-5665. Review the SAR carefully for errors. If necessary, make any corrections on Part 2 of the SAR and return it promptly to the address listed on the form. You will then be sent a new SAR with the changes made. What is the College Scholarship Services Profile (CSS Profile)? Some colleges also require you to fill out a College Scholarship Services Profile form in addition to the FAFSA. It is a secondary financial aid form that supplies further information about your family income. Be sure to check whether this form is necessary and about specific deadlines with your college directly. What is the difference between a Grant, a Student Loan and a College Scholarship?A grant is free money from government or non-profit organizations that does not need to be repaid. Grants are usually determined by financial need but can also be influenced by academic merit. Unlike grants, student loans are money loaned from an academic institution, financial institution, or federal government that must be repaid. Like a grant, a student scholarship is free money, but is generally offered through colleges, businesses, private individuals and outside sponsors. Those awarded by the college itself are often called MERIT AID. While grants tend to be issued according to financial need, college scholarships are awarded on a broad-base of criteria, the most common being academic merit. Furthermore, to receive any grants or loans you must complete a FAFSA, however, many scholarships may not require you to complete a FAFSA to be eligible. Instead, you may need to obtain application material directly from the donor of the scholarship. What are the different kinds of grants?There are federal as well as campus-based (institutional) grants. Federal Grants are free gift money from the Federal Department of Education while campus-based grants are government funds issued directly from your college. The campus-based grants provide a certain amount of funds for each participating school to administer each year. When the money for a program is gone, no more awards can be made from that program for that year, so make sure you find out about the types of grants awarded by each college you are considering as well as their specific deadline. Below are some of the most common grants. Federal Grants Pell Grants are considered a foundation of federal financial aid, to which aid from other federal and non-federal sources might be added. Pell Grants are usually only awarded to undergraduate students who have not earned a bachelorâ??s or a professional degree. The amount you get depends on your financial need, your collegeâ??s tuition, your status as a full-time or part-time student and your plans to attend school for a full academic year or less. The Academic Competitiveness Grant is a new grant available to first year college students who graduated from high school after January 1, 2006 or for second year college students who graduated from high school after January 1, 2005. Only students who are eligible for a Federal Pell Grant and who has successfully completed a rigorous high school program as determined by the state or local education agency and recognized by the Secretary of Education. An Academic Competitiveness Grant will provide up to $750 for the first year of undergraduate study and up to $1,300 for the second year of undergraduate study for full-time students who are eligible for a Federal Pell Grant. The National Science and Mathematics Access to Retain Talent Grant (AKA the National Smart Grant) is available during the third and fourth years of undergraduate study to full-time students who are eligible for the Federal Pell Grant and who are majoring in physical life, or computer sciences, mathematics, technology, or engineering or in a foreign language determined critical to national security. The student must have also maintained a cumulative grade point average (GPA) of at least 3. 0 in coursework required for the major. The National SMART Grant award is in addition to the studentâ??s Pell Grant award. Campus-based Grants The Federal Supplemental Educational Opportunity Grant (FSEOG)The FSEOG is a campus-based grant aimed at assisting students with exceptional financial need. Pell Grant recipients with the lowest expected family contributions (EFCs) will be considered first for a FSEOG. You can receive between $100 and $4,000 a year depending on when you apply, your financial need, the funding at the school you are attending, and the policies of the financial aid office at your school. What are the different kinds of student loans?A student loan is money that needs to be repaid after you have completed your studies. Generally, interest rates are low- so that you do not rack up as much debt as you would with a credit card or bank loan. There are campus-based loans, which you repay directly to your college, as well as federal loans which you repay either directly to the U. S. government or to your financial institution. Campus-based LoansFederal Perkins LoanThe Federal Perkins loan is a campus- based loan because it is administered directly by the financial aid office at each participating school. In other words, your school is the lender although the loan is made with government funds. Your school will either pay you directly or apply your loan to your school charges. Youâ??ll receive the loan in at least two payments during the academic year. You can borrow up to $4,000 for each year of undergraduate study with a maximum of $20,000 for your entire undergraduate degree. The amount you receive depends on when you apply, your financial need and the funding level at your school. The Federal Perkins Loan is a low-interest , 5 % loan for students with exceptional financial need. You must repay this loan directly to your school and you have nine months to begin your repayment plan after you graduate. Generally you will make monthly payments to the school that loaned you the money over a 10 year period. Federal LoansThe U. S. Department of Education administers the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both the FFEL and Direct Loan programs consist of what are generally known as 1. Stafford Loans (for students) and 2. PLUS loans (for Parents). Schools generally participate in either the FFEL or Direct Loan program, but sometimes schools participate in both. For either type of loan, you must fill out FAFSA, after which your school will review the results and will review the results and will inform you about your loan eligibility. You also will have to sign a promissory note, a binding legal document that lists the conditions under which youâ??re borrowing, and the terms under which you agree to repay the loan. Stafford LoansStafford loans are federal loans for students. Eligibility rules and loan amounts are identical under both the FFEL and Direct loan programs, but providers and repayment plans differ. For all Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6. 8 percent. However, you can be considered for a subsidized loan, depending on your financial need, in which the government will pay (subsidize) the interest on your loan while youâ??re in school, for the first six months after you leave school and if you qualify to have your payments deferred. You might be able to borrow loan funds beyond your subsidized loan amount even if you donâ??t have demonstrated financial need. In that case, youâ??ll receive an unsubsidized loan. Your school will subtract the total of your other financial aid from your cost of attendance to determine whether you are eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for youâ??re the interest from the time the loan is disbursed until the time it is repaid in full. After you graduate, you will have a six month â??grace-periodâ?? before you must begin repayment. During this period of time, youâ??ll receive repayment information, and youâ??ll be notified of your first payment due date. You are responsible for beginning repayment on time, even if you donâ??t receive this information. You will receive more detailed information on your repayment options during entrance and exit counselling sessions provided by your school. Federal Family Education Loan (FFEL)Funds from your FFEL will come from a bank, credit union or other lender that participates in the program. Schools that participate in the FFEL program, will usually have a list of preferred lenders. Student loan borrowers may choose a lender from that list, or choose a different lender they prefer. Your loan money must first be applied to pay for tuition and fees, room and board and other school charges. If money remains, youâ??ll receive the funds by cheque or in cash. Besides interests, you will pay a fee of up to 4 % of the loan, deducted proportionately from each loan disbursement. For a FFEL Stafford Loan, a portion of this fee goes to the federal government, and a portion goes to the guaranty agency (the organization that administers the FFEL Program in your state) to help reduce the cost of your loans. Direct LoanUnder the direct loan program, the funds for your loan come directly from the federal government and you will need to repay your Direct Loan to the U. S. Department of Educationâ??s Direct Loan Servicing Center. Like the FFEL loan, you will pay a fee of up to 4 % of the loan. For a direct Stafford Loan, the entire fee goes to the government to help reduce the cost of the loans. PLUS Loans (Parent Loans)Parents can borrow a PLUS Loan to help pay your education expenses if you are a dependent undergraduate student enrolled at least half time in an eligible program at an eligible school. PLUS Loans are available through the Federal Family Education Loan (FFEL) Program and the Direct Loan Program. Your parents can get either loan, but not both, for you during the same enrolment period. They must also have an acceptable credit history. For a Direct PLUS Loan, your parents must complete a Direct PLUS Loan application and promissory note, contained in a single form that you get from your schoolâ??s financial aid office. For a FFEL PLUS Loan, your parents must complete and submit a PLUS Loan application available from your school, lender, or your state guaranty agency. After the school completes its portion of the application, it must be sent to a lender for evaluation. What are the different kinds of scholarships?Scholarships are awarded on a broad-base of criteria, the most common being academic merit. Many scholarships carry conditions besides academic merit, such as financial need, affiliation with a group-, leadership, athletic talent, artistic or musical ability etc. Some scholarships are awarded by the college itself, often called MERIT AID. Other scholarships are awarded by outside sponsors. For some scholarships, you need to be nominated. For most of them, you apply directly to a sponsor. Because there are so many different types of scholarships, you should check directly with your financial aid office at your college. Can I apply for a grant, a loan and a scholarship at the same time? Yes. You can team up different types of financial aid or simply have one kind. Nevertheless, some types of financial aid are contingent on others. For example, you can only receive an Academic Competitive Grant or a Federal Supplemental Educational Opportunity Grant if you have received a Pell Grant. While you cannot team up a FFEL loan with a direct loan, you may be eligible to receive a subsidized loan (in which the interest is paid by the government) and an unsubsidized loan (in which you are responsible for the interest) at the same time. You can also combine grants with loans and scholarships, so it never hurts to try to get as many different varieties of aid as possible! What is the Federal Work Study Program?The Federal Work-Study Program (FWS) is a campus-based program that provides part-time jobs for undergraduate and graduate students with financial need, that allows them to earn money to help pay education expenses. The program encourages community service work and work related to the recipientâ??s course of study. How often should I apply for financial aid?You will need to apply for financial aid each year. Even if you did not qualify this year, you should reapply next year since financial circumstances can change. The number of family members in college, for example can have a big impact on your eligibility for financial aid. If you submitted a FAFSA during the previous year, you may be able to complete the shorter Renewal FAFSA form instead. The renewal FAFSA will be mailed to your home. The renewal FAFSA preprints most of your answers from the previous yearâ??s FAFSA. Verify that the old responses are still accurate and provide corrections or new answers where appropriate. If you donâ??t receive a renewal FAFSA by February 15, fill out a new FAFSA form. How do I know whether I am eligible for financial aid? Donâ??t assume that you will not qualify for financial aid. Nearly all U. S. citizens or eligible non-citizens enrolled at least half the time are now eligible for some form of financial aid. Even if you donâ??t qualify for a grant, free college info is still available, and you may still be eligible for other forms of financial assistance. Many families donâ??t apply for financial aid, because they believe that they earn too much money. However, you donâ??t need to be from a low-income family to receive financial aid. Some loans and scholarships are available regardless of need. Many factors are used to determine your eligibility for financial aid and there is no simple cut-off base on

  Petrograd connection, planning and statecraft Saving nations from financial raiders   Wendell W Solomons CityVista_gmail. com     In brief   Piracy once roamed the seas. That was the status quo. History says that queen Elizabeth I authorised naval commanders, including Sir Walter Raleigh, to plunder merchant schooners. Over time, piracy at sea seriously interfered with the trade of merchants. They promoted the development and acceptance of conventions by countries against sea piracy and it was outlawed.   In contrast, modern rules that had been developed to prevent invasion of the economy by financial raiders were set aside. The Anglo-American alliance, represented from 1976 by Ronald Reagan and Margaret Thatcher, gradually removed safeguards that held back financial raiders. Thirty years onwards several large banks have become mistrustful because of unprecedented fraud in financial markets.   In Germany today, chancellor Angela Merkel stands in the forefront of the EU movement for bringing back rules so that trade between countries can flow without unusual price hikes. In addition, survival in many a nation will require rationing and state planned distribution for efficient use of basic goods such as food.   The Chicago school of monetarists – which substantiated invasions by financial raiders – was not able to persuade China to put aside its central planning system. Therefore, this large developing country will cope better with the world economic recession.   Ex-Warsaw pact countries including Czechia, Poland and Russia use budgetary systems today that can be reinforced by activating their own planning resources. Specialists in planning in the Germany’s east can also share the experience, which helped raise the economy from 1945 after destruction in the war.   On the other hand, today’s trade flows will be hurt by nations that rely solely on high level financial planning. The monetary crisis of 1997, which hurt Japan, South Korea and other US allies in Asia, brought up the issue of financial terrorism. At what seems like the tail end of a string of events, the names of financial organisations prominent in the Western hemisphere, receive mention in connection with the loss of immense resources.       Full Report   Every writer on economic themes must at some moment quote Adam Smith. So did the Chicago monetarists when during the last 30 years their plans advised removing safeguards and allowing financial raiders in. Citing reforms for a free flow of capital, they let people choke on rogue instruments that included the shares, bonds or securities of WorldCom, Enron and AIG.   “Economics” was known in statecraft. Yet, the 18th century granted Adam Smith, Professor of Moral Philosophy at Glasgow University, an eminence surpassing all others. Two millennia earlier Aristotle, serving as tutor to Alexander the Great, had been using the term ‘Oikonomika’ (dictionaries derive ‘economics’ from the Greeks. ) Further east, advisor Kautila, serving Indian royalty, evoked several volumes entitled ‘Artashasthra’ (‘Worth Treatise’. )   It is in year 1757 that we track down the facts that contributed to the eminence that Adam Smith obtained. That year saw Benjamin Franklin, a prominent scientist and statesman, asked to account for the wealth of the American colonies across the Atlantic. Here are words recorded when Benjamin Franklin was called to speak before the British Parliament on the wealth of the colonies:   “That is simple. In the colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one. ”   Franklin’s words regarding currency in Parliament alarmed private financiers.   The financiers union, the Bank of England had been incorporated on July 27, 1694, as a joint-stock association with a capital of £1. 2 million. The company received the right to issue notes and a monopoly on corporate banking in England ? in return for an immediate loan to the king of the entire treasure. They had calculated that such treasure would never be returned whereas interest from the king’s treasury would keep accumulating in their hands in perpetuity. Through this action (1) the king would become an accessory of their company and (2) in their receiving authority to print and issue banknotes as counterpart to the treasure ? their power would advance in the land by leaps and bounds.   After Franklin’s words on an economic theme, the financiers sped into counter-attacking the American colonies. They had to force the colonies to give up the idea of issuing their debt-free currency, a competing product. In consequence their Bank of England won over Parliament and King George III signed the Currency Act of 1764 to decree that the colonies stop printing their own money. Staging financial terrorism, the bankers also saw to the dispatch of shiploads of counterfeit Colonial Scrip to contribute to economic depression in the colonies.     Benjamin Franklin pioneers study of electricity of lightning storm Out at No: 10, Downing Street, philosopher in residence Alan Walters, so mesmerised PM Margaret Thatcher that she exalted, “There’s no such thing as society; there are only individuals and families. ”   Rand’s nihilist fable had annulled society and provided Reagan-allied PM Thatcher with steely self-righteousness to sell out her “null” constituency if she so desired (that is, after collecting the deposit of people’s votes at the elections. ) The worth of her constituency could now unflinchingly become the influence that the PM’s office gives to the personas of Mr. Dennis and Mrs Margaret Thatcher. Still, that was only the thin edge of the wedge. The Ayn Rand axiom on neglecting community led on to encourage negligence on the part of countless politicians, state officials and market regulators. That gave the first among equals, the financiers, their 30-year tickets to run.       Safeguards against fraud   Joseph Stiglitz, a 2001 Nobel prizewinner, comments in part on the results of the negligence, “The pursuit of self-interest by Enron and WorldCom did not lead to societal well-being; and the pursuit of self-interest by those in the financial industry has brought our economy to the brink of the abyss. ”   Financial fraud was a known phenomenon. Anglo-American statesmen had at home therefore long balanced Adam Smith by installing filters to block wrongdoers. The institutions that statesmen created to keep away the pursuit of dangerous self-interest include Fair Trading bodies and Securities Commissions. Later, shortsightedness generated by the monetarists did away with these filters against the creation of toxic waste.   Yet, even beyond that Friedman, during a descent from his corresponding Planet Me, was to confess that he had overlooked the rule of law as a fundamental requirement in transition to a market economy. Make a clean nihilist sweep first; ask questions about civil requirements later. J K Galbraith comments about his contemporary, “Milton’s problem is that his theories have been tried. ”   Today, reports on toxic waste fill the same network media that promoted the Chicago Boys after Great Communicator Ronald Reagan went into occupation of the Oval Office.   Still, there’s more. Petrograd’s Ayn Rand had chosen to outbid revolutionary parties by offering a more radical human freedom. Using that legend, the Chicago Boys mired potential revolutionaries, peaceful or otherwise, in the ever-changing consumer choices that media advertising generates ? Windows Me, My Yahoo, i-Mac, i-Pod ? a wave of products catering for “me” (and not “you”!)   President Kennedy once said, “Those who make peaceful revolutions impossible will make violent revolutions inevitable. ” If a peaceful return to a normally functioning economy is impaired, then today’s consumers will seek salvation otherwise. If high-end financial planning does not finally pay off ? to speak of the future hypothetically ? it is China’s central planning system that may save souls who in fishing trawlers and yachts, cast off from the US Pacific rim for China.   In Russia, on 6th April. 2009 Vladimir Putin decided to place before the modern Duma for debate for the first time, the state budget. Considering his country’s available know-how, this step can prepare the ground for a salvation that includes activating the personnel of central planning administration GOSPLAN. It was set aside with subversive intentions by the USAID team gathered by Lawrence Summers. He was previously on the reform team that bequeathed Lithuania the highest suicide rate in Europe. Wall Street has seated a veteran guide of financial buccaneering as head of President Obama’s White House Economic Council.   Can we say “Yes, Wall Street financial planners will eliminate toxic waste creation soon?” Or perhaps an IMF super currency may help nations trade internationally if gold is stockpiled by bullion merchants as blueprinted by the 1930s Great Depression?   Germany’s Chancellor Angela Merkel is now in the forefront of the EU movement to bring back rules so that the trade of nations can again flow undisturbed.   Yet, for many a nation survival will require careful rationing, supported by economic planning, to utilise food and other resources that are becoming scarce and expensive.   Coping with the recession will be easier in China. The Chicago school monetarists, who canvassed in favour of invasion by raiders, could not talk this large developing country into setting aside its planning system.   Ex-Warsaw pact countries including Czechia, Poland and Russia use budgetary systems today that can be reinforced by activating their own planning resources. Specialists in planning in the Germany’s east can also share the experience, which helped raise the economy from 1945 after destruction in the war.   On the other hand, today’s trade flows will be hurt by nations that rely solely on high level financial planning. The monetary crisis of 1997, which hurt Japan, South Korea and other US allies in Asia, brought up the issue of financial terrorism. At what seems like the tail end of a string of events, the names of financial organisations prominent in the Western hemisphere, receive mention in connection with the loss of immense resources.