Category Archives: Blog

As Bubbles Go, The Student Loan Bubble is Bad

In the world of economics and finance there are all kinds of “Bubbles;” there is the “global debt bubble”; There’s the “real-estate bubble”; & of course: “the stock market bubble”. One bubble that has not gotten as much attention of the aforementioned bubbles however, is the “student loan bubble.” The latest studies that show that student-loan defaults are rising at an alarming pace. A new analysis of government data by the Consumer Federation of America (which is an association of non-profit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education,) found that the number of Americans in default on their student loans jumped by nearly 17% percent last year (2016). As of the end of last year, there were 4.2 million Federal Direct Loan borrowers in default, meaning they’ve not made a payment in more than 270 days. That’s up from 3.6 million at the end of 2015.

Experts at the Consumer Federation of America say:

“Despite all the improvements in the economy, student loan borrowers are still struggling- We thought in an improving labor market, default rates would improve but we simply are not seeing that.”

According to the U.S. Department of Education, at the end of 2016, 42 million Americans owed $1.3 trillion in federal student loans. This doesn’t include borrowing through private student loans, credit cards, and home equity loans to finance the growing costs of college. (With private loans it’s more like $1.4 trillion)

Mark Cuban, who is a very successful and well respected businessman, and is also the owner of the NBA’s Dallas Mavericks, told Inc. Magazine he believes the student loan bubble is going to burst! See video below.

Defaulting on a federal student loan can be a financial disaster for the borrower. Unlike other types of debts, most federal student loans cannot be discharged in bankruptcy. Those who go into default face serious consequences including: wage garnishment, damaged credit scores and added costs in fees, interest and legal fees. Student debt has risen along with the cost of education, which makes repayment difficult. The average amount owed per borrower rose to $30,650 in 2016, after rising steadily for years. In 2013, borrowers on average owed $26,300.

If you are in or near retired years and are worried about the next economic bubble bursting and blowing up your nest-egg, then you need to get educated on the exclusive Crash Proof Retirement System. There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the proprietary Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Fed Raises Key Interest Rate: Now What?

On Wednesday, the Federal Reserve Open Market Committee voted to raise the benchmark Federal Funds Rate by another quarter percent or 25 basis points. The Fed Funds Rate is a short-term interest rate at which depository institutions lend money from the Federal Reserve to other banks or depository institutions. The Fed Funds Rate is now between. 0.75 -1.0%. The prime rate currently sits at 3.75% but will rise to 4%. Credit companies use the prime rate as a baseline for what they charge customers — generally the prime plus an additional amount. According to Bankrate, savings accounts currently pay on average 0.11 percent in interest, with 1.25% percent the high end. One-year CDs are paying about 1.24 percent on average.

See more from CNBC below.

If you are in or near retired years, and want to lock-in the gains that you have made over the last four months, and never worry about an inevitable market downturn, then you need to get educated on the exclusive Crash Proof Retirement System. There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the proprietary Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Down Markets Indicate a Pullback is Coming says Insider


Art Cashin has had a long and storied career on Wall Street.  He has experienced first-hand many market ups, & several downturns & crashes during his time in the financial industry.

Today Cashin, who is Director of Floor Operations at UBS and a frequent guest contributor on CNBC told the “Squawk Alley” show that the market’s current two-day down streak (its first back to back drop since January is:

“A mild warning signal, to tell you the truth. When we’ve seen those kinds of moves before, the market has either stalled or actually pulled back somewhat. Not anything climactic, but you could be setting up for a 5% to 7% percent pullback.”

Cashin also said that Pres. Trump’s recent accusation that former Pres. Barrack Obama wiretapped Trump’s phones during last year’s election campaign could also add fuel to the fire of a possible market correction.


“The president tweeting about the supposed wiretapping and whatnot took some of the goodwill that popped up after the speech to Congress last week,” and replaced it with the fear that we could go into partisan political warfare all over again. I would be a little cautious”

See more of Art Cashin’s comments to CNBC’s Squawk Alley below.

If you are in or near retirement and worried where the economy is headed, wouldn’t you like to lock in the gains you’ve made on the stock market and never have to worry about another crash or downturn?  There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the exclusive Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Deutsche Bank to Raise $8.5 Billion Amidst Financial Turmoil

“Deutsche Bank is the World’s Riskiest Bank.”

– IMF

Last year the International Monetary Fund said that Deutsche Bank “is the riskiest financial institution in the world as a potential source of external shocks to the financial system.”
Now, Germany’s biggest bank is asking investors for $8.5 billion to help improve its financial health, after the bank has suffered through 2 years of heavy losses. The bank reported a loss of $1.5 billion for last year, following a $7.2 billion loss in 2015. Deutsche Bank is now planning to sell-off a large number of its shares to raise about $8.5 billion dollars. This effort marks the 4th time in 7 years the bank has needed to raise capital, and brings the total raised to $32 billion dollars, which is more than the bank’s current market value.

Deutsche Bank’s share price was battered back in September, 2016, as it crashed to its lowest level in more than 20 years because of worries that the bank did not have the funds to cover its huge legal costs. Deutsche suffered $2 billion dollars in losses. Deutsche Bank shares fell last Friday and continued falling today.

Deutsche Bank also announced changes on two big strategic moves it made in 2015. According to CNN/Money:

  • It’s no longer planning to spin-off its Postbank subsidiary, which has a big retail branch network. Instead, it wants to merge Postbank with its private and commercial banking business.
  • And it’s putting its market trading operations back into the same unit as corporate and investment banking after previously splitting them up.

Deutsche Bank has been trying to climb out from a number of legal cases that have hurt the bank since the global financial crisis. The bank recently agreed a $7.2 billion settlement over toxic mortgage assets, and was hit with about $630 million in fines over a Russian money-laundering scandal.

Geopolitical worries appear to be on the rise. (IE: North Korea firing missiles into the sea near Japan; France dealing with the challenges of a very contentious Presidential election, and now “the world’s riskiest bank-Deutsche Bank” attempting to raise another $8.5 billion in a stock sale.)

If you are in or near retired years, and want to lock-in the gains that you have made over the last four months, and never worry about an inevitable market downturn, then you need to get educated on the exclusive Crash Proof Retirement System. There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the proprietary Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Markets Respond to President Trump’s Speech to Congress

The verdict is in from Wall Street: The day after President Donald Trump’s first-ever speech to Congress proved wildly positive for the markets as the major indices reached new record highs on huge gains on Monday.  Trump impressed many with his address  and he was widely praised for its positive tone.  investors evidently welcomed his “more  presidential tone”, which could give him momentum to helping to push his agenda and bring about comprehensive corporate and individual tax reform, along with a plan that the president said will create more than $1 trillion in new investment.

Zhiwei Ren, portfolio manager with Penn Mutual Asset Management told CNBC:

“The major positive from the speech is he delivered on his ‘America first’ message, but he did so in a positive and uniting way. If his message of ‘America first’ can succeed, this could be positive for the economy” in the near term.”

The President did not detail any specifics about tax reform and deregulation, two key components of the market’s post election rally.

Watch President Trump’s entire debut speech to a joint session of Congress below.

The post-Trump election victory stock market rally has been unprecedented. If you are in or near retired years, and want to lock-in the gains that you have made over the last four months, and never worry about an inevitable market downturn, then you need to get educated on the exclusive Crash Proof Retirement System. There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the proprietary Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Wall Street Will be Watching President Trump’s Speech Closely

congress

It’s not an official State of the Union Address but tonight President Donald Trump will deliver his first speech before a joint session of Congress, where he is expected to put more focus on his economic and political agenda, while outlining which campaign promises, on which he has followed through. Paying special attention to President’s Trump’s speech tonight will be Wall St. as investors try to get a sense on whether his “pro-business” agenda will become a reality.

Quincy Krosby, who is a market strategist at Prudential Financial told CNBC that Trump’s speech will basically come down to two issues when it comes to what Wall Street expects: Scaling back government regulations & tax reform.

“The market has embraced pro-growth, pro-business. At the very core of that embrace is tax reform, it is scaling back regulation. The market wants to make sure that, that agenda is still a top priority. This particular speech has taken on a more prominent role for the market than it has in the past. It’s important, but it’s not where he’s going to get into specifics. This has become a must-see for the markets. There is a growing worry that the Trump agenda is running into resistance. Right now, the market has accepted the fact that it’s going to take longer, that there’s the typical horse trading you get around an agenda like this. It’s not going to be smooth sailing and quickly implemented.”

Among the issues and topics President Trump is expected to address tonight are: Healthcare and repealing the Affordable Care Act (Obamacare); An increase of ($54 billion dollars) in the U.S. Defense budget; and budget cuts in departments such as the Environmental Protection Agency (EPA), the State Department, and both the National Endowment for the Arts (NEA) & the Corporation for Public Broadcasting (CPB) -which funds PBS & NPR.

See more from CNBC below on what Wall Street is thinking on the day of of Trump’s big speech.

If you are in or near retirement and worried where the economy is headed, wouldn’t you like to lock in the gains you’ve made on the stock market and never have to worry about another crash or downturn?  There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the exclusive Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Pres. Trump’s Budget Plan to Include $50 Billion Increase in Military Spending

Trump-Congress

Tuesday night President Trump will speak before a joint session of Congress for the first time as President. Although he has not officially introduced his budget for the next fiscal year, he plans to deliver his proposed defense budget, along with cuts in spending to Congress next month. According to several reports, President Trump’s first budget will call for a $54 billion dollar increase in defense and military spending, and a reduction in spending of roughly the same amount in lower priority programs including: The Environmental Protection Agency (EPA) and the U.S. State Department. In a recent speech, President Trump said he wants to:

“Rebuild the depleted U.S. military at a time that America most needs it, and make government lean and more accountable.”

See more of President’s Trump speech re: the budget below.

Currently the United States spends more money ($600 billion/year) on defense & military expenditures than any other country in the world. Pres. Trump’s initial budget proposal will not address tax reform or mandatory spending, so what can we expect from the President’s speech to a joint session of Congress tomorrow night?  Watch a report from CNBC below.

If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the proprietary Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Pres. Trump Signs Order to Reduce Regulations

Trump signs exec order

Today President Donald Trump followed through on another one of his campaign promises by signing an Executive Order designed to reduce the number government regulations and help American businesses. By signing the order, Trump commands all federal agencies (starting in 2018) to create “regulatory reform” task forces which will evaluate federal rules, and recommend whether to keep, repeal or change them. The President said that he will slash 75% of existing government regulations including paving the way for the Keystone XL Pipeline and the Dakota Access Pipeline, and reversing Pres. Obama’s “Stream Protection Rule” which was designed to stop coal companies from putting coal-waste near natural waterways.

Trump says the current regulatory system is “a tremendous burden on American business and that cutting regulations will create jobs and more economic opportunities in the U.S.” He wants to stop companies from being punished for doing business in the U.S. and adds that “if regulations do not make life better and safer for American workers, then those regulations will be eliminated.”

A recent survey on small business regulations from the National Small Business Association found that small business owners reported spending an average of $12,000 a year on regulations and 58% of owners said federal regulations where the most difficult source. The IRS, EPA, and Labor Department were cited as the federal agencies with the most troublesome regulations in the survey, with the IRS dominating the vote.  For many small business owners, $12,000 a year is the difference between profit and loss, especially if you’re in your first few years of business.  When margins are tight, taking out business loans to finance a new hire to help you become compliant or to pay for legal expertise to help you navigate the regulations can get expensive fast, especially if your business credit isn’t great.

See more from Pres. Trump’s press conference today, below.

By the way, the U.S. isn’t the first country to try and reduce the number of its federal regulations. Canada, Australia and the United Kingdom have already slashed regulations. For example: for every rule issued in the U.K., three existing rules must be eliminated. According to a U.K. government report, that requirement saved businesses over $1 billion dollars from May 5, 2015 to May 26, 2016.

Treasury Sec. Says Trump’s Tax-Reform Plan is Coming

steve-mnuchin-ft

U.S. Treasury Secretary Steve Mnuchin made some bold assertions about President Trump’s forthcoming tax restructuring plan. Trump’s proposed tax reform has been one of the important components in the dramatic rise in the U.S. stock market since Trump’s election victory.  Today Secretary Mnuchin told CNBC’s “Squawk Box”:

“I want to see very significant tax reform passed before Congress’ August recess. We want to get this done by the August recess. We’ve been working closely with the leadership in the House and the Senate and we’re looking at a combined plan.”

Watch the entire interview below.

During the campaign, President Donald Trump proposed the most significant tax cuts since Ronald Reagan.  President Trump wants to CAP the number of deductions you can take every year on your federal income tax return at $200,000.

His tax plan calls for reducing personal income tax rates from 7 brackets, to just 3 brackets:

The current 7 tax brackets are:

  • 10% – Single: $0- $9,275-                       Married joint:  $0- $18,550
  • 15% – Single: $9,275-$37,650-              Married joint:  $18,550 – $50,400
  • 25% – Single: $37,650- $91,150            Married joint:  $50,400- $130,150
  • 28% – Single: $$91,150- $190,150        Married joint:  $130,150- $210,800
  • 33% – Single: $190,150- $413,350        Married joint:  $210,800- $413,350
  • 35% – Single: $413,350-$415,050         Married joint: $413,350- $441,000
  • 6% – Single: -$415,050 +                         Married joint filers- $441,000 +

President Trump is proposing 3 brackets:

  • 12% percent
  • 25% percent
  • 33% percent

During his campaign, Trump called for the repeal of the alternative minimum tax and the estate tax. With the elimination of the alternate minimum tax, itemized deductions would be worth more. Under current law, a taxpayer can pass up to $5.45 million to heirs tax free. For married couples it’s $10.9 million. Above that amount, beneficiaries must pay an estate tax of 40 percent. (Fifteen states and the District of Columbia also assess an estate tax.)

Any forthcoming tax changes are bound to be anxiety producing for people in or near retired years.  If you’re losing sleep at night worrying about how future tax laws might negatively affect your retirement nest-egg, then let Crash Proof Retirement’s Phil Cannella and Joann Small educate you on how the exclusive Crash proof Retirement System can help. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

The Truth Behind Mutual Funds

hiddenfees

Millions of Americans are invested in Mutual Funds, but many do not understand the make-up or fees involved. Phil Cannella is on a mission to bring truth and transparency to American retirees as it pertains to their finances and the financial “professionals” who are in charge of managing their accounts.

As the creator of the exclusive Crash Proof Retirement System, Phil Cannella exposes the truth about mutual funds. With over 12,000 different accounts in this country alone, mutual funds represent the most accessible option available to most investors looking to grow their money. But very few investors really understand where their money goes once they write the check to their fund’s manager, as Phil Cannella explains.

“There are fees involved with every mutual fund. Many of them are covered in the fund’s prospectus; the book that everyone supposedly reads cover-to-cover but never do!”

There is another document called the Statement of Additional Information that most people haven’t heard of, let alone read. It’s a document that discloses several additional fees that eat into your money.


“This one is called the Statement of Additional Information, and it makes the prospectus look like a Dr. Seuss book.”

What’s worse is that you probably aren’t even aware this document exists. But don’t feel bad—as Cannella points out, chances are your broker of fund manager isn’t aware of it either! That’s because mutual fund companies don’t consider the Statement of Additional Information an essential part of educating clients about the fund. Therefore, investors must issue a specific request that their fund manager share this document with them.

“Any industry that requires licensure—insurance, accounting, doctors, teachers—that professional is held to a fiduciary responsibility,and that means the professional must put your interest as a client, a patient, a student—above his or her own interests. So are you surprised that Wall Street does not operate under a fiduciary responsibility?”

Without a fiduciary obligation, Cannella reasons, there’s no way to tell if the one mutual fund—out of 12,000 options—that your advisor chose is the fund that best serves your interests. Until now, that is. Phil Cannella promises that if you want FULL disclosure of the fees associated with your mutual fund, all you have to do is call Crash Proof Retirement at 1-800-722-9728, or go to: CrashProofRetirement.com and schedule an educational appointment.

See what attendees at a Crash Proof Educational Event learned about the hidden fees in Mutual Funds.