As uncertain as the global financial market currently is, one thing that has remained certain is the fact that consumers continue to put up with increases in the costs or prices of essential needs and services. Events in the US in the last one week have made it clear that the credit crunch is taking an unprecedented dimension, further crippling the world’s biggest economy. The implication here is that other economies, including Britain’s, are not immune against the impacts of the crisis.

Following the backlash from sub-prime mortgage defaults in America earlier in the year, Britain’s financial market equally reacted and mortgage loans became the first to suffer. Homeowners found it increasingly difficult to keep up mortgage repayments and those on fixed-rate deals were left with little or no hope of refinancing their mortgages as their deals came to an end. Those hoping to get on the property ladder had their hopes dashed and, in spite of the UK Government’s effort to revive the market by pumping liquidity worth £50 billion, the situation is still very depressing.

This week again saw the US economy drifting further into crisis as Wall Street faced imminent collapse until the President Bush-led administration secured a bailout deal worth over £380 billion ($700 billion). Unanimously, it has since been described as the biggest bailout since the Great Depression.

Borrowing the US bailout style

Since talks of the planned bailout began analysts have also pondered the situation in the UK, suggesting a need for a similar approach to the crisis in the country’s financial market. In the vanguard of propagating this were experts from Deutsche Bank AG who estimated that a recue plan of this magnitude would cost the country up to £20 billion. But they were unequivocal in recommending it as a way forward in respect of this logjam.

£20 billion, they advanced their argument, represents approximately 75 per cent of the £26 billion of the outstanding non-prime residential mortgage-backed securities in the country. As such they wrote in a report: “We would argue that the likes of the UK and Spain (possibly Australia) would benefit from such a programme.” Yet this plan would only achieve the desired result if all UK securities backed by home loans were included, added the analysts.

Tackling this problem warrants urgent action as, in the mean time, borrowers are having every heat turned on them. A recent survey found that a funding shortfall of £38 billion faced by banks could almost certainly collapse Britain’s economy. But in a bid to raise enough funds to swell their cashbooks British banks, warned JP Morgan, would raise charges for customers. Obvious, loans are a clear target, amongst others.

Growing financial instability would continue to force borrowers to default in repayment and lending would decline as banks and building societies try to steer clear of the murky water of bad debt. But JP Morgan warned further that significant increases in the cost of loans for British borrowers were almost inevitable as economic downturn continues.

Be cautious

Perhaps borrowers could do themselves a big favour by not trying to bite more than they can conveniently chew. While banks are often accused of lending too much money to people, borrowers also need to be cautious and resist the temptation of asking for or even accepting unsolicited loans when they are not sure of how to repay. One very good way to manage one’s finance at a time like this is to also consider how much is earned each month and how much goes out in the form of expenses. This will determine how much you can borrow and pay back with ease at a particular time. Comparing interest rates would also surely help, as people would be able to shop around for the best deals that suit their specific needs.

Musa has more articles on debt, loans and other finance related articles.

Benefits of Fish oil

First and foremost the body cannot produce omega-3 fatty acids. This means that we must get them from the foods we eat or from fish oil supplementation. Fish Oil helps in the following areas: heart disease, cancer, eye function, inflammation, Men’s health, weight loss, Parkinson’s disease, ADHD, cognition mood and behavior.

Ultra Refined Fish Oil

An Ultra Refined Fish Oil capsule should contain a minimum 60% omega-3 concentration as combined EPA and DHA. Without having to do the math by looking at the label all you need to look for is the IFOS symbol.

Introducing IFOS

IFOS (International Fish Oil Standards) was established because with growing pollution concerns for the consumer and the, negative effects of mercury and PCB’s from the marine food sources, the IFOS program is becoming popular and is proving its value as a reliable source for third party validation.

The IFOS program is an independent, university-supported testing program located in Guelph, Canada. The IFOS Consumer Report allows you to quickly determine the true unbiased quality of any fish oil product. Listed below are the criteria used to award a 5 star rating to the best fish oil supplements.

The 5-Star System Description

This category is specifically for ultra-refined super concentrate fish oils with a minimum 60 per cent combined EPA/DHA concentration and is based on Nutrasource’s 5 Star Rating Program. A Star is awarded for each of the five areas:

Star 1 - Product Passes All CRN/WHO Testing Categories. All fish oil gets this for “just showing up”

Star 2 - Product Tests Show Minimum 60 per cent EPA plus DHA combined concentration. The higher the concentration of EPA and DHA, the less oil you need to take to achieve good health benefits.

Star 3 - Oxidation Level Less Than 75 per cent of CRN Standard. Fish oils can go “bad” very quickly. The manufacturing process drastically increases this risk when producing capsules and liquids.

Star 4 - PCB Levels Less Than 50 per cent of CRN Standard. PCB’s are known carcinogens. They are difficult to remove from your body.

Star 5 - Dioxin and Furan Levels Less Than 50 per cent of WHO Standard. Dioxins are known neurotoxins.

The 5 Star Rating is as follows:

5 Star - Exceptional Product Batch

4 Star - Very Good Batch

3 Star - Good Batch

2 Star - Fair Batch

1 Star - Poor Batch

The IFOS data base ONLY lists by brand what has been tested and received a 5 star rating.

Look for the little blue circle on the label with a fish and the “IFOS” letters.

Shane Thompson writes on Health and Fitness related issues. You can learn more by visiting my blog, the best fish oil supplement.

http://best-fish-oil-supplement.blogspot.com/

Investors are trying their very best to make money in the stock market. But most forget to consider Return on Equity (ROE) quite seriously in their quest to find the best stock picks ever. Let see if ROE worth to be considered.

What is ROE?

ROE is the investment return that shareholders’ fund is getting from the company’s profits. It can be calculated as the ratio of company’s net profit to the average shareholders’ equity. And shareholders’ equity is the difference of the assets from its liability, which theoretically is something owned by the shareholders.

For example, ROE of 30 per cent shows that every $10 shareholders’ fund in the company will generate $3 net profit in return. It can be easily explained as the shareholder’s return on investment.

Why ROE is important?

Look, it is not difficult for the company to achieve the record earnings every year as they can easily earn five per cent return by putting it in cash deposit. However, good management must use the retained earnings for a greater benefit. Besides, the earnings per share growth can be manipulated from the share buybacks.

On the other hand, ROE indicates how effective the company’s management team is in managing shareholder’s money. Great management has proven experience in performing 15 to 25 per cent ROE consistently over time. The higher the ROE, the less amount of money is needed to generate the same amount of profits. Of course you want to invest in a company that can generate $10 million in profits from $50 million fund than the one that can only make $1 million profits from $100 million fund, don’t you?

Having said that, ROE can be manipulated as well. The company can made up their ROE to the attractive level by distributing dividends to its shareholders. Nevertheless, you can minimize the risk by investing in the company that has consistent high ROE. After all, great investment should have good result consistently right?

Zainul is an individual investor who has made 10 to 20% return per year consistently from the stock market. Find out how you can get the same return or even better after learning how to pick good stock, calculate intrinsic value and determine it’s margin of safety in http://www.stock-investment-made-easy.com/

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How do you put a value good health? For many it is priceless. So how much are you prepared to pay to seek the best medical advice available?

Private health insurance is one of those lifestyle choices all us of face.

Do you go with the system and use the health safety net that the public health-care program provides to all Australians? Or seek the extra security and choice provided by private health insurance?

About a third of all adult Australians have private health insurance with the industry worth $5 billion dollars a year.

But that figure is likely to increase. From July 1 there have been changes introduced to the cost of private health care and many people have rushed in to take advantage of the savings.

The initiative of the Federal Government has been to try and increase the number of people covered by private insurance. The great fear is that as the population ages the public health system will not be able to cope with the increases in pressure an aging population brings.

Baby Boomers, those people born before 1964, make up the largest segment of Australia’s population and the demand for health services will increase considerably as they age.

The changes after July 1 have meant increases in health care contributions if you’re over 30. There is a 2 per cent impost per year until you are 65 years of age, with the maximum impost being based on a 65-year old.

Get in early and you retain the benefits of no impost.

For example both a 65-year old and a 75-year old will both have a 70 per cent impost. This only applies to hospital cover and there is no impost on ancillary cover. This provides an incentive for people below 30 to buy private health insurance and retain it for life.

The premium is based on the age you join. So if you join at 35 you have a 10 per cent loading which you retain for the length of your cover.

Ricki Smith, Manager Corporate Relations with HBF says there are a number of benefits that private health insurance brings.

This includes choice of doctor, choice of hospital and location and timeliness.

“You can go to hospital when you want to and avoid waiting,” she says.

“Some people think it is expensive and don’t realize there is so much choice. There are so many options it does become quite cheap.”

Additional options often include hospital room rates, dental, optical and physiotherapy benefits.

If you’re in a higher salary bracket, for example earning over $50,000 a year as a single or over $100,000 as a family, there is also a penalty if you don’t have private health insurance.

An additional 1 per cent higher Medicare levy to these income earners will cost over $1,000 a year. This is more than the cost of private health insurance.

Private health insurance buys peace of mind. But what if something goes wrong and you have a dispute with your insurer.

The Private Health Insurance Ombudsman handles complaints regarding health funds.

They receive 2,000 complaints a year covering about $80 million in transactions. This ranges claims ranging from $50 for a few physiotherapy visits to $50,000 for a multiple-heart valve replacement.

Norman Branson, Ombudsman for Private Health Insurance says their role is to act as the umpire.

He says about half the claims require the Ombudsman to take specific action.

“The biggest area is where somebody thinks they’re covered and they ultimately find out they’re not,” he said.

So if you are in the market for private health insurance here are 10 tips to help you find your way through the huge choice on offer.

10 Private Health Insurance Tips

1. Work out what you want cover for - basic, hospital, dental, optical etc.

2. Contact a range of funds. Meet with them personally to discuss your needs.

3. Don’t buy on price alone. Price is not the best determining factor. Look at the package and options available to suit your age and lifestyle.

4. Look for a product that suits your needs, For example you can save quite a lot of money if you’re prepared to share a hospital room.

5. Look for a fund that has a good reputation for making claims in a timely way.

Thomas Murrell MBA CSP is an international business speaker, consultant and award-winning broadcaster. Media Motivators is his regular electronic magazine read by 7,000 professionals in 15 different countries.

You can subscribe by visiting http://www.8mmedia.com. Thomas can be contacted directly at +6189388 6888 and is available to speak to your conference, seminar or event. Visit Tom’s blog at http://www.8mmedia.blogspot.com.

March 2008 saw the lowest ever number of people taking out mortgages to buy homes with the amount falling by 46 per cent over a year to 35,417 house buyers wanting loans.

At there peak, banks were handing out over 3,000 mortgages a day; however that number has slumped to just 1,100 per day, the smallest number since records began.

The figures released by the British Bankers Association reveal the remarkable evidence of a mortgage meltdown in Britain according to chief UK economist at the consultancy group, Global Insight, Howard Archer.

He said, “Mortgage activity is being pummelled by a toxic combination of stretched affordability and very tight lending conditions.”

Around 75 per cent of the loans available to consumers in the summer of 2007 disappeared, leaving just 4,000 mortgages for home buyers to choose from.

The Bank of England confirmed that the number of people deciding not to pursue a house purchase had risen as a result of being turned down for a loan. Just 129,300 mortgage applications were successful in March 2008, the lowest number since September 2000.

Mr Archer said, “The low level of mortgage activity is not only a consequence of slowing demand for houses due to the elevated affordability pressures facing potential house buyers, but also increasingly due to very tight credit conditions leading to markedly fewer and more expensive mortgages being available.”

The data highlighted a need for ‘concerted, sustained action’ to try and persuade banks to lend to each other, allowing for more liquidity to become available to fund mortgage lending and help rates come down.

Bank bosses met with Chancellor Alistair Darling and warned him that even a £50 billion rescue plan from the Bank of England may not have the desired effect on home loans for several months. The idea was to help banks lend money to homeowners at an affordable rate, whilst also allowing them to swap mortgage backed securities for up to three years for Treasury bills.

One senior City source spoke of how Mr Darling had been told at the meeting that the rescue plan wouldn’t make a difference for ‘quite some time’. The source said, “For now, mortgage pricing will remain high. If anything, it will increase in the short term.” This he blamed on the ’stubbornly high’ costs of raising money in the money markets, which banks used to lend to customers.

Banks warned that people wanting to take out a fixed rate loan will end up being the biggest losers. Some fixed rate deals on home loans were already at their highest average rate since 2000, and these deals could continue to climb Mr Darling was told.

Executives from major lenders, Nationwide, Halifax, Abbey and Cheltenham & Gloucester were present at the meeting, as were a number of politicians including housing minister Caroline Flint and director general of the Council of Mortgage Lenders, Michael Coogan.

Mr Coogan said, “In the short term the trend of increasing prices and products being removed from the market is not going to be reversed. As and when the banks start lending to each other, the rate for lending will go down and that means that that will start to bring the price down but it is not going to be a dramatic reversal. It is going to be a slow process at best.”

Former member of the Bank of England’s monetary policy committee, Professor Charles Goodhart warned, “The likelihood of getting the mortgage market going again is slim. This just prevents things from getting worse. It is a backstop.”

Professor Goldhart predicts the Bank of England’s plan will aid the economy. He said, “The credit crunch will still hit the economy but it might have hurt more if it weren’t for these measures. The measures prevent the risk of a possible recession becoming a depression.”

Phil is an author of several articles pertaining to Mortgages. He is known for his expertise on the subject and on other Business and Finance related articles.