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A weaker housing market is the final element of a confluence of economic currents which, if left unchecked, may well lead to a financial debacle for America’s Middle Class Homeowner. This can be averted only with luck, or by timely action at the State and Federal Legislative and Regulatory levels.

New York, NY (PRWEB) April 30, 2006 — “A weakening housing market, together with other financial currents in the U.S. Economy, represents the potential final impetus to a ‘Perfect Storm’ brewing over the American Middle Class, and, without luck or prompt legislative action, may lead to disaster, especially for homeowners.” So says Warren R. Graham, a New York Bankruptcy Attorney. The other prevailing currents threatening to collide over the heads of an unsuspecting public, claims Graham, include rising interest rates, limited recourse to bankruptcy relief and the virtual elimination of usury and other restrictions on credit card issuers.

For many millions of Americans, who live “paycheck to paycheck,” the only thing defining their status as Middle Class, and differentiating them from the so-called “Working Class” is their ownership of a home, and the equity accumulated in it. Graham points out that that equity is being eroded by two factors: the first is the threat of declining home values, and the second is the propensity of homeowners, over the last few years, to refinance their homes or take out home equity loans at very low adjustable rates to pay off high interest credit card debt. Now, Graham says, the equity is at risk, because of the softening in the market, the fact that the adjustable rates have risen consistently (and are expected to continue to do so), and the reality that much of it has already been borrowed out to pay off credit card debt, and for other purposes, such as home improvement.

Coupled with the risk of declining home equity, Graham argues, is an enormous, and, to date, largely invisible swinging of the pendulum toward the credit card issuers, and their sponsoring banks. After years of intense lobbying (on both sides of the political aisle) by that constituency, the bankruptcy laws have been extensively rewritten, so as to restrict, severely, access to certain kinds of bankruptcy relief, especially for those who, while certainly not well-off, earn above their respective state’s median income. “Credit card holders, of course, had no lobbyists on retainer,” says Graham. At the same time, the same financial institutions have found creative ways, by re-domiciling themselves in states hungry for their business, such as South Dakota, to avoid the restrictions of usury laws. So now, observes Graham, it is not unusual for your credit card interest rate, if you are carrying a balance, to rise suddenly from that 5% “teaser rate,” to an unprecedented 32%, in the event of a default. “And worse,” Graham points out, “a ‘default’ doesn’t have to be non-payment. Your cardholder agreement, which you likely have not read, allows periodic review of debt to income ratios, and problems with other creditors as a justification to change rates on almost no notice.” Add to that the changes in banking procedures, by which banks have restructured their “minimum payment” requirements on cardholders carrying balances, “and that monthly $250 minimum payment has now jumped to $600, or more, multiplied by the number of cards the consumer may be carrying.” The homeowner who wants to do something about this has a much harder time doing so, according to Graham. “His or her house has less equity, because of a softening market, or because it has already been tapped by the homeowner, and the cost of borrowing against it is higher, by virtue of climbing mortgage rates.”

In the meantime, the Middle Class homeowner’s income has not even remotely kept pace with these increased costs, Graham points out. “And this does not even take into account the likely substantial effect of rising gasoline and energy costs.” “And when the homeowner finally reaches the end of his or her tether,” says Graham, “ his or her income level may prevent recourse to bankruptcy. Chapter 7 liquidation may be unavailable altogether, and Chapter 13, in which a percentage of creditor obligations are paid over time, while mortgage debt remains intact, may not be feasible, because the income may simply not support the cost of financing a repayment plan.” Thus, Graham concludes, bankruptcies may be dismissed, and homeowners may have to dispose of their properties, or worse, lose them to creditors in satisfaction of their mounting debts.

According to Graham, “one does not need a crystal ball to see that a potential debacle is looming for the Middle Class homeowner.” Unless pure luck prevents these currents in the economy from coming together, or unless the U.S. Congress revisits its ill-conceived bankruptcy reform (especially that part of it geared to consumer debt) and state banking departments review their willingness to ignore usury prohibitions that date back to biblical times, disaster may await. “The credit card industry, in the flush days of the late 1990’s started down this path,” says Graham, “and may have overplayed its hand. But without attention and intervention by legislators and regulators, the victim is likely to be the backbone of this Country—the American Middle Class.”

Forex trading online is a fast way to use your investment capital to it’s fullest. The Forex markets offer distinct advantages to the small and large traders alike, making Forex currency trading in many ways preferable to other markets such as stocks, options or traditional futures. Here are seven reasons why you’ll want to look into Forex Trading online.

1 - Forex is the largest market.

Forex trading volume of more than 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility.

2 - Forex never sleeps!

You can execute forex trading online 24/7, from 7AM New Zealand time on Monday morning, to 5PM New York time on Friday evening. No waiting for markets to open: they’re open all night! This makes Forex trading online a very attractive component that fits easily into your day (or night!)

3 - No Bulls or Bears!

Because Forex trading online involves the buying of one currency while simultaneously selling another, you have an
equal opportunity for profit no matter which direction thecurrency is headed. Another advantage is that there are only
around 14 pairs of currencies to trade, as opposed to many thousands of stocks, options and futures.

4 - Forex Trading online offers great leverage!

You can make the most of your investment resources with Forex trading online. Some brokers offer 200:1 margin ratios
in your trading accounts. Mini-FX accounts, which can typically be opened with only $200-300, offer 0.5% margin,
meaning that $50 in trading capital can control a 10,000 unit currency position. This is why people are flocking to Forex trading online as a way to highly leverage their investments.

5 - Forex prices are predictable.

Currency prices, though volatile, tend to create and follow trends, allowing the technically trained Forex trader to
spot and take advantage of many entry and exit points.

6 - Forex trading online is commission free!

That’s right! No commissions, no exchange fees or any other hidden fees. This is a very transparent market, and you’ll
find it very easy to research the currencies and the countries involved. Forex brokers make a small percentage of
the bid/ask spread, and that’s it. No longer any need to compute commissions and fees when executing a trade.

7 - Forex trading online is instant!

The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds.
Since this is all done electronically with no humans involved, there is little to slow it down!

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading.
Check it out and see what Forex trading online can do for you!

Keith Thompson is the webmaster of Forex Trading Today; a blog focusing on the latest Forex news and resources.

Article Source: http://EzineArticles.com/

“FX” is an abbreviation of “forex” or “foreign exchange.”  Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion every day (that’s over 30 times the daily volume of NASDAQ and NYSE combined).  The forex market is a cash interbank/interdealer market.  In simplest terms, this means the foreign currencies traded in the forex market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk.  The forex market is not a “market” in the traditional sense due to the fact that there is no centralized location for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC).  Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.  CFOS/FX clients can trade through online forex trading platforms and/or over the telephone directly with a forex broker on our trading desk.

Until recently the forex market has not been available to the small speculator.  The large minimum foreign currency transaction sizes and financial requirements left this market in the hands of banks, major foreign currency dealers and the occasional large fx speculator.  Now, with the ability to leverage large positions with a relatively small amount of capital (margin), the forex market is now more liquid than ever and available to most investors.

Five major currencies dominate trading in the foreign exchange markets: the U.S. Dollar, Eurocurrency, Japanese Yen, Swiss Franc and British Pound.  The foreign currencies are traded in pairs, also known as crosses, in the forex spot market.  For example, purchasing the EUR/USD in the forex spot market simply means the purchaser is buying the Eurocurrency and selling the U.S. Dollar in anticipation of the Eurocurrency gaining value in relation to the U.S. Dollar.  Similarly, the seller of a EUR/USD contract would be selling the Eurocurrency against the U.S. Dollar.  Official figures show the U.S. Dollar is on one side of 83% of all spot foreign exchange transactions.  The “spot” market simply refers to a currency contract with a prompt valuation date requiring settlement within two business days.

Over the past several decades, an increase in international trade and foreign investment has made the economies of the world more interrelated.  New opportunities for investors have also been created with the fall of communism and the dramatic growth of the Asian and Latin American economies.  Today, supply and demand for a particular currency is the driving factor in determining exchange rates.  Many factors such as regularly reported economic figures and unexpected news reports could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency.  It should come as no surprise that many shrewd investors have already taken advantage of the fluctuation in exchange rates to profit handsomely.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Option Brokerage

Article Source: http://EzineArticles.com/