GorillaOffTopic, Everything But Gorilla Trades

Times are tough, we all know that, but when it’s hard enough to get a line of credit these days, who would expect that your existing credit card company would be hiking rates rather than lowering them? The answer is no one. But that is exactly what some credit card companies, like Citibank, are doing to its customers.

Many loyal good standing customers of Citibank are livid at the rate hikes, and who could blame them? The rate hikes are coming at a time when most companies are lowering prices and even the Federal Funds rate is at an all-time low, so what gives? It’s called “rate-jacking’ and it’s what many credit card companies are currently dong to re-coup some of their catastrophic losses in recent months. It comes on the heels of the HUGE taxpayer bailout.

Citibank is not the only company hiking rates, but since it is the largest credit card company, it is the one being most targeted by angry consumers, who claim that the rate-hike are really no different than “loan-sharking.” Citibank recently started sending out notices, alerting consumers about the rate hikes; some of which have zoomed from 7.95% to 16.99%!

Meanwhile, Citibank says that customers can opt out of the rate hike and they just need to read the fine print, which states this: If they do so, they must continue paying the lower interest, but they must close their account when their card expires. Rep. Carolyn Maloney, D-New York, said she is sick of the fine print. “They have this provision that says they can raise the rate — any time for any reason,” she said.

The chairman of the Senate Banking Committee is pushing to place a ban on rate-jacking from credit card institutions, and hopefully it will get passed by 2010. 2010? The Gorilla doesn’t think that will help us right now!! His advice: Read the fine print!

Great news folks! The Gorilla has been shopping at major retailers all over, and guess what? Almost all of them have actually lowered their price points on items that were normally about 20-30% higher. No not “sales” per se, actual lower prices on everyday items, which were once much more expensive.

These items include electronics, housewares, clothing, shoes, and more. The Gorilla has been doing a bit of “market research’ since he has had to holiday shop anyhow, and the price differences are phenomenal. The Gorilla’s better half has noticed it as well, so the Gorilla sent her out on a little “shopping mission” to see if it was just the Gorilla who found these valuable savings. (Surprisingly, the Gorilla’s wife was unusually cooperative in the matter)!

Now these weren’t “sale” items, these were regular priced items, such as a pair of pants. According to Mrs. Gorilla, in the past, in one store the Gorilla’s wife frequents, a pair of Cashmere blend pants cost around $129, but when the Gorilla’s wife checked the price, they were only around $58. She thought it was a mistake, so she inquired as to why the pants were so cheap. The store manager explained to the Gorilla’s wife that the company was trying “lower price points” on almost all of its items in order to increase sales. She further explained that it was a company-wide decision and that all of the related chain stores in the company would be following suit.

Naturally, the Gorilla’s wife purchase twice as much as she would have, thus the sale for the store was about breakeven rather than losing a sale due to the cost being too high. (Mrs. Gorilla says she would most likely not have purchased the pants at all if they had been $129, but instead, not only did she buy the pants, but she also purchased a top as well). So you see- this is clever marketing, which has its basis in good old fashioned psychology. Many stores are now trying this “strategy” in the hopes of boosting sales during an economically tough time in this country.

So go out there and do your homework. You may be surprised at how many stores are offering lower prices on items that you have purchased at a higher price in previous years! Now, if we could only get the Apple store to do that……..

Recently, the Gorilla read a story about how many employers are now checking out potential job candidates by checking their MySpace and Facebook accounts, before considering employing them. After giving this idea some thought, the Gorilla came to this conclusion: It’s a major invasion of privacy! Why not just put a web-cam in your employees’ homes so you can see each and every tiny detail of their private lives!

We all have our private lives, and what we do in them is #1, nobody’s business, and #2, not necessarily a reflection of whether or not a person is a good candidate for a job. Disagree? Well, you’re entitled to, however, many of you along with the Gorilla have had co-workers who were very professional on the job, but were wild partiers behind closed doors- or simply “after hours.”

There is a reason why it is called “happy hour” after all. Unless a potential employee is participating in some kind of illegal activity (a picture of a girl kissing another girl on Facebook is certainly NOT illegal!), then there should be absolutely no cause for voyeurism on an employer’s part and yes….it is considered voyeurism. The Gorilla simply does not see the justification for employers taking a look into people’s personal lives in such a way because most people have pictures of themselves on vacations, getting a little wild at a party or bar, or often times have pictures of their kids on these social networking sites.

Furthermore, you must be an “approved” friend in order to gain access to a person’s personal page and pictures on these sites. If the Gorilla was being interviewed, and an employer asked to see this personal information, he would be offended to say the least, and would refuse! Does this mean that people have something to “hide?” Absolutely not, but just because you have nothing to hide, does not mean you would allow just any individual a peek at your private life! That is a privilege reserved for those we deem close to us!

Perhaps after you have been hired and you have gotten to know your boss a bit better, it would be the appropriate time to allow him access, but at your own discretion and choice. Maybe you can tell your potential boss that very thing if you are asked. Otherwise, they should butt out!

People are shooting each other, trampling each other, and getting into fist fights, and no- this ain’t the streets of inner city Los Angeles; these are scenes from suburban shopping centers, Wal-Mart, and Toys-R-Us stores. It is a result of frenzied holiday shoppers trying to be the first one’s to get to the “great deals’ offered by certain retailers. The scene was an unusual one this season.

Many people literally camped out in front of stores in hopes of taking advantage of deals or “vouchers” offered to only the first 50 or 100 people to enter the store, or trying to be the first to get sale items. Yes, people are crazy-mad trying to get these deals and many others. It seems that some will go to just about any length to do so. That would make you think that people are really trying to save, save, save this year, and therefore, are spending less money than in past years- right? Wrong!

It turns out that on Black Friday the average person spent about $373, which was actually 7.2% MORE than last year’s holiday shopping season! And 54.7% of those shopped at discount stores such as Wal-Mart, Target, and Best Buy. And we’re in a recession? It really makes the Gorilla wonder where the people are getting the cash or even credit to buy this year. Most people are completely maxed out on their credit limits, and credit card companies aren’t exactly eager these days to give them even more credit- so what gives?

Perhaps people are saving money due to lower gas prices, or it is the sign of a resilient consumer’s willingness to spend. Either way, retailers are certainly encouraged by the sales although many acknowledge that it could be just a rush to the shopping season that could easily wane in the coming weeks.

Well, we shall see, but in the meantime, it is nice to see that people are spending what appears to be cash, and giving the economy a nice infusion of hope that things will get better. How will we feel after the holidays? Well that remains to be seen, but for now, we will enjoy it.

Bad economic times don’t give breaks to those who are going through a divorce, so many couples are putting off getting divorce as a result. Putting off getting a divorce because the economy is bad? This is not just a rumor folks…this is a fact. Divorce attorney’s everywhere are claiming that many couples are simply too strapped to start divorce proceedings so they are putting their impending divorces on “hold” until it is economically more “feasible” for them.

Some couples actually in the middle of a divorce are even suspending proceedings until further notice. The Gorilla finds this interesting, but yet realistic at the same time. Unfortunately for many ex-spouses, those paying child support and alimony are headed back to their attorney’s offices in droves, to lower their financial obligations. The Gorilla’s friend- a successful divorce lawyer- says that this is very common right now, and he’s glad, because with less people getting divorced due to the tough economy, helping people to revise their support obligations is now his primary source of income.

Think about the irony of this situation folks. Most divorces are due to money problems! The Arnerican Academy of Matrimonial Lawyers polled its members this week and the numbers are interesting. Here’s what they found; 37% of the group’s 1,600 members said they saw a decrease in divorce cases during national economic downturns. Forty-four percent said they saw no change, and 19% said they saw an increase.

So does this mean that some marriages could be saved as a result of the delay? Well, that could be true in a few cases, but all in all, marriage counselors and divorce attorneys alike say that it is just delaying the inevitable. However, for those getting alimony and child support, there will be a certain sense of shock for them suddenly having to get used to a lower income from support! But hey, your ex can only do so much about it now that he/she is making a lot less money!

We have all heard the saying, “what goes around comes around,” and every once in a while, the Gorilla laughs his head off at a good come-uping’s story, and this one is no exception. In this case, the Gorilla is referring to the “in-your-face” owner of the Dallas Mavericks, Mark Cuban. If you are a fan of the NBA, then you have probably seen the much too frequent ranting of the billionaire team owner, who has had more than his share of run-ins with league officials for his behavior on the sidelines during his team’s games.

An owner by definition (at least in a sports setting) is supposed to be almost invisible during the games. He is not, after all, a coach or team member. He is certainly not a referee. But no one bothered to tell Mark Cuban the rules it seems, as he has argued with referees, jumped wildly out of his seat yelling profanity’s during games, and has been known to be unruly and disruptive. The wealthy 50-year-old, who also owns Landmark Theaters and HDNet cable television channel, is said to be one of the richest men in the world, with a net worth topping out at about $2.3 billion as of March 2007! And for the better part of his adult life, has managed to tick off dozens of people with his obnoxious demeanor and behavior.

But now, Mark Cuban is feeling the karma, as the Securities and Exchange Commission filed a civil lawsuit against Cuban on Monday in Federal court in Dallas, alleging that in June 2004, Cuban was invited to take part in the public offering for momma.com, after he agreed to keep the information private. The SEC said Cuban knew the shares would be sold below the current market price, so just hours after receiving the information, he told his broker to sell his entire stake of 600,000 shares in the search engine company, before the public announcement of the offering, thus avoiding almost $750,000 in losses according to the SEC. It seems that perhaps even all his money won’t get him out of this one!

Now, don’t get the Gorilla wrong here, he doesn’t necessarily take “joy” in other’s displeasure (even the ultra egomaniac Cuban’s), but it is sometimes funny to see those who think they are above the law, the rules, and all things with “boundaries,” get a little taste of their own icky medicine! Could it be that Mark Cuban will go to jail? Perhaps he could have a meeting with Martha Stewart to learn the ropes if so. Somehow, the Gorilla can’t picture the seemingly ADD Mark Cuban in a cell.  Now that’s what we all refer to as “karma” at its very best!

President-Elect Obama sure has his work cut out for him, but the question on everyone’s mind is, “can he do it”? The Gorilla sensed a bit of nervousness on Obama’s part when the President-Elect gave his first official speech the other day. There was a tension that was so thick you could cut it with a knife. Actually, it made the Gorilla feel a tad uncomfortable. But then, perhaps that attitude is a bit unfair, considering how overwhelmed the guy must be.

The Gorilla suspects that Obama probably needed a nice Chicago Cocktail after he concluded his speech just to relieve some of the pressure and stress. Sure, Obama is from Chicago (or close enough), and it is ‘The City of Big Shoulders,’ but will that spirit translate to the White House with all that it entails? If all else fails, maybe Oprah can help out- after all, she did her part to help Obama gain popularity. (C’mon you know it’s true!).

Obama, though, has big plans for a complete revision in Washington and quickly appointed his Chief of Staff within just two days of becoming the President-Elect! But his choice has already been met with controversy. Many people and critics cite that Rep Rham Emanuel is not exactly the change Obama so ardently preached throughout his entire campaign, and in fact, is a contradiction to that plan. But still, Obama is well on his way to transforming Washington, reviewing literally every department and executive order previously made by President Bush, which makes the Gorilla smile. A complete “transformation” is the order of the day (and maybe the next few weeks).

Yes, today the White House transition talks with President Bush are taking place even as we speak, and although it is a bit unusual for the current President to meet with the President-Elect so soon, given the current state of the county (a mess!) it couldn’t be soon enough! Never before in history has there been such a mess to be cleaned up- except maybe when Ford took over after the Nixon debacle. Even then, the economy and the housing market weren’t in dire straits like they are now, and we weren’t smack dab in the middle of a Middle Eastern war! So hats off and good luck to the new President. Maybe by week’s end we will have some definitive solutions to our current crisis.

When thinking of who we want to be our president and lead this great country, does age matter? After all, the position of President of the United States of America requires stamina, astuteness, a keen memory, and sharp reflexes; all of which coincide with excellent health. 

Consider this; retirement age for most careers is 65. CEO’s of many large corporations, such as Boeing and Exxon, are required to step down at age 65. Airline pilots must retire at age 65, which was a limit set by Congress. And what about military professionals? They are required to retire at age 65 as well, even though their commander- in-chief does not.

Presidents have never had to adhere to these laws, and although wisdom comes with age, so does a plethora of health issues in some cases. So, is John McCain fit (pun intended) to lead the nation? Ronald Reagan was our oldest president thus far. But he was 77 at the end of his second term. John McCain is already 72 at present. If he were to complete a 2nd term as president (that’s if he even wins in the first place!) that would put him at age 80, eight years from now. 

Is that simply too old to lead? That is certainly questionable and is indeed very dependent upon whether or not the person is in generally in good health to start with. So what about McCain? Since 1993, McCain has had four skin cancers removed, including a melanoma. But according to McCain, he has “good genes” and a mother who is a healthy 96 years old to prove it. But McCain was recently ordered to release all of his medical records to be made public to everyone-not just journalists.

McCain says “people will judge by the vigor and enthusiasm with which we have run our campaign.” And McCain’s physician Dr. John Eckstein gave McCain a “thumbs up,” saying that he could find “no medical reason that would preclude McCain from being president.” But of course there are those who have their doubts. Many people including (of course) the Democratic party, say that Barack Obama is in excellent health and that it would make a huge difference in the candidate’s ability to lead the nation. But others agree that McCain’s age actually lends itself to a much more experienced candidate, as compared to Obama.

Well, the Gorilla thinks it’s probably the lesser of two evils in this case. It’s age versus experience.  But just keep this in mind when considering older leaders: Nelson Mandela was 80; Golda Mier was Prime Minister of Israel until she was 76, and French President Charles de Gaulle was 78. Not too shabby!

The Gorilla doesn’t mean to be redundant, but he must bring up the tumultuous state of the economy once again. People are taxed, tired, and broke. They are frustrated beyond words and wondering how to make ends meet. They are wondering how to pay medical bills and mortgages. They are wondering if they will have employment with so many businesses going under. They are wondering how they will eat. They are not out shopping, spending extra cash on luxury items or clothing, etc. There is no “extra cash.” And yet now is probably the best time ever to find great deals on retail items as many retailers are offering deep discounts on everything from mattresses and furniture, to clothing, and jewelry. Wow!

What a catch 22 we are in at this time! It may indeed be the best time ever to find deals, but the obvious problem is that it is the worst time ever to spend money, as there really is nothing left to spend! Retailers everywhere are slashing prices out of sheer desperation. It is no secret that analysts are expecting the worst holiday season in over 20 years for retailers, and with so much uncertainty in the banking system and the entire economy as a whole, people are in need of a good deal right now.

The question is, will it matter? “I haven’t seen this kind of fright since 9/11,” said Faith Hope Consolo, chairman of real estate firm Prudential Douglas Elliman’s retail leasing sales division. She said stores are “all arming themselves for what will probably be the most difficult season across the board.” Well, that’s a no-brainer!  

To give you an example of just what the desperation looks like in retail check this out: Restoration Hardware is mailing out $100 gift vouchers to its customers for purchases over $400. (Pretty good, but then who has $400 to spend on an item?). And clothing stores like Ann Taylor and Old Navy are offering 50% and 60% off right now in their stores. Holiday items are starting to arrive in stores and are expected to go on sale immediately. And America’s leading retailer, Wal-Mart, is offering $10 off on 10 of its most popular toys for this holiday season. But as attractive as those promotions may look, for many stressed out, worn out, and broke consumers, it may all be for just looks this season.

Job losses and frozen credit markets are expected to get even worse this season before anything gets better, and as further turmoil is expected to cascade through the economy, eight in 10 fear the financial crisis will affect them directly, according to an Associated Press-GfK poll. So yes, while there are some of the best deals ever currently in stores, unfortunately, for an economy that is close to crippled right now, consumers probably won’t be able to take advantage of them! Too bad. Now if they could only have some deep discounts on those juicy bananas the Gorilla loves, that would really help!

It’s bad enough thinking about the possibility of losing everything you have ever worked for due to this horrible economy and the stresses that go along with it, but if you think it would feel badly at 40 or 45, imagine how you would feel if you were in your late 70’s or early 80’s. This scenario has unfortunately become all too real for many Americans, who are elderly. In fact, last year the over 55 set of Americans accounted for almost 22% of those who filed for bankruptcy!

Although younger people (under the age of 55) saw double-digit drops in bankruptcy filing rates, the filing rate per thousand people ages 55-64 was up 40% among 65-to-74 year-olds. The rate increased 125% among 75-to-84 year-olds; up a whopping 433%! That number is simply inconceivable to the Gorilla.

Imagine your little old granny sitting in a run down trailer, with no food in the cupboards and medical bills piled sky high and now she has to file for bankruptcy? There are a number of factors that are contributing to the jump. For one, prices for normal consumer goods have increased enough to affect those elderly who have been on fixed incomes and budgets for years. And most older people, who are living at or just above the poverty level, don’t have enough of a safety net to cover unexpected medical emergencies or costs.

Many of the elderly fall prey to scams, which strip them of any savings they may have had. It was originally thought that many over the age of 55 had just been spending too much and possibly over-indulging and living lives of luxury, which caused them to accumulate debt during their retirement age. However, economists and financial experts now know that is simply false.

Some of the elderly went into their retirement years already heavily in debt due to mortgages and prior accumulated debt. But it is unexpected medical costs which are heavily bankrupting those same individuals. Since they already had a lot of debt prior to retiring, they simply don’t have the means to handle any more in the form of medical bills. For many, bankruptcy is the only option.

Wilona Harris, 71, filed bankruptcy last year after medical bills piled up and she was no longer able to pay her current bills.  “This phone rang all the time. It made you not even want to pick up. Sometimes you think, ‘Let me go jump off a bridge somewhere,”‘ Harris said at her Jacksonville home. “You have to cry and try and figure out what in the world could I do.”

Yes, things are tough all over, but when you are depressed about your debt and lack of income (we all are), keep in mind that at least (hopefully) you have your health and that you are not well into your retirement years having to deal with such stress. And if you are….God bless you. No one should have to go through such stress when they are at that wise old age.