We Are What We Buy: Living in a world of mass consumption

We're part of a system birthed during the Industrial Revolution, when companies suddenly gained the ability to quickly produce mountains of material items. For mass production to be profitable, it requires mass consumption, so producers needed people to buy not just utilitarian items, but consumer products like Coca-Cola--first marketed as a "Delightful, Palatable, Healthful Beverage." It wasn't a hard sell. Now our whole economy is predicated on spending. Thanks to online shopping and easily available credit, the world's marketplace is, at all times, one click or swipe away.
This has led to a culture where many of us are consumed by maintaining a reputation through purchasing power. We spend vainly, trying to keep up a flawless exterior--$2.8 billion on anti-aging skincare products in 2011, according to market research firm Mintel. Apple, now the biggest company in the world, had $156.51 billion in revenue in 2012. Its competitors' products get rave reviews as well, but Apple's stylistic dominance makes it surge to the top. Their stuff looks cool, so we buy it to look cool.

READ MORE: http://www.brassmagazine.com/article/we-are-what-we-buy-living-world-mass-consumption

Are we at risk of another banking crisis?

By Kim Clark  @Money 
Anat Admati, professor of finance and economics at Stanford University's Graduate School of Business explains how to prevent another meltdown from taking place in the U.S. banking sector.
The big question: Are we at risk of another banking crisis?
Oh, yes. Definitely. We continue to have a system that's way more prone to crisis than it needs to be.
Why are we still vulnerable?
Banks continue to be much too highly indebted and interconnected. That means they all tend to get in trouble at the same time, and the failure of one can take down others. It creates a contagion that spreads through the economy.
As with speeding, everything is fine as long as you don't have an accident. When you have an accident, others can get harmed.
In your new book, The Bankers' New Clothes, you and co-author Martin Hellwig say one simple, radical move can help. What is it?
You need to reduce dramatically banks' indebtedness and increase dramatically the reliance on equity funding. This would make it less likely that the banks get into trouble, need bailouts, or drag down the economy.

READ MORE:  http://money.cnn.com/2013/06/01/news/economy/banking-crisis.moneymag/index.html?iid=SF_PF_LN

Four cheap electric cars

Leasing an electric car isn't just a pricey option for the rich. In fact, there are some very reasonably priced options out there.

Electric cars are particularly attractive if you're leasing. When you lease an electric car, the leasing company takes that $7,500 federal tax credit and uses it to reduce your monthly payments right up front. No waiting for your tax return.
READ MORE: http://money.cnn.com/gallery/autos/2013/05/29/cheap-electric-cars/index.html?iid=GM

Where do your donation dollars go?
NEW YORK (CNNMoney)
As you watch the horrific aftermath of the tornado in Oklahoma play out on television and reach into your wallet to make a donation, do you know where that money is actually going?
The Red Cross often leads the charge after natural disasters, like the deadly tornado in Moore, Okla., that killed 24, injured more than 200 and wiped out thousands of homes on Monday.
But every dollar you give isn't going directly to the victims you're intending to help. In fact, an average of nine cents of every dollar you donate is going to Red Cross expenses, like employee salaries and fundraising efforts.
While nine cents may seem small, it adds up the more you give -- if you donate $3,000, nearly $300 of that money goes to administrative costs, and that amount jumps to a whopping $90,000 for a donation of $1 million.
READ MORE:http://money.cnn.com/2013/05/24/pf/donations-charities/index.html?iid=SF_PF_Highlight

Extra Credit: Your guide to understanding credit

Credit is an unavoidable part of society, affecting every major buying decision in our lives. Your credit report determines whether or not you can secure reasonable interest rates on things such as a car loan, credit card or home mortgage. A good credit score can mean buying a bigger house at a lower price. It can even influence your ability to enter into an apartment lease agreement or get a job.

Good Credit, Bad Credit and No Credit
Having good credit allows you to borrow more money at better interest rates. This proves particularly influential when applying for large loans like a home mortgage or small business loan. Many potential employers also look at credit reports as a means of determining how responsible an applicant is. Bad credit can work against you in tremendous ways. Securing loans at reasonable interest rates can prove extremely challenging or impossible. Late payments and high balances on accounts are primary factors damaging credit, but even things like unpaid medical bills or having a number of new accounts all at once can affect your credit negatively.
 
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http://www.brassmagazine.com/article/extra-credit-your-guide-understanding-credit