Almost 20 percent of U.S. mortgage borrowers owed more on their loans in the third quarter than their house was worth as foreclosures depressed prices and the economy weakened, according to First American CoreLogic.

More than 7.5 million properties already have negative equity and another 2.1 million will follow should home prices decline another 5 percent, Santa Ana, California-based First American, a seller of economic and real estate data, said in a report today. Six states account for almost 60 percent of homes with negative equity, led by Nevada and Michigan.
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Srinivas Ram wishes to return home to India. A first generation Indian, he has lived and worked in the UK for the past ten years. With improved professional opportunities and lifestyle changes, he thinks it is not a bad idea to return with his family. A prudent man, he is seeking advice on how his financial planning is pitted against tax and other regulations that he would face on returning.
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Some time before the end of the year it is a good bet that stock markets will throw off their gloom and begin a powerful rally of as much as 15 or 20 percent.

Some time one to three months after that it is a good bet that the prospect of a deep global recession and shockingly bad earnings will send them right back down again to make new lows. Rallies in the midst of bear markets can be sustained, powerful and feel very much like the ones that often mark the beginning of a real recovery.
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Vikram looked very troubled as he recounted his predicament. The company he has worked with for the last 20 years is facing tough times. With rising input costs and falling margins, it has become imperative for the company to cut costs and has decided to cut its employee strength by 20% in order to reduce its wage bills. (more…)

Individuals can claim a tax deduction on the principal and interest components of a home loan as per the Income Tax Act 1961.

These deductions are available under Section 24(b) to assessees who have taken a loan to either buy or build a house.
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In a decision that may increase the tax liability of bulk security traders, the Income Tax Appellate Tribunal (ITAT) has ruled that income from dividends earned by them is not tax-exempt. A ruling to this effect was recently issued by a special bench of the Mumbai ITAT. Income from tax-free dividends cannot be allowed as deduction from total taxable income, the bench said.
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But what if the Bernanke-Paulson view is wrong? What if financial stress is a symptom, not a cause?

What if we face a wrenching readjustment of the global real economy rather than a crisis of confidence rooted in the financial system? What if Bernanke and Paulson are treating the wrong problem? What if investors, realizing that their long held assumptions about the global economy are wrong, are rationally bailing out of stock markets in almost every country, at least for now?
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Most of the people who have migrated to the USA from India might have some margin for investing their money in India that they have earned during their stay in India. As almost all the investments schemes available in the USA offer very small rate of interest, it can be quiet profitable for such USA residents to invest some of their money in the suitable investment scheme in India. One of such investment scheme that can be quiet profitable and safe is Kisan Vikas Patra. This investment scheme is handled by all the post offices of India. This scheme was introduced before around 25 years by the government of India and is still in operation. Though, the interest rates have been reduced in various stages from original 12% to present 8% in these 25 years. Still, this interest rate can be said good in view of present economy. The money you deposit in this scheme gets doubled within a period of 8 years and 7 months. (more…)

General Motors Corp and Chrysler have moved closer on Friday to offloading two niche vehicle brands associated with the era of cheap gasoline and big profits for Detroit, even as both sides intensified talks on a merger that would combine the struggling automakers.

GM will send out a sales prospectus for Hummer to possible bidders in the next few days and Indian automakers Tata Motors Ltd (TAMO.BO: Quote, Profile, Research, Stock Buzz) and Mahindra & Mahindra Ltd are among those who will take a look, a source familiar with the matter said.
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