(The Consumerist)

For many years, the credit card industry has resembled a modern day Wild Wild West. Unrestrained by regulatory discipline, American credit card companies have made life confusing (to say the least) for millions – often with no serious repercussions whatsoever. This lamentable state of affairs has led to the common complaints we’re all familiar with – unexplained fees, random interest rate hikes and the overall sense that you are being jerked around by “The Man.”

However, it appears that the worst of these excesses may be a thing of the past. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (set to take effect in February 2010) aims to protect consumers from unscrupulous credit card policies; but, banks and credit card companies are not going quietly into the good night. According to the New York Times, credit issuers are taking advantage of the “grace period” between now and Februrary to get their last licks in under current, more permissive laws.

(WoodleyWonderworks)

Sudden interest rate hikes

The most obvious offense has been last-minute interest rate hikes. According to Pew Charitable Trusts’ Safe Credit Cards Project, credit card interest rates leaped 20% in the first two quarters of 2009 – despite the fall in federally-set interest rates. The Times even reports that one consumer advocate, testifying before Congress, “…cited case after case of struggling consumers who had seen their credit card rates more than double for no apparent reason, even when they had faithfully paid on time.” Critics of the industry allege that such hikes are bare-faced opportunism in response to the new legislation, which mandates that customers be notified of rate changes 45 days before they take effect.

Strict enforcement of overdraft fees

A major component of the new credit card legislation bans the long-standing practice of overdraft protection being enabled by default. Under the new rules, Forbes writes, customers will be required to “opt-in” by agreeing to pay overdraft fees if they spend more than their current balance. Customers who don’t agree will simply forego overdraft protection by not being able to swipe more than they have. While this seems only reasonable, banks actually derive a substantial portion of annual profits from such fees. Bank of America, for instance, raked in nearly $700 million in overdraft fees in just three months of 2009 alone. And according to the Washington Post, overdraft fees rose 35% from 2006-2008. In the meantime, however, banks are stepping up overdraft fee enforcement like never before. Consumers who once were able to explain the fees away with a polite call to their local branch are finding that banks are squeezing every last drop out of this precious revenue source before it is taken away.

(Oskay)

“Due date roulette”

More banks than ever have been criticized in recent years for changing due dates without notice. In fact, according to investigative blog FaultlineUSA, some banks have even, “…deliberately designed billing systems to periodically generate payment due dates that are five to six days earlier than normal in an effort to catch automatic bill payers in a missed due date scam.” Victims of this procedure find that their “missed payments” result in permanent interest rate hikes and, “…a whopping late fee.” MoneyUnder30 reported a similar phenomenon in their article “Citi May Move Your Due Date Without Notice.” Faultline calls this abhorrent practice “due date roulette”, and it is outlawed under the new rules that require bills to be sent out no later than 21 days before the due date.

(Andres Rueda)

Reducing consumer credit limits

One of the many factors that influence credit scores is a person’s debt to available credit ratio – that is, how much they owe versus how much they can spend. Unfortunately, many banks (perhaps in response to new rules that require advanced notice of major term changes) are unexpectedly lowering consumers’ credit limits. As SmartMoney explains, even, “…folks with good credit scores and solid credit histories are now getting caught in the fray.” American Bankers Association spokeswomen Carol Kaplan was quoting as saying, “…people with credit scores of at least 720…are not immune. They’re doing it to everyone.” American Express specifically “adjusted the credit lines of 20% of its credit-card holders.” Under such a scenario, someone who owes, say, $10,000 can see their credit score drop simply because their credit limit was lowered and their debt to credit ratio thereby worsened. And since FICO scores are roughly 1/3rd determined by how close you are to your limit, the implications for consumers are serious – perhaps most importantly, because, banks tend to charge higher interest rates to lenders with lowered credit scores.

Universal default

One of the most outrageous (at least from the consumer’s perspective) credit card practices is so-called “universal default.” That’s when missing a payment on one card or account triggers rate hikes or penalties on an unrelated card. For instance, your failure to pay your Visa bill on time could lead to a rate hike on your MasterCard, even though in theory the two cards have nothing to do with each other. According to Tennessee’s Brownville State-Graphic, fees and penalties stemming from universal default may increase during the holidays. Of course, it is worth noting that the very practice of collecting universal default fees is prohibited by the new credit card legislation set to take effect in February.

It’s plain to see that banks and credit card companies are sucking up every last fee, penalty, and point of interest available under current laws. Life after auto-overdrafting and unexplained rate hikes won’t be pretty for these financial behemoths, and it’s hardly surprising to see them gorging upon the American consumer while there’s still time. With luck, some of the common-sense reforms included in the new credit card legislation will curb these practices once and for all.

(Richard Smith )

With faith in the US dollar hitting new lows, some believe the solution lies not in politics, but in design. Meet Richard Smith, architect of the ambitious and infectiously popular “dollar rede$ign project.” Smith is a creative strategy consultant who feels, “…our great rival, the Euro, looks so spanky in comparison,” to US currency that, “…it seems the only clear way to revive this global recession is to re-brand and re-design.” But rather than merely arguing for a new-look dollar, Smith drummed up an impressive wave of support for a redesign by allowing people to submit their own ideas to a web-based contest.

The idea is roughly similar to corporate re-branding, which seeks to change the face of struggling organizations by adopting fresh, new images. Several banks, for instance, have undergone name, color and logo changes since 2008 to erase the negative perceptions attached to old branding. In Smith’s view, a re-branding of the dollar targets the same goal: expressing and revamping its emotional value and the connections people make with currency. Seen from this perspective, the negativity people feel about our money and economy stems not just from economic indicators and discouraging news reports, but from the very look and feel of the money we possess. Change the “brand”, Smith believes, and you take a bold step toward changing our entire emotional response to US currency. And Smith isn’t alone in advocating a graphical overhaul of the dollar. In a blog post applauding the redesign project, the New York Times quotes designer Michael Bierut calling the current dollar, “…a cake that has been decorated to within an inch of its life.” Specifically, Bierut derided the dollar’s new enlarged purple numbers (an anti-counterfeit measure) as, “…a denim patch on a satin dress.”

Few could argue with Smith or Bierut that the dollar could use a new look. The world was quite different when the dollar got its last, major visual upgrade in 1930’s. And to its credit, the dollar redesign project has produced numerous, beautiful designs that most of us would be proud to carry in our wallets. Take this concept from Kottle.org, featuring a sleek green layout, a bluish-purple vertical stripe, George Washington’s portrait and text from the First and Second Amendments to the Constitution. A full inventory of all redesign project submissions can be seen here. The project’s winner (announced patriotically on July 4), however, was 25 year old Kyle R. Thompson. Beginning from his convictions that, “…conceptual design can really transform the way people deal with their communities” and that current dollars, “…feel cold and outdated”, Thompson took home top project honors with this submission (shown below.) Indeed, Thompson’s concepts breathe some much-needed fresh air into US currency while honoring the great traditions of our founders and history. On purely artistic grounds, Thompson and the entire dollar redesign project are to be applauded.

(Kyle R Thompson)

Artistic merit notwithstanding, however, it is unclear whether redesigning the dollar will address the severest criticisms leveled against it. For all the similarities between currency redesign and re-branding, there is one large difference: a corporation’s products or services are consumed. A business can properly engage in an image overhaul on the assumption (or at least the hope) that a better image will attract more sales, customer loyalty or other results. Currency, on the other hand, is simply a nation’s medium of exchange. Put another way, a dollar de-design project that made our currency as hideous and unappealing as possible would still result in everyone who currently uses dollars using the new ones. While businesses can lose customers, citizens cannot start paying the local Wal-Mart (*now, Walmart) in Euros if they decide they’re unsatisfied with the dollar.

It is also worth noting that physical currency is not as prominent in day to day commerce as in generations past. The lion’s share of today’s transactions are digital – facilitated by debit/credit cards, PayPal accounts, wire transfers, gift certificates, direct deposit, electronic stock exchanges and other mechanisms that reduce the number of people physically using dollars. While cash-based businesses are still with us, the economy has largely “moved on” from printed money. Therefore, exactly what or how big of an effect a nicer-looking dollar would have on the economy is hard to forecast.

(Won Park)

Of course, one could argue that a snazzier dollar will attract currency speculators to invest here what they would have invested in the Euro, yuan or other currencies. No one can deny the worthiness of that goal. Harvard MBA John T. Reed recently likened bond traders and forex traders to, “…the canary in the mine” who would be, “…the first to herald the arrival of the financial apocalypse.” But unlike commodities (like coffee beans or diamonds) currencies do not share an ubiquitous price. Rather, currency speculators decide which currencies to invest in based on current or predicted value. Variables considered in currency speculation include political stability, national debt, deficit spending, and the willingness of foreign governments to buy your debt – all decidedly non-aesthetic considerations. Taking this into account, it’s hard to imagine currency speculators staking thousands or hundreds of thousands of dollars of their own money on a currency solely because of a graphical makeover. Far more weighty in such decision making are things like China deciding to cease buying U.S. bonds.

None of this, again, downplays the artistic value of a new-look dollar. Few would oppose Kyle Thompson’s design replacing current dollars in our wallets and bank accounts. That being said, the link between how our dollars look and how they are percieved by foreign governments and speculators is less certain.

Early Origins

(Squeaky Marmot)

Contrary to general assumptions, the dollar existed before the United States was an independent and unified nation. Prior to the Declaration of Independence, the Continental Congress had authorized the government to issue dollars and coins for use as widely accepted tender amongst the thirteen British colonies. The term “dollar” itself actually owes to Spanish currency of the time, specifically the eight-real coin (also known as the Spanish dollar), and U.S. dollars were used side by side with their Spanish counterparts – which were accepted as legal tender until 1857 – during colonial times. In fact, the dollar wasn’t the only monetary system vying for widespread use in colonial America. In the Dutch New Netherland (New York) colony, for example, the lion dollar was the currency of choice. However, the U.S. dollar began separating itself from the pack following a Congressional resolution on August 8, 1786.

It was Alexander Hamilton’s leadership at the treasury department, however, which truly cemented the dollar’s status as the basic unit of account in the U.S. with the passage of the Coinage Act of 1792. The act mandated that a “dollar” be between 371 and 416 grains of silver and an “eagle” be between 247 and 270 grains of gold. (An eagle was said to be with 10 dollars, and a dollar worth one-tenth of an eagle.) Here, again, we see the influence of Spanish dollars on the fledgling American currency, as Hamilton based these silver and gold weights on the average weight of worn Spanish dollars. This act also commissioned the opening of a mint in Philadelphia, then the capital of the nascent country. Incidentally, the mint was the first federal building opened with authority from the United States Constitution.

Interestingly, the practice of putting presidents on the front of U.S. dollars is a rather modern tradition, beginning only in the early 1900’s. George Washington, the president most readily identified with the dollar, scoffed at the idea of using his face on money. To Washington, the very notion smacked of European monarchical tradition. As for the ubiquitous dollar sign ($), various theories have been proposed to explain its emergence. Rand, for instance, claimed that the dollar sign represented “U” and “S” superimposed, although this theory is questionable because the dollar sign predates the formation of the U.S. as an independent nation. Other theories reference the coat of arms found on Spanish colonial currency or suggest that it is nothing but an evolved scribal abbreviation for Spanish and Mexican pesos. The latter is perhaps the most widely believed, but historians remain divided on the exact origin.

The Gold Standard

(Mykl Roventine)

Realizing that pieces of paper had no intrinsic value (and the inflationary dangers this posed) the U.S. government eventually put the dollar on what is known as a gold standard. Essentially, this meant that every dollar in circulation was “backed” by a certain amount of gold that citizens could demand in exchange for their dollars. The gold standard became law in 1900 with the passage of the Gold Standard Act, which aimed to, “…define and fix the standard of value, to maintain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes”, according to HistoryCentral.com. Specifically, the Act mandated that each dollar in circulation be valued at $20.67 per ounce of gold. Under such a system, the treasury could not simply print money on whim, but only when and if there were sufficient gold reserves. While the gold standard did indeed restrain inflation and promote sound monetary policy, it proved incapable of adapting to changing circumstances like wars and recessions. The standard was suspended twice during World War 1, for example, because European entities began owing by U.S. corporations in the form of gold. Thus began a massive gold outflow that continued unabated until the New York Stock Exchanged closed in 1914 and the gold standard was put on hold. To its credit, the U.S. restored the gold standard when the NYSE re-opened in December of that year, making the U.S. the only nation in the world to maintain its gold standard by that time.

It was not to last, however. When the Great Depression set in, currency speculators began demanding gold in exchange for their dollars en masse. While the Federal Reserve raised interest rates in an attempt to protect the gold standard, bank runs persisted throughout the early 1930’s. Finally, in 1933, President Franklin Delano Roosevelt suspended the standard and revoked gold as universal legal tender for debts. Interestingly, even this suspension was considered to be temporary at the time – it was only the growing chaos of the depression which kept the restoration of the gold standard permanently on the back burner in terms of political importance. Nevertheless, the U.S. dollar’s relationship to gold grew more and more tenuous over the years.

The Fiat Standard

(Noellium)

The dollars we all use today operate independently of gold prices or any precious metals of intrinsic value. This is known as “fiat currency” – that is, the dollar’s value is only that which we collectively ascribe to it. Insofar as we value, accept and seek dollars as compensation, they have and will continue to have value. Transformation of the U.S. dollar into a fiat currency began in earnest in 1963, when the words “payable to bearer on demand” were left out of all newly printed Federal Reserve notes. Holders of pre-1963 currency could still redeem it for gold until 1968, when redemption was discontinued. Additionally, 1965’s Coinage Act stopped the practice of using silver in quarters and dimes, which were composed 90% of silver prior. In sum, this means that all of the roughly $829 billion worth of U.S. currency estimated to be in worldwide circulation in 2007 is redeemable for and intrinsically worth precisely nothing. The “real” value of U.S. currency begins and ends with the value of the paper it is printed on.

Despite being a fiat currency, the U.S. dollar serves as a sort of barometer for the health of the world’s financial system. Today, entire countries (such as Panama, the British Virgin Islands and El Salvador) peg their currency to the dollar just as the U.S. once pegged the dollar to gold; others go so far as using dollars in lieu of – or alongside – their own currencies. Evidently, the fact that the the dollar is backed by nothing but “the full faith and credit of the United States government” is convincing enough for our citizens and the rest of the world. Whether faith in the dollar will withstand unprecedented debt spending and a shaky world economy, however, is a question yet to be answered.

Low-flush toilets

(Ben Sutherland)

Long a favorite of the frugal, low-flow toilets are a must have for anyone truly serious about savings. According to MotherEarthNews.com, low-flow toilets, “…save the average U.S. household (2.64 people) about 25 gallons of water per day, or more than 9,000 gallons per year.” Typically, a low-flush toilet uses about 6 liters (1.6 gallons) per flush as opposed to the 13 liters used by conventional models. In the average home that cycles through ten or twenty flushes per day, it’s not surprising to see a device that uses half the water for each flush amounting to savings by the end of each month.

Filtered water bottles

(TSK Design)

Americans drink more bottled water today than ever before, with many people purchasing dozens of bottles at a time to consume throughout the week. Those bottles add up awfully fast to a giant sinkhole in the food budget ; one way to drink the same amount of water and spend far less is using a filtered water bottle. Just fill up from any ordinary faucet and the bottle’s internal filter zaps any bacteria lurking inside. The more often you use it, the faster it pays for itself and the more money you save.

Coin sorters

(Roger@Elaws)

Pocket change hoarders face an inevitable dilemma – devote an entire afternoon to tediously hand-wrapping the change they’ve been dumping into coffee jars for the last year, or let Coinstar do it and lose 10% of the money. Luckily, coin sorting machines offer an appealing third route. Simply buy coin rolls and let the machine wrap your change for you. If it turns out you saved $100 in change, using the coin machine lets you keep the $10 you would’ve paid Coinstar. Over several uses, the machine pays for itself and then some.

Electricity usage monitor

(TristanF)

Contrary to popular belief, your TV, XBox or laptop doesn’t just suck juice when they’re on. Simply having them plugged in pumps current through the wires, and over the course of a year, the extra cost of paying for that is not negligible. For those who need this quantified with exact numbers, the electricity usage monitor is ideal. Just plug any device into it and you’ll discover what that device’s “phantom load” is while off and plugged in. You can even go around the house with it, figuring out the total electricity usage of every gadget and gizmo you own.

High-efficiency power supply

(Audin)

Electricity usage monitors are great for measuring the juice your devices suck down, but it still presses upon you the responsibility for taking corrective action. That’s where the high-efficiency power supply comes in. In addition to protecting your valuable equipment from storm surges, high-efficiency power supplies actually regulate the electricity flowing to your devices so as to ensure that they use the least amount required to run. Laptops, for instance, have energy-saving modes which use less power to function. With a high-efficiency power supply, you can rest assured that every gadget it powers is running with as little juice as possible.

High-efficiency washing machines

(Mark Hillary)

One of the biggest energy expenses in the typical home is washing and drying clothes. Powering a big machine that soaks and spins dirty clothes is costly no matter how you slice it, but how efficient your washer is can make a huge difference. That’s why it pays to invest in a high efficiency model rather than the bargain basement clunker that saves a few hundred dollars up front. If the better machine saves even $10 per month by using less water, it should pay for itself twice over inside of five years.

Compact fluorescent light bulbs

(Dano)

Of all the hyped-up money saving inventions out there, compact fluorescent bulbs are truly worthy of acclaim. Said to save $100 or more per year, CFL’s pay for themselves in spades as you substitute them for the old, energy-sucking bulbs you currently have. For those eager to quantify the savings they themselves could receive, free online tools like GE’s Smart CFL Savings Calculator will let you punch in the numbers and see exactly how much money you are leaving on the table without switching.

Programmable thermostats

(Kevin Marsh)

Gone are the days of simply “turning on the heat” (or air conditioning) and letting it indiscriminately bleed your wallet to make the house comfortable. With programmable thermostats, homeowners can precisely specify the exact times at which heating or air conditioning should run, and at which temperatures. Practically speaking, this allows one to specify that nothing should be running when everyone in the home is away at work or school. Just set it once and forget about it forever.

Efficient shower heads

(Steven Depolo)

Now, we concede that some people are just not willing to use a shower head that doesn’t pummel them with hard jets (a famous Seinfeld episode comes to mind about low-pressure shower heads). For all others, however, efficient shower heads offer the opportunity to save the average American homeowner up to 15,000 gallons of water per year, according to SimpleDollar.com. And it’s not just the water bill savings – 15,000 fewer gallons used means 15,000 fewer gallons you have to heat, which translates to significant energy savings as well. It’s the ultimate two for one.

Space heaters

(Robxtgal)

The truly frugal (and smart) realize that it it is pointless to heat an entire house if there are several rooms you are never or seldom in. Spare bedrooms, third bathrooms, and attics usually fall into this category, and nine times out of ten, money spent heating these rarely occupied spaces constitutes a waste. Instead, pick up an efficient space heater from your local hardware store. It costs far less money to just heat an auxillary area while you are actually in it than round the clock, and if you are looking for a quick way to drop your electric bill, this could be exactly what you need to get it done.

9/11 on the $20

(dalazzarato)

The terrorist attacks of September 11, 2001 gave new life to conspiracy theorists everywhere. In addition to claiming that the U.S. government orchestrated or allowed the attacks to occur, some have also speculated that the $20 bill contains a forewarning of the attacks. According to this theory (purported by www.foldmoney.com) all one needs to do is fold the bill in half, fold the back left up, fold the back right up, and turn the entire bill over to see a picture that eerily resembles the World Trade Center towers going up in smoke. Critics argue that any likeness is coincidental, but it does look pretty creepy at first glance.

Owl on the $1

(publicdomainphotos)

While too small to see in the photo above, the image about five paragraphs down on this Unexplainable.net page reveals what appears to be a hidden owl on the $1 bill. Conspiracy theorists are divided on exactly what this owl (if it is in fact an owl) might be meant to communicate. The folks at Jesus-Is-Savior.com contend that the owl is a remnant of the devil, expressing Satanic meanings through currency. Others, like TheForbiddenKnowledge.com, see a more contemporary meaning, stating that recent presidents Bill Clinton and George W. Bush, “…have been caught with a camera flashing the horned owl symbol with their hands.”

Spider on the $1

Another popular theory about the U.S. dollar bill is the hidden spider allegedly lurking down at the bottom of the front. Weird and creepy as it may seem to have a creature like this tucked away in our currency, the above Metacafe video entitled “Find The Hidden Spider on the Dollar Bill” zooms in up close and reveals what could in theory be interpreted as a hidden spider. While this theory has its fair share of critics, it also has quite a strong following of supporters, some of whom believe the spider is evidence of a past or upcoming alien invasion. With 2012 fast approaching, we may finally be close to seeing whether they are right.

The all-seeing eye

(squeakymarmot)

No other imagery from currency is more frequently scrutinized than the “all-seeing eye” on the back of the dollar bill. Bordered by the Latin words “annuit coeptis” (loosely translated as “he approves of our undertakings”), the eye atop the split pyramid has been ascribed many possible meanings by scholars, historians and conspiracy theorists. One popular meaning is, of course, that the eye represents the control that governments or the ruling elite have over the masses. Others argue the eye bears resemblance to the CBS and America Online corporate logos, perhaps indicating a collusion between government and big business to keep tabs on citizens. Other theorists suggest that the eye and the split pyramid are both Freemason symbols which suggest a secret society pulling the nation by its puppet strings. Still another explanation is that the eye is actually the eye of ancient Egyptian god Horus.

The Great (Masonic?) Seal of the United States

(squeakymarmot)

The Great Seal of the United States contains is rife with Masonic symbolism, according to many scholars and skeptics. Take as just one example the nine feathers beneath the eagle, thought by some to represent nine spheres rising through to return to heaven. Freemasonrywatch.com for instance, contends that the thirty-two feathers on the eagle’s dexter wing is the, “…number of ordinary degrees in Scottish Rite Freemasonry.” Additionally, it is said that the clothed eagle symbolizes “the union of French and American Masons in the strugle for Liberty, Equality and Fraternity.” Accompanying these theories is the fact that known Freemasons such as Benjamin Franklin and Thomas Jefferson assisted in designing the seal, leading to endless speculation about just what they were trying to get across by emblazoning it across U.S. currency.

Illuminati on British £50

Much has been made of Mason imagery in U.S. currency, and some believe secret meanings are hidden in the designs of foreign currency as well. A recent example is the British £50 bill, which displays a pyramid lacking a capstone in a similar fashion to the U.S. $1 bill. To some, this constitutes evidence of esoteric Mason/Illuminati symbolism in British currency, perhaps pointing to a worldwide conspiracy by these secret societies to envelop the world in their far-reaching plots for global control and domination. Since Great Britain and the U.S. are so closely linked in history, it is not too far of a stretch for a conspiracy theorist to imagine a connection between the symbols on each nation’s currency.

MDCCLXXVI

(squeaky marmot)

This image was displayed earlier in reference to the all-seeing eye, but turn your attention this time to the MDCCLXXVI engraved into the base of the pyramid. According to GreatSeal.com, this simply translates to “1776″, the year the Declaration of Independence was signed. However, it has also been suggested that 1776 was chosen because it was the year of the Illuminati’s founding – again, referring to a possible connection between the Illimunati and its attempts to establish a New World Order. Its location at the base of the pyramid could indicate that Illuminati approval is fundamental to the progression of American society (or so it is suggested.)

E Pluribus Unum

(Howard N2Got)

Seen on U.S. coins and bills alike, the Latin phrase “E Pluribus Unum” is translated to mean “of many, one.” The general agreement among historians and scholars is that this refers to the thirteen U.S. colonies deciding to come together and join as a single united nation in response to attacks by Great Britain during the late 1700’s. The first use of this phrase in U.S. currency was on the now-defunct $5 Half Eagle gold piece, in 1795. While it was removed from new currency beginning in 1834, E Pliribus Unum re-emerged permanently in 1866 and has been a fixture on US currency ever since.

Frank William Abagnale Jr.

(Liewcf)

Frank William Abagnale Jr. orchestrated perhaps the most famous counterfeit check passing scam in the history of money. Working under as many as eight assumed identities depending on location and occupation, Williams is said to have passed over $2.5 million in bogus checks over a five year period that spanned over twenty six countries and all fifty states in the US. It seemed that no government, region, or currency was any match for Abagnale until an Air France employee recognized him from one of the many “Wanted” posters displayed around the world featuring his face. Abagnale’s antics proved so legendary that a movie, Catch Me If You Can, was created based on the true events that comprised his life and time as a fake check crook.

Nazi counterfeiting

(Sherlock77)

Horrifying as the Holocaust was to begin with, it adds insult to injury to learn that the Nazis were also heavily involved in counterfeiting. A USA Today story from 2000 reported that fake British currency produced by concentration camp prisoners under threat of execution was found in Alpine Lake (just across the border of Austria), some 55 years following the end of World War 2. The operation was evidently a major project of the Nazi party. “Hitler and his cohorts tried to cover their footprints as their situation grew desperate”, USA Today writes, but “the mountains of documents were just too huge” according to Holocaust law expert and University of Pennsylvania professor Harry Reicher.

Anastasios Arnaouti

(Ewan M)

In their article “Britain’s Biggest Forgers Jailed”, RealPolice.net describes the activities and eventual arrest of Anastasios “Taz” Arnaouti, a 37 year old Greek Cypriot who led, “…a gang that police believe ran Britain’s biggest fake currency racket.” Arnaouti and Co. produced hundreds of millions of pounds of counterfeit notes in order to distribute them to criminals. Investigations revealed that the outfit sold £10 notes for 80 pence and £6 for $100 US bills. It wasn’t until 2002 when police raided a backstreet workshop and found the goods: a super-sophisticated printer, templates and bags of fake notes (one containing $1 million) and linked Arnaouti to the scheme. Arnaouti, a regular gambler who lived in a £250,000 flat – despite claiming to be unemployed – was found guilty of conspiracy to make and pass counterfeit currency and sentenced to an eight year prison term.

Alves dos Reis

(Mesq)

Alves dos Reis was the man responsible for what Wikipedia calls “one of the largest frauds in history” – a meticulously planned looting of Banco de Portugal in 1924. Rather than printing his own counterfeit currency, dos Reis had the novel idea of forging a contract in the bank’s name authorizing a printing company to print more actual currency. Upon assembling a team of foreign spies and diplomats, dos Reis pushed the contract through, obtaining all the needed signatures and getting the money printed under the guise of financing a loan for Angolan economic development. When all was said and done, printer Waterlow & Sons Ltd. had produced 200,000 bank notes of 500 Portuguese escudos, amounting to roughly 1% of the nation’s GDP at the time. Though his con was eventually found out, dos Reis himself served next to no jail time and died freely of a heart attack (perhaps poetically, in poverty) in 1955.

Stephen Jory

(hitthatswitch)

Known today as Great Britain’s most legendary counterfeiter, Stephen Jory and his crime ring were, “…responsible for two-thirds of all the fake currency in circulation between 1993 and 1998″, according to the UK’s Independent. Working in tandem with three partners, Jory helped pump £50m onto the streets of Britain before being discovered by police and National Criminal Intelligence service investigators. Remarking on the uncovering of the historic counterfeit fraud ring, a Hampshire police spokeswoman called it “the break-up of one of the most successful counterfeit rings ever to operate in Britain.”

Samuel C. Upham

(J. Stephen Conn)

Some call him the “King of Confederate Counterfeit.” Others simply know Samuel C. Upham as the first known counterfeiter of money on the Confederate side of the American Civil War. Working in secret and distributing his currency to private buyers, Upham was said to have produced twelve different types of confederate notes and postage stamps, and sold upwards of 80,000 fake notes by May of 1862. Even as Congress mandated a death penalty for counterfeiting, Upham continued unabated, even bragging to friends and relatives that a $10,000 bounty had been placed on him, dead or alive. Prior to dying of stomach cancer in 1885, Upham is said to have sold between $10,000-$50,000 during his 15 month stint as a Confederate counterfeit artist.

Edward Mueller

(SqueakyMarmot)

The 1950 movie Mister 880 documented the activities of Edward Mueller, a New York City-based counterfeiter of $1 bills. While this may seem to pale in comparison to some of the other heists, Mueller’s true distinction is in how long he evaded capture. The movie portrays Mueller as having eluded the US Secret Service for over 10 years, continuing to peddle his fake $1 bills throughout the city with impunity. Investigators have deemed Mueller to be perhaps the longest uncaught counterfeiter in history, a feat that was no doubt aided by sticking to $1 bills rather than the $20’s, $50’s,http://www.mint.com/blog/wp-admin/media-upload.php?post_id=6734&type=image&TB_iframe=true&width=640&height=685 or $100’s that have done in so many others in such less time.

Pakistan counterfeiting

(t3rmin4tor)

Most people assume counterfeiting is left to professional criminals or gangs, rather than the national government of a fully recognized country (Alves dos Reis’ swindling of Portugal’s national bank notwithstanding.) According to the Times of India, however, the Pakistan government engaged in a multitude of counterfeiting operations in 2009. And, rather than counterfeiting their own currency, Pakistani printing presses have flooded the market with bogus Indian currency, which was evidently sold on the street under such code names as”chappal”, “kafi”, “machchli” and “achar.” There have been other allegations that American and Singapore currency has also been counterfeited by Pakistani presses; there is also speculation that much of this currency has been used to fund terrorist attacks in the Mumbai region.

Catherine Murphy

(John Curley)

As the last woman in England to be executed by burning at the stake, Catherine Murphy’s counterfeiting is well worth mentioning. ExecutedToday.com explains that as a convicted coiner (tantamount to high treason in 1789), Murphy ranked among the most despised type of criminal in all of England and is now remembered as an unenviable historical footnote. Interestingly, Murphy was apparently hung to death, and later burned.. Following her death, the Treason Act of 1790 prohibited burning at the stake for all future crimes (at least officially.)

Yomanimus

Making money in real-estate is all about timing. Despite the fact that many people lost not only their shirts but their homes in the mortgage meltdown, real-estate has historically been considered a safe investment. But if current trends continue, there may be more bust than boom. In fact, we may never see a mortgage market as booming as it was during during the early 2000’s. In addition to the flood of new homeowners, the housing boom saw an unprecedented number of speculators acquiring multiple properties, hoping to capitalize on ever-increasing housing prices. The combined effect of all this activity was a mortgage market of tremendous size – roughly $10 trillion in residential mortgages by late 2007, which equates to nearly a quarter of the total debt market in the US. But every boom eventually busts, and since ‘07 the mortgage market has shrunk into a shell of its former self.

It should here be noted that the shrinking mortgage market is not only, or even primarily a US problem. BBC News reported in November 2008 that it was likely that, “…net new mortgage lending – gross new home loans minus repayments and redemption – would fall below zero in 2009 and see only a modest recovery in 2010.” These remarks were made following 2007 where net new mortgage lending stood at £108bn. Similarly, the UK’s Independent reported the findings of a study by Nationwide predicting that, “…the UK mortgage market will contract by 80% this year [2009],” and also that, “…house prices will fall for another 12 months.” Nationwide group development director Tony Prestedge estimated the total value of the mortgage market to be £18bn in 2008, compared with £90bn in 2007. Both estimates reach the same chilling conclusion of a drastically shrinking market.

The effects on the US market have, of course, been more prominent in the news. While the recent lowering of interest rates has spurred some activity, HousingWire.com recently reported that the number of mortgage applications filed in the week ending September 25 declined 2.8%, “…on a seasonally adjusted basis”, citing the Mortgage Bankers Association’s survey that measures total gross applications in the US. The refinancing index is also said to have decreased (albeit only by 0.8%) while the purchase index fell 6.2%. Another weekly survey, Mortgage Maxx, reached similar conclusions. After adjusting to “account for multiple submissions by the same borrower”, Mortgage Maxx found that total applications declined by 7.3% in the same week.

Casey Serin

Trouble began brewing before this year, however. According to BuilderOnline.com, 1 in 3 mortgage applicants was turned down in 2008 (a 32% denial rate) the same year that total mortgage applications were down by a third from 2007 and at less than half of 2006 levels. Even such mortgage activity as took place was largely of the government-backed variety. According to BuilderOnline, “…loans backed by the Federal Housing Administration soared to 21 percent of all loans made last year [2008] from less than 5 percent in both 2005 and 2006.”

The fallout from the housing bust has even affected tiny countries thought to be irrelevant to a crisis originating in the US. Bulgaria, for instance, saw the size of its mortgage market shrink twenty times in the first two months of 2009, according to Novinite.com. Only BNG 18 M was invested during January and February, as opposed to the BGN 355 M that was invested during the same months in 2008.

WoodleyWonderworks

All in all, the housing bust and the recession that followed have made for tough times in the mortgage market. Because mortgage-backed securities were packaged and sold to investors all over the world, what began as a US problem is very much an international problem with international repercussions. The silver lining (if there is any) may be found in the aforementioned recent lowering of loan interest rates to below 5%. As Reuters reported on October 7 2009, new mortgage applications are at a four month high. As a “tentative early indicator of sales”, these numbers may hold promise for the mortgages Nevertheless, substantial growth remains to be seen.

World of Warcraft

jaunpol

Beyond the fact that spending time at home playing WoW is more cost-effective than going out to bars, clubs and pubs, there are several legitimate lessons to be learned, applicable for both the business world and for personal finance. For one, players don’t level-up without paying their dues, much like in business, where it is also important to forge lasting relationships (alliances). Secondly, it teaches one the value of money (gold), how much time and hard work can go into earning it, and what it takes to manage it — purchase of X precludes or may limit the purchase of Y. Also, in WoW it becomes easier to earn gold as you progress; just as should be the case with the real world, the harder you work at something (play the game), the higher the return you receive.

What did we learn?

Staying-in is the new going-out. People are beating the recession by substituting their world of wasteful spending, with the World of Warcraft. A month long subscription to World of Warcraft can cost less than $0.50 cents per day, which otherwise wouldn’t even cover the cost of a parking meter during a night out on the town. Get creative with your free time. The potential savings are enormous.

The Oregon Trail

playfullibrarian

Although we probably didn’t realize it at the time, The Oregon Trail provided us one of our very first lessons in the importance of life, liberty, and the pursuit of happiness. This “educational computer game” was built to simulate the struggles of a 19th century family as they traveled vast distances in hopes of fulfilling their vision of Manifest Destiny. But the game was unusually difficult for some children to grasp. With very little room for error, The Oregon Trail took ill-prepared pioneers on a journey that would inevitably end in famine, infectious disease, and a long list of equally horrifying scenarios. Not only was The Oregon Trail a game, it was a harsh lesson in the unpredictable nature of life.

What did we learn?

When it comes to personal finances, always hope for the best but prepare for the worst. In a world filled with unexpected downsizings, enormous layoffs, and more competition for few jobs than ever before, preparing for the worst is no longer an option. It’s a responsibility. Create a budget, keep track of your expenses, look for unique ways to save, and do whatever it takes to reach your own financial (manifest) destiny.

Sonic the Hedgehog

nickstone333

At a time when the gaming world was in dire need of a new hero to lead them into the next era of consoles, Sonic the Hedgehog made his grand entrance onto the scene as a flagship title for the Sega Genesis. The Genesis console was SEGA’s first legitimate attempt at proving that they had a brand and a product that was worthy of stepping into the ring with the undisputed heavyweight champion of gaming, Nintendo. And just like that, one of the fiercest console wars in video game history was born. Almost immediately, the world was hooked on Sonic’s distinctive look and radically different spin on Nintendo’s weary approach. One of Sonic’s best tricks was also one of his most unique. Instead of dying like most other characters would, Sonic would first lose all of the golden rings you had collected up to that point. Although it worked out in Sonic’s advantage most of the time, it’s never nice to know that everything you’ve ever worked for is constantly at risk.

What did we learn?

Sometimes the best offense is a good defense. Protect your assets at all costs and don’t be afraid to pull out all the stops when it comes to securing your identity. There are services and agencies which specialize in protecting against cyber-related crimes, and many have developed a flawless reputation for doing so. And if that’s asking too much, at least do a quick search for easy ways to protect yourself from becoming another statistic of identity theft. And, at the very least, make sure you don’t carry all your rings around in your pockets — you could lose them.

Grand Theft Auto IV

DeclanTM

When they weren’t busy revolutionizing the gaming industry with groundbreaking new titles, single handedly prompting immediately legislative reform, and exchanging blows with some of Washington’s most influential politicians, the team behind The Grand Theft Auto series taught us that there are only two types of debt-collectors in the world: Those who use a telephone, and those who prefer to take things into their own hands. But as anyone who’s ever been on the wrong side of debt will tell you, actions don’t always speak louder than words.

What did we learn?

Armed with a telephone, a condescending attitude, and the uncanny ability to wake you up early on your only day-off, debt collectors seem to find meaning in making your life hell. If you’re already in debt, the worst possible thing you can do is ignore it. Not only will it be detrimental to your blood pressure, it’s also a good way to ruin your credit for life. Take small steps in connecting with your debt-collectors. You might be surprised how flexible they’re willing to be.

Madden NFL 10

Wikimedia Commons (Madden with friend)

While scouring Madden NFL 10’s labyrinth of leaderboards, stats, financial data, and revenue generators, two things become blatantly obvious. Number One: Terrell Owens might be the most overpriced player in football. And, Number Two: there’s no good reason why we all can’t have detailed breakdowns of our salaries, expenses, personal finances in an easily digestible format. Madden’s Franchise mode allows you to take control of any team in the NFL, which gives you access to data on player salaries, revenue generation, and fund distribution. In other words, it’s like the ultimate digital checkbook you’ll probably never have.

What did we learn?

Luckily, you don’t have to be a professional athlete to keep track of your finances. Websites like Mint.com are simple enough to be used by anybody and give you an at-a-glance overview of all of your income and spending. It’s all about the data. Further, mobile apps like Mint.com’s iPhone app have made it possible to track your expenses down to the penny while on the go, all in a sleek, detailed, and easily accessible format.

E.T. The Extra Terrestrial

Let’s face it – video games aren’t cheap. In fact, they never have been cheap and you shouldn’t expect that to change anytime soon. To make matters worse, nearly all video games are sold at the exact same retail purchase price regardless of quality. You’ll fork out the same amount of money whether you’re purchasing the best game ever created, or a heaping pile of dung. That’s where E.T. The Extra Terrestrial comes into play, considered to be the absolute worst game of all time. The game was marketed as the next big thing in gaming, but did little to impress. The game was plagued by rushed deadlines, which caused the developers to release an effectively incomplete game. Before the internet and video game critics came to be, we were left to believe what the marketers told us about their products and not much else.

What did we learn?

Whether you’re purchasing a new car or a loaf of bread, take time to think out the purchases that you make. Sadly, the days of impulse buying are gone for a large percentage of us. Be skeptical of the hype surrounding new trends and gadgets, and make sure you know what you’re getting into when you pull out that credit card. An educated consumer is a powerful consumer. Take advantage of information and product reviews readily available online – take advantage of what consumers didn’t have access to 25 years ago.

Counter Strike

Pal Berge

Counter Strike has long been one of the more successful first person shooters of all time. Long after its release, it continues to be one of the most popular games played worldwide. But upon closer look, it’s noteworthy just how relevant Counter Strike is to personal finance. The game gives each player a budget to start out with in each game. At the beginning of each round, this budget is used to purchase better weapons and upgrades, which subsequently increase your chances of success.

What did we learn?

Strategic financial planning can yield big rewards both in the game of Counter Strike and in life. Sure, you could spend your entire budget in the very first round and see marginal results. But, the players who can manage their budget to withstand the test of time, are often the players who end up with the best weapons at their disposal in the final rounds.

The Sims

CLF

They say art imitates life, and perhaps there’s no truer application to this saying than The Sims… the game that simulates real life. The Sims is an example of how one man took a concept so simple, yet so necessary in today’s culture, that it would eventually sell more copies than the population of some small countries. The Sims went on to become the highest selling PC game of all time, and the rest is history. The game was responsible for showing us just how satisfying it can feel to take a blank canvas, help it grow, and then watch it flourish into a masterpiece. Through hard work, patience, and a little financial ingenuity, The Sims taught us all sorts of life lessons.

What did we learn?

Success and failure in The Sims can be closely compared to the successes and failures of your everyday life. Much like the real world, The Sims rarely rewards laziness. So unless you’re banking on winning the lottery, realize that the financial world revolves around hard-working, diligent, and goal driven individuals.

Dungeons & Dragons Online

Ramon Cahenzil

One of the very first forms of geek-culture to infect the mainstream was Dungeons & Dragons, which is a role-playing game that was played by rolling dice, cards, and whole lot of imagination. Thankfully, technology has provided us with a less shameful and more anonymous way of living the D&D lifestyle. Much like World of Warcraft, Dungeons & Dragons Online is an ever-evolving world that gives you the ability to conquer things much bigger than yourself. What many people don’t realize is that D&D Online features a deep-rooted entrepreneurial driven economy, with players using their skills, talents, and products as a means for virtual financial success.

What did we learn?

A trip to one of the many auction houses in D&D Online can allow you to walk away with some killer deals. When wholesalers and consumers directly connect, both parties can benefit greatly from the absence of a “middle man”. A real-world example of this concept can be found on Ebay, Craigslist and many other online services that facilitate and encourage the connection between wholesalers and consumers.

Ally

(Image)

The online-only bank Ally, formerly known as GMAC Financial Services opened for business in 2009. At a time when customers are more suspicious than ever of banks (brand consultant Rick Barrera likens it to, “…walking down the dark alley with your arms up” according to the Wall Street Journal), Ally has positioned itself as the ultimate in courtesy, support and trust. The branch-less nature of the bank allows Ally to operate without monthly fees, minimum payments or minimum deposits, and their “Tier 1 capitalization leverage ratio is almost triple what is deemed “well capitalized” under the FDIC’s regulations”, according to Ally’s website.

Aldermore

(Image)

The dearth of new banks extends beyond the US and into Europe, but at least one UK bank has decided to open its doors amidst the recession – Aldermore. Billing itself as a “new name in British banking”, Aldermore is a relaunch of Ruffler Bank, according to the UK’s Guardian. Its primary selling point is a lack of involvement with the sophisticated securities and investment vehicles at the heart of our currently financial crisis. As the Guardian explains:

“It will be dead simple, old-fashioned banking. We don’t have any ‘back book’ of toxic debt, we are British, regulated in the UK and will provide consistently good rates to savers.”

The bank, which is, “…the first new bank to launch in Britain since the onset of the credit crunch”, chose to open under the name Aldermore because, “…alder is an ancient British tree that grows well while others fail.” It also aims to become known for its exceptional rates on savings bonds – currently offering anywhere from 3.69%-5.11%. At a time when savings are on the rise, Aldermore could be positioned for superb growth.

California General Bank

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On March 23, 2009, Reuters announced the opening of California General Bank, the only bank to open in all of southern California this year and one of only two in the entire state. Starting out with $20 million in capital, Pasedena-based California General bills itself on its website as a, “…community business bank specializing in the financial needs of the small to medium size privately owned business, professionals, and high net worth individuals.” All eyes will be watching to see how the fledgling young bank handles its first few years of existence amid the worst economy in decades.

Coastway Community Bank

(Image)

In its article “Coastway Becomes RI’s Newest Bank”, MoneyAisle.com discusses Coastway Community’s transition from a credit union to a full-service bank. As they explain, the newly formed bank is now free from the burdensome regulations it had to contend with as a credit union:

“As a credit union, the maximum Coastway could write in business loans was 12.25 percent of its assets. That was $36 million. The actual amount Coastway had in business loans as a credit union was almost double that at $70 million. It was able to do this because of federal guarantees mostly made by the Small Business Administration that guarantee up to 75 percent of a loan.”

Coastway is one of several financial institutions that have re-branded themselves or, in some cases, re-opened with a totally new array of services since the recession began.

Ann Arbor State Bank

(Image)

Ann Arbor State Bank opened its doors in December 2008 just a few months after filing for permission to operate. Starting out with $10 million in capital, founder Bill Broucek, a 47 year financial industry veteran exclaimed, “…it’s the very best time to start a bank because of the problems other banks are having” according to Michigan Live. The bank (which uses just one branch currently), was created in order to, “…target small to medium-sized businesses and professional organizations in Washtenaw County, specifically Ann Arbor, as well as offer retail banking and loan services for individual customers.” This seems to indicate a trend in new bank openings during the recession – start small, with growth engaged in only after solidifying one’s roots.

TD Bank

(Image)

Following its 2008 merger with Commerce Bancorp, TD Bank has opened several new banks. Most recently, TD has launched, “…its largest US initiative by opening a full-service bank center in downtown Boston, a move that will fill a big gap in its New England footprint” according to Boston Business Journal. And this branch is just the start. The BBJ goes on to explain that TD Bank is looking to aggressively expand its presence, opening several more banks despite the economy in efforts to “build its Boston-area deposit base by several hundred million dollars.”

Farmington Bank

(Image)

A major trend in banking during the recession has been rebranding existing banks, in an attempt to distance themselves from past perceptions. One of the more recent banks to utilize a branding strategy is Farmington Savings Bank, the long-standing Connecticut bank that will, effective in October, be known simply as “Farmington Bank.” According to HartfordBusiness.com’s article on the now-widespread practice, bank rebranding is much more than simply a name change.

[Farmington President, Founder, and CEO John J. Jr,] Patrick said the bank is dumping “Savings” from its name because it signifies a smaller institution that has only limited offerings.

“As we talked to a broader spectrum of influences in the region they didn’t realize we had the commercial lending capacities we now have,” Patrick said.

“We are not just a savings bank anymore and we want the name change to reflect that.”

Farmington is the latest in a series of bank rebrandings, including our last entry, TD Bank (formerly known as TD Bank Financial Group).

JP Morgan/Bear Stearns merger

(Image)

The bank merger perhaps most relevant to the recession was the sudden marraige of JP Morgan and Bear Stearns. In a deal orchestrated and largely financed by the Federal Reserve, JP scooped up its fallen competitor for a song and a dance, paying only $236.2 million (or roughly $2 per share.) According to MSNBC, the deal represented, “…a 93.3 percent discount to Bear Stearns’ market capitalization as of Friday, and roughly a 98.8 percent discount to its book value as of Feb. 29.” In exchange for the unprecedented discount, JP agreed to guarantee all of Bear Stearns’ business – particularly its trading and investment activities, which the Fed felt were too important to leave to chance. The combined entity is known simply as JP Morgan, and it is unclear whether the Bear Stearns name will surface again.

SJB National Bank (Coming Soon, Presumably)

(Free Ers)

Miami Dolphins owner Stephen Ross has been given the green light to charter a new bank, according to Bloomberg. Tentatively called ‘SJB National Bank’, Ross is said to be sharing majority ownership with Bruce Beal Jr. and Jeff Blau. Bloomberg also states that sources claim the new bank, “…will have at least $750 million of capital and may buy assets of banks seized by the Federal Deposit Insurance Corp.” While SJB will not begin operating as a bank until it is accepted by the FDIC, industry analysts expect no complications with either this or securing FDIC membership. This all follows Ross’ completed purchase of the Dolphins in Janurary for an estimated $1 billion.

Full disclosure: Ally is a MintLife sponsor but none of the banks included in this article, including Ally, had anything to do with writing it.

Let’s face it – the typical real estate transaction is pretty boring. Few of us can get all that excited about yet another “three bedroom, one and a half bath” changing hands in the town or city we live in. The daily occurrence of these deals – and the ordinary properties involved – are simply too commonplace to react any other way. However, every once in a while a truly remarkable property comes on to the market or is developed for sale. Whether it’s a house that’s only nine and a half feet wide or one made entirely of glass, these bizarre properties provoke more than a passing glance. The following are some of the most noteworthy:

World’s Most Expensive Home

Plenty of us have complained about our high mortgages or rent, but no one louder than whomever winds up buying this place. The German website Spiegel Online International describes the house for sale at an eye-popping €6.3 million (roughly $9 million US) What is even more mind-blowing about this particular deal is the size of the home. Most people would expect a sweeping, palatial mansion that casts a majestic shadow on passersby for such a steep asking price, but alas, the property clocks in at a tiny 322 square feet. Spiegal offers some hints as to the astronomical value of the property, which sits on the German holiday island of Sylt:

“According to owner Heinrich Haase the building stands on 2,400 meters of land in the millionaire’s neighborhood of Kampen on the island, off Germany’s northern coast near the Danish border…”

The property is also said to be situated amidst natural sand dunes and offer an unrestricted view of the sea. Interest is rumored to be high in the historically expensive home, including amongst people “whose names you would know.”

The Bubble House

Now may be the most inopportune time to be cracking jokes about bubbles and houses, but that didn’t stop Pierre Cardin from snapping up this bad boy. OddityCentral.com chronicles the story of this strange property in photographed, high-resolution detail, describing its early history as follows:

As the story goes, Pierre Cardin was looking to buy a nice house on the Cote d’Azur, but was horrified by all the unoriginal designs that he had seen and that didn’t match his avant-garde fashion designs. That one day he stumbled upon a construction site, where an architect by the name of Antti Lovag was building a bubble-house for some industrialist who happened to have died. Cardin was thrilled to acquire the almost finished residence that finally satisfied his exigent taste.”

OddityCentral goes on to note that the bubble house was far from an instant hit upon its 1990 completion. In fact, some even referred to it derisively as the “crazy-house.” However, it is today a popular landmark, visited by thousands of tourists every year.

The Harlem Castle

Few types of real estate are as compelling as domineering, Gothic castles that cast their shadows down from on high. This is precisely what we find in the recent sale of Harlem’s Grey Gardens castle, deemed by New York Magazine to be “the steal of the year” at $1.5 million. NY Mag’s reporters who researched the story noted that they were

“…blown away by the gorgeous 8,250 square feet of interior space, the quirky architecture, the original stained-glass windows, the herringbone wood floors and the coffered ceilings, the history (it was built by a circus impresario and was later a funeral home), and most of all the $3.5 million price tag.”

The $2 million discount (75% off!) came about due to the extensive repairs that will have to be done by the new owner, ranging from rotted floors to cracking plaster to a “jungle” in the backyard. However, the consensus is that the new owners got a steal and that there is “no other property like it on the island of Manhattan”.

New York’s Skinniest House

(Marcin Wichary)

Many an unhappy home owner has lamented the lack of space in their homes. Belongings pile up, discomfort builds, and life at home becomes too cluttered for our liking. But few of us know “small” like the owner of the house covered in a recent Yahoo! News story:

“It’s 9.5 feet wide and 42 feet long (2.9 metres wide by 12.8 metres long) and is billed as the narrowest house in New York City. But there’s nothing small about its asking price: $2.7 million.”

These absurd dimensions make the Greenwich Village house in all likelihood even narrower than the one pictured above. Yahoo also notes that the current owner paid $1.6 million in 2001 for the property, which a real estate broker quoted for the story describes as “a place for someone who wants a little history.” It remains to be seen whether the new, higher price will be met (especially in this economy), but the eventual sale of this property is sure to attract attention one way or another.

The Glass House

(Christopher Peterson)

Everyone’s heard the line about how people who live in glass houses shouldn’t throw stones, but no one ever gets to say it to an actual glass house owner – that is, until this dwelling came along. Designed by American architect Phillip Johnson, the glass house was erected in New Canan, Connecticut in 1949 as Johnson’s own residence according to the house’s website. In addition to being declared a National Historic Landmark in 1997, the house passed to the National Trust For Historic Preservation upon Johnson’s 2005 death, and has been subsequently opened to visitors and tourists. The only non-glass materials used are brick for the floors and charcoal-painted steel for the exterior beams.

The $25 Million Bounced Closing Check

One thing all real estate deals have in common is the closing, where buyers and sellers (or their attorneys) meet up to consummate the final details and sign off on all remaining paperwork. Typically these are rather ordinary affairs containing little of interest to outside observers. In 2006, however, a closing unlike any other in history took place in New Jersey. TheRealEstateBloggers.com tells the story of Solomon Dwek, a real estate investor from Ocean Township who deposited a $25,000,000 check from a closing he had just wrapped up nearby. The check was deposited from a drive-through teller window (which was apparently Dwek’s usual method of depositing) and promptly bounced, creating a domino effect whereby $23 million in checks written against the money bounced thereafter. The story behind the bogus check remained shrouded in mystery for several years, stating only that the FBI was investigating. In 2009, however, TillerStillers reported that Dwek had been arrested for using the illicit funds to repay old loans, as well as trying to cash a second $25 million check at a different PNC branch.

UFO House

(robinart.com)

Conspiracy theorists will find much to explore in Chattanooga, Tennessee’s UFO house. In an investigative piece on the property, Gizmodo.com conducts a photographed overview, describing it as “one of the most bizarre abodes we’ve ever seen” and recalling that it boasts “a button activated stair case, curved bar area and customized bathtub, as well as various UFO paneled controls throughout that are simply priceless, or so you would think.”

Unfortunately for the Gizmodo crew, the home’s asking price of $100,000 puts it “about $99,999 out of our budget.” Perhaps these extraterrestrial home owners will be forced to beam down their price a bit in light of the economy.

$1.8 Billion NYC real estate investigation

As the above example illustrates, some of the craziest real estate deals involve not just the property itself, but the insane manner in which the deals are carried out. Another fascinating example is the $1.76 billion Riverside South project in NYC, on Manhattan’s West Side. According to the New York Post, the deal (which involved 77 acres of waterfront real estate destined for luxury condos and is said be the biggest in NYC history) saw a Chinese consortium “evade taxes by having the buyers, developers Extell and the Carlyle Group, pay a $17 million finder’s fee to a British Virgin Islands-based shell corporation.” As of September 19, 2009 there had already been one arrest in connection with the convoluted deal, which alleges that consortium members funnelled bonus money and other payments through illegal tax havens in foreign countries.

Charges brought against Barry Gross thus far include “grand larceny, falsifying business records and offering a false instrument for filing.” It remains to be seen how much more chaos unfolds from this strange and apparently deceptive deal.