President Obama signed legislation last Friday that will change the way credit card companies conduct business.  Numerous measures designed to assist American consumers will become effective by February 2010, including a requirement that card issuers must send bills at least 21 days before the due date and that they also must provide at least 45 days notice on any significant contractual changes.  Banks will no longer be able to issue a credit card to any individual under the age of 21 without a parent's consent (source: White House). 
 
Treasury Secretary Tim Geithner delivered an optimistic message when he spoke before the Senate Banking Committee last Wednesday.  Geithner stated there were "important indications that our financial system is starting to heal."  He pointed out that the 10 US banks that have been ordered to raise $75 billion of capital as a result of the Treasury Department's "stress tests" have already raised $48 billion, indicative of growing investor confidence in the banking system (source: Treasury Department).    
 
OPEC ministers gather in Austria on Thursday to consider changes to its daily oil production.  The average price of gasoline nationwide was $2.42 a gallon on Memorial Day (yesterday) compared to $3.94 a year ago (source: AAA).

 
1.     NO PAY HIKE? - Social Security benefits have received a formula-driven "cost of living adjustment" (COLA) since 1975 (before that date annual increases were set by legislation).  The COLA for benefits in 2010 will be based upon the change of the consumer price index from the 3rd quarter of 2008 to the 3rd quarter of 2009.  Unless inflation increases over the next 5 months, it is possible there will not be any COLA adjustment for 2010 benefit payments.  The COLA increase for 2009 benefits was +5.8% (source: Social Security Administration).  
 
2.     CHEAPER GAS - American consumers spent $26.5 billion at gas stations in April 2009, $15.2 billion less than the $41.7 billion spent at gas stations a year earlier in April 2008, i.e., Americans spent $500 million a day less at gas stations in April 2009 when compared to amounts spent in April 2008 (source: Commerce Department). 
 
3.     THE BIGGEST - The 19 US banks that received "stress test" results from the Treasury Department on 5/07/09 hold 67% of all assets in the US banking system (source: Financial Times). 
 
4.     UP-FRONT MONEY - The median down payment (stated as a percentage of the purchase price) made by first-time home buyers in calendar year 2008 was 4% (source: National Association of Realtors).