This is bizarre at best but its true. In Latvia there lives a man named Viktor Mirosiichenko who heads a company called Kontora Loan Company. Who is this man and what is so unusual about him? He will make a loan to you if you sign an "agreement" and pledge "your immortal soul" as collateral.

Mr. Mirosiichenko's company employs no debt collectors for those who refuse to pay back the loan, nor will he employ violence against those who don't pay back. Signatures on the agreements show only the first name and do not show any documents.

Is there an index that measures millionaires' sentiment and whether they are optimistic or pessimistic? The answer is yes. It is called the Spectrem Millionaire Investor Index.

The next question naturally is: "So what are the millionaires thinking about the economy?" The news is not good. The index fell 18 points to a -20 in June, a record decline since the index was created in 2004. Plus the index fell 17 points in May. A range of -11 to -30 indicates a slightly bearish sentiment. It's likely that millionaires underwent a reality check after a bout of over optimism in May.

Are mortgage rates affecting U.S. mortgage applications? The short answer most likely is yes. Mortgage applications tumbled to a 7 month low, with refinancing loans down 30%, according to Reuters. This is clearly not a good sign for the housing market.

Kenneth Rosen from the University of California says that mortgage rates are just one factor causing the drop. He adds that high unemployment, concerns for job security, and problems with buyers being unable to sell their existing homes are also affecting the market.

How does the consumer feel about the economy? In a word, lousy. The Conference Board, an industry group, reported that consumer confidence dropped to 49.3 in June, from a reading of 54.8 in May. Economists had expected it to be 55.

Here's another piece of bad news. Only 17.4% of consumers felt that more jobs would appear in the coming months, also down from 19.3% in May.

Is it 2009-2010 or 1972-1973? If you're paying college tuition this year, it may be hard to tell. Tuition is up only 4.3% for the coming school year, the lowest rate of growth in 37 years, according to a survey of 350 private schools by the National Association of Independent Colleges and Universities. This is down substantially from the 5.9% increase for the 2008-2009 school year. Of course, this is for tuition only and does not include room and board inflation.

Before celebrating, though, remember that depressed housing prices and constrained financial markets make it tougher to dip into home equity to pay for school (a favorite strategy of the past few years), and layoffs are putting an obvious strain on household finances. So, the bargain in all this may be hard to find, even with financial aid increases of 9.2%.

We live in amazing times. Consumers are earning more; at least the ones with jobs. They are also saving more than they have in the last 15 years. The savings rate, which was hovering near zero in early 2008, surged to 6.9 percent, the highest level since December 1993. I think that is fantastic!

Ben Franklin said, "A penny saved is a penny earned". If that is true, then people are improving their economic condition day by day. Strange as it might seem, the government is troubled by this.

The government and many economists are worried that without greater spending by consumers any economic recovery will be stalled that much further. During our recent manic economy, over the past decade, consumer spending was responsible for about 70% of the GDP.

I say to all my readers, let others spend -- YOU KEEP SAVING -- and reducing debt. You will be glad you did. The consumer led economy was a false economy. The world is mourning the sudden death of Michael Jackson who passed away yesterday from yet to be determined causes leading to cardiac arrest, reportedly $400 million in debt. You think he was under any stress?!

Is your pension safe? This is the question that is being raised by the Organization for Economic Cooperation and Development (OECD.)The financial crisis of the past two years is wrecking havoc on pension plans throughout many countries of the world and could set off a new time bomb, this time a social crisis.

We should note that there are two kinds of popular pension plans. First we have the "defined benefit" (DB) plan where the benefit on retirement is determined by a set formula, rather than depending on investment returns. The second type is the "defined contribution" plan. Here contributions are paid into an individual account by each member. This money is then invested in stocks, bonds, etc. Monies can be contributed by both employers and employees. This type of plan is more vulnerable because it is subject the the ups and downs of the market.

The market takes an upward turn, and the insiders head for the exits.

In the wake of the largest stock market rally in 71 years, according to Bloomberg, the sale of insider shares has reached its most aggressive levels in the past two years. Insiders of companies in the S&P 500 were net sellers for 14 weeks in a row. Six people at Amgen (NASDAQ: AMGN), for example, sold $8.2 million in company stock.

In the biggest flim flam ever foisted on the American people, the Commerce Department reported that the CPI rose only 0.1% in May. Now this number is ridiculous because this "core" rate excludes food and energy. If you have been gassing up your car lately, you know that gas is now pushing $3.00 per gallon.

Nevertheless, the government says "not to worry about inflation." Well if you look more closely you'll find that gas prices actually rose 3.5% in May with crude oil prices trading near $72.00 per barrel.

Can you figure out what these unemployment numbers mean? The headline reads that initial claims for state unemployment insurance benefits fell 24,000 to 601,000. This is being hailed as a piece of good news because analysts were expecting claims to drop to 615,000. In all fairness claims were down from the 621,000 the previous week.

The number of people staying on the unemployment rolls after collecting their initial week of unemployment rose to 6.82 million in the week ending May 30th.

During a recession, people try and find ways of cutting expenses. Consumers buy less and marketers reduce their ad dollars. These trends are still continuing. TNS Media Intelligence reported that advertising spending fell 14.2% to $30.2 billion in the first quarter and up from the 9.2% in the last quarter of 2008.

As with all data, there are people on both sides of the numbers. Sir Martin Sorrel, WPP chief executive said that advertising market is getting worse. In contrast, Maurice Levy, chief executive of Publicis, the French marketing group called the bottom in the ad market. He said:" the fall in advertising expenditures should be over."

US bankruptcies in the first quarter were the highest since 2005. You might ask what happened in 2005 to cause a high bankruptcy rate? In that year there were a rush of bankruptcies ahead of a new bankruptcy law that was designed to curb abuses. The law took effect in October 2005.

Now to the present. Let's look at the numbers:

• There were 330,477 filings in the first quarter, up 10% from the previous quarter and up 35% from a year earlier.
• The Administrative Office of the US Courts reported that consumer filings were up 33%, while business filings were up a whopping 64%

Falling property prices have pushed equities lower for the past nine months, constrained credit and ... forced British couples to stay married?

According to a study by accounting firm Grant Thornton, divorce filings have fallen precipitously in the United Kingdom. Fallout from the worldwide financial crisis has made it harder for couples to sell a jointly owned home and impairs the ability for each soon-to-be-ex-partner to start and sustain an individual lifestyle.

The U.K. Office for National Statistics put the number of divorce filings at 12.2 per 1,000 marriages in 2006 and 11.9 in 2007 -- a 26-year low.

It is said that Archimedes discovered the principle of displacement while sitting in a tub of water. It's not unusual for insights to occur at unforeseen times. So too it was with economist Edwin Coppock. On being told that it took 11 to 14 months to mourn a death, he used this idea to develop an indicator that would predict a sustained rally after an economic downturn.

The Coppock indicator is the sum of a 14-month rate of change in an index and 11-month rate of change, smoothed out by a 10-period weighted moving average. When the curve less than zero and rises, that is a "buy" signal. The deeper it goes below zero, the more powerful the rally. The Coppock indicator has predicted 16 U.S. rallies from 17 "buy" signals, and recently the Coppock indicator gave another "buy" signal.

Did you hear? Mortgage rates are surging. That should be no surprise. All we had to do was look at the sharp sell off in US treasuries and you know that mortgage rates would follow suit. The 30 year fixed rate mortgage rate jumped to 5.29%, up from 4.91% just a week ago. On April 2nd the rate was 4.78%.

Just to give you an example in real dollar terms, let's take a $200,000 30 year fixed mortgage at 5.29%. Your monthly payment would be $1109.37 and your 30 payments would be $399,372.25. At 4.91% your monthly payment would be 1062.67 and your 30 payments would be $382,560. So in real dollar terms your cost has risen $16,812.00. In addition lenders are charging 0.7% in fees and points, unchanged from the previous week.