As elected officials in Washington query what, so far, appear to be both uncooperative and unrepentant officials from Goldman Sachs, more and more Americans turn to barter as detailed in this story from South Carolina’s The State.

Over the past 30 years, Columbia artist Jeff Donovan has bartered for artwork, tuition for his daughter’s private school, a custom-made suit and, most recently, a couple of visits to the dentist.

Bartering gives Donovan a way to use his talent – instead of having to pay cash – to get things he might never buy for himself.

Bartering, trading goods or services rather than charging cash, is an ancient practice. But it has gained popularity during the economic meltdown that left many short on cash but rich in talent or treasures.

The number of online barter ads has increased 100 percent since 2008, according to published reports.
…
“I couldn’t tell you the last time I had been to a dentist, and I felt like it was time,” said Donovan, who is self-employed and has a part-time job but no health insurance.

The dentist paid $325 to the gallery for the painting and gave Donovan a $325 credit at her office. He got his first cleaning last week and will go back in six months for a follow-up.

“It worked out very well,” he said. “Both parties were satisfied, which is I guess the ideal.”

It’s news to me that the IRS has been taxing bartered goods and services for almost 30 years. Apparently, as long as there’s an even swap between parties, no taxes are due, which would kind of suck for the government if barter were ever to expand to a much bigger scale.

While the world waits to hear what Goldman Sachs has to say before the Senate’s Permanent Subcommittee on Investigations, word comes from Standard and Poor’s that home prices are again falling, any ambiguity about the current trend now removed after the firm said last week to ignore the seasonally adjusted data that, in February, also showed a decline.

The unadjusted Case-Shiller 20-City Home Price Index fell 0.9 percent in February, the sharpest decline since March of last year during the depths of  the recession when the homeowner tax credit was just a glean in the eye of elected officials in Washington.

TOP STORIES
Goldman CEO, ‘Fabulous Fab’ face Congress – AP
Home Prices Fall in February; Further Declines Possible – Reuters
Spitzer & Black: Questions from the Goldman Scandal – New Deal 2.0
Goldman Sachs hearing: expect more questions, not answers – Telegraph
Cramer: Goldman to Get $2-3 Billion Fine and Management May Not Stay – BMI
Goldman’s Fall Was Part of the Plan – MarketWatch
Homeownership at 10-year low – O.C. Register
Socialism vs Corporatism – Ron Paul

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MARKETS/INVESTING
Oil prices fall – CNN/Money
Gold eases but holds near $1,150 on debt concerns – Reuters
Computerized Front Running: Another Goldman-Dominated Fraud – HuffPo
Gold survives post Goldman (GS) sell-down attempt – StockHouse
Six investing rules for a worst-case scenario – MarketWatch
“We Are For Flation” – Saut, Raymond James

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