The way things are going, small businesses are going to need more than that. What about a cash advance for all? (Photo: flickr.com)

The U.S. has finally traveled out of the dark ages of recession, or so it seems, because a few people I know have had to utilize cash advance loans to keep their businesses afloat. Many of financial hardships that people are facing aren’t spewing forth from a lack of effort. Typically, recoveries from recession in the United States are lead by small businesses. It’s during this time that small businesses should be springing forth, and advancing the growth of the current economic state.

Positives of This Recession Break

The positive side of a “recession breather” is that small businesses can lease or buy fairly cheap commercial property while they prepare for financial growth and industry expansion. My friend and newbie online business owner Carl R. said, “I believe that in up to six months from now, the unemployment rate should scale back down to the eight percent, or maybe even five percent mark.” At that point, we should be celebrating and enjoying life, because small businesses would provide four out of five new jobs for Americans.

Is There a Dark Side to This?

Unfortunately, if we do happen to regress into another dreaded recession, falling from the “recession breather” we’re currently in, it could go down this way: unemployment could crawl “way above” 10 percent. That would definitely put us into another funk. Commercial Real Estate values would sink more than they expand, due to a lack of small business expansion. When small businesses refuse to expand, they react by rebuffing the notion of hiring, because of the possible lack of expansion. The concept is similar to a revolving wheel. Small businesses are the rise and fall of our country’s financial destiny. Small businesses fear the thought of consistently changing company policies and creating rigid changes in energy, union membership and health care matters. In this case, unfortunately, a cash advance loan wouldn’t help my friend Carl.

There are wonderful possibilities as to how small business power could signal an economic charge against financial woes and provide recession remission. However, the reality is that small businesses still aren’t hiring, and most are aware of the facts presented here.

Some Businesses are Doing Better than Others

Some of the conglomerates like McDonald’s, Green Mountain Coffee and Panera Bread have weathered the current recession, either by keeping profits at a set high or improving their sales figures. However, not all restaurants are operated and provide as much convenience as fast-food chains Most use and need credit lines to run their businesses.

Will President Obama Save Small Business?

There are numerous issues involved in the recovery of small business. Energy and union labor are two big issues worrying small business owners. President Obama’s plans for health care are a current worry as well. Inflation and commodity prices that determine the costs of food production and delivery all play a key factor in the anxiousness small business owners are feeling about what’s ahead in the upcoming months.

Michael Lind had some things to say on Salon.com about the ideas and future plans for Obamacare, in that it practically places small businesses on a financial “sacrificial altar.” I won’t delve into the intricacies of his statements, but if Mr. Lind’s words represent the thoughts of President Obama, and congressional Democrats (who poor and middle class people have been hoping would rescue our country from its existing financial position), small businesses will only be able to dream of expansion.

Not a Storybook Ending

The sad truth is that locked down small businesses won’t start hiring, and the result will be that the current commercial property bomb might not be defused in time. And I’m sure that no one wants to see America fall prey to the explosion of a second recession. Thankfully, a cash advance loan is there if – or when – you need one.

Apply for a Cash Advance HERE!

It was designed to break your heart. And its falling value has an impact on all our lives. (Photo: flickr.com)

Under both the Bush and Obama administrations, U.S. government spending – financed by government borrowing – has skyrocketed, resulting in a prolonged decline of the value of the dollar. This trend escalated with the Federal Reserve’s reaction to the 2008 subprime mortgage crisis and the dramatic drop in interest rates. Today, with interest rates still low and government borrowing still rising, the dollar continues its steady decline. Recently the dollar has reached new all time lows against the Euro and other major currencies resulting in a lot of concern about the dollar’s viability internationally. It has even been argued in some quarters that the United States may have its national credit rating lowered.

Does it Really Matter to Most Americans?

Economic optimists point out that most Americans do not travel abroad for significant periods of time, meaning that currency conversion rates do not matter to them. They also argue that a weak dollar helps the economy by stimulating American exports. Both of these arguments are valid, but they fail to take into account the ways that a declining dollar does affect the domestic economy. While your average American may not have to worry about converting his cash into euros, your average American does buy a lot of imported goods and though the weak dollar does help exports, exports constitute less than 15 percent of the Gross Domestic Product (GDP), so only a few benefit.

The Weak Dollar and the Cost of Imports

Goods that are imported into the United States, even if the trade is denominated in dollars, are directly affected by the value of the dollar. The weaker the dollar is, the less value it has abroad, so those countries exporting to the United States have to increase the price to compensate for this. Among the most vital of these imports is oil, upon which the United States is largely dependent. A weaker dollar means that oil and all of its derivatives increase in price. The same can be said for all imported goods, from clothing and textiles to components in ostensibly “American-made” products. The lower the dollar, the more expensive all imported goods are to the average American consumer.

Dollar Value and Foreign Investment

The United States has been heavily reliant on foreign investment for decades now. Foreign investment in government debt is what keeps the federal government solvent. Similarly, foreign investment in our financial system – banks, major corporations, securities markets – is also essential to keeping the economy sound and money circulating through the system. However, since virtually all of these investments are denominated in dollars, a declining dollar discourages foreign investment. Since the U.S. requires this foreign investment, the logical answer is to make American investments more attractive by increasing the interest rates, but this significantly hurts domestic debtors.

Yes, the Declining Value of the Dollar Does Matter

Although most Americans do not have to worry about directly converting their dollars to foreign currencies, virtually all Americans do have to deal with the increased price of imported goods, from gasoline to running shoes. The point that the weak dollar helps American exports is also valid, but the export sector amounts to less than 15 percent of the economy, whereas the more expensive imports affect virtually all Americans. Further, since the government and financial industry have to encourage continued foreign investment, it means that interest rates are likely to increase, putting increased pressure on domestic debtors, from mortgage holders to people with large credit card bills.

Is There Anything You Can Do About This?

The factors behind the declining dollar are macroeconomic in nature and the key player, the Federal Reserve, is not directly accountable to the public. Those with large investment portfolios may want to consider diversifying some of their holdings into assets denominated in other currencies to serve as a hedge, but this is only an option for a minority of Americans. There may also be some value in investing your retirement and savings in international mutual funds, those based on foreign assets. Otherwise, there are few options available to your average American. Nevertheless, it is important to understand that the declining dollar does directly impact you.

Don't forget the bathroom. Image from Flickr.

Many people balk at putting money into their homes in the current situation. Home prices and values are falling, and equity loans for home improvements are all but impossible to get. With falling values, few people have any equity left.

No one can blame homeowners for not wanting to deplete their savings to invest in something that has a depreciating value. However, homeowners must remember that their homes are still their greatest assets, and even if they can’t build value they can slow the fall.

Choose the Project that Fits Your Budget

If getting a loan is not be a viable option, choosing a project that is appropriate for your budget is very important. There are projects that will increase the value of a home that will fit almost any budget level.

You must choose a project that generates the greatest return on  your investment. As always, try to use the bank’s money if possible, but using your savings could still be worth the investment.

High Cost Projects

When choosing more costly projects, the homeowner needs to think infrastructure and not cosmetics. Projects that add to the longevity and energy efficiency of the home should be at the top of the list. One of the up sides of an economic downturn is that prices for services have fallen, too. In relative terms, it may be more cost effective now to make some major upgrades that you have been putting off.

For example, replacing your current siding with fiber-cement or foam-backed vinyl siding can be done more cheaply now and still net an 87 percent return on investment with energy savings and increased home value upon resale. A valuable room that is often neglected is the bathroom. Realtors estimate that a remodeled bathroom can yield as much as a 71 percent return on investment when you sell a home. Remodeled kitchens net a similar return on investment, as well.

Medium Cost Projects

If you do not have access to enough credit or savings for those projects, there are still significant gains you can make without spending quite as much. One of the highest rates of return on investment is actually found outside the home. The addition of a well-made, well-designed wood deck can get you up to an 81 percent return.

If it cost you $10,000 to build the deck, you could add $8,100 to the selling price of the home. If fiber-cement siding is too costly, upgrading with vinyl siding is still a good investment. Vinyl siding garners about the same return as the wood deck: 81 percent. Even minor kitchen remodeling and upgrades will net you a nice return. Upgrading the countertops alone can bring you a better asking price.

Something is Better than Nothing

Even if you can’t do everything, do something. Your home is the most important piece of your financial portfolio, and doing some work now while prices are down can pay off big down the road. The housing market will rebound someday, and you could get an even higher return when it does.

One of the challenges at the beginning of any economic recovery is reading mixed indicators. One sector of the economy will perk up while another sector takes a downturn. Moreover, most areas of the economy remain stagnant. The average consumer is confused, and investors are reluctant to part with their liquidity.

Last week the jobless rate was reported higher than expected. This week a stronger than expected forecast was given for Gross Domestic Product.  This is confusing for the average person. If we are laying off workers, who is making all the new products?

One Step Forward, Two Steps Back

Another troublesome aspect to a recovering economy is false start indicators.  Sometimes the public, financial sectors and the government are so anxious for the recovery to start they report information too quickly and tout it as a sure sign of better days to come.

For example, indicators in the housing market are watched very closely.  A small rise in new home starts or existing home sales gets a lot of press and attention. However, the next month when the numbers come out these indicators might be lower than they were before. Not only did the growth stop, but the industry actually went backwards.  This oscillating effect makes consumers more likely to wait to make a big move and banks less likely to open up credit access.  Banks still look at the value of homes as a threat because we are not sure exactly where the bottom will be. Most economists and analysts agree that the fall is slowing.

Money In, Money Out

With the economy slow to recover, the federal government has seen fit to drop or at least hold interest rates low. This should be a good thing for borrowers and stimulate some spending and investing. So why hasn’t it worked yet?  There are several factors that diminish the effectiveness of this move, but there are two main factors: restricted credit and return on investment.

Under normal circumstances, lowering interest rates would spur economic activity; however, banks have already cut a good portion of the populous out of the picture with tighter lending criteria. You now have fewer people able to take advantage of the lower rates, thus reducing the effectiveness of the strategy.  Secondly, when interest rates drop on money loaned, the interest rates paid to investors drop, as well.  People with money to invest aren’t going to move ahead earning 1 percent or 2 percent if waiting awhile may double or triple that return.

When Will We Be All Better?

The key to economic recovery is people being convinced that things will get better sooner rather than later.  The individual consumer must see enough positive indicators to have faith in the future and start spending money.  This will drive interest rates up slightly and get investors into the picture. Once this happens, banks will feel secure enough to open up access to credit, and the whole system snowballs to recovery.

Consumers are using payday loans and their tax refunds to pay necessary bills. In the past, taxpayers saw their tax refunds as additional money to do something fun with. Whether it was a vacation, a new TV or a down payment on a vehicle, people used the money for unnecessary items. This year a new poll is showing that most Americans are looking forward to paying off bills and expenses with their tax money. In fact more than 54 percent of those receiving refund money intend to either pay credit card bills, utility bills or other housing-related expenses. This is up from the 35 percent who were in the same position just one year ago.

This news is no surprise to analysts who have spent months studying the economy and the recession. They predicted long ago that people’s attitudes toward spending would be conservative at best. Michael Fortman, economist for Smartmoney.com, stated, “Even with big sales and discounts, many Americans are going to be very cautious going into the future. … They have seen the recession and what it did to many families and they don’t want to get caught up in the issue later on down the road.”

Taxpayers are trying to stretch their budgets

The Obama administration wants this year’s refund money to be fueled back into the economy. Their hope is that the added money will spur the economy out of a recession quicker. However, with the loss of more than 5 million jobs since the end of 2007,this is a difficult task. Add that to research showing the people are focusing any increase in funds to necessary bills, and the result is less discretionary spending. As Fortman concluded, “It makes sense to be frugal when the economy is in such bad shape, but it hurts the economy when everyone does it.”

Taxpayers are trying to stretch their budgets, using payday loans, extreme budgeting, thrift-store shopping and bartering to meet their everyday needs. One mother from Sarasota, Florida stated, “For the past year and a half, I have been trading clothes with other mothers at my son’s school. Without that bartering, it would have been next to impossible to keep our five children clothed.” Creativity is the new way of 2009, as consumers are eager to find new ways of saving money.

Government interventions with the stimulus plan

The question remains whether the government’s intervention with the $787 billion stimulus truly served its purpose. It’s going to be difficult to say whether it did because of the unknown.

Critics maintain that the stimulus’s mixture of government spending and tax cuts benefited large businesses, but did little for immediate relief in the lives of American families. Harvey Leven, lawyer in New York, stated, “The little guy is always down. … Sure, the government extended huge packages to corporate America, but taxpayers — the ones who in the end will pay for the stimulus — are left in the cold. They have to fend for themselves suffering through unemployment, rising interest rates and lowered home values.”

Americans wonder about the future

In the end, many Americans are wondering where the post-recession life will leave them. They are being resourceful when paying bills, using payday loans and tax refund money to cover the costs. Everyone hopes, though, that their return to normalcy will be quick. Hopefully the economy will level itself out and allow people to return to normal spending.

Apply for Payday Loans HERE!

Credit card interest rates are going up. Has your bank dropped the bomb on you? (Photo: wilpf.org)

If you have been relying on credit cards to get by each month, you may need to borrow money just to pay the minimum payment these days. Credit card companies are raising interest rates dramatically in an effort to stay ahead of the declining economy. But the problem is that they are not just doing this to those who have had problems paying their bills on time, but those who have always paid on time. Does this seem unfair to you? Yes, but the cold reality is that people who have had their credit cards for 10, 20 or even 30 years, with previous interest rates at about nine percent, are now getting slapped with rates over 20 percent!

Is This Legal?

Yes, because the fine print in your agreement that you signed when you first accepted your credit card states that they can raise your rates at their discretion. But it will not be for long, because the new rules affecting their behavior, known as the Card Act of 2009, will not take effect until August, 2010. Regardless of your personal situation, even if it hasn’t changed, the overall financial environment has changed, creating more risk for banks and credit card companies. If they spread out the risk, they can limit their losses on those who default on their payments.

Shouldn’t I Be Notified?

Currently, banks do not need to give you more than 15 days to let you know that your rate will be increased, and what you can do about it. Did you miss this notification? You probably did, as they put this in your monthly statement, or even in a separate envelope that you may mistake for junk mail and throw it away. You have a chance to decline the new rate and continue paying off your bill, but if you miss the deadline, you will be stuck with the new rate. After August, 2010, you will get at least 45 days notice, which should help you actually see it.

My Rates Increased – Now What?

The ideal situation is that you catch the notification before the deadline and call your bank right away to let them know that you decline this new rate. If you opt out of this new rate, they will close your account, but you will continue paying off the balance at the lower rate.

However, if you miss the deadline, another option is to pay off any balance that you owe and close your account. You can possibly borrow money at a lower rate than what your credit card is currently at to pay off the balance and save yourself thousands of dollars in interest rates.

Or, if you want to keep the account open, transfer the balance to a lower rate card. Be sure to check your credit on your other card first, as well as what the balance transfer fee is. If you are not careful, you may end up paying more in fees doing this, than if you were to accept the changes and keep your account open.

Plan Ahead

The best route to saving money in the long term is to plan ahead. Before you borrow money to pay off your high credit card debt, create a budget that shows where your money will go and when. This way, you know exactly what to count on. Of course, creating a budget is only half the story—you must stick to the budget you create, so that you will have no need for credit cards or high interest loans in the first place.

Money for nothing

In these difficult economic times, the average American family is forced to live paycheck to paycheck — if they are lucky enough to have jobs at all. When the U.S. government bailed out Wall Street, the major banks got huge cash infusions. Since then, major banks like Chase and Bank of America have been reporting record-breaking profits.

Is this because they are making profitable loans to consumers and businesses, earning money the way banks traditionally do? No. In fact, banks’ lending levels are the lowest they have been in more than a decade. What is the secret to their record profits? Fee revenue, or as we all call it: Overdraft Fees.

NSF fees are costing Americans billions

According to the Washington Post, consumers paid a stunning $23.7 Billion dollars in overdraft fees in 2008, and that number is expected to rise dramatically in 2009. An estimated 51 million Americans have been forced to pay at least one overdraft fee in the past year at an average of $35 each.

Ouch. These fees are making cash-strapped families hurt even more. What is worse, banks used to have more forgiving policies regarding overdrafts, but now some only allow one overdraft fee per year to be removed.

Congress is regulating overdraft fees

Congress is considering overhauling the laws that govern overdraft fees, but it could be years before those laws go into effect. Yet, many Americans have discovered a secret method for preventing overdraft fees and saving money, while being able to cover their daily expenses until their next paycheck. What is the secret? Online payday loans.

Borrow money through your computer

Most Americans loathe the idea of getting a payday loan from a cash advance store in a strip mall. People are embarrassed to admit they are having financial difficulties, and frankly being seen at a payday loan store could be a huge social stigma.

Thankfully, the internet has revolutionized the way people can borrow money when they need it. You can receive up to $1,500 in two hours or less, and have the money deposited directly into your checking account. You don’t need good credit to qualify for these loans, and you don’t even need a fax machine!

The true cost of overdraft fees

Look at the math. Say you were getting paid on Friday, but your bank account came up just $3 short on Thursday. One single overdraft fee would cost you $35, creating an effective annual interest rate of 260,245 percent! As most people know, having just one overdraft fee is rare when your account balance is low. If you just buy gas, go to the grocery store, pay for child care, and pay your electric bill the day before payday, you could owe $140 in overdraft fees and in reality be paying more than 1 million percent interest!

Payday Loans help you save

Online payday loans just make financial sense. If it cost you $15 to borrow $100, and it saved you $140 in overdraft fees, its like putting $125 in your pocket. The key to saving money on payday loans is to make sure to pay them back quickly, as the fees can get expensive over time. If you don’t have the money to pay the loan back within then next two weeks, consider an installment loan, which offers a more affordable payment plan.

Your secret to beating the banks

Your banker will tell you that payday loans are dangerous and expensive. What they don’t want you to know is that they are making a killing on overdraft fees, and wouldn’t want that money to go away. Do your own homework, and you’ll find out that banks are profiting billions while America suffers. Take matters into your own hands and get an instant cash advance today.

If you need an instant cash advance, APPLY HERE

Image from Flickr.

As more people embrace new methods of communicating, language must evolve to describe those methods. I admit that I do more communicating via Facebook and online instant messaging than I do by phone or even in person. Even the payday loan store is being replaced by the internet.

Apparently this is true for many, as the the Oxford New American Dictionary has declared “unfriend” the 2009 Word of the Year. In the dictionary, the word is defined as “To remove someone as a ‘friend’ on a social networking site such as Facebook.” This says more than one interesting thing about modern culture.

Are we unfriendly people?

News organizations and even an Oxford Dictionary editor are painting Oxford’s choice for Word of the Year as a reflection of the unfriendliness among us. Christine Lindberg, senior lexicographer for Oxford’s US dictionary program, wrote Is it a comment on the times that our Word of the Year is about rejecting people we once embraced?”

She poses this as a question, and I have an answer: No. It is not a sign of the times. There have always been fickle, petty, vindictive and sometimes downright mean people. There have always been humble, loving people who do uncharacteristically mean things out of anger and spite if they are pushed just so.

The bright side

The positive thing about people having the option to unfriend others is that it’s harmless, and it has taken the place of more damaging methods of expressing anger. Be honest, I’m sure you’d rather be unfriended on Facebook than have your tires slashed or your car keyed or your yard toilet papered.

Yes, unfriending someone is an immature, petty way to deal with interpersonal conflict. However, I think the fact that it gives an outlet without doing property or any other sort of damage is positive. Yes, feelings can get hurt when someone gets unfriended, and it could lead to other consequences, but the act of unfriending itself is quite harmless.

More new words

Not surprisingly, many of the other finalists for Word of the Year were technologically inspired. On the short list was hashtag, a symbol (#) used on Twitter to allow people to search for terms. Netbook and paywall also were finalists. Confirming that text messaging is one of today’s most popular methods of communication, “sexting” and “intexicated” also were finalists. Sexting, of course, means sending explicit messages or photos. Intexicated refers to being distracted because of texting while driving.

The dismal economy also triggered new words, including “funemployed,” which Oxford now defines as “taking advantage of one’s newly unemployed status to have fun or pursue other interests.” Another finalist for Word of the Year: “zombie bank: a financial institution whose liabilities are greater than its assets, but which continues to operate because of government support.”

Thanks to a politics, “teabagger” and “death panel” are now officially words. As my parting piece of news, I want you to know the phrase “tramp stamp” has made it into the dictionary. Good job, America.

Will the Washington Blade maintain Internet presence?

The demise of the newspaper began long before the recession, and it will continue afterward. Newspaper publishers are finding it harder every day to compete with digital media. Window Media, which was the country’s largest publisher of gay newspapers, has shut down.

Window Media published the Washington Blade, a Washington, D.C., publication that celebrated its 40-year anniversary last month. Window Media owned several other publications, too, including the Southern Voice and David, both based in Atlanta, The Southern Florida Blade and 411 Magazine.

A dramatic exit

Apparently Window Media employees didn’t see this coming, and they showed up for work Monday only to find the locks changed and notes saying the newspapers would no longer operate and they could come back Wednesday to collect their things.

Rumor has it the Small Business Association had given Window Media’s biggest stakeholder, Avalon Equity Partners, $38 million in guaranteed loans. When Avalon failed to come up with half that amount in private investments, the SBA placed Avalon in receivership.

Fuzzy details

SBA said Avalon was in receivership in February, and in July, Window CEO David Unger quit. There was some speculation that Unger was forced out by the SBA. It’s not clear exactly how Window media came to the decision that it should cease operations.

The Washington Blade staff reportedly will meet tomorrow to discuss a new venture, headed by the Washington Blade’s current editor, Kevin Naff. Members of staffs on the other Window-owned publications also have said they will try to continue to provide news on the gay communities in their areas.

State of the newspaper

Newspapers all over the country have been shrinking or shutting down in pretty high numbers for a few years now. The country’s biggest publisher, Gannett, completed huge layoffs this year.

This pattern will continue until newspapers can figure out a way to adapt their business models to capitalize on the Internet. It’s a rough transition for a very old industry, but necessary if news publications want to survive.

In an effort to find new customers, banks are aiming to help with a big public concern: debt relief. TD Bank, located on the East Coast, hosted a free pizza night for potential customers. Citizens Bank has promised to give new customers $1,000 if they are saving for their children’s college fund. Bank of the Wichitas, in Oklahoma, is hitting the market hard with a new advertising campaign with “Where bankin’s funner!” as their slogan. Regardless of their geography, banks are looking for new customers and finding creative ways to reach out to a new market.

Since the Federal Reserve set an extremely low interest rate, banks are trying to work with the numbers. This explains why most banks offer bonuses , but with conditions. For example, Citizens Bank’s $1,000 college fund is available, but only if customers open a new account and deposit at least $25 per month. To qualify, families must have children younger than 6 and agree to contribute at least $25 every month until the child is 18. Another example is HSBC’s program to give away Amazon Kindles but only to customers who open a new account with $50,000 and agree to maintain a combined balance of $100,000 at the bank.

Small banks

To find good interest rates, some searching is required. First of all, smaller banks are now trying to compete with large banking centers. They are offering “rewards” checking accounts that often return 4 percent or more. Studies show that small banks often carry interest rates that are twice the national average. Gabriel Krajicek, CEO of BancVue.com, stated, “Most small banks have maintained the higher interest rate package for over a year, so their reliability is great.” BancVue.com is a web site that lists reward-running banking programs from around the country, at a community level. It’s a great tool for consumers to look for banks offering the best perks.

Online banks

For consumers looking for debt relief, searching online may also aid their financial positions. Online banks gained popularity a few years ago and managed to gain a strong market share almost immediately. Although online banks still have less than 4 percent of total retail deposits, their revenues have grown more than $160 billion since 2000. Part of the reason is their rates are normally better than brick-and-mortar banks. Online banks have smaller overhead costs and can pass the savings onto their customers. James Kelly, COO of ING Direct, the largest online-only bank, stated, “Despite the economy, we’re getting as much money as we need.”

The downside of online banking, however, is that most have limited online services. For extra accounts such as auto loans or credit lines, consumers still have to go elsewhere. Also, many online banks don’t have their own ATM networks, so getting charged a fee for using a debit card is inevitable. Check cashing can also be a hassle with banks that do their business solely online. Customers have to grapple with a traditional bank and explain their online status or mail the check to their online facility and wait for days, sometimes weeks, for their money.

Finding funds

In the end, debt relief is available to those to search hard for it. Fortunately in today’s computer age, there are web sites that do the work and research for consumers. Web sites like BancVue.com build their business on becoming a banking resource for their visitors. Consumers need to find tools like these and use them to maximize their savings.

New statistics on the U.S. unemployment rate were released today, and things haven’t been worse for 26 years. The October unemployment rate was 10.2 percent, more than double normal levels. It’s also the highest unemployment rate the country has seen since 1983, when it hit 10.5 percent.

I have read a lot of things lately that say “economic indicators” say we are in recovery from the recession. I am also familiar with the fact that unemployment rates are “lagging indicators,” and in fact might be the last thing to improve during economic recovery. However, several other current conditions indicate to me that people might have to stay in debt survival mode for a while longer.

Good news before bad

The president signed a bill today that extends unemployment benefits for people whose unemployment insurance is set to expire before the end of the year. People who fit the bill will get an additional 14 weeks of unemployment benefits, and those who live in states with unemployment rates higher than 8.5 percent can get an additional 20 weeks, almost five months, of benefits.

The fact that 8.5 percent is considered a high unemployment rate, and the national unemployment rate is nearly 2 percent higher than that, shows how bad things really are right now. The unemployment rate isn’t the only thing that got worse last month.

More economic indicators

Bloomberg.com reports that payrolls fell 190,000 in October. Factory payrolls fell 61,000, compared to 45,000 the month before. Furthermore, the underemployment rate has hit a staggering 17.5 percent. Underemployment includes people who are working part time but would prefer to work full time.

That number also includes people who want work but have given up looking. Remember, the unemployment rate only includes people who are actively looking for jobs and collecting unemployment insurance. It doesn’t include those whose benefits have already run out. So those who are not collecting unemployment but still jobless and seeking work are included in the underemployment rate.

In short, 27.7 percent of Americans are unemployed or underemployed.

Still trying to help

The bill that extended unemployment benefits also extended the homebuyer tax credit. First time homebuyers can still receive $8,000 if they sign a sales agreement before April 30, 2012.

People who have owned their current house for five years or more can qualify for a $6,500 credit. The tax credit only applies to purchases of primary residences that cost less than $800,000. Also, only individuals with incomes less than $125,000 or couples with incomes less than $225,000 can qualify.

Who says things are getting better?

The consensus that the economy is recovering from the recession comes from the fact that the economy grew in the third quarter, which ended at the end of October. That means the gross domestic product grew over the three month period preceding that.

Economists are referring to the period we’re going through now as a “jobless recovery,” but some experts, including CNN columnist Colin Barr, say a jobless recovery is no recovery at all. Barr writes:

But so far there is no sign of an employment turnaround — and without one, and soon, all the other gains could prove fleeting. … But so far there is no sign of an employment turnaround — and without one, and soon, all the other gains could prove fleeting.

President Obama's plans for the Consumer Financial Protection Agency could mean that debt relief is closer than ever for the downtrodden. (Photo: flickr.com)

The recession has forced America to face some of its most deep-seated systematic financial troubles. One thing that has become clear is that unscrupulous mortgage lenders and credit card agencies have dined for far too long upon consumers who largely didn’t understand that they could hold out for something better. Foreclosure and bankruptcy have amplified the burden on consumers, courts and the economy as a whole tenfold, which makes the question of how debt relief should be handled a more pressing issue that it has been in decades.

Cornell and George Washington Law School Economics lecturer and former professor Dr. Neil Buchanan ponders in a recent FindLaw column entitled “Should Federal Agencies or Courts Protect Consumers in Financial Markets?” which side of the regulatory coin America needs most. Existing regulatory agencies are being given more extensive duties by the Obama administration in order to help make America’s financial markets safe and sound. At the same time, new agencies like the newly minted Consumer Financial Protection Agency appears to be on its way to receiving unprecedented powers. In theory, it will have the power to police how mortgage lenders, banks, credit card companies, payday lenders or any other consumer finance company interacts with consumers. It is Buchanan’s opinion that allowing regulatory agencies to protect consumers is the best route, as relying solely upon the courts wouldn’t be enough of a deterrent to keep suspect lenders from indulging in bad behavior. The ideal system would have both in place as a regulatory enforcement clearing house.

But Isn’t This Big Government Clogging the Market?

Some will surely feel that way. What I have seen from state governments is an overzealousness to regulate payday lending, to the point where it is impossible for such legitimate businesses to operate in some states. Mortgage lenders and credit card company supporters would likely have similar complaints, although the path of destruction their industries have carved is rather hard to ignore. Buchanan begins his argument by considering the “courts only” option. If it were possible t regulating a market in need of deep repair like the mortgage industry through simple enforcement of the law, that would be ideal. However, Buchanan doesn’t see that as being enough. Sometimes the courts might work in favor of the consumer and debt relief, but not often enough. Extreme circumstances would be required to convince most judges to see cause to invalidate a contract. The “non-elite” consumers, as Buchanan calls those most in need of debt relief, would not receive the help they need.

There is precedent here, but it could be a one in a million kind of thing. Buchanan points to a New York Times story where a judge ruled that a homeowner’s mortgage debt could be completely discharged during bankruptcy. This loop in legal convention happened due to a technicality: the mortgage company couldn’t prove it had the legal right to collect payments on the homeowner’s mortgage due to the fact that their mortgage had been repackaged and resold so many times that the paper trail had been lost. The mortgage company claimed this was “standard procedure” now, but the judge wouldn’t accept such shenanigans. Since the judge wasn’t exactly sure who was due the money, he decided he couldn’t compel the consumer to make mortgage payments to any one party.

“Saved by a Technicality” Won’t Work for Everyone

Buchanan rightly points out that not all judges will be as determined to call mortgage lenders’ bluff in such situations. “Standard procedure” should hold in most cases, meaning that homeowners would still be legally obligated to follow the terms of their mortgage contract. And mortgage lenders have certainly learned something from that case and are making sure all paperwork is in order. Once again, the deck will be stacked against consumers.

Don’t Depend Upon Courts for Debt Relief

Courts enforce the law. When a consumer enters into any legal contract with a lender, the terms of that contract are in most case subject to enforcement by law. Buchanan considers the vast majority of consumers to be “grossly mismatched” against mortgage and credit card companies. Mandatory arbitration clauses, hidden interest spike triggers and means of computing interest are always written in the best interests of the creditor. Consumers often agree to such contracts because they feel they don’t have any other choice. New regulatory agencies may be able to curtail abusive practices that are currently considered legal, but until that time officially arrives, there is too little hope that the average consumer will be able to fight back through the court system.

Courts Have Been Friendlier to Finance Companies

Families can go to court to attempt to prove that they shouldn’t have to pay under the terms of less than legal contract. However, Buchanan believes most judges will stick to enforcing contract language. In turn, the lending companies themselves are effectively using the court system to compel consumers to pay, even if it is through wage garnishment.

What about “Equitable Doctrines” for Debt Relief?

Hoping that lenders lose their paperwork isn’t a good strategy. That’s where “equitable doctrines” come into play. These can create situations where courts might be willing to set aside otherwise valid contracts because they feel that it there were unconscionable circumstances that placed the consumer under duress or undue influence to sign. Buchanan draws our attention to the “doctrine of unconscionability” itself, claiming that it works in two ways. First, in terms of procedure, there is the scenario where a contract was formed under suspicious circumstances. Second, there is the scenario where the substance of a contract is deemed grossly unfair. If both conditions are met, a contract like a mortgage, credit card agreement, etc, will not be enforced.

Too Good to Be True?

Perhaps it is. It all looks great on paper, says Buchanan, but debt relief is hard to come by via equitable doctrines. Only the most extreme cases are considered by courts, and for most people, having trouble paying a mortgage or credit card they signed up for won’t be enough to sway a judge. This raises the question in Buchanan’s mind as to whether courts should be compelled by stronger legislation to accept equitable doctrine arguments based on things like unconscionability. But as with any other action fought through courts, the cost would likely be prohibitive. Moreover, lenders would still be favored because “losing a contracts case legally cannot result in a company paying punitive damages,” writes Buchanan. “If you lose a contracts case, you merely pay what you would have paid anyway; and if you win, you are ahead. Thus, from the standpoint of repeat players, there is no reason not to abuse your customers (except to maintain goodwill, which many of the companies at issue here have already forfeited).” Then there are plenty of consumers who simply will not have the stomach to sue or be willing to accept a lesser settlement.

Calling on the Government for Debt Relief

Traditionally, the government has remained behind the scenes while consumers have pursued their right to take debt relief matters before the court system. As Buchanan suggests, however, this route has not often proved itself to be effective for the average consumer. In situations where genuine signs of abusive practices and unconscionable contracts are involved, new government agencies could take up the baton and make financial regulation more consumer-friendly.

“An agency can be empowered by Congress to order changes in behavior, changing business practices broadly and generally in order to level the playing field on which financial institutions and their customers do business,” says Buchanan. There could even be scenarios where lenders themselves could support agency regulation over the courts. “Out of control lawsuits” that financial institutions claim burden them unnecessarily would certainly be something lenders would be willing to leave behind so that a regulating agency can rule on matters. “But that hypothetical,” Buchanan writes, “ignores the financial industry’s real agenda, which is to fight to maintain both weak legal rules (allowing them to win in court) and weak-to-nonexistent agency regulation.”

Congress, Act Now

New agencies are about to spring forth from the executive branch to regulate the financial abuse of consumers through deceptive practices. Congress is in a perfect position to arm these agencies with more consumer-friendly laws that will make reasonable debt relief easier to attain. It’s that kind of consumer protection that Neil Buchanan and most concerned consumers are in search of as America looks to emerge from the darkness of the recession into the light of a stronger domestic America.

More smartphones on the way. (Verizon Droid Eris not pictured.)

Everyone has heard of the Motorola Droid, set for retail release tomorrow. We’ve all seen the commercial publicizing Droid’s quest to one-up the iPhone. However, today it has gotten out that another Droid, the Verizon Droid Eris, will also be available, and for half the price.

Consumers who were considering getting same day loans tomorrow so they could buy the Motorola Droid tomorrow just want think about avoiding debt and getting the Verizon Droid Eris instead. The Motorola model costs $199 after a mail-in rebate, while the Verizon Droid Eris, also to be released tomorrow, will cost $99.

A world of Droids

The main difference between the Motorola Droid and the Verizon Droid Eris appears to be the manufacturing company. The Verizon Droid Eris is made by HTC, a company based in Taiwan. HTC certainly doesn’t have the brand recognition that Motorola has, and of course the Verizon Droid Eris lacks some of the features of the Motorola Droid.

Motorola is an American company based in Illinois. The economy may play a big factor in which Droid becomes the best-seller. Americans who have the luxury of being a tad altruistic might be motivated to buy the Motorola Droid in order to spur the U.S. economy. However, many people’s budgets are tighter than ever, and in this recession, saving  money is the new cool trend.

What’s the difference?

Naturally, you get what you pay for, and the case is no different with the Verizon Droid Eris. Some of the features the Droid commercial boasts about, including a “real keyboard,” are not present on the Verizon Droid Eris.

Naturally, in order to carry the Droid moniker a smartphone must run on the Android processing system. Verizon Droid Eriz does run on Android, but it runs on version 1.5 rather than Android 2.0. Translation: the Verizon Droid Eris is slower.

Don’t worry, we still have something to look forward to after tomorrow. Motorola has another Droid model on the way.

Since July 24, 2009, the federal minimum wage has been $7.25 per hour. That means in every state in the United States, employers must pay workers at least $7.25 per hour. In Washington, D.C., it means employers must pay $8.25 per hour because the law there dictates they must pay $1 more than minimum wage.

The $7.25 federal minimum wage amounts to about $1,200 per month — before taxes. Taxes account for an average of 24 percent, depending on the area, which leaves the federal minimum wage earner with less than $1,000 per months to take home. Of course, that’s only for people who work 40 hours per week. It’s no wonder so many families end up needing faxless payday loans to help them get by.

How low can you go?

Despite the fact that the federal minimum wage is not a living wage for anyone who pays rent, some states such as Colorado want to pay less than the federal minimum wage. Colorado, which bases its minimum wage on inflation, says it wants to lower its minimum wage to $7.24 an hour. Of course, it can’t legally do that, but it speaks volumes about the economy.

Many states already have minimum wages higher than the federal minimum wage, and in states where the minimum wage is based on inflation, it could mean the workers in those states would take pay cuts if the state minimum wage is lowered. The idea of a lower minimum wage is especially catastrophic now, when so many unemployed workers are being forced to take low-paying jobs. More people are struggling to get by on minimum wage, so that many more people would be affected if states lower their minimum wages.

When employers don’t pay federal minimum wage

Lucky for Colorado workers and any other states contemplating lowering their minimum wage, they can’t. Furthermore, businesses who try to skirt the federal minimum wage face stiff penalties, as a couple of businesses recently found out.

Southern California Maid Service and Carpet Cleaning Inc. must pay employees $3.5 million in back wages by Nov. 12, a judge ruled today. The owners also spent five days in jail. A site called 7th Space reports:

The owners of a Southland residential cleaning service were taken into custody and later released after failing to comply with a court order directing payment of $3.5 million in back wages, plus interest, fines and liquidated damages to at least 385 workers.

Lost in translation

The owners of Tasty Buffet in Memphis also are being fined for failing to pay workers minimum wage. The fine has doubled to $459,658 after the owners failed to pay the original fine.

The owners are contesting this, saying they provided food and lodging as well as wages for many employees. They also say they didn’t understand the labor laws.

Federal minimum wage exceptions

It is true that in certain cases employers don’t have to pay the federal minimum wage. For example, employers aren’t required to pay commissioned sales employees the federal minimum wage.  Other exemptions include companions for the elderly, workers with disabilities, newspaper deliverers, farm workers and fishermen.

In some states, food service workers who make tips also are paid less than the federal minimum wage, though that is becoming less common.

Photo: http://www.flickr.com/photos/scobleizer/ / CC BY 2.0

In January 2009, for the first time in its history, Microsoft Corp. announced it would cut some 5,000 jobs over the year as the company witnessed a drastic decline in revenue. The company suffered an 11 percent drop in profit, leaving many Microsoft workers unemployed and in need of short term loans. However, according to several news reports, it appears this trend will only continue for Microsoft.

Microsoft Layoffs – Another 1,000 Down

According to Seattle’s Tech Flash News, Microsoft will lay off almost 1,000 employees as part of its budget cutting. Apparently, the plan to cut 5,000 jobs is not yet over. This wave of job cuts, however, is said to be part of the final phase of the company’s initial plan to cut 5,000 jobs over a period of 18 months. This time around, however, employees at Microsoft will not be as fortunate.

Earlier this year, during Microsoft’s massive layoffs in January and May, laid off employees were able to find other positions within the company. Unfortunately, with limited job openings and slow growth, people will have to go somewhere else to find employment.

Falling Revenues

Last month, Microsoft posted its quarterly revenue at $12.92 billion, down $730 million from the amount reported in its third quarter ending March 31, 2009. With the help of the Windows 7 launch and a steady demand for Xbox, the company says its revenue would have been $14.39 billion and earnings would have been 52 cents, up 8 percent, according to Tech Flash. However, through advance sales and negotiations, the key strategy behind the Windows 7 launch deferred about $1.5 billion in revenue from the quarter. According to accounting rules, customers must first be given an opportunity to actually get the final product they bargained for before the company can recognize the revenue.

The Unemployed – What can you do?

Since the beginning of the recession, the unemployment rate has been climbing significantly. More and more people have fallen in need of short term loans and debt relief. But what else can be done to alleviate the amount of stress and financial worries during such a trying time of need? Save, sacrifice, and safeguard; that’s what.

The answer to your family financial crisis may be right under your nose. In fact, if you own your home, you are already halfway to solving your financial woes. First of all, the world economy is in disarray, forcing many people to make decisions they would rather not make about their finances. If your credit is sound, and you do have equity in your home, you may want to consider a secured loan.

Secured loans offer homeowners relief from potentially desperate financial situations. A secured loan is a loan that is generally attached to an asset, normally real estate you own or your home. The equity you have accumulated in your home guarantees the lender will be paid. The borrower, or in this case, the homeowner places the asset, his home, as collateral for the loan.

Be prepared

It is important to understand the dynamic of a secured loan. Failure to make timely payments or a default on a secured loan forfeits the right you have to your asset. In essence, you lose your home through a foreclosure proceeding if you default on a secured loan.

When structuring your secured loan and working your way through the process, be sure of the total of payments you are obligating yourself to on a monthly basis, is a sum you are comfortable with. For many people, it is tempting to make the loan term as short as possible. While it is admirable to pay your loan off quickly, it may not be the best course of action for your family. No prepayment penalties on your secured loan could serve the same purpose and benefit without the associated risk.

Hope for compromised credit

If your credit score has suffered through this economy, it is still possible for you to get a secured loan. Your interest rate may be a bit higher, but since you have your home as collateral, you will find many lenders willing to assume the risk of your loan. As a benefit you may be able to restore your good credit standing with your secured loan payments.

While bad credit borrowers may undergo more scrutiny in evaluating their application, approvals for bad credit secured loans are common. You may be required to provide documentation to support your income and expenses. Ultimately the lender just wants to confirm that you have the means to pay for the loan.

There are many online vendors for secured loans that will service your needs. After filling out a simple online application as to your needs and income, you will receive an approval answer rather quickly.

Bank closings are slowing, despite the fact that more banks are in trouble than ever. The FDIC hopes to instill consumers with confidence. (Photo: flickr.com)

According to the FDIC and other sources, the number of bank failures now exceeds 100. The latest closures included four small- and medium-sized banks in Florida and Georgia: Partners Bank and Hillcrest Bank, both of Naples, FL; Flagship National Bank, Bradenton, FL; and American United Bank, Lawrenceville, GA. When banks fail, the federal government, in the form of the FDIC, steps in to protect the consumer. They do this usually on a Friday afternoon, seizing bank assets to pay for outstanding liabilities. The chief of these are the customers’ deposits. Whatever the assets can’t cover, FDIC insurance does.

When Trouble isn’t Trouble

The highest number of banks ever seized in one year was 120 in 1992. There are currently 416 banks “flagged” by the FDIC as being in trouble as of June 2009. This is up sharply from 305 on the list in March of this year. However, the pace of bank closings is actually slowing down. The FDIC seized 24 banks in July, 11 in September, and eight in October, which has only one week left as of this writing. This seems contradictory on the surface. The number of banks in trouble is going up, but the pace of closings is slowing. How can this be?

It’s All Relative

This is an excellent example and proof that money is really just a concept and not a concrete noun. Most of us think of money as the crisp dollar bills that we get in our paychecks and then put in the bank. But money is really a much more fluid and relative concept. To illustrate, look at the criteria for bank closings. You would think that there is an accounting formula or other federal regulation that determines what constitutes “trouble” in the banking industry. After all, the banking industry is one of the most regulated industries in existence. However, the banks that were recently closed are no more or less in trouble than the other 400 or so banks on the list. Further, if we were not in a serious recession, normal criteria would place the number of banks in “trouble” in the thousands. The definition of trouble changes with the times. What is trouble in normal times becomes acceptable in tough times. So if concrete numbers aren’t determining who survives and who closes, what is making the determination?

Just Act Like We’re All Okay

The key determining factor, according to the FDIC, is consumer confidence in the banking industry. In other words, how the American people think and feel about banks determines whether or not they stay open. Remember at the beginning of this article the number one concern when a bank was seized was protecting consumer deposits. That is true, but not for the reason that most of us would have assumed. Deposits are not protected for the actual dollars in the accounts, but for how secure the owners of the accounts feel about the industry as a whole and how likely they are to re-deposit their funds in another bank. The force keeping the banking industry afloat is not money, but the relative and fluid concept of confidence. How deep does that confidence need to be? Who really knows? Maybe, that is why the FDIC won’t say how deep their insurance reserves are.

Do plenty of research before choosing a lender.

If you have chosen a secured loan for debt consolidation, there is a process you must follow. Whether you have chosen to apply for a secured or unsecured consolidation loan the processes is similar. The following steps will help you decide on what choice is best for you.

Begin assembling your personal financial information. Deciding whether debt consolidation makes sense for your individual situation requires you to take a close look at all your consumer debt. Gather your most recent copies of your loan payments, credit card bills and any other statements you want to include in your secured loan.

Consolidation

Once gathered your information can be copied into a single document that shows the total remaining balance and interest rate for each debt you owe. Make sure to include all debts, all balances and all interest rates.

While most consumers choose to consolidate all their consumer debts, now is the time where you can examine your list of debts and choose which debts you plan to include for your consolidation loan. If you choose to only include a few of your debts, make sure you include the ones with the highest interest rates.

Do the math

You now need to total the amounts of all debts you plan to include to establish the total amount of the loan you require. Make sure you include all debts to be satisfied by your secured loan.

It is now necessary for you to find an average interest rate by adding the rates of the debts you intend to consolidate and dividing them by the number of debts. For example, if you have three credit cards with interest rates of 16 percent, 17 percent and 18 percent equals 51 percent. Divide that figure by 3 and your average rate is 17 percent. The interest rate for your new secured loan should be much lower than 17 percent.

Secured or unsecured

Choosing the type of consolidation loan you will pursue will depend largely on whether you have assets that can serve as collateral. If so, it is generally best to get a secured consolidation loan. Conversely, you should likely get an unsecured loan if you have no assets to serve as collateral.

Armed with your financial information and a reference point of where you are, you can begin the process of consulting secured loan lenders. This process will allow you to quickly weed out any loan offers with an interest rate above what you determined to be your average interest rate. You should be able to find a lender that will have a lower rate available for you. It is just a process of seeking them out. Diligence and being proactive are the keys to successful search results.

Apply for your loan

The loan application process requires you to complete various forms containing your personal information. Since you have already compiled this information, this process should go quickly. Some secured loan lenders charge a loan application fee, but the cost should be minimal.

It is likely that you will get an answer on your loan application rather quickly, and you’ll either be approved or rejected. Getting a secured loan approved sets a course for getting out of debt. Don’t be dismayed if you get rejected. Not all lenders approve all borrowers. You can then pursue another loan with another lender, or you may want to consult a credit counseling service to determine why you were rejected.

Williams College in Massachusetts is facing financial aid cutbacks. More students will resort to personal loans as a result. (Photo: flickr.com)

More students are using personal loans to fund their college costs due to changes in financial aid policies. Along with the rest of the world, colleges and universities are feeling the financial strain of the recessionary economy. They are cutting spending, putting off new projects and programs and instituting hiring freezes. Some experts are speculating that schools soon will be forced to make more cutbacks in the financial aid programs.

Morton Schapiro, president of Massachusetts’ Williams College, is in just that position. Williams College has had a long-standing reputation for not considering a student’s financial situation when deciding on their acceptance. Called a “need-blind” policy, this is a way for students of varying income levels to get accepted to the school of their choice without having to worry about financing. Shapiro agreed that this policy may not be able to withstand the recession. “The major dial you turn for most financial crises is that you admit more students who can pay, as a way of increasing revenues…with the tremendous decline in wealth, I think fewer people will hold to the need-blind [policy].”

Even Worse News

Molly Corbett Broad, president of the American Council of Education, stated that endowments are getting smaller while enrollments are getting larger. “The farther down the food chain you go in terms of endowment per student,” she stated, “the harder it will be to sustain need-blind admissions.”

This change in policy could affect all universities and colleges on some level. Douglas Bennett of Indiana’s Earlham College, is one of the strong proponents of college admission reform. At Earlham College, almost 20 percent of the students are from low-income families and receive some form of financial aid. Bennett stated, “If you are truly need-blind, you can go broke…It is like writing a blank check to the world.”

Endowments

As of now only schools with large endowments are impervious to the recession, but even they are experiencing declines in funding. As Bennett added, “Nobody thinks the market will turn around and go back to do what it did before. That means everyone is having to plan for a more difficult and turbulent financial environment to bring our expenses in line with resources.” Students are bracing for the after effect of the economy by looking at second jobs, personal loans and family aid. They know that the scholarships and financial aid that once was available is no longer there.

The Goal of Educational Institutions

Regardless of the economy, the goal of colleges and universities is to make the degree accessible to as many students as possible. Many are looking at their projected budgets and project management scheduling as a sure-fire place to cut back. Stanford University is cutting five percent straight across the board in every department and cutting $45 million from its operating budget. The school is planning on issuing moderate yearly raises to staff in an effort to remain “committed to its financial aid” plan. Ms. Lapin, Stanford spokeswoman, added, “Maintaining access to Stanford for top students, regardless of costs, remains a top priority.”

Students of the Future

Students of the future face some hefty financing problems to fund their college years. Hopefully, with the help of personal loans, family assistance and part-time jobs, they will be able to complete their degrees. If colleges and universities are equally committed to making school affordable, sticking staunchly to their financial aid plans, students will be able to reach their goal of a higher education.

Cory Monteith plays Finn on "Glee." Image from Wikimedia.

There is a finite amount of money out there and a seemingly infinite number of people competing for it. There is also no limit to the amount of said limited supply of money that each person wants. Thus, any time something becomes popular, the makers of that product inevitably try to think of ways to make more money off of it.

The down side is that we, the consumer, end up needing instant loans in order to be able to afford all the stuff we want. The upside is that there’s constant innovation going on and always new, better products and entertainment.

Innovation in television

The entertainment industry is one of the most lucrative on the planet, and television is a big part of that. Since the inception of “The Real World,” which now seems like ancient history, television has blurred the lines between reality and fiction. Reality shows started out as “real people,” as in not actors, being put into contrived but unscripted situations.

This idea has flourished and grown into a large, tangled web where reality and fiction are sometimes difficult to decipher. Way back in the ’60s, a real band, The Monkees, were incorporated into a fictional TV show. Today, the opposite seems to be happening. The fictional TV show “Glee,” starring the fictional glee club, seems to be spawning a real, live musical act.

Album and tour in the future

Did you know that the cast of “Glee” is going on tour? After millions of fans downloaded songs from the TV show, producers decided it would be a good idea to take the show on the road. So instead of live performers turning to acting after they become famous, these TV actors will become live performers. Also, after the season is finished, a “Glee” album will be released.

When the free market spawns wonderful, gleeful (snicker) entertainment like this, I applaud it. I am so glad to see that even though video game companies and filmmakers are making a killing off of violence, there is still a huge audience out there for positive messages and music. Sure, the TV show “Glee” has some rough moments and some scandalous themes, but at the end of the day it just leaves the viewer wanting to sing and shake her booty. And what’s wrong with that?

So, what do you think about “Glee”? Are you glad that more glee goodness is coming your way? Will you go see the glee club in concert?